Things to consider when starting your online business (How To Set-up An E-business)

Member Name: xcorlett

Product:	How To Set-up An E-business
Date:	12/03/09 (94 review reads)
Rating:

Advantages: Easy to run once set up

Disadvantages: Takes time to set up

I found this in the "Internet Discussion" section and thought that I'd get the ball rolling. I've run a couple of e-businesses of my own and have designed e-commerce websites for others. Here is a quick rundown on what steps you should think about in order to get your ideas off the ground.

These steps are based on the idea that you want to sell tangible products, ship them to people and sell through a website or online auction house.

Step (1) Research

Are you selling the same thing that a hundred other sites are selling? What sets you apart from the competition? You might find that it is a lot of hard work and not much pay-off if you items are available cheaper at some major name sites. Lets say you wanted to sell computer parts. Check technology emporiums and see what sort of prices they have they parts at. Can you really beat that and buy bread at the end of the day? Maybe you need to look at stocking rare parts for unusual systems, or finding store close-outs and buying up whole inventories. Make sure you stand out! If the product is cheaper, the same price or even a little more expensive at a major name, people are likely to prefer to shop at the major name.

Step (2) Website

How many things to do have to sell? Do you want your own website or do you just want to sell on eBay? eBay will get you exposure, but you'll have to give away around 10% total of your income to eBay and the payment processor (usually PayPal). Plus, you'll have to pay to list items that don't sell. This can eat into your profits if you only sell a few of the items that you list. A website, once set up, is little work. Your items are visible and remain visible. You can spend your time advertising your site on forums and on search engines. If you don't have a clue on website design, find someone who does - it is a whole other topic. If you have a little experience, then go for it! There are plenty of customisable packages out there that can get you a basic looking store going in just a couple of days work and with no programming. However, if you want something that looks like it is yours, you are going to have to consult someone or start reading books on web programming as it can get very tricky.

Step (3) Payment

How are you going to take payment? Always offer the traditional methods (checks, money orders), but concentrate on credit/debit cards. The vast majority of internet transactions are carried out this way and you can pretty much forget about running a business online if you don't offer this method. If you have no trading history, you are going to have to start with what is known as a "third-party payment processor". Instead of a regular merchant account, which offers the best rates but requires a business credit check and trading history, they let you use their merchant account for a higher fee. This is anywhere from 3-15% depending on who you go with. Search Google for comparison sites. Paypal is the classic 3rd party provider, but they have a horrible reputation for freezing accounts and favoring the buyer to such a level that you as a seller can be scammed easily. Check out the possibility of offering several payment options, so that buyers have choice between say, "google checkout", PayPal, ProPay etc. This flexibility is likely to enhance your chances of making a sale.

Step (4) Advertising

How are people going to see your products? If you have the money, consider taking out an advertisement in a relevant magazine. Selling unusual hand-made ceramic plant pots for five hundred pounds each? Try a high-end magazine targeting to expensive lifestyles. Never forget to optimise your site so that search engines can see you better. One of the best ways to advertise your website is to write articles. Devote a section of your site to writing tips, expressing your opinion or writing guides. The more you do, the more times that your website will appear in a search result. People will click to see the article because the search that they made resulted in your site coming up. They might read the article then a percentage of them will check out your site. A percentage of those may actually purchase something, and that is when you jump for joy!

There you have it, a few steps to consider to get you going.

Summary: A fun and interesting way of getting your product out there.