2023-05-26
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Why opt for an Online Business?
Steps for Starting an Online Business
7. Get Started with the Fundamentals
8. Establish the shipping and logistics
11. E-commerce payment methods and processing
12. Promote businesses through digital marketing
With 63% of shopping occasions beginning online, it is inevitable that no matter where your customers make their last purchase, whether online or at a brick-and-mortar store, their journey will start online.
Online business has grown significantly in recent years as more people tend to access the internet and prefer the convenience of shopping online. Business over the Internet is vital, as it offers flexibility for both buyers and sellers. Consumers benefit from access to a wide range of products from anywhere, anytime, with less human interaction, saying goodbye to the hassle of visiting a physical store. Businesses can expand their customer base and reduce expenses associated with physical stores by aiming for increased sales and revenue.
The continuous growth of online businesses will have a profound effect on the global economy in the upcoming years. As more businesses embrace online platforms, the competition for customers will be more strenuous, inducing further innovation and enhancements in the online business sector. Getting started with an online business can be a black box at first unless one is guided through the correct steps.
Market research involves gathering information about a target audience, competitors, industry trends, and emerging technologies to make informed business decisions and gain a competitive advantage. Methods include surveys, focus groups, online user analysis, and social media analysis. Advantages include improved products and services, increased customer satisfaction, higher revenue, and long-term success.
Solid market research and an audience analysis would also help you identify your niche markets and their requirements and demands, paving the way for creating your own product or service segment.
Create a sales funnel. A sales funnel is a visual guide that shows how a customer progresses through the purchase process of your product or service. It should be easy to navigate, so it helps them learn about your product and make a purchase decision quickly. Market research helps you understand the needs of your target market, identify a profitable niche, and develop strategies to meet those needs.
A niche is a specific area of expertise or market segment that you focus on. It will help you to stand out from the competition and create a unique selling proposition that will help you attract more customers.
By choosing a niche, you can focus your marketing efforts and target your ideal customers more effectively. You can also develop in-depth knowledge of your chosen field and create content that resonates with your target audience. This will help you to build trust with potential customers and establish yourself as an expert in the industry.
When strategizing for online business, consider a niche that complements interests and expertise while assessing market demand, competition, and trends. Evaluate business models such as B2C, B2B, C2C, and D2C, and experiment with e-commerce platforms to refine the model. Opting for the ideal online business allows companies to maximise revenue and improve their digital presence.
After identifying your niche market, choosing the right products or services to offer is an essential decision.
Developing your products can be a great way to differentiate yourself from the competition and increase your bottom line. It also gives you more control over how much you charge for your products, as well as the quality of the items you offer. On the other hand, sourcing products from other manufacturers can be a great way to save time and money while still providing customers with quality items. Both approaches have their advantages and disadvantages, so it's important to weigh all of your options before deciding which path is best for your business.
Selling the product/ service needs a plan. “If you don’t plan to win you plan to fail”.
Developing a business plan is important to outline the goals, and strategies, minimising the risk of failure and financial projections for the business, as well as providing a roadmap for how the company will achieve success. It is important to conduct appropriate research and analysis when developing a business plan to identify potential risks and opportunities and ensure that the business is viable in the long run. A business plan also serves as a tool for securing funding from investors or lenders, as it provides a clear picture of the company's potential for growth and profitability.
A well-chosen business name can help to build brand recognition, increase customer loyalty, and contribute to the overall success of your business. It should be memorable, easy to pronounce, and relevant to the products or services. When selecting a business name, it is important to consider your target audience and the image you want to project. Research potential names, seek feedback from your target audience, and register them with the appropriate authorities. A business is incomplete if it's not protected from any economic, legal, or social instability. This is why business registration is important.
Registering a business is a crucial legal requirement that establishes the company as a separate legal entity. To do this, one needs to choose a legal structure, obtain licences and permits, follow regulations, and register with authorities. Proper registration can bring many advantages, including asset protection, government grants, and loans. It's essential to research the legal requirements and seek professional help if needed. Once registered, one needs to keep up with legal and regulatory requirements such as filing taxes and keeping financial records accurate to ensure long-term success. After registering a business, it's ready to start its operations.
A well-designed logo can help to build brand recognition and awareness, which will make a business more distinguishable from the competition. A Logo should be simple and reflect the personality and values of the brand. Logos should also be versatile and work well across a variety of mediums, including print and digital. When developing a logo, it is important to consider the target audience and the image the business wants to project. The logo should be unique and not infringe on any existing trademarks and should be used consistently across all marketing materials.
Building an inventory is an essential task for any business that deals with physical products. It helps businesses keep track of their stock levels and ensure they have enough products to meet customer demand. Maintaining an accurate inventory is essential for effective inventory management, which can lead to increased profitability and customer satisfaction. With the help of modern inventory management software, businesses can efficiently track and manage their stock in real time. A logistics and shipping process is what involves the physical movement of goods.
When selecting a shipping strategy, a business should consider aspects such as the size and weight of its products, the shipping destination, and shipping timeframes. You can partner with a logistics provider or set up your fulfilment centre to ensure that it meets the needs of customers. It is also important to work with reliable shipping carriers and provide tracking information to ensure visibility into the delivery process. By investing in a shipping strategy that aligns with your business goals, you can enhance the customer experience, reduce shipping costs, and drive long-term growth for your business. Choosing the right sales channels that align with your business goals is important to reach your target market easily.
There are various sales channels available, such as e-commerce websites, social media platforms, marketplaces, physical retail stores, and more. Each channel has its advantages and disadvantages, and it is essential to evaluate them based on factors such as cost, reach, target audience, and ease of use. Considering resources such as budget, time, and personnel is crucial when selecting sales channels.
To build a successful online presence, select the right eCommerce platform, ensure the website is user-friendly and secure, choose a domain name and hosting provider, and utilise a website builder or content management system. A reliable hosting provider with excellent uptime and customer support is crucial. An eCommerce website can establish a broader customer base, enhance customer engagement, and remain competitive in the digital age. When building an online shop, it's crucial to consider different e-commerce payment methods and processing to ensure a seamless and secure checkout experience for customers.
Choosing the right payment methods, including credit and debit cards, PayPal, Apple Pay, and bank transfers, is an important decision that can impact sales and revenue. Common payment methods. Credit and debit cards offer convenience and streamlined payment processes, while PayPal offers added security and convenience. Apple Pay and other mobile payment options have also gained popularity. It is important to offer multiple payment methods to customers to provide a seamless checkout experience and increase the likelihood of completing a sale.
Payment processing methods involve a third-party provider that handles the transaction, processing and settling of the payment. Some of the most popular payment processors include PayPal, Stripe, Square, and Authorize.net. These providers offer secure payment processing, fraud detection and prevention, and seamless integration with e-commerce websites. By selecting the right payment processing method, businesses can improve the checkout experience for customers, reduce the risk of fraud, increase reliability and streamline business operations.
Digital marketing strategies include social media marketing, content marketing, email marketing, and paid advertising.
Content marketing can help establish a business as an authority in the industry and attract more visitors to the website.
Social media is vital to reach a wider audience anywhere in the world.. Social media can be utilised to run promotions and contests, advertise products or services, and collaborate with other businesses or influencers to reach a wider audience. and as a powerful tool for driving traffic.
Email marketing allows businesses to connect with customers directly and share updates, promotions, and new product launches.
Search engine optimization (SEO) is one of the most effective ways to drive traffic, as it helps websites rank higher in search engine results pages (SERPs).
Paid advertising, such as Google Ads and Facebook Ads, can also be an effective way to drive traffic. Email marketing can help you stay in touch with customers and encourage them to visit websites.
By using a combination of these strategies, businesses can drive more traffic and increase the chances of converting visitors into customers.
Promoting is not sufficient unless a business recognizes what works and what doesn’t. Remember “You can't improve what you don't measure”
Continuous monitoring and analysing will benefit businesses to stay ahead of the race and drive long-term business growth.
Tracking website analytics can help identify which products and pages are most popular, where traffic is coming from, and which marketing channels are most effective.
With excellent customer service, businesses can build a loyal customer base, attract new customers, and differentiate their brand from competitors. An effective customer service system will handle customer inquiries and complaints, provide prompt and helpful responses, and provide a positive customer experience. This includes optimising the website for easy navigation, providing detailed product information and images, and ensuring a fast and secure checkout process.
Value-added services like free shipping, easy returns, and personalised recommendations can also make the shopping experience more enjoyable for customers.
When launching an online business, legal considerations are crucial. Business owners must register their businesses, obtain licences, and follow data protection and privacy laws. Compliance with consumer protection laws and the protection of intellectual property is also essential. By meeting these requirements, business owners minimise legal risks, protect customers and their businesses, and operate confidently.
Starting an online business in Sri Lanka can be a great way to make money and be your own boss. However, it is important to do your research and plan carefully before you get started. We have outlined the steps involved in starting an online business in Sri Lanka. We guarantee that this information will help you to get started on your journey to becoming an entrepreneur.
