How to Start an E-commerce Business in 2021

(Last Updated On: 2 Mar)

what's an ecommerce business

E-commerce is just the process of buying and selling product or services by electronic means such as by online website, mobile applications and the internet. E-commerce refers to each online retail further as electronic transactions. And considering the usage of internet in this techno-savvy generation, e-commerce has hugely increased in popularity and in ways, it’s replacing traditional brick and mortar stores. As the internet becomes ingrained in our daily lives, acceptance of e-commerce continues to grow, and businesses are taking advantage of this.

Further, e-commerce enables you to buy and sell products on a global scale, twenty-four hours a day without incurring the same overheads as you would with running a usual brick and mortar store. Starting associate degree e-commerce business store is difficult to work and demands several steps and choices that require to come back along at the proper time.


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To help you with how you can start an e-commerce business in 2020, we have put together a simple and complete step by step blueprint:

Research the Basics of E-commerce Business:

The first critical step is research. Starting and sustaining an online business is an investment and so you need to carefully plan your online business. There isn’t a single online business structure that works for everyone, its different for every type of business.

You need to understand the different business models available before you decide which product or services you would do business with. Consider your business structure, your budget and your customers need. Then decide which model you would opt for.

If you plan to sell your goods in bulk, you could simply opt for wholesaling or warehousing model; if you plan to sell customized products, you could opt for personalization model and if you plan for selling a single product or give services, you could opt for the retail model.

Customer and Product Selection:

Once you have identified a business model, next you might think of choosing a product for selling. But let me remind you before you think of a product you need to think about your target customers. You can’t expect people to buy your product if you don’t know who you’re selling to.

Answer these questions before you jump on selecting your product;

Who are you?

What does the store represent?

Who are your ideal customers?

Once you have answers for the questions, it’s time for you to come up with your product or service idea. Start writing your business idea on a paper and then considering your customers, niche and budget select the best idea which you think would be sellable in e-commerce. Evaluate your product or services carefully so that later it won’t be problematic for your business.

Establish your E-commerce Business and Brand:

For being a successful business, you need a brand to connect with your customers. Identifying your customers need and demands make building your e-commerce brand easier. So how do you think you would start your online store?

Step 1: Register your Business

Choose a business name and register your company. There are legal protections and tax benefits for incorporating a new business, so remember considering it.

Step 2: Pick your Brand’s Name

The name of your site and the legal name of your business don’t need to be identical, but keeping them consistent has its benefits. Make sure whatever your choice fits your niche as you don’t want to pick a brand name that is already similar to your competitor.

Step 3: Get your Business Licenses

It’s necessary for any business to have a license before you start it. So make sure that you have a registered business license of the industry you are interested in to start a business with. Operating a web store doesn’t exclude you from needing bound business licenses and permits. Check with your city, state and country to see what sorts of tax licenses or home business licenses you need, and get those approved before you start operating.

Step 4: Get your Employer Identification Number

You’ll need an Employer Identification Number (EIN) to open a business bank account and file your business taxes yearly. Your EIN is a bit like your business’ social security number: it’s a unique number that identifies your business and helps you file important paperwork.

Step 5: Find the Right Vendors

You’ll have plenty of competition merchandising product online, so it’s in your best interest to find the best quality and best prices for the products you sell or the materials you use to create your products. Shop around until you find a vendor you want to do business with for long-term.

Step 6: Logo Creation

Don’t put in too much effort and time over your logo creation, but do make sure that it is not in use by another company in your niche. The Logo design should be unique and defining your brand at its best.

Step 7: Get Visual

Consider the colors of your brand, the images you will use, and the typeface or fonts you want carefully. If you have the budget, you might want to hire a marketing firm to create a design brief for your company. If not, you can create your own. Just keep it consistent and minimalistic.

Step 8: Understanding search engine optimization (SEO)

When you square measure virtually able to begin building your online store, you should understand the basics of search engine optimization so that you can properly structure your site and pages for any search engines. Make sure that your website has a proper device optimization so that it is compatible with any gadget

Attracting Customers to your E-commerce Store:

You need to market your store. The best e-commerce sites invest heavily in online marketing. If you don’t have funds, you better have good networking. Your website is not the sole factor you wish to drive traffic to. You can use online selling platforms like Shopify to get started with your store. The product you choose also need to be included in your marketing budget. Your mission is to sell the product, not drive traffic. To sell a product, you have to think beyond your site and look for expansion areas.


Building your own e-commerce business is as exciting because it is difficult. Once started you’ll learn plenty concerning selecting a product, evaluating its marketability, deciding a way to get the picture created, building an internet store, and promoting and merchandising to new customers. The process sounds challenging but it’s rewarding at the same.
If you have any questions, or can think of any other recommendation for any more e-commerce business, feel free to post them in the comments below.
Thank You!

About the Author

Vidisha Kaithal is the Outreach Manager at Scribbify. When she isn’t crafting creative strategies, she can be found eating food or hanging out with her friends or pets.

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