With so many brands launching every day, you might wonder whether 2022 is the year for you to enter e-commerce.

It makes sense that an entrepreneur would be a little nervous about breaking into one of the world's most profitable industries. But that's the beauty of e-commerce – it's something that anyone can do from anywhere in the world. However, it does take more than just an internet connection to create a valuable brand.

This ultimate guide is here to teach you how to create an e-commerce business with staying power.  

In this guide, we will be covering everything you need to know about getting started and e-commerce. First, we’ll cover some statistics about e-commerce. Then, we’ll discuss fundamental research, branding, and marketing strategy.

After reading this guide, you'll be able to confidently go forth and plan your company's future launch. You'll know how to perform e-commerce market research, and all the key elements to build a business that grows with you.

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E-commerce Figures to Know in 2022

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The most important thing to know about e-commerce is that it is a global industry. Even if your target audience resides in a particular region, your store is still open to being seen by people from all over the world.

Increased internet access and delivery models have made small Etsy stores international businesses. Someone selling t-shirts out of the Midwest could be shipping clothes to people in Asia.

In 2022, the e-commerce industry will account for 21% of all purchases and top $5.5 trillion. There's really no industry that hasn't been touched by e-commerce in some way at this point.

Although the United States is a front-runner for e-commerce, other geographic regions are growing, too. In fact, these locations make hotspots for new stores looking to tap into underserved markets.

For example, Latin American e-commerce rose25% from 2020 to 2021 to reach $85 million in online sales.

E-commerce in India is projected to reach $111.4 billion by 2025 compared to$46.2 billion in 2020.

The world’s leading e-commerce market, China, accounts for 52% of all e-commerce sales; the US was second at 19%, followed by the UK (4.8%), and Japan (3%).

The key takeaway: E-commerce is a multifaceted, international industry with opportunity around every corner. It’s only going to get bigger, so rather than think there’s no room for another brand, realize that there will always be a need for more businesses to accommodate more consumers.

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Getting Started: How to Start an Ecommerce Business

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Before you run over to Shopify and sign up for an account, wait. You need to do some research before diving into e-commerce.You’ll need to know your niche, audience, and decide on a business mode before you even get into branding and marketing.

It’s a lot, we know, but don’t worry. This guide is your secret to success — it covers all the beginning steps to help you launch a business you can grow strategically.

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1. Decide on a Niche

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What’s a niche in marketing? It’s your focus within an industry. For example, someone may sell pet supplies, but their niche is sustainable pet products. Your industry could be women’s apparel, but your niche is outerwear for women ages 30 to 45.

Having a niche gives your business focus.Deciding on a niche early helps shape your research. The most important thing you're going to want to do at this stage of the game is to decide whether there's a market demand for what you want to sell.

GoogleTrends is a great place to start your market research. Enter a keyword (for example “pet beds”) and get real statistics from actual users. You can analyze traffic and search volume over as pecific period of time, and learn what types of people are looking for certain products.  

Knowing your niche is essentially knowing your brand. When you know exactly who your products are designed for, it becomes much easier to create a brand they’ll relate to.

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2. Look at Competitors

Your competition is not the enemy. In fact, there's a lot you can learn from established brands.  Search for keywords that you would Google if you were a customer.  Look at the top brands that appear in search results, as well as on social media.

●     What do they have in common?

●     How do they differentiate themselves from one another?

●     What are common questions people ask them in their comments?

●     What types of posts do they share on their profiles?

●     How do their websites guide your navigation?

●     What ways do they deliver value to people before they become customers?

From informative social media posts to blogs, there are lots of ways that e-commerce brands can build relationships with their audience.

Analyzing high-performing brands in your niche market will help you get an idea of what expectations people already have.These are standards you’ll want to adhere to as you develop your own business.

You can also use a website traffic tool to get an estimate of how many people are interacting with a site each day. This traffic analyzer by Neil Patel is fantastic for getting an overview of a site’s performance.

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3. Start Your Research

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There are four types of marketing research you should perform while building your business:

1. Exploratory market research
2. Casual market research
3. Descriptive market research
4. Predictive market research

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Exploratory Market Research

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The exploratory stage of marketing is the earliest one. You’re not entirely sure who your market is, so you’re open to all options. This form of research is about getting to know different markets, learning about its consumers, and answering questions.

●     What types of products do people in this market sell?

●     What are the variations of products and services offered?

●     What are common questions people ask about these products?

●     What is the average price range(i.e budget) for this type of product?

You should explore several types of markets before choosing one for your business. Your ideal market will be one that strikes the perfect balance between your own personal interest and real market demand.

Take pricing into account as well. Some products may have high price points, but they’re also expensive to make and sell. Consider how much money you can reasonably afford to run your business, as well as how much you’ll need to pay in sales tax, shipping, and operational expenses.

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Casual Market Research

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Casual market research goes a step above the exploratory phase. You’ve decided on a market, you know your niche, and you’re considering different paths for your business. Imagine you’re going to sell cookware. You could offer products that you buy wholesale, but is that cost-effective for your bottom line? Would it be more affordable to specialize in a particular type of cookware at first, or looking for a manufacturer?

If you decide to only sell one type of cookware, like a great frying pan, how will that affect your market reach? How would you ensure your business is able to continually make sales and grow?

It’s important to determine the right balance for sales at this point. If your product offerings are too broad, you might not be able to effectively market to anyone. If your inventory is too narrow, you may not make enough sales to become profitable.

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Descriptive Market Research

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Descriptive research helps you learn more about your niche and the type of products people are looking for. You should be trying to identify when products in this niche are most in-demand, what consumers’ greatest struggles are, and how you can resolve them. You should also identify top competitors for this niche and what people love about their products.

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Predictive Market Research

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Predictive research is something you will continually do throughout your e-commerce journey. This market research helps you forecast trends and changes to your market. For example, if you know there is an uptick in people searching for your product during the holidays, you’ll want to factor that into your marketing strategy.

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4. Choose a Type of E-commerce

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There are three e-commerce models to choose from:

●     B2C – Business to Consumer. This is the process of selling to people through a third-party. Drop shipping is the most common B2C model.

●     B2B – Business to Business. E-commerce for B2B brands focus on selling from one company to another. Your focus would be on creating solutions for other companies, like selling software to law firms.

●     C2C –Consumer to Consumer. Sites like Etsy, Amazon, and the Facebook Market place are ideal for people who want to sell things they make directly to other people.

B2B and C2C businesses can operate similarly today, but there are some key differences. B2B is the most popular form of e-commerce, and it involves a third party to fulfill orders. Drop shipping is the perfect example of B2C. People order through your store, but their products actually come from your supplier.

Someone who makes, packages, and ships all of their own products using an online platform is running a C2C business.

For 99% of people, the B2C model will work for their e-commerce goals.

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5. Decide How You’ll Get Products

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There are four options when it comes to creating inventory as an e-commerce store:

●     Make the products yourself and ship them directly to consumers.

●     Find a manufacturer who either ships products to you or directly to customers.

●     Buy wholesale and sell from your own warehouse/stock.

●     Drop ship your goods with a partner company who collects a portion of each sale and fulfills the order on your store’s behalf.

Choosing the right model for your store depends on your budget and goals. If you don’t have the tools, time, or experience to craft products from scratch, then you’ll want to either buy them or find a company that can produce them for you.

There’s also the option of being an entirely digital e-commerce store, selling downloadable assets like printables or design assets. There’s a large market on Etsy for sellers who create elements people can use on their own products.

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6. Start Branding

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Now that you know your audience and what you want to sell to them, it's time to start building a brand. A brand is different from a business, and it's important that you know how they affect your profits.

Your brand is the identity of your business. It fosters connections and helps create an experience.

People know that Nike sells athletic shoes and sportswear, but they don't go to Nike just because of those products. They choose Nike because it's a brand that represents strength endurance and confidence

As you develop your brand, ask yourself, “How do I want to make people feel when they interact with my store?”

Your brand should reflect your mission as well as your audience’s values. These come across in everything from design to voice.

To get started, you will need:

●     A name that represents what you do.

●     A strong understanding of your company’s values.

●     A distinct tone and voice you’ll always adhere to when interacting with customers.

●     A logo and color scheme.

●     A professional website and social media accounts that all follow the same brand guidelines.

Building your brand is a fun, creative process. Don’t be afraid to enlist the services of a freelance graphic designer, either. They can help you perfect your ideas, so they’re polished and ready for launch.

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7. Make a Marketing Strategy

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Your store won’t sell itself, no matter how impressive it may look. Some e-commerce newbies spend so much time working on their site that they forget about SEO and marketing. Without a marketing strategy, how will anyone find your business in the first place?

Taking everything you’ve gathered about your audience, start making content that they will resonate with. You should also consider running paid ads on Facebook, Instagram, LinkedIn, or Pinterest.Choose the platforms that your audience uses the most.

SEO also plays a big role in visibility.Search engine optimization is a combination of keyword research and website design.

We suggest checking out the Beginner’s Guide to SEO by Moz. It covers everything you need to know about optimizing your website for search engines. You’ll also benefit from Google Keyword Planner; it helps you learn what people are looking for, how they’re phrasing their searches, and what solutions they’re really after.

Remember that every marketing strategy needs a goal. Don’t post just to post. Instead, have an intention behind everything.You might have certain posts designed to boost visibility, and others meant to guide people to your site.

You should also look into building an email list. This helps you connect with people who may become customers more easily, offer them personalized sales, and engage them regularly. Check out Mailchimp’s guide on how to build your mailing list.

Tying It All Together

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With market research, you can understand your business and audience. The most important thing to do as you perform research is ask the right questions. Don’t be afraid to delve deep into the why behind consumers’ actions. Being open to understanding their needs will help you develop a more responsive business.

Make sure you continually return to marketing research as well. As your business starts to make sales, you’ll want to research your audience, too. Learn about where they come from, who they are, and what they care about. Determine what elements of your business they like and which ones they tend to dismiss or avoid.

No matter how big your business becomes, using these fundamental strategies will help you strategically set and achieve your goals.

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