What is eCommerce?
eCommerce is defined as – Commercial transactions conducted electronically on the internet which includes any company selling products or services. Expanded on slightly further, it is the and means by which a company will present its proposition via the internet and allow consumers to exchange money for the fulfilment of the companies products or services.
Capital and reputation are at risk and this can sometimes generate a lot of fear and hesitation. However, when the desire to start a new eCommerce website overtakes the fear of failure, your next question should be to decide what next steps are needed in order to correctly land your new project, gain traction and get it to positive cash flowing levels as fast as possible.
For the avoidance of any doubt, positive cash flow is the level in which an asset, such as an eCommerce website generates income greater than the expenses incurred in running that asset. At this stage (and as long as the asset is managed to at least the same level) positive cash flow is achieved and the available funds you have available will keep growing.
Positive cash flow is when an asset generates income greater than the expense to run it. #PassiveIncome
Owning a positive cash flowing eCommerce business is deeply satisfying in the current day and age. With increased societal pressure being placed on an individual to make financial success, and the added scrutiny of one’s peers using the power of social media and the internet; starting and making a success of an eCommerce website, for example, provides immediate validation of one’s ability to create a goal, plan for it and take the necessary steps to achieve it.
First, believe it, then conceive it.
Foundations are important to the life of any thing, and your new eCommerce website is no different. Consider things such as setting up your work domain within Google G-Suite to leverage the power of Google’s connected cloud software to increase your productivity. Google Search Console previously Webmaster Tools to provide visibility on your organic search performance, the way Google indexes your site and lines of communication that Google will use to message you about your site. Google Analytics allows you to leverage your website data to provide measurable insights.
Environment is important to the life of any thing, and your new eCommerce website is no different. Consider things such as using a website builder to easily build your store within a fast, safe and secure hosting environment. Website builders also have the benefit of having ‘plug and play’ linking to the biggest and best consumer channels and highest conversion payment merchants out there to make the management of your business as easy as possible such as Shopify.
In both Shopify, the sales funnel is underpinned with the ability to link to inventory stored in multiple locations be that from a drop shipping supplier, FBA or on premises. This allows you to quickly add to your overall inventory and fast track your store’s initial growth curve. The ease in which products are added is relatively straight forward. Access is given to the products all important meta titles and meta descriptions, allowing you the ability to hone your keyword strategy.
On the other end of the funnel, they both accept that serious sellers want to be able to not only acquire inventory from multiple sources, but they also require a sales platform which synchronises well with other sales funnels. Shopify allows automatic product syncing with eBay, Facebook and Wish while also providing a POS system which allows face to face payments to be taken. Amazon FBA is only available in the US, so UK FBA sellers need to wait before automation Nirvana is achieved.
Insights – Payment Merchant Gateway Options
- Shopify Payments (Essentially Stripe)
- Amazon Pay
- Klarna – Buy Now, Pay Later (Frictionless checkout experience)
Starting a new eCommerce business is a big step, but assuming you’ve got the desire to make it a success and the right tools for the job. You’ll soon be on your way to defining your own destiny, or at the very least earning more interest than you would from a bank.