In e-commerce, focus on the most important

E-commerce in Poland is growing at an annual rate of 18 percent (averaging according to PwC and Gemius data). The interest in entering this market is not surprising. Especially since setting up an e-store and business can already be reduced to a few clicks. So seemingly simple, yet only a select few stores will successfully complete their first year of business. The key is to eliminate unnecessary activities and any distractions from the environment. You need to focus on the most important thing. On sales.

Step 1 - The idea needs to be vetted

Some vendors are focusing on a niche and producing unique goods. Others see their opportunity in the mainstream. The most important thing in business is to determine demand, identify trends that give hope for success and choose the product category well. The most important tool for verifying an idea will be an Internet search engine. You can check the demand for certain products by looking for stores with offerings similar to the planned one, browse forums where potential customers ask where to buy the product. It is worth tracing the histories of stores with similar offerings, get an idea of what and how the competition is doing - its communications and development strategies. You will be able to see which products enjoy positive and which negative reviews.

Step 2 - Arithmetic is an entrepreneur's weapon

A calculator will come in handy for counting the most important things - expenses and income. For the first, you will need an evening spent summing up the things necessary to start the store and the current monthly expenses, taxes and Social Security. It is better to estimate pessimistically, that is, to assume that despite the precision - the actual costs will still be higher than we assumed. When estimating revenue, it is necessary to check what volume of goods - at a given margin - should leave the store every month for the seller to earn.

This is also the right time to talk to suppliers and see what terms they offer their goods. You can then refine your "business plan." Wholesalers have their requirements for the number of orders, return policies, transportation, additional fees.

Step 3 - A note of creativity

If the demand is proven, the balance sheet agrees and there is a chance that the assortment will hit the needs of customers - you can move on. It's worth finding a name for the whole enterprise. The brand will be important in the development of the company, but you need to decide at the beginning what values and benefits to communicate to customers. The times of Mirexes and Danutopoli are gone, to reach customers you need to offer them a distinct name and brand philosophy. Preferably one that will allow you to buy a domain - the main place of your online presence. It is also worth judging whether you will distinguish yourself from the competition by speed of delivery, small gifts, packaging, loyalty program or, for example, free returns. Because standing out is worth it.

Step 4 - Software selection

Starting out in e-commerce means choosing the software on which to run the e-store. And this decision, although made at the very beginning, can determine its further fate. Those who are more technically proficient and have their own IT infrastructure may choose open source software (such as Presta). However, vendors who prefer to focus on the core of the business at the outset will find a suitable solution in the SaaS model (e.g. Shoper), which can be up and running in a matter of hours. Such a solution has several not inconsiderable advantages for beginners: it is known to be tested by thousands of sellers already functioning on the given platform, it has the most important integrations at the entrance - including payments, price comparison engine, two-way connection with Allegro auction service, invoicing program, maintenance of mail and WWW server, etc. In the future, thanks to the available applications, it will be possible to develop the store according to the needs with additional functions.

Step 5 - The art of resignation

The most important thing at the beginning is to launch a functional store to sell. This is not the moment to analyze non-standard functions and their possible use in the store being developed. At this stage it is still difficult to assess what will be needed. Instead, it is worth paying attention to whether the selected software for running a store offers the possibility of expansion, for example, by adding applications. To start selling, all you need are the few elements mentioned above: a business, store software, products to sell and a domain. You also need to remember the terms and conditions, privacy policy (your own, not copied from another store) and SSL certificate - it will be necessary for Google search advertising and for connecting your store to social media.

The mantra of a newly minted entrepreneur should be: "patience." Only consistent, gradual action will make the first profit. Regardless of market trends, the business needs to start making money quickly.

Step 6 - Advertising as a lever of commerce

Customers will not come on their own. Most products - especially in new stores that do not have an established brand - are sold through Google search advertising (Ads) and through Facebook. However, you don't need to be immediately familiar with marketing and online campaign algorithms yourself. They can be outsourced to an external company or an e-commerce software provider. Comparison sites are also a good source of traffic. It is worth noting whether this option will be integrated in the chosen solution. It's a good idea to build a mailing base from the beginning in order to be able to conduct communication with customers in the future. Importantly - presence only on a marketplace such as Allegro does not allow you to collect buyers' email addresses. This is an important reason to invest in your own store and brand. As far as time resources allow - it is good to build the service based on original and valuable content - available, for example, on your own blog. It will enable you to attract new users through good positioning of the site in popular search engines.

Step 7 - The customer comes first

A higher number of orders will allow you to raise the capital needed for expansion or hiring an additional employee. This will also be the time for functional changes in the store - improving the UX, new graphics, improving descriptions, and perhaps adding another product group or introducing a new brand.

Customer service must also be reliable. These are the points of contact by which the customer will form an opinion of the store, which will influence subsequent purchases and possible referrals. The most difficult moments in the business will be returns and complaints of goods, which sooner or later every store encounters. The situation is inherently unpleasant for both parties, so it is worth putting more effort into resolving it, as it can translate into gaining recognition in the eyes of the buyer. A pro-client attitude will give you an advantage over your competitors in the form of returning customers.

Step 8 - Analyze traffic, preview competitors, predict trends

The last step, once the store is up and running and making its first profits, is to focus on the facts. You already know which sales channel brings the most profit, where the store's customers are coming from. This is the time to regroup forces and invest in the best converting channels. This is also the time to analyze the mistakes made and learn from them. That way the business can move on.

Every online store operates online - surrounded by other businesses. Analyzing the activities of competitors and the needs of the selected target group allows you to learn and plan the next steps. Knowing what your competitors are doing and what customers are saying on forums and social media will allow you to anticipate changes in the market.