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There is a constant increase in the number of people buying things online. Digital sales are seen to expand rapidly, with a 23.7% growth rate forecast. According to statistics, ecommerce will now account for 8.7% of the overall retail spending worldwide.

The improving statistics are due to an increase in middle class and internet penetration in developing nations. For entrepreneurs, this is the perfect opportunity to start their ecommerce business. But while doing so, an entrepreneur has to keep the essentials of starting an ecommerce business in mind.

Choose an Easy to use Ecommerce Platform

Out of many reasons, a person opts to shop through an ecommerce store because of convenience and experience. By ignoring any one of the two, you deprive experience hungry buyers. Designing a good experience is a critical process and plays an important role to improve the efficiency and conversion rate.

There can be a lot of complications while building an ecommerce website. To save yourself from the time-consuming process and avoid common pit-falls, consider choosing an ecommerce platform. Depending on your business plan, budget and scale of operations, you can choose an  ecommerce platform that’s growing continually in terms of user satisfaction and can meet your unique requirements. For instance, if you want to test the market and still avoid spending too much, try an ecommerce platform like YoKart. Other examples include CS-Cart & Magento.

Know your Competitors and Customers

Now that you have given a thought to the ecommerce website, the next step involves knowing your competitors and customers. While doing so, you can start by conducting a keyword based search on Google or any other search engine.

For example, suppose you want to start an ecommerce business in New York and want to sell luxury designer clothing for women. Then you can start by searching "Luxury clothing for women in New York” and analyse other ecommerce websites.

Doing so, will help you build strategies to face competitors head on.

For the next phase, you can analyse their product reviews and social media followers to see what people are saying about their service/product. This will help you gather the requirements of local audience and forecast product demand as well.

Must read: How to Connect with Vendors for Your Multivendor Ecommerce Store ?

Go Local

Starting small is essential for an ecommerce start-up to survive in a world dominated by major players like Amazon and eBay. Localization is one of those key factors that can make or break an ecommerce business.

One great example of this is the toy powerhouse – Mattel. In its initial days, the launch of Barbie in China was unsuccessful. A lot of research went in studying local audience to analyse where the company went wrong.

Offer the right price

After you know your customers and competitors, it’s time that you start offering products on your ecommerce website at prices tuned for your target audience. To offer a competitive price, you have to overcome various operational and other costs to gain market share.

Before finalizing the pricing strategy, consider the different costs, demand & supply, competitor’s pricing, the tax environment, etc. Furthermore, a lot depends on the payment method you will use on an ecommerce website.

For example, in certain developing nations, cash on delivery is the primary mode of payment, whereas, in developed nations, credit cards and debit cards are accepted.

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