With more than 206 million expected shoppers spending money online this year, an eCommerce business has never been better off. If you are thinking about beginning an eCommerce company and selling products online, use this checklist to do it the correct way. Here are some 10 ways to start an eCommerce Business.
10 Ways to start a business in eCommerce:
1. Start With Your Business Name
The first thing to do (after you decide what you want to sell, of course) is to choose a wonderful, memorable company name that no one else uses. You can search for a corporate name to make sure it is not already in use. Once you have selected the name, register it. (If you create an LLC or a corporation, this will automatically occur in the state where you file your documentation.)
2. Secure Your Domain Name and Website
Ideally, you’ll get your company name as your domain name, but if it’s not accessible, choose a URL that’s simple to say and spell, and relate to your company. So if your business is Book’s Craft Creations and ‘BooksCraftCreations.com’ is not accessible, attempt something comparable to ‘CraftsbyBook.com.’
Your eCommerce site design may be the largest business expense you have. But you want to make sure it’s not only visually attractive but also functional.
3. Select Best Business Structure and Register Your Business
You have several alternatives when it comes to your company structure: Sole Proprietor Partnership (if you have a company partner) LLC Corporation
If you do not choose a business structure such as a corporation or LLC, the IRS will automatically consider you as a sole owner (or partnership). Your private assets are at danger, however, working as a sole owner. If your business is ever sued, the court can seize your assets if your business doesn’t have enough to cover its debts. The corporation and LLC separate you and your property from the company and provide other tax advantages.
You can register by yourself by filling out the suitable business structure documentation from the government, or you can employ a business filing company to do it for you. An attorney is another choice, but this is often overkilled for the requirements of the average small business owner.
4. Get Your Employer Identification Number
You’ll need an Employer Identification Number (EIN) to open a business bank account and file your company tax next April. Your EIN is a bit like the social security number of your company: it is a distinctive number that defines your company and enables you to file significant documentation. Every company requires one, whether you’re going to have the staff or not.
5. Apply for company licenses and permits
Operating an eCommerce company does not exclude you from the need for certain company licenses and permits. Check with your town, county, and state to see what kinds of sales tax permits or home business permits you to need and get those authorized before you begin working.
6. Find the Right Vendors
You will have a lot of competition selling products online, so finding the highest quality and best rates for the products you sell or materials you use to produce your products is in your best interest. Shop around until you discover a long-term supplier you want to do company with.
7. Start Marketing Early
Even if you’re not up and running, setting up social media profiles and writing content for your blog now is a good idea so you don’t start from scratch day 1. Use any tool to set up your website with a “coming soon” section where interested people can sign up for updates.
8. Getting more productive with Right Software
Technology can make your job so much easier, so before you begin your eCommerce company, play around with customer relationship management, accounting, project management, and email marketing software that you can incorporate into what you’re doing once you begin.
9. Stock Your Inventory
Whether you have a warehouse complete of products somewhere or your inventory lives in your garage, make sure you have enough to launch. It can be difficult, not knowing how much you’re going to need, but in particular, it’s better to have too much inventory than not enough. Pay attention to how your sales increase so that you can be intelligent with future orders.
10. Make sure your company stays compliant
Once you start your eCommerce company, things will move at the velocity of light. Do not ignore filing your annual report if you have incorporated or submitted an LLC or the annual charges for company licenses. Put these deadlines on your calendar if you need to, so you remain on top of them. Above all, these are the 10 ways to start an eCommerce company.
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