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4 Factors to Consider Before Starting an Online Store

by Miles Austine
in Business, Tips and Tricks
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Whether you’re starting an online store or want to learn more about e-commerce marketing, it’s important to understand how to make your website convert. For a streamlined system, opt for a platform with reporting and a wide range of sales channels.

1. Your Products

You’ll need a unique product or service that solves customers’ problems. You’ll also need to find a niche audience willing to pay for it and have enough discretionary income to purchase.

Consider the experience you want to provide your online shoppers, such as a secure, reliable, fast website and clear navigation. You’ll also need a scalable website builder to grow your business without switching software in the future. Look for an e-commerce platform with SEO features to help you rank higher in search results and tools like meta tags, URLs, and structured data markup. And be sure your chosen site builder has a mobile view so shoppers can browse your store from their phones. This is especially important as over half of all online shopping happens on smartphones. Then, focus on marketing your products and building brand awareness to drive traffic to your site.

2. Your Target Audience

When starting an online store, it’s essential to consider your target audience. This will help you create content that speaks to their needs and wants and determine how much money you need to make a profit. To do this, you can analyze customer data like purchase history and support tickets or use search engine optimization tools to find out what people are searching for online. Once you’ve identified your target audience, it’s time to focus on marketing your products. This will help you reach more people and increase sales. One way to do this is by creating a social media account and gathering customer feedback. You can also hold focus groups to gather first-hand insights about your audience’s needs and desires. 

3. Your Budget

Starting an online store is fairly inexpensive, especially when compared to brick-and-mortar businesses. However, it’s still a significant investment that requires substantial time and money to get off the ground.

Many businesses opt to go online to expand their reach and increase sales. This is why it’s important to consider all the costs of an online store before deciding. One of the most common costs that should be considered is the cost of a hosting solution. This includes the choice between shared or dedicated servers. Shared hosting typically costs less because it shares a server with other websites, while dedicated servers are more expensive but offer greater security and reliability. Another cost to consider is the price of an SSL certificate, which encrypts customer information when it’s transferred over the Internet.

4. Your Marketing Strategy

Your marketing strategy will play a big role in getting people to your online store. This includes your paid advertising budget (pay-per-click ads on social media or search engines), content marketing, influencer marketing, and partnerships with other businesses that share your audience (e.g., a retailer selling the same products you do).

You’ll also need to figure out how to market your product or service, including finding your target audience, choosing an e-commerce platform, and setting up your wares. Other factors include:

  • Researching your competition.
  • Selecting a business location.
  • Applying for necessary licenses.
  • Estimating startup costs.

Another critical consideration is your inventory management, which includes storing and packing orders, entering order details, and sending shipping confirmations to customers. 

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