How To Setup An E-commerce Business Without Capital

Buying and selling is the most crucial part of human’s life. We don’t have every desired thing with us. Hence, shopping and making the required items available is our routines. Purchasing was a time-consuming task, and busy people hate to go shopping. But nowadays, you will see numerous online stores selling their products or renowned brands. It is known as E-Commerce Business.

Since the last 20 years, home-based trading has been getting popular due to integrating AI within technology usage. However, this method was already in the habit of importers and exporters. The businessman used to perform foreign trade of several items between far regions. Now, small retailers also show their existence over the internet world.

Upcoming generations wish to involve with any of respectable professions and e-commerce business is considered one of them. Among various barriers, lack of capital is a major problem for them. Not only youth but other folks also face the same issue; however, they have sufficient skills.

Here is a guideline on how to initiate an e-commerce business without or low capital.

1. Investigate E-Commerce Professions

Before starting an online business, spend your immense time for investigating and collecting as much information as possible. The required information must be relevant to e-commerce professions. For example:

  • What basics you already knew about such a profession?
  • Are you love to sell merchandise or wishes to provide services?
  • How much time you can able to assign for e-commerce business growth and expansion?
  • What is the best suitable time to appear online and respond to the clients?
  • Would you establish a partnership, team or helpers?
  • Do you have any unique idea to introduce in the retail market?
  • If you stuck somewhere during the struggle, does anyone from friend or relative would guide you?

There might be more queries you can check before indulging yourself in an e-commerce business.

2. Check Your Expertise

Various people keep this point first and most important for making such a decision. On the other hand, average people try to merge their expert skills with the growing trend. In fact, some of them visit any reputable institute to learn it. For instance, a guy didn’t have a budget to hire a customer representative, and even he is not expert in it. Such guy gets admission in a crash course to learn primary skills for customer support person.

Successful entrepreneur recommends accepting only the profession you can work solely. Otherwise, either you have to seek one/more skilful assistant(s) or have to pause the working and concentrate on your weak area. Hence, in both cases, you need to compromise on an unexpected thing.

3. Decide & Finalise

Once you have investigated the market, recent and upcoming trends, your expertise, and barriers, then it’s time to make decisions. If you have made up your mind to provide services, then what type of facilitation you will grant to the customers and if you want to deal in products, then categorised the focused items. List down all the field of engagements, i.e., product or services and mark them as selected and rejected.

At the end of the list, you will easily capable to configure what type of items you can undoubtedly handle and have enough knowledge. Thus, you have the ability to understand their technical ups and downs as well. Keep in mind that below three points are essential in finalising your e-commerce business:

a. Demand

A long-term business requires investment because you will surely plan to grow it. The enhancement will only occur when you add more products to your store. Therefore, keeping the future in mind the most necessary step is to start we the product consumers are demanding more. The most daily usable item generates the business more.

b. Skills

Your skills and expertise also matter and help you in finalising the decision. For example, if a guy is good in marketing, he can start a marketing franchise. Similarly, if a woman is an expert in contrasting the fabrics and setting old clothes to look new and attractive wear, then she must start her career with a fashion designer. Likewise, if a man is a skilled writer, he can begin to freelance writing assistance.

c. Broker/Facilitator

Another vital point before finalising the e-commerce business niche is to investigate about inventory. If you can handle physical goods and control its related activities, then go for it. Otherwise, start your store for online facilitator or broker services.

4. Name Your E-Commerce Store

Name is the most important element of any business regardless of its existence; physical or virtual, small or big, sole proprietor or corporation, etc.

“Have you ever seen someone famous for his good/bad act having no name?” – John William from Object Me.

It means that if you don’t have a name, you won’t survive. Moreover, the name won’t be too difficult to remember and pronunciation both. It will help people to remember easily.

Addition to above, make sure the name should portray the profession of your e-commerce store. Otherwise, the consumer won’t retain and recall the name that results adversely.

5. Construct An Attractive Website

When you want to open an e-commerce business, it is obvious to show your presence over the internet. Establishing a website to show your venture is easy, familiar, and most crucial component for e-commerce online store. Consumers check the site prior to an app. Therefore, create a website having:

  • Attractive appearance
  • Mobile-Friendly design
  • Demanding products on top
  • Supply complete information
  • Options selection feature with each item
  • Easy and quick navigations
  • Integrate the store with social media forums

Keep this proverb in mind: “The first impression is the last impression.”

6. Promotion & Marketing

Every business requires marketing and advertising. Without marketing, how would a consumer know that a new company has been established? Sometimes, you need the promotion of the company and some time for a particular product. For the marketing of an e-commerce business, one should have to adopt the methods related to the internet. It may achieve in several ways:

a. Email

An attractive email introducing the e-commerce business and attractive deals can pull the visitor towards your store. It is a common platform that every educated guy uses. In fact, nowadays, we receive various promotional emails in our inbox daily.

b. Affiliate Marketing

It is a unique type of promotion in which the owner or representative pay someone as a referrer. The product may be displayed over an over-crowded website or social media page. For example:

A wedding dress sale ad is being uploaded over such a busy platform. The owner, i.e., referrer promote this product by placing the banner of wedding dress offer at a clearly visible area and add come attractive write-up. Thus, a visitor came there can probably view your product and click to enter your e-commerce business.

c. Social Media

In the last ten years, people are using social media most. Since the last 4-5 years, they started to buy goods after viewing the store on social forums. A number of e-commerce stores exist only on social media websites and earning a too good amount. Therefore, don’t ignore the power of social media.

d. Content Marketing

There are still other ways to promote your online business. Content marketing is one of them. Contact several blogs related to your business and publish a piece of information there. Make sure to describe the features and give a personal touch in it. This act will enhance your position in SEO as well as consumer attracted to take action immediately.

7. Tryout FOMO

FOMO is a common term popular among retail store owners. They use it to attract the consumer. The purchaser gets afraid that the item will not finish from the store before he reached and show enthusiasm. The examples may be:

  • Limited Time Offer
  • 24 Hours Sale
  • # Product Left

You can also target the important days and events and set the sale. People usually await such occasions like Independence Day, Black Friday, Christmas, etc. So, you hold the stock till then.

8. Strong SEO

As I said earlier, an e-commerce online store should be displayed over the internet. Therefore, SEO is essential for every internet-based business. Most people use Google for searching for anything. However, Yahoo, Bing, and other search engines are struggling to win the race. Whatever the search forum will be popular, you should understand the algorithm and perform all those acts that optimise your online business on top. There are several things you have to check like minimising the page speed, plan the appropriate keyword for every product, add meta-title & meta-description tags, etc.

Analyse Site & Audience Activities

Last but not least, keep a keen eye on all the activities on the performance of the e-commerce business. Online store incharge checks methods for acquiring an analytical market research periodically to keep in touch with the latest trends. This analytical view can guide them to take corrective action on a particular page to grow the business more and more.

Author: Stella Lincoln

I am Stella Lincoln having a master degree from the University of California, Los Angeles in the subject of marketing. I love to spread the knowledge and wisdom. My focus is to enhance my skills and reduce the gap. You can check my write-ups at my blog; Educator House. Nowadays, I am working in HarperCollins Publishers as a Writing Consultant.