Business structures and forming your business
Understand the differences between a Sole Proprietorship, Limited Partnership, Limited Liability Partnership, Limited Liability Company, S Corporation and Corporation.
If you are contemplating selling products online, but you have not sold online before, there are some things to take into consideration and decisions to make. The online market is very popular today, with more and more people electing to shop online versus fighting through busy malls. In fact, according to a December 1st CNBC report, 2015 Cyber Monday Christmas sales passed $3 billion for the first time, setting a single day sales record.
Each year, growth in eCommerce sales continues to rise. According to comScore, the growth of online commerce has now outpaced the growth of overall commerce in the US. Entrepreneurs want to get in on this and profit from this growth.
So what does it take to sell products successfully online? First, you have to decide whether you want to set up your own online business or work with a third party.
Setting Up Your Own Online Business
Domain Name and Hosting
The first step to take when setting up your own online business is to choose a domain name and hosting. Your domain name should be strong and memorable. It will enable your visitors to find your online store more easily, remember it, and enable you to build your brand. In terms of hosting, be sure to consider your store's long-term goals before deciding on a provider, as there are many web hosting providers offering a variety of features.
Online Merchant Account
Since customers who shop online will often be using credit cards to pay for their purchases, setting up an online merchant account is essential. This will allow you to take and process payments and have the money transferred directly to your business bank account.(Old National Merchant Services can assist with setting up such an account.)
Your eCommerce Storefront
There are several storefronts to choose from depending on your particular needs. There are:
Since your customers are not in a physical store where they can touch your products, it behooves you to replicate this experience as much as you can. You can do this by providing many details and descriptions on your products; including dimensions and weight. Include a zoom feature to enable customers a close-up look at your products. Also, having an online video showcasing and demonstrating the product is ideal.
By obtaining an SSL Certificate, you ensure to your customers that shopping at your eCommerce store is secure. This not only keeps the information of your customers’ safe, but also provides your small business with credibility.
Third Party Selling Opportunities
If you are looking to sell products online without having to set up an eCommerce website yourself, working with third parties might be best for you. These websites allow individuals and businesses to sell their products and earn commissions. There are some basic things you want to follow first to make the most of this option.
First, you want to determine what you wish to sell. You want to find products that are unique and offer a good market opportunity. Next, you will want to strategize as there is so much competition out there. You have so many options at your disposal; including big names like Amazon and eBay where you can set up shop.
Because you have so many options, it is important that you do your research and find a trustworthy provider. Not all providers are built the same. You want to go with one that is easy to work with, will offer reliable eCommerce solutions for selling your products, offer professional looking websites and one that is user-friendly.
In the end, you want to leave your customers with an amazing virtual shopping experience. Since they do not realize the instant gratification of leaving a brick and mortar store with a purchase in hand, you want to replace that by providing a great online shopping experience.
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