How to Start an eCommerce Business from Scratch: Guide for Startups

Quick Summary: Starting an eCommerce business from scratch has never been easier for any startup. It takes on your nerves if you don’t figure out the prerequisites effectively. There are various phases you should consider to create a successful business. However, the basic requirement is to develop an eCommerce website. It insists on looking for eCommerce business models and future benefits. So, hold on to your device as we get into the eCommerce startup business guide!  

Industrial market sizes have been reaching a trillion dollar amount. E-commerce is among the peak sectors that accomplished that mark. Although it is evident that retailers have been enjoying the eCommerce business transformation. Because the demand and supply of the goods and services in the market have been flourishing.

Reports convey that the worldwide market size of the eCommerce sector will be about USD 18.77 trillion in 2024 and exceed USD 75.12 trillion by 2034. It’s a straight CAGR of 14.9% during that period. So, the figures are clear justifying the fact that eCommerce is the industry giant. The following graph represents each base year’s market size between 2024 -2034. 

Before delving into the main insights let’s have a quick go-through on the big eCommerce brands’ names. They have been the early comers but have also managed to outperform with the changing market pace. 

Global Leading ECommerce Business Brands Today

• Amazon
• Walmart
• Alibaba
• eBay
• Etsy
• Namshi

There can be enough reasons for the success of these brands. The primary ones are about their accurate decision-making. Let’s directly jump into the process to build an e-commerce site.

How to Make an eCommerce Business from Scratch?

To build e-commerce website from scratch, you must effectively portray your requirements and business purpose. So, we have a step-by-step guide that helps you to organize your eCommerce business development process.

• Define your eCommerce Business Idea 

Begin with some critical clarity components to start your eCommerce business. Researching, analyzing, and finalizing your business idea is the stepping stone. You have to initially think of the eCommerce startup idea. 

What would be the business purpose, your product range, and customers’ POV? This stage is all about answering such questions by taking Amazon as a role model. It demands you to define the core requirements of starting an eCommerce business from scratch. So, just simply take your laptop or a notebook and jot down your business idea and related aspects.

• Conduct Market & Competitors’ Analysis

Secondly, the effective factors are the e-commerce market trends and competitors’ research. You have to excellently look into various aspects. Likewise, what’s going on in the industry landscape, how the enterprises are shifting, and who is topping the chart? 

See, it’s very important as this will let you prepare a vision of your business. Accordingly, you can proceed at this stage by making a checklist. This is how your list should be breakdown which even validates your business idea;

• Conduct research for top eCommerce stores
• Determine your target audience & market portion
• Look for competitors’ product ranges & marketing campaigns 
• Find the unique value proposition (UVP) of your rivals
• Historical records of the market dynamics are also essential
• Prepare a realistic budget for starting an eCommerce business 
• Look into customers’ behavior in the recent marketplace

Moreover, this will benefit your eCommerce business. It takes precise consideration of all the factors. The research will work as the silver lining in the blurred clouds of startup firms. As a result, you can easily move to the next step.

• Fabricate your eCommerce Business Plan 

Now, the actual business plan commences. You need to put up all the data and information collected in the above stages. Still, when it comes to business planning, you have to evaluate the whole journey from scratch to launch. So, sequentially things will fall into place. 

It even covers registering your eCommerce business name under the Companies Act. Further, the logo, prototype, distribution channel, pricing model, etc, are bigger picture matters. However, making your business shine depends thoroughly on a strong eCommerce business plan. Thus, you can get the help of business analysts and stakeholders for this stage. 

• Decide the ideal eCommerce Platform

Today e-commerce business success is merely based on the choices as the business owner you have made. After properly examining the requirements, you now need to choose the right eCommerce platform. It is the most prominent one for developing your e-commerce store. 

Well, there are two primary and proficient alternatives you have as an eCommerce platform i.e., Shopify and Magento. To make a reliable and high-end eCommerce website, you need to oversee these open-source platforms. From building an eCommerce store to setting up integrations, you will sort with all-inclusive aspects. Whether you want to build an eCommerce website or app, Magento being the leading player longer would help you.

Read More: How to Develop Retail eCommerce App like Walmart?

• Create Your eCommerce Website 

The eCommerce development process starts from here. It needs you to hire web developers who have specified expertise in eCommerce project delivery. Because this is the end-to-end technical process that can be commenced by experts.    

However, when you onboard developers, you have to communicate your eCommerce requirements. It includes the following;

• Web designing components
• Product pages with descriptions
• Store Navigation
• Search & Filter
• Product categories
• Recommendations Section
• Payment APIs
• Push Notifications, etc.

Therefore, creating an e-commerce website ramps up your business in the digital marketplace. That too, is with the prevailing and future-ready technology trends. You can consult our eCommerce app development services and avail a 7-day free trial for your project idea.

• Finalize Product Sourcing Model

Product sourcing plays a critical role in determining your ideal product quality. The eCommerce business needs to fix the proper sourcing model. Whether they want to manufacture, buy wholesale, or prefer others. However, it majorly depends on your eCommerce business product type and cost of production.

On that note, here are a few common and primarily used product-sourcing solutions. You can pick the relevant form these;

• Drop shipping: Deals to promote and sell products in which external suppliers manage order fulfillment 
• White Label: When you gather the product line from the mass goods manufacturer who sells to various businesses. Basically, you rebrand the products for your e-commerce business 
• Private Label: When an outsourcing third party manufactures the goods exclusively for your business label. It sells under your brand name
• Wholesaling: Purchase products in bulk at discounted rates to sell goods and services to the end users 
• Subscriptions based: The eCommerce startups’ ideas offering services used this model. So, users will buy online subscriptions to access your business services    

Hence, whichever sourcing method suits your business, you can easily go for it. The clarity of product categories and other sources impacts organized workflow for your eCommerce business.

Explore: IT outsourcing strategies for your business

• Set up Secure Payment Methods

As we are heading to the final deployment of the eCommerce website, you have to integrate the relevant and secure payment gateways. It’s an obvious feature for smooth checkout. Also, the shipping details and invoice generation are very crucial aspects.

You have to ensure the fastest and most efficient shipping to customers. Therefore, consider this stage and finalize the encrypted online payment methods. PayPal and Google Pay are among the reliable ones. So, customers get seamless and protected transactions processed within seconds.

• Launch Business & Perform Marketing Campaigns 

Finally, your eCommerce website is ready to go on floors. By following the proper guidelines for website deployment, you can make faster business delivery. Moreover, planning your digital marketing campaigns and further making them recognizable is another expedition. So, you have to plan it priorly and implement the best practices. 

For example, creating a buzz before launch and social media promotions. Digital marketing is an exceptional requirement to build your business into a brand. Thus, don’t neglect eCommerce development merely by developing a website.

Additional Step

Although creating an eCommerce website is done, you have to maintain the online presence. Staying ahead of the curve by integrating the latest market trends is essential. It gives a long-term market edge and makes your business competitive. Thus, you need to make your business flexible to adapt to market dynamism efficiently.     

Now, you should get a clear understanding of the eCommerce business models. Your business can also skyrocket in the market by opting for the most relevant business model from below. 

Business Models for E-commerce Businesses

• Business-to-Consumer (B2C) 

Firstly, the most popular eCommerce business model is B2C, the favorite of online retailers. Everybody is familiar with the B2C  model which sells products directly to the end users or consumers. If you build an eCommerce website from scratch with the intent to sell to the consumer, it will be considered as the B2C interaction. So, your buyers are your target customers only. It’s a common and effective eCommerce business model to capture huge customers digitally.

• Business-to-business (B2B)

Secondly, the B2B model deals with agreements between businesses. With the motive to buy and sell the products or raw materials, businesses interact with each other. Generally, its motive is to purchase products from manufacturers and resell them to the end users. So, it’s a supply chain of goods that commences from wholesaler to retailer and then to the final consumers.

• Direct-to-Consumer (D2C)

The D2C business model has emerged in the eCommerce industry due to technical revolutions. As the transformational shift of business to online platforms happened, businesses regardless of type can directly sell to customers. It prevents the intervention of mediators. Moreover, D2C is like a self-reliant business operation, when you don’t rely on either wholesalers or retailers for any aspects.

• Consumer-to-Consumer (C2C)

When you opt for the C2C model if you begin an eCommerce business to sell goods or services to other consumers. You being the consumer promote goods through online media and outreach to a vast customer base. Usually, it even covers the reselling of old goods and runs an eCommerce website on the self-managed firm. Furthermore, the maintenance of centralized distribution becomes problematic.

• Consumer-to-Business (C2B)

It is the primary section of the commission-based model popularizing in the market today. Basically, C2B enables people to display their ads or marketing banners on the eCommerce website. So, your business sells its product in exchange for certain commissions on the selling goods or services. Its market size has increased rigorously after the pandemic.

• Business-to-Business-to-Consumer (B2B2C)

Lastly, the B2B2C is the model that shows the business partnership between two enterprises to provide the services to end users. It harnesses businesses with a wider consumer base and eventually increases profitability. 

When you create a successful business, the advantages of your efforts to build will be visible. However, having an idea of how to start an eCommerce business properly is also necessary. Thus, you will surely achieve the following fruitful benefits.

Read More: Steps to Build eCommerce App Like Namshi

What are the Key Benefits of an eCommerce Website? 

You will avail plenty of benefits when develop e-commerce website. There are different ways your eCommerce business has unlocked higher growth. So, here you go;

• Reduced operating costs 
• Speedy development 
• Increased conversion rate 
• Optimized user experience
• Effective market presence 
• Builds brand recognition
• Improves credibility
• Capture vast audience

Therefore, the efficiency of the eCommerce website will have future-focused benefits. Moreover, concerns about the cost to make an eCommerce website are also prevalent. Let’s get clear figures about it. 

Cost to Build E-commerce Business from Scratch 

The cost to build an eCommerce business from scratch is the variable component. As it will change or shift depending on numerous factors. So, again you have to examine and make calculative decisions. Particularly for the startups to have a clear idea of the eCommerce project impacts on cost-effective measures. However, starting an eCommerce business from scratch should have a sufficient budget of about $10,000-$70,000+. 

Well, you should look for outsourcing developers. It will make your project delivered with high-quality features and new-age trends. So, you get the benefit of developing an eCommerce business with scalable solutions. For more accurate information, you can refer to the blog on e-commerce app development cost for your startup.

As your business begins to grow you have to keep pushing your budget to acquire advanced tech solutions. It is crucial as modifying your business based on the market will drag you to the bottom. Thus, here are some expert solutions you need to implement in your eCommerce website or app for a prolonged time. 

Related Guide: Reduce Development Cost with Dedicated Developers

Experts’ Tips to Create a Successful Business in Long Run

• AI/ML Edge  

The AI ML development solutions are remarkably great. For the eCommerce sector, you can forecast future demand and accordingly reshape your marketing strategies. Furthermore, by using AI-powered tools and software, your business can streamline operations and detect suspicious activities. All-in-all the AI & ML solution is a bunch of goodies with lasting advantages for eCommerce websites. 

• Xtended Reality

Customers look for real-time experiences which XR can bring out from your website. See, improved customer engagement will lead to better conversion. Also, the invention of the Apple Vision Pro has made it even more significant and recent-driven tech benefit. Various businesses have integrated XR and VR features. So, if you neglect it you might get left behind.  

• Big Data 

Big Data can help to accelerate the business with customized solutions. You get access to price optimization and customer service solutions with this tech trend. From competitor analysis to performance monitoring and many more, it opens endless opportunities for your eCommerce business to grow. 

Get in touch with our eCommerce development team

The initial stages of an eCommerce business from scratch need analysis and continued proper website development and testing. Therefore, the requirement for perfect eCommerce website development services makes a difference. Having the experts from the very first steps secure a project with better solutions. You don’t have to juggle for plan B in any uncertain situation. The team of developers will take care of it. You can get your free quote to learn our proficiency in making an eCommerce website.