Starting a small business out of your own home is an exciting prospect. Ecommerce, for many people, is a fun hobby as well as a way to supplement their income. What’s more, the essentials of starting an ecommerce business aren’t as convoluted as many would-be entrepreneurs think.
Check Local Regulations
Unfortunately, starting an ecommerce business is not as simple as listing something on Facebook Marketplace. The essentials of starting an ecommerce business start with the understanding that it’s a legal entity designed to protect you. To enjoy the full benefits a business offers—such as wholesale purchase and separate taxes—you must stay within the letter of the law.
Which laws impact you depends greatly on what you’ll be selling. For instance, individuals selling baked goods online must have a food license and a licensed kitchen. Someone selling retail mostly just needs a tax ID to buy their supplies. While you’re shuffling the paperwork or filing your business, take the time to double-check for any local or national laws that might otherwise catch you off-guard.
Figure Out the Fine Details
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For the most part, this is likely handled by your chosen platform. For those creating or ordering a custom one, you’ll need to pick which options you accept. For many people starting out, PayPal or Stripe is a great place to start. Lastly, shipping trips up a lot of first-timers. The cost, time, and risk of damage are unquestionably daunting. By using careful packaging techniques, you can better ensure that your goods arrive safely.
Choose Your Niche
Before you can actually sell anything, you’ll need to figure out what you’ll sell and to who. Are you a baker and want to start a custom cookie business for parents? Or do you make 3D game gear and are looking to sell to upcoming esports gamers? Both are viable goods and target audiences, but the goal is to find out which is yours. Take a good look at the possibilities of what you might sell in your store.
Try to niche it down to one theme. Once you have a couple of great products underway, figure out who they need to be targeted to. While anything can be sold to anyone, choosing a realistic demographic will help you find real people you can start marketing to.
