With all the layoffs that have been happening for the past year or so, it’s no surprise that a lot of people are thinking about starting a business. Online shopping has been booming since the early 2000s, and with the COVID pandemic making it even more popular, it's a great time to start your own e-commerce business.
I started one in 2020, which I unfortunately had to put on pause, but I gained a lot of lessons while doing it.
In this guide, I’ll take you through the essential steps that I took to kickstart my e-commerce venture, covering important aspects like deciding on your industry focus, forming an LLC or corporation, registering as a Sales Tax vendor, registering a domain, setting up professional email, choosing the right e-commerce platform, implementing effective email marketing, and managing leads.
1. Deciding on Your Industry Focus and Searching for Suppliers
Before you start an e-commerce business, you have to consider your interests, market trends, and your target audience. Since there are a ton of different industries out there, that’s how you can decide on which industry you’ll focus on.
For instance, when I began my e-commerce business, Corner Nook, I had already been running a small business in the office supply and furniture industry. This experience allowed me to leverage my knowledge and connections to preferred suppliers in the industry, and focus on offering home office furniture. I can’t stress enough how important this first step is.
Don’t do a blanket approach and offer everything under the sun. Remember: The riches are in the niches.
If you don’t have established relationships with suppliers yet, I suggest going to trade shows, exploring online marketplaces, and reaching out to potential suppliers for partnerships. Establishing strong relationships with suppliers is crucial for a reliable inventory for your online store, whether you’re dropshipping, doing private label, or wholesaling.
2. Forming an LLC or Corporation and Registering as a Sales Tax Vendor
It's crucial to establish a legal foundation for your e-commerce business.
Forming a Limited Liability Company (LLC) or a corporation provides legal protection and separates your personal and business assets. Additionally, registering as a Sales Tax vendor is essential to comply with tax regulations and ensure your e-commerce business operates legally.
Start by researching the requirements for forming an LLC or corporation in your jurisdiction. This often involves selecting a business name, filing necessary documents, and paying associated fees. You can consult with a legal professional to ensure compliance with local laws and regulations. I find it best to go directly to the website of the state where you plan to form your LLC.
For me, it was the Department of State in New York (https://dos.ny.gov/). I found their instructions easy to follow and they even have an online filing system now!
So, before you pay another company to do it for you, check your state website first.
If you do find that forming an LLC or corporation is too tedious to do on your own, you can always use the services of Legalzoom or doola to make it easier.
Simultaneously, check with your local tax authority to understand the process of registering as a Sales Tax vendor. Complying with sales tax regulations is crucial to avoid legal complications and ensure smooth operations as you establish your online store.
3. Registering a Domain: SquareSpace (formerly Google Domains)
When building your online presence, one of the first steps is getting a domain name.
Your domain is like your digital storefront, so choosing the right one is crucial for brand identity. I used to use Google Domains for domain registration. However, they have decided to sell this part of their business to SquareSpace.
SquareSpace is user-friendly with clear pricing, making it ideal for beginners. Start by thinking of a unique and memorable domain name that represents your brand. Check its availability on SquareSpace and, if it's free, go ahead and register it.
Remember, your domain name is a long-term investment, so choose wisely.
4. Professional Email with Google Workspace
Have you ever had to communicate with a business that didn’t have their own custom domain? Didn’t it feel a little spammy and untrustworthy to have to email to CompanyX@gmail.com?
Having a professional email address that matches your domain, like yourname@yourdomain.com, adds a level of professionalism to your communication.
For this service, I would suggest Google Workspace (formerly G Suite). They have a comprehensive suite of productivity tools, including professional email.
Setting up a professional email with Google Workspace is easy. After registering your domain with SquareSpace, integrate it with Google Workspace. This not only gives you a professional email address but also provides access to collaborative tools like Google Drive and Google Calendar.
This integrated approach streamlines your business operations and boosts efficiency.
5. Choosing the Right E-Commerce Platform: Shopify
The right e-commerce platform can make or break an online business.
Shopify is a popular and reliable choice for e-commerce entrepreneurs. Known for its user-friendly interface and scalability, Shopify simplifies the process of setting up and managing an online store.
It’s easy to get started with Shopify: just sign up for an account and follow the onboarding process. Choose a visually appealing and responsive theme that aligns with your brand. Shopify offers customizable templates, allowing you to create a unique online storefront without advanced coding skills.
Shopify's features include secure payment gateways, inventory management, and a seamless checkout process. Additionally, it integrates with various third-party apps, letting you expand your store's functionality as needed. If you’re not that tech-savvy, the platform's scalability ensures that your e-commerce business can grow without major technical challenges.
6. Implementing Effective Email Marketing: Klaviyo
Nowadays, email marketing is essential for engaging with your audience, driving sales, and building lasting relationships with customers. For this, I would recommend Klaviyo.
Klaviyo is a specialized email marketing platform designed for e-commerce businesses, making it an excellent choice to enhance your marketing efforts. And the best part is they integrate with all the major e-commerce platforms, including Shopify! This integration enables you to gather valuable customer data for targeted and personalized email campaigns.
Klaviyo's features include customizable templates, automated workflows (a must!), and advanced segmentation options. Use these tools to send personalized product recommendations, abandoned cart reminders, and promotional offers. The platform's analytics provide insights into campaign performance, helping you refine your marketing strategy for optimal results.
7. Managing Leads and Customer Relationships: HubSpot
As your e-commerce business grows, managing leads and customer relationships becomes increasingly important.
HubSpot, an all-in-one customer relationship management (CRM) platform, offers a suite of tools to help you organize, track, and nurture leads effectively.
Integrating HubSpot with your e-commerce platform allows you to centralize customer information and interactions. This holistic view enables you to provide a personalized and seamless experience throughout the customer journey.
HubSpot's CRM features include contact management, lead nurturing, and sales automation. Utilize these tools to track customer interactions, automate follow-up processes, and analyze the effectiveness of your sales efforts. The platform's marketing and sales hubs offer additional functionalities, such as marketing automation and sales pipeline management, to further streamline your business operations.
Conclusion
And there you have it! These are all the steps I took to starting my e-commerce business.
From registering a domain and setting up professional email to choosing the right e-commerce platform, implementing effective email marketing, and managing leads, each step plays a crucial role in your overall success.
By leveraging platforms like SquareSpace, Google Workspace, Shopify, Klaviyo, and HubSpot, you can establish a strong foundation for your e-commerce venture.
Remember that ongoing optimization and adaptation to market trends are key to staying competitive in the dynamic world of e-commerce.
As you embark on this exciting journey, keep customer satisfaction at the forefront of your efforts. Building a reputable and customer-centric online business will not only drive sales but also foster loyalty and long-term success.
Good luck on your e-commerce adventure!