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Step–by–Step Secrets to
Starting an e-Commerce Store



INTRODUCTION - STEP-BY-STEP SECRETS TO STARTING AN E-COMMERCE STORE

4/3/2023

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This is an ongoing blog in process with new chapters being added and edited.

STEP-BY-STEP SECRETS TO STARTING AN E-COMMERCE STORE
 A Checklist Guide to Launch your E-Commerce Store
Or
Don’t Hold Yourself Back

Introduction
Start the dream to-day!
Let’s get you going!
 
You have been thinking about this idea for a while now. It burns inside of you and you feel compelled to move forward. You want to start your own e-commerce business. If that idea won’t go away, now is the time to just start it.
Although there is a huge amount of information out there on the internet, how to get started?
Wouldn’t it be good to find a blueprint outline of what is actually involved?
We are here to help you take those first steps towards creating a wonderful world for yourself. A world of fulfilling a dream you’ve held for a while.
Small and medium businesses are the lifeblood of most countries’ economies. Online sales are expected to equal close to a quarter of overall global retail sales by 2025.
Let us provide you with the basic tools and blueprint to
  1. Decide if this is right for you
  2. Confidently get started
Google [https://google.com] will have all you need to know about developing your ecommerce business in more detail.
This check-list describes the steps and basic principles you need to move forward.



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CONCEPT - STEP-BY-STEP SECRETS TO STARTING AN E-COMMERCE STORE

3/3/2023

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2. Concept

Ask yourself and answer the following questions:
  1. What is the purpose of your business? What does it stand for?
  2. Why does the company exist?
  3. Why do you want to launch the business?
  4. Was there any particular inspiration that pushed you towards this idea?
  5. How does the company resolve a particular problem or set of problems. What might keep your customer up at night?
  6. What is your company’s approach to sustainability. Be careful not to greenwash when considering this issue.
  7. What is your USP > Unique Selling Proposition. How do you express what you offer, what is its value and what can your customers expect from you and your company.
 
Endeavor to be authentic, and helpful and memorable. Use humour to get your message across.
Write your goals down on a sheet of paper. One of them is being your own boss. Describe your legacy and how you would wish to be remembered.
Put a date on the page.
You are responsible for how you spend your time and how much time you will spend on your business. No one will hand it to you on a plate.
Do not take set-backs or negative criticism personally. Act to change and address the problem. By measuring and analysing the problem. Changing and adjusting the way you deal with the issue to solve it.
Don’t allow yourself to hold you back.

For more Chapters on Starting an eCommerce Store click on the Catagories to the right of this post.
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AI - ARTIFICIAL INTELLIGENCE - STEP-BY-STEP SECRETS & GUIDE TO STARTING AN E-COMMERCE STORE

2/3/2023

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45. AI Artificial Intelligence
What the future holds: Artificial Intelligence.
We have entered a Brave New World and it is likely to become as prevalent as the Web 2.0 internet is today.
This is a disruptive model that we will need to become familiar with it to be able to use it efficiently and to our advantage. It is untested and nothing in this blog should be taken as advice or recommendations.
AI’s crawl the internet and pull together information based on your prompts to create a solution.
When starting your business there are already many AI programmes that are designed to save you time and provide help to get up and running.
Many of the services these new websites provide are free. The learning curve of using these products is quite quick.
 
The big players in AI are:
·      Microsoft who has partnered with OpenAI
·      Azure provides the infrastructure for AI
·      GEForce RTX super series - high end chip maker with huge processing power to run advanced AI apps
·      Google – Alphabet is the parent company for DeepMind. Google is adding more AI to its business.
 
The following are some interesting AI software:
 
ChatGPT
Chatbot powered by IBM Watson founded by Elon Musk. Web 3 AI.
Ask it anything: ie Write me a 2,000 word romance novel book.
 
·      ChatGPT writes anything
·      Whisper api – Developers can now integrate ChatGPT and Whisper models into their apps and products through OpenAI’s API.
o   Whisper is an automatic speech recognition system that transcribes voice into text. OpenAI ‘claims enables “robust” transcription in multiple languages as well as translation from those languages into English.’
 
Real time suggestions
·      Jarvis
 
Prompt ideas
·      FlowGPT
·      Learnprompt.org
 
Art
·      MidJourney ai
·      www.jasper.ai/art - Creates realistic art
·      https://stablediffusionweb.com/
·      Stable Diffusion is a latent text-to-image diffusion model capable of generating photo-realistic images given any text input.
 
Animated Drawing
sketch.metademolab.com
 
Blogs summaries
·      Genei.io
 
Content optimisation
·      ContentKing
·      ProseMedia
 
Copy writing
·      Persado - Create high performing ad copy
·      Jasper: writing with keywords and the AI creates the copy.
·      [https://www.jasper.ai] in 26 languages. Chrome browser.
·      Copy.ai -marketing copy   
·      Notion ai - writing assistant
·      Compose ai – google chrome extension – cuts writing time by 40% with ai auto completion and text generation
·      Quillbot – rephrases text and checks grammer
·      Rewrite Guru – ai paraphraser
·      Pfpmaker.com
·      Codermer - Generate headlines and product descriptions
 
Email addresses
·      Hunter.io - Hunter lets you find professional email addresses in seconds and connect with the people that matter for your business.
 
Analyse competitors’ ad strategies
·      Adbeat
 
Law
·      www.DoNotPay.com
 
PPT content generator
·      Tome ai
 
Lead Generation
·      [https://phantombuster.com] PhantomBuster allows one to extract lists of leads. For example, young male communities from the U.K. are discovering and shopping for trainers, watches, and collectibles together, in a phenomenon known as “squad shopping”.
·      https://www.squadded.co/
 
Business growth
·      Akkio - Data driven decision making
 
Sales and Marketing
·      SiteRight [siteright.co/how-it-works]
·      [builtwith.com] - BuiltWith Technology Lookup
 
Database directory
·      The Hive Index [thehiveindex.com]
·      [chrome://net-internals/#dns]
·      Similarweb.com
 
Marketing
·      Beautiful.ai – makes presentations
·      SlidesAI - presentations
·      Synthesia – makes marketing videos
·      NeonTools [https://neontools.io]
o   Create short links and track clicks [neon.ly]
o   Create micro landing pages [neon.page]
o   QR code generator
 
Music Generators
·      Aiva – Melody Generator
        
PDFs
·      iLovePDF [https://www.ilovepdf.com/] - PDF tools; Merge, Compress, PDF to Word, Word to PDF, edit, PDF to JPG, Sign PDF, Watermark
 
Search Engine for Newsletters
·      www.milled.com - Find sales, deals, coupons, and discount codes from brands and retailers.
 
SEO
·      PrePostSEO [https://www.prepostseo.com/]
 
Search engine
·      Perplexity ai
 
Sound
·      Adobe podcast – Recording
·      Trendingsounds.io
·      Beatoven.ai – content creator and generate original music
 
Turn a Book into an Audiobook
·      ACX.com

Video
·      www.synthesia.io - Turns text into a video
·      https://lumen5.com/ - Grow your brand and drive demand with video at scale. Text or article into a YouTube video
·      Create.studio.official
·      Aiimages.ai – online video enhancer
·      https://research.runwayml.com/gen1
·      Gen-1 by runway turns video or image or text prompt into any cartoon or other format
·      VREW – generates captions from speech in your video editor


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ETHOS & BUSINESS MODEL - STEP-BY-STEP SECRETS TO STARTING AN E-COMMERCE STORE

4/2/2023

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3. Ethos and Business Model

  • Can you provide something or address an issue that other competitors are not providing.
  • Find your niche market.
  • Know your customer. How do they like to be addressed.
  • Research your competition
  • You want to shape your customer’s perception about the product you will sell.
  • No inventory – sustainability – made to order – locally made
  • Consider Pre – order.
  • Risk assessment.
  • Market research.
  • Description of your business.
  • Use your story to elaborate your message.
  • How will you provide value for your customer and solve their particular problem
  • Let them know that you can help.
  • Consider boosting sales by upselling and bundling products.
  • Elevator pitch - Consider saying this in both 20 words or 4 words.
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BUSINESS PLAN - STEP-BY-STEP SECRETS TO STARTING AN E-COMMERCE STORE

3/2/2023

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4. Business Plan
 
In order to maximise the success of your business, you must think through what your business entails. You should be able to clearly explain the basics of how your business will work so that the reader should be able to understand what the business is about.
Your Business Plan is always a work in progress and never the final document. It will always need to be updated.
The following headings will help you to cover areas to be described, analysed and clarified in the Business Plan.
Although a Business Plan is not a guarantee that the business will be a success, it is an extremely useful document that helps clarify your direction forward and is a requirement when raising funding for the business.
 
Your Business Plan should describe clearly:
  1. What you are going to sell.
  2. Where you are going to sell your product or service.
  3. Who you are going to sell it to.
 
Describe the company structure:
Why have you chosen this particular type of business structure. i.e. sole trader or limited company.
 
Aims:
Name at least 5 goals you would like to achieve.
Describe these in different time lines. i.e. one year, three years and over five years.
What are the financial goals you would like to achieve in the 1st year.
 
Funding:
How much money will you need to start your business and how much will you need to maintain it. How much will you need to up scale the business and make it grow. Where will you get the funds from. Are you putting funds into the business yourself. If not, why not.
 
Decide on a business Name:
The name defines your business, helps it stand out from your competitors and people will often form an impression based on this name.
You could start by thinking of a short catchy phrase. Although this is not essential, this can help people to remember your brand. This often is seen hand-in-hand with your logo.
 
Elevator Pitch:
Can you describe your business in 2 minutes (the time it would take to travel in a lift to another floor). Talk about what your business does; who is your audience and what is the business’s unique selling proposition.
 
The Founder/ Owner:
Describe why you want to start this business and why you are the right person to start it. Think about if you have the required and appropriate skills, knowledge, qualifications, training and experience to make it work.
Would your hobbies and outside interests help add to the success of the business.
 
What is your product or service (or both):
Explain this very clearly so that people will really understand what you are offering. Imagine explaining it to a real novice. You can add images to help describe the product or service.
 
Customers – who are they:
Is yours a niche business? See further information regarding your Audience in the Audience [link] chapter.
 
Market Research;
This should help clarify your understanding of who you are aiming to sell to. Be specific. Are they businesses or individuals.
Have you sold any products and /or services already. Information from these activities will be invaluable market research.
Do you have a waiting list of customers for your products and/or services.
 
Marketing:
How will you find your customers. Where will you market. Include the costs associated with methods of marketing.
Marketing opportunities include:
  • Word of mouth
  • Advertising
  • Leafleting
  • Social media
  • Emailing and direct marketing
  • Tradeshows and exhibitions
  • Website
  • Shop
 
Who are your competitors:
What is your USP (Unique Selling Proposition) compared to your competitors.
Use a ‘SWOT’ Analysis. This looks at both their and your
  • Strengths
  • Weaknesses
  • Opportunities
  • Threats
This analysis will help you pre-empt any problems that may arise once you start your business.
Describe what you will do to address your weaknesses and possible external threats. How will you take advantage of opportunities and how will you work on your strengths.
 
Cashflow and Cost Analysis:
Include all costs which may include:
  • Production
  • Shipping to customers
  • Cash flow – when will you get paid
  • Manufacturers and suppliers
  • Transport
  • Equipment – do you need specific equipment to run your business e.g. computer and printer and software.
  • Premises
  • Legal requirements
  • Insurance
  • Costs of website and running costs
  • Marketing
  • Staff and management costs
 
Cost Analysis:
Work out your costs and profit margin.
 
Systems:
How will the business work day-to-day. What technology do you have. Can this be improved to improve your speed of work. What systems can you set up to help you.
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FUNDING & INVESTMENT - STEP-BY-STEP SECRETS TO STARTING AN E-COMMERCE STORE

2/2/2023

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5. Funding and Investment
       However much money you work out you will need, double it!
 
There are varied routes to find investment for your company.
  • Kickstarter
  • Angels
  • Family and friends
  • Savings and Personal funds
  • External finance - equity investment
  • Crowd funding
  • Bank loans
  • SBA loans
  • Business credit cards
  • Angel investor
  • Government grants and loans and payment relief rules, Small business grants
Remember to keep your investors informed of your progress and ongoing results.

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MARKET RESEARCH - STEP-BY-STEP SECRETS TO STARTING AN E-COMMERCE STORE

1/2/2023

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6. Market Research
This research should help you to understand who your market is and how it behaves as well as what your potential customers expect from you, your products and/or services.
 
Market Research can take the form of field work and research from your desk (internet and books).
Research other businesses and their customers that are providing similar services. Research locally first.
  • Determine how big is this potential market.
  • What are the trends in this market. Are people changing the way they look for and buy products and services in this market.
  • Is the market seasonal i.e. dependent on the weather/seasons.
 
In the field ask potential customers what they think of your business idea and product. Test whether they will buy your product.
Ask questions like:
‘Are you happy or unhappy with the product?’
‘Would you buy my product at ‘x’ price?’
‘Would you buy from this location e.g. online website?’
‘Do you already buy from similar businesses?’
 
Testing your product:
What products did you try to sell and at what price.
What did you learn after test trading.
Are there things you have decided to change because of what you learnt or because of the feedback you received.
 
Cashflow and cost analysis
 
Back-up plan. Have a Plan B. This might just include on your reducing your costs or having a smaller inventory to save on costs.
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COMPANY STRUCTURE - STEP-BY-STEP SECRETS TO STARTING AN E-COMMERCE STORE

31/1/2023

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7. Company Structure - What Type of Business
Retain professional advice on how you choose and proceed.
 
In the UK you can choose to be a Sole Trader or Limited Company
It is straightforward to become a Sole Trader but remember you are personally responsible for your business’s debts.
A Limited Company’s finances are separate from your personal finances, but there are more reporting and management responsibilities. [https://www.gov.uk/running-a-limited-company]
Register your business with Companies House or the relevant authority in your country. In the USA and other countries, there are different rules and different options. e.g. registering an LLC.
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ONLINE SELLING IN THE UK - STEP-BY-STEP SECRETS TO STARTING AN E-COMMERCE STORE

30/1/2023

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8. Online Selling in the UK
Before an order is placed

You must provide:
  • your business name, contact details and address
  • a description of your goods or services
  • the price, including all taxes
  • how a customer can pay
  • delivery arrangements, costs and how long goods will take to arrive
  • the minimum length of their contract and billing period
  • conditions for ending contracts
  • how they can cancel and when they lose the right to cancel
  • if they will still need to pay reasonable costs for using a service after they cancel
  • a standard cancellation form, if they can cancel
  • conditions for money given as a deposit or financial guarantees
  • what digital content does (for example, the language it’s in or how to update software)
  • the cost of using phone lines or other communication to complete the contract where it will cost more than the basic rate
This information must be easy to understand and on paper, in an email or another format the customer can save for future reference.
Right to cancel

You must tell the customer they can cancel their order up to 14 days after their order is delivered. They do not need to give a reason for cancelling.
If you do not tell the customer about their right to cancel, they can cancel at any time in the next 12 months. If you tell them about the right to cancel during these 12 months, they have 14 days to cancel from when you told them.
 
There are different rules for downloads and streaming services. [https://www.gov.uk/online-and-distance-selling-for-businesses/online-selling]
 
After an order is placed

You must:
  • provide a copy of the contract on paper, by email or another format the customer can save for future reference
  • provide the copy of the contract no later than when the goods are delivered
  • deliver the goods within 30 days, unless you’ve agreed otherwise with the customer
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BRANDING - STEP-BY-STEP SECRETS TO STARTING AN E-COMMERCE STORE

29/1/2023

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9. Branding
When establishing your brand identity, consider:
  • How did the idea emerge.
  • Where did the inspiration come from.
  • Why do you have a brand.
  • What are your company’s core values.
  • Think about telling the story of your brand rather than just the dry process of selling a product.
  • What promise do you want to make to your customers.
  • What problem/s are you solving for your customer.
  • What feelings do you want associated with your brand.
 
Types of Brand Names:
  • Descriptive.
  • Embody vision of founder - could be name of founder.
  • Acronym of descriptive name - e.g. NASA.
  • Real words.
  • Geographical name – e.g. British Airways.
  • Composite – gluing 2 words together.
  • Invent a name.
  • Associative, aligned or a metaphor eg. Amazon.
  • Lexical - related words make it more memorable.
  • Non-English word eg. Lego.
  • Abstract name - no meaning.
 
When choosing your brand name:
  • Remember a name has an emotional attachment to it. You want to connect with audience. You want to be remembered. You want to embody and solidify the image and position of your business.
  • Brainstorm keywords and brand name ideas.
  • Check name isn’t taken already.
  • Check name doesn’t mean anything bad in another language.
  • Ask is it memorable, strategic and concise.
  • Look at competitors names and see how it fits.
  • It can be difficult to change a brand – but it is not impossible and you should consider this if you subsequently come up with a perfect brand.
 
The Formations company help with creating a name
 
Domain name
It is imperative to have a domain and presence on the internet. The best urls ends in a .com.
 
Domains (URLs) can be purchased through:
  • Googledomains [https://domains.google.com]
  • Namecheap [https://www.namecheap.com]
  • GoDaddy [https://www.godaddy.com] They also provide websites and hosting and email and marketing services
  • 123-reg.co.uk [https://123-reg.co.uk]
 
Email address:
You will need a professional email address based on your domain name. (Not just a gmail or yahoo address).
 
Graphics:
You will need:
  • A logo
  • Website
  • Business Cards
 
You could use AI or go to a graphic design company or find freelancers to help you at:
fiverr. [link below]
 
Tailor Brands provides packages with tools to help you start your business and appear professional.
[https://www.tailorbrands.com]
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CHOOSING THE PRODUCT - STEP-BY-STEP SECRETS TO STARTING AN E-COMMERCE STORE

28/1/2023

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10. Choosing the Product (Service or Course):
 
I will talk specifically about products, but these principles equally apply to you providing a service or course.
 
When deciding on the product/s you want to sell choose a market and identify 5 niche markets that really interest you. Dig down into the niche until it is very specific and that you can describe it in detail. e.g. home décor – scented candle making.
  • Research this detailed niche product or service.
  • Work out what problem your product or service will solve for your customer.
  • Look at and get to know your audience (elaborated later).
  • Find a product that has some meaning to you and that you will enjoy selling. You need to care about your product otherwise you could get bored very quickly.
 
Generally, there is almost always a market for health, wealth and relationships.
 
Markets and their niches of e-commerce are broadly:
  • Beauty - make up; perfume; skin care and aging; clothing and fashion.
  • Relationships and dating - online dating; counselling; romance.
  • Fitness - exercise routines; yoga; weight lifting; running; wellness.
  • Health - supplements and herbal remedies; physical and mental health; self-improvement; weight loss; mindfulness.
  • Interests and hobbies – gardening; culture and arts; gaming; sports.
  • Pets - training pets; pet foods; pet toys and accessories.
  • Home décor - luxury accessories; interior design; soft furnishing; wall coverings; accessories.
 
Research the latest Trends connected with your niche.
Look at reviews and note the common complaints and as well as the common compliments.
Research on blogs, Facebook groups, Pinterest and Instagram reddit and YouTube.
Check out competitors. Buy their product and determine why you bought it. Look at where it was sold an advertised.
Look at indirect competitors. These businesses sell complementary products to yours. These can be very valuable allies in the future who you might collaborate with and market jointly to both your benefit.
Make sure your product is of a high quality.
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TRENDS - STEP-BY-STEP SECRETS TO STARTING AN E-COMMERCE STORE

27/1/2023

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11. Trends
 
Tap into the zeitgeist. The spirit of the times. Plan for the future.
 
Great websites to help define the latest trends are:
  • Pinterest [https://trends.pinterest.com/]. Trend data is based on searches performed in the United States
  • Google [trend.google.com]
  • [https://datareportal.com] published in partnership with We Are Social and Hootsuite.
  • Holly Friend, Futurist, Writer & Cultural Strategist
    (The Future Laboratory)  [https://www.thefuturelaboratory.com/reports]
  • Semrush [www.semrush.com]
  • Skai [https://skai.io/reports-and-whitepapers/]
  • Statita
  • GWI
  • App Annie [https://www.data.ai]
  • SimilarWeb
  • Locowise
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COMPETITORS - STEP-BY-STEP SECRETS TO STARTING AN E-COMMERCE STORE

26/1/2023

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12. Competitors
 
You need to know about your competitors.
  • Who are your competitors
  • Are they online or local to you
  • What products / services do they sell.
  • What are their prices for similar goods/services
  • How big is their business.
  • What are their main strengths.
  • What are their main weaknesses.
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DESIGNING THE PRODUCT - STEP-BY-STEP SECRETS TO STARTING AN E-COMMERCE STORE

25/1/2023

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13. Designing the Product
 
If you decide on selling a ready-made product the key thing is to research who your market is and what your pricing will be like.
But you may wish to design your product and make it or then have it manufactured.
Design is often the most time-consuming part of the e-commerce journey. Creating the designs / patterns / artwork and then using 3d to see what the product looks like.
However, it is often the most satisfying and creative of all the processes and keeps the designer coming back to design more.
A word of caution - Infringing copyright. Be careful to use your own personal and original designs and artwork - the expression of an idea. It is easy to drag things off the internet and copy them, but this is illegal and undermines the original designer’s business and work and is very demoralizing for a designer whose work has been stolen.
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TRADEMARK - STEP-BY-STEP SECRETS TO STARTING AN E-COMMERCE STORE

24/1/2023

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14. Trademark
 
You need to protect your brand. Registering a trademark is one way to do this.
How to obtain a trademark:
  • Protect your brand e.g. logo, tag line, business name, slogan or a sound.
  • Patent and trademark office of your particular country. They often have manuals and information about your application.
  • You can do this personally or use a patent attorney.
  • You will need to fill out application.
  • File your trademark application in a particular class or category. Select area of goods and services. Cannot be universal.
  • Protects from a similar or equal name.
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HISTORY OF THE PRODUCT - STEP-BY-STEP SECRETS TO STARTING AN E-COMMERCE STORE

23/1/2023

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15. History of the Product - One Digital ID:
 
There is a move by brands and manufacturers to record digitally the lifecycle of how a product is made and where its materials come from. These can be captured in a QR code which link to information web pages in the cloud. This project is called Eon. [https://www.eon.xyz/]
Customers can interact with this information and read about the authenticity, origin, services and even storytelling of the product they have purchased.
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MANUFACTURERS - STEP-BY-STEP SECRETS TO STARTING AN E-COMMERCE STORE

22/1/2023

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16. Manufacturers
 
Choosing your product goes hand-in-hand with finding a manufacturer. You could make the product or create the service yourself or you could outsource the manufacture of the product.
Deal with manufacturer and not the middleman trader.
Find and compare prices and quality from at least 3 suppliers.
When approaching a manufacturer remember to ask about MOQs.
M.O.Q’s
Minimum Order Quantity. Remember to research this before you order as minimum quantities can raise your costs substantially and then you may be stuck with stock you cannot move but have to store. There are companies who will make low quantities some even will make one-offs.
The reason manufacturer’s often have MOQs is it costs them less to make a number of the same item and thus the order becomes more profitable the higher the number of orders. There is less waste of material as well and better use of staff time.
One major disadvantage with inventory and m.o.q’s is that your capital is tied up. You have to store the inventory and if it does not sell this is a very unsustainable environmental model.
 
If you want to develop your brand ask if the manufacturer can provide a Private Label service where only your brand name appears on the product. This is exclusive to you.
Under a White Label agreement a manufacturer can sell the generic product it makes to many different retailers.
You will need to get samples made which will have a cost factor involved.
If you look for local manufacturers you will save on International shipping and the potential delays that go with that. It is much better for the environment to manufacture locally.
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DROPSHIPPING - STEP-BY-STEP SECRETS TO STARTING AN E-COMMERCE STORE

21/1/2023

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17. Dropshipping
 
With dropshipping the supplier handles the manufacture, fulfilment and shipping. You will find the customers. A great advantage with dropshipping is that you do not have to purchase the product in large quantities.
When researching your supplier, make sure you read the reviews and check that they are a legitimate and reputable business. Find out what the quality of the product is like. You can check this yourself by ordering a product that you can feel and touch.
Rather use a manufacturer, as opposed to a go-between, who would take a cut.
 
Dropshipping with countries that manufacture goods far away will increase your shipping fees and shipping times as well as potentially have more logistic problems (remember the Suez Channel container ship that ran aground and held up over 300 other container ships which caused world trade traffic delays for weeks in 2021).
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AUDIENCE - STEP-BY-STEP SECRETS TO STARTING AN E-COMMERCE STORE

20/1/2023

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18. Audience
 
It is essential to identify your audience and who you are talking to.
Consider:
  • Is your customer a business or individual. If they are a business, what sector are they in. How big is the business.
  • How old are your customers.
  • What is their gender.
  • What country or region is your customer based in.
  • Where they live.
  • What cultural traditions have they been brought up in.
  • What are their needs and desires.
  • What is their educational background.
  • How much money do they make. What is their income level.
  • How do they measure success.
  • Who influences them.
  • What are their interests? What kinds of entertainment do they like (e.g. TV shows).
  • What podcasts do they listen to.
  • What emails do they subscribe to.
  • What keywords do they search for on search engines.
  • What strategies does your customer use to achieve their own goals and aspirations.
  • What would prompt your customer to buy your product. What factors help to make a customer buy from you. For example, are they near to you, are they affected by the latest trends which your business follows.
 
It is widely accepted that the following Western demographic generational identifiers separate ways of thinking and operating in the world as well as their buying habits and are often considered as target markets.
  • Gen Alpha (2013 onward)
  • Gen Z (born 1997 to 2012)
  • Millennials (1981 to 1996)
  • Gen X (born 1965 to 1980)
  • Baby Boomers (born 1946 to 1964)
  • Post War (born 1928 to 1945)
 
Consider what medium will you communicate with your customers i.e. social media, newsletters, advertising.
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PRICING YOUR PRODUCT - STEP-BY-STEP SECRETS TO STARTING AN E-COMMERCE STORE

19/1/2023

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19. Pricing your Product (or Service)
 
Consider these general principles when pricing your product.
  • Your initial sale price can be worked out based on your costs and your competitors prices.
  • Your chosen product ideally should be on an upward trend. Market research allows you to find out more fully what your customers want and what is offered out in the marketplace in your industry/category.
  • Your profit margins must be high enough for it to make your business worthwhile.
  • You must be able to start making a profit in the shortest time possible.
  • Research what your competitors are charging for their products.
 
In order to price your product, you must take the following costs into consideration.
1. Variable Cost Considerations

These costs relate directly to your product and having your product made.
Consider:
  • Raw Material costs divided by the number of products made.
  • Labour costs and overhead costs.
  • Hourly or daily wage for yourself.
  • Packaging.
  • Promotional materials.
  • Shipping.
  • Other fees e.g. affiliate commissions.

2. Profit margin:
Set the profit margin on top of the Variable Costs. This is often known as Cost Plus Strategy Pricing.
The profit margin is the percentage of the sale that is your profit.
Target price = (Variable cost per product) / (1 - your desired profit margin as a decimal)
Take your total variable costs and divide them by 1, minus your desired profit margin expressed as a decimal.
So, for a 20% profit margin, that is 0.2, so you divide your variable costs by 0.8.

3. Fixed costs

These need to be factored in. For example, insurance, rent, licences, employees’ payroll.
 
Review your pricing regularly. See Cost Analysis (LINK) below as an ongoing strategy to assess your businesses prices and profit margins.
Remember to consider cash flow. You need this to keep the business ticking over.
Compare your price to your competitors’ prices and marketplace trends and consumer spending. Adjust your pricing accordingly remember that you need to make a profit to remain in business.
Incentivise your customer to buy more than one product by discounting on more than one purchase.
This will often work in your favour as some suppliers will incentivise your prices in the same way for you if you buy more than one product.
Compare different manufacturers prices. Consider your bargaining power with your suppliers.
 
Consider which pricing bracket you want to fit in.
Higher Pricing Bracket:
Upmarket – pricing different. Be careful not to under-price. Your market is looking to improve or confirm their status. Have a unique product not available elsewhere. Creativity has a value.
 
Lower Pricing Bracket:
Competing in the lower pricing bracket – usually something ready-made and available elsewhere. Pricing is key. Beat your competitors on pricing.
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SUSTAINABILITY - STEP-BY-STEP SECRETS TO STARTING AN E-COMMERCE STORE

18/1/2023

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20. Sustainability
This is your investment in the future.
Sustainability is now being considered as an indicator of good management of a company. Many of your customers will share these beliefs and feel your company aligns with their values.
Sustainability has a large societal impact. It relates to how your business affects the local and further afield community. It impacts your financial sustainability.
Try to follow compliance standards often set up by environmental organisations.
Sustainability has a positive brand association and good publicity and will attract customers who have similar ethos.
 
Aim to consider the following:
  • Decrease your impact on the environment
  • Reduce your energy and water use
  • Reduce costs associated with meetings i.e. holding a virtual rather than person to person meeting.
  • Reduce travel and transport costs.
  • Think of publishing educational content.
  • Reuse stationary and go paperless.
  • Reduce shipping costs which contribute to carbon emissions.
  • Recycle when possible.
  • Contribute some of your profits to a charity working in a sustainable area.
  • Turn off lights and appliances when not in use at the end of the day.
  • Promote sustainability through your website.
  • Manufacture locally.
  • Source sustainable raw materials for your products.
  • Check your suppliers comply with laws and regulations relating to pollution and waste.
  • Reduce inefficiencies.
  • Invest in technology which can provide an eco-advantage.
  • Reduce, reuse, recycle.
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PHOTOGRAPHY OF THE PRODUCT - STEP-BY-STEP SECRETS TO STARTING AN E-COMMERCE STORE

17/1/2023

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21. Photography of the Product
     
People want to see pictures of your product both in detail and in a setting.
If you cannot afford to use a professional photographer, you can get a good result even using your phone camera.

Make sure of the following:
  • You have good natural or artificial light.
  • You can use phone camera but use a tripod or gimbal tripod.
The norm for high quality online stores are images that have:
  • The background removed.
  • Grey background.
  • Clothing on mannequin to show as if on person with form but no human is shown.
  • Product in setting
  • Video
  • Resolution is often saved for the web e.g. 1500 x 1500px saved as a jpg (check with your SaaS platform for their requirements)
  • Save at 1500 x 1500px in Photoshop [https://adobe.com]
  • High-res jpgs (over 1Mb and 300d.p.i) for print publishing and press
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PRODUCT PACKAGING - STEP-BY-STEP SECRETS TO STARTING AN E-COMMERCE STORE

16/1/2023

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22. Product Packaging
 
You must communicate your brand logo, message, fonts, colours and feel in all your packaging.
Tinybox [https://www.tinyboxcompany.co.uk/] is a manufacturer where you can buy as few as 1 piece. They will brand packaging as well.

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UNIQUE PRODUCT IDENTIFIERS - STEP-BY-STEP SECRETS TO STARTING AN E-COMMERCE STORE

15/1/2023

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23. Unique Product Identifiers
GTIN, SKUs and MPNs
Unique identifiers such as GTIN, UPC, and EAN and MPN are created to easily and quickly identify a particular product or part of a product.
 
GTIN:
More and more companies are requiring their trading partners to use GS1 standards to help move and track goods through the supply chain.
If you are trading with Tesco, Amazon or other retailers, you may have been asked to create a GS1 logistics label with a Serial Shipping Container Code (SSCC) for your shippers. Google requires this or a MPN for Google Shopping.
 
GS1 [https://www.gs1uk.org/]
GS1 are one of 116 neutral, not-for-profit, and independent GS1 organisations operating across 150 countries.
They provide products from barcodes to patient wristbands.
“GS1 is the only authorised provider of Global Trade Item Numbers (GTINs) – the number you see under the barcode (also known as an EAN or UPC) that’s unique to that product. Our GTINs and barcodes are used and accepted by retailers and marketplaces across the world – making it easy to sell your products anywhere.”
 
SKUs:
An SKU is a Stock Keeping Unit (Pronounced ‘skew’). These are allocated by the product designer/manufacturer to each individual product to easily identify it when tracking inventory or searching for an item accurately, Tracking lot and batch numbers allows one to keep watch on quality control, service and warranty management and to help isolate production faults.
No two products should have the same SKU. Even variants such as size, colour etc should have separate SKUs.
When creating SKUs, the following three principles help to create them easily.
  1. The first part of a SKU is typically the broadest characteristic. For example, such as the product category or even manufacturer. The top two or three alphabet characters are allocated to this.
  2. The next few characters describe specific features about each product - for example, its colour, size, brand or other subcategory. 
  3. The last two to three characteristics act as a sequence identifier, allowing your SKUs to tell you the number of products you have and the order in which they were purchased and processed.
 
When creating the SKU number try to:
  • Use logical names for each product.
  • Keep it between 8 to 12 characters.
  • Do not use zero or special characters such as @ &.
  • Use dashes to separate the 3 characteristics.
  • Create an easy-to-understand format that helps you to identify the product even by looking at the SKU. Try to state what the product is.
  • Try to be consistent with the method of creating SKUs.
  • Count inventory consistently by quantity. For instance, as individual pieces or multiples of units or by weight or box.
 
 
MPN:
MPN stands for Manufacturer Part Number. Manufacturer part numbers are used as an unique identifier to find specific products.
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SHIPPING - STEP-BY-STEP SECRETS TO STARTING AN E-COMMERCE STORE

14/1/2023

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24. Shipping
Consider free shipping. Free shipping is an invaluable resource to allow sales to complete. Many customers are put off by extra shipping costs at check out.
If you do charge extra for shipping make sure you communicate this on the product page or earlier.
Make returning goods easy.
 
Couriers (often based internationally) and your Country’s Local Postal Services:
  • DHL,
  • UPS,
  • Royal Mail,
  • FedEx [https://www.fedex.com],
  • Parcelforce,
  • USPS
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    Rose Long &
    Long Studio Design are sharing their experience of the steps to creating an eCommerce Store.

    We receive commission on purchases made through some links on this page.

    This information provides an overview for educational purposes only and is not legal advice. It is not intended to create, and receipt of it does not constitute, a lawyer-client relationship.
    The author/s disclaims all responsibility for any and all losses, damages, or causes of action that may arise or be connected with the use of these materials. Please consult a licensed lawyer in your area for legal assistance.
    These articles do not provide accounting, tax, business or legal advice.  You should consult your own professional advisors for advice directly relating to your business or before taking action in relation to any of the provided content.
    ©RoseLong2023
    LongStudioDesign.com

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