How To Value Ecommerce Business

There is a lot of infrastructures available for you to capitalize on, and make it big. However, this makes it a prime business opportunity if you have some old clothes in the back of your closet and want to make some extra cash. A sneak peek into revenue streams and business models you may want to consider before jumping in.



For example, if you’re selling a physical product and the price point is low, you’ll need to sell more of them to turn a profit than something with a higher premium. Once you’re officially an ecommerce business owner, you need to register your domain name and any redirect URLs that might be relevant. You’re going to need the design info you settled on in the last step now, when you finally build your store.

These activities include the use of commercial e-mails, online advertising and consumer privacy. The CAN-SPAM Act of 2003 establishes national standards for direct marketing over e-mail. The Federal Trade Commission Act regulates all forms of advertising, including online advertising, and states that advertising must be truthful and non-deceptive.

An open-source platform you can mold into any type of store you need. Although dropshipping is appealing, it has some disadvantages too. These include low-profit margins, slow shipping speed and lack of control over the supply chain among others. With so many business opportunities and tons of ultimate guides out there, it can be difficult to decide which one to pursue. It’s understandable because you also don’t want to risk too much.

Some situations will require a drop ship business model, where you act as the order taker and a third party handles the fulfillment. Your brand name needs to be not only memorable and appealing to your target audience, but it also needs to be available in the form of a domain name and social media handles. I suggest going for the dot-com version always, even if you have to pay a premium for it from a domain flipper. Beatriz is a Content Marketing Manager at BigCommerce and the fashion and lifestyle influencer behind The Letter Bea, an Austin, Texas based blog. In Communication and Sociology/Anthropology from Lake Forest College and specializes in ecommerce, marketing and merchandising strategies, influencer and branding work, and social media. When she's not curating content, Beatriz loves to travel the world, share her journey with Type 1 Diabetes, and find Austin's most Instagram friendly spots.

Once a customer completes his or her order on your website, you will be sent a notification through the help of inventory software . Once the notification is confirmed, then you need to ship the product in question. While setting up your website, you could either choose a pre-built platform or make it from scratch. Both have distinct advantages, though building a website from scratch is usually the more favoured option. The market for food and groceries is as vibrant as it’s ever been, and you can use that to your advantage. Whether you want to make the food yourself or retail packaged food, it doesn’t matter.

By now you should have a great idea of what your business will look like. You have your target market, your product niche and your brand name. Niche-ing down also gives you the benefit of having a lot of “shoulder” niches, related to what you do, but not identical.

Granted, it’s possible to do quite well with one killer, beloved product. But even a company like Casper, for example, which celebrates simplicity and convenience in its offerings, pretty quickly added new products as it took off in popularity. There are some really neat tools to help you target the right keywords, including Adthena, KWFinder, and Market Samurai. Targeting the right words is important, because Google’s algorithm tends to give more weight to the relevancy of an ad than to the amount of money a business has poured in.

Make sure you analyze the data you collect from this tool as a source of inspiration on how you can further expand your catalog. Also, don’t forget to take note of the customer feedback left in the reviews for your competitors, and use it to your advantage to improve the quality of your version. At Foundr, we’re lucky enough to have Gretta now teaching our Start & Scale ecommerce course. One student of that course, Shannon Willoughby, launched her own ecommerce business, Aromarrr. This is how her income skyrocketed in just four months. Just like your product selection, you want to keep your stock levels and other expenses in the business as low as possible as you get started.

With the rise of video phone calls, it makes sense that people will also want to see who’s at their door on a screen. It works great as a security device and will perform wonders if it also offers high-quality night vision. Launching a dash cam business is a great idea and it will continue to prosper because these dash cams are practical and come with a viral element. Furthermore, many insurance companies also tend to accept ecommerce business for beginners dashcam videos as legit proof of claims. By 2020, the dash cam industry will probably grow up to $4.03 billion globally.