How an online store is beneficial for the business

When you start an online store, there are many options for the technical solution for the e-commerce system itself. Think about what you think suits your company's needs. From some past years often people are aware of the importance of e-commerce and its importance for business growth, so they can easily make a good strategy, but when it comes to the implementation, it is a time-consuming process and unfit for a person with a busy schedule. Hence, business owners get e-commerce services from any IT solutions company that suits their business and budget, but we suggest you find the best IT services company so it may actually help to promote your business and make value to your investment.

 

E-commerce

You should choose the system for your online store with care. There are several ways to go - from building your own system to buying a standard solution or using an "open source" solution that is usually free to use. Your customers also need to find you, and there are many ways to spread the word about your online store. Social media and search engine optimization are two basic ways.

Payment and delivery

Financing at a startup is usually paid for by yourself, but as the payments come in, you get working capital for the business. To deliver your goods to the buyers, you need some form of distribution. Think about whether you should take care of most things yourself or if you need to hire someone to help you with different parts.

Laws and regulations

When you sell goods through your online store, there are some laws and rules to consider. The E-Commerce Act states, among other things, that you must provide certain information about yourself as a seller to your buyers, such as name and organization number.

 

Run and develop your e-commerce store

When you have reached a certain volume of sales in your online store, it can feel natural to try to grow further by both hiring staff or getting online services from IT consulting firms and finding new markets.

 

Three business opportunities in e-commerce

Regardless of whether Sweden bank's figures turn out to be large or not, the sharp increase in e-commerce will mean plenty of new business opportunities. Below I thought I would give some examples in three areas where you, connected to e-commerce, can build a large and successful company.

Own shop

The most obvious thing for most people is probably to open their own online store. In this context, I would like to highlight a quote from Sweden bank's analysis that I believe is correct: "As we see it, the development benefits really large players, and small players with unique offers."

 

Large players find it easier to negotiate prices for, among other things, purchases of goods and logistics, while the necessary overhead costs can make up a smaller proportion of the costs than in the small company. On the other hand, we have a niche company that offers "the little extra" in one way or another; it can, for example, be about service, range of expertise. It can also be about the business model.

 

Two good examples of companies that have found different business models are Testagram and Outfittery . Testagram is a subscription service where you as a buyer get a box with product news for $10. I will not tell you more here, but I would recommend you to listen to the e-commerce podcast section on Testagram.

 

Outfitter's concept means that you choose size, price range, and style. Then they pick together and deliver outfits tailored for you. You choose what you want to keep and what you may want to send back.

 

Tools/services

If you do not want to run your own store, you can instead invest in helping the many e-retailers who want to grow and develop their business. This can be done in many different ways, for example, by developing really sharp tools for traders.

 

Some examples are  Loop54 which develops a really smart search function; newly started Storebadge, which helps retailers to collect reviews; and customers to evaluate different stores and Sharespine, which is used to integrate e-retailers' different systems.

 

Maybe you have a good idea or even an existing service that could be adapted for e-retailers? Regardless of your starting point, I recommend you talk to some e-retailers to see where it "hurts" in their businesses and thus find their needs.

 

(Niche) marketplace

My last tip for you who want to start a startup in e-commerce is to focus on marketplaces. Marketplaces gather different e-retailers under one roof, such as a mall or a shopping center.

 

The arrangements look a little different but usually mean that the consumer buys from the marketplace but that it is the individual e-trader "behind" who stocks and sends the goods directly to the customer. One of the great advantages (and challenges) with this approach is precise that you who run the marketplace do not have to tie up capital in stock yourself.

 

Major Swedish players in this area are Fyndiq, Tradera, and CDON . Their concept differs in some areas but what they all have in common is that they all work very broadly. Maybe you can create a marketplace with a more niche offering/target group?