
So you've decided to start an e-commerce business? Congratulations!
You’re about to embark on a journey that is as exciting as it is terrifying, filled with highs, lows, and a fair share of “What the heck am I doing?” moments.
But fear not, intrepid entrepreneur! This step-by-step outline is here to help you navigate the treacherous waters of e-commerce, all while maintaining your sanity and sense of humour.
So grab a cup of coffee, put on your favourite playlist, and let’s get started!
Summary and Overview of The Rise of E-Commerce: A Brief History
E-commerce, or electronic commerce, refers to the buying and selling of goods and services online. Over the past two decades, e-commerce has witnessed a meteoric rise, transforming the way people shop and conduct business.
The advent of the internet and advancements in technology in the late 20th century laid the foundation for the growth of e-commerce.
The launch of Amazon in 1994 and eBay in 1995 marked the beginning of the e-commerce era.

These 2 platforms revolutionized retail by providing a marketplace for buyers and sellers from all over the world to connect and transact online.
The growth of e-commerce was further propelled by the widespread adoption of smartphones and mobile internet.
This made online shopping more accessible to a larger audience, leading to a surge in the number of online retailers and marketplaces.
The convenience of shopping from home, a wider variety of products, and the ability to compare prices and read reviews are some of the key factors that have contributed to the popularity of e-commerce over the years.
Additionally, secure payment options and the availability of fast and reliable shipping have helped build trust and confidence among consumers.
Why go to the mall when you can shop from the comfort of your couch, and have items delivered to your door the very next day!
The COVID-19 pandemic accelerated the shift towards e-commerce as lockdowns and social distancing measures forced brick-and-mortar stores to close temporarily.
The graph below illustrates a notable surge in total global retail sales from 2019-2020, propelling a consistent 8% rise in retail ecommerce sales worldwide projected until 2024. This indicates an augmentation in online retail sales, a repercussion of the seismic shift in business dynamics caused by the COVID pandemic.

Many consumers turned to online shopping for both essential and non-essential goods, leading to unprecedented growth in the e-commerce sector.
Today, e-commerce is a multi-trillion dollar industry that encompasses a wide range of businesses, from large multinational corporations to small independent retailers.
It has not only changed the way people shop but has also created new opportunities for entrepreneurs and small businesses to reach a global audience and the importance of having an online presence in today’s market in crucial.
Now, let's cut to the chase! How do we approach an eCommerce website from the ground up? Let's get started.
Step 1: Do Your Homework
Before you dive headfirst into the world of e-commerce, it’s important to do some research.
This means understanding your target audience, analyzing your competitors, and identifying the unique value proposition of your business.
It’s kind of like stalking your ex on social media, but with a purpose.
II. Step 1: Do Your Homework - Identify Your Target Customers
A. Understand Your Target Audience
Make no mistake, identifying your target customers is the cornerstone of a successful eCommerce business.
Get it wrong and it could be a painful road and something that is really important to keep in mind. It's not just about having a great product (this helps A LOT!); but about having the right people to sell it to.
Understanding your target audience helps you tailor your marketing efforts, optimize your site for conversions, and ultimately, drive sales.

It's the compass that guides every decision you make, from the products you offer to the way you communicate with your customers.
To get started on identifying your target customers, consider the following basic points:
Demographics: Age, gender, location, income level, education, occupation, etc.
Psychographics: Interests, hobbies, values, lifestyle, personality, etc.
Behavioral Traits: Shopping habits, online behavior, preferred devices, etc.
Pain Points: What problems do they face that your product can solve?
Competitor Analysis: Who are your competitors and who are they targeting?
Start with a broad audience and then narrow it down as you need too, based on the data you collect.
Don't forget, the devil is in the details!
The more granular you can get with your audience analysis, the better equipped you'll be to customize your products and marketing messages to strike a chord with your audience.
Understanding Their Needs and Preferences
Understanding the needs and preferences of your target audience is more crucial than ever in 2023, as the eCommerce landscape continues to evolve rapidly.
This involves not just knowing who they are, but digging deep into their desires, pain points, and online behaviours.
With the advancement in technology, you have access to a wealth of data that can help you tailor your eCommerce website to meet the specific needs and preferences of your target audience.
Here are a few key points to consider:
Leverage Data: Use analytics tools to track and analyze user behavior on your site. This can give you insights into their preferences, the devices they use, the times they are most active, and more.
Customer Feedback: Actively seek feedback from your customers through surveys, reviews, and direct interactions. This will give you firsthand information about their needs and preferences.
Personalization: Use the data you collect to personalize the shopping experience for your customers. This can include personalized recommendations, tailored marketing messages, and more.
Mobile Optimization: With the increasing use of mobile devices for online shopping, ensure your site is optimized for mobile users.
Competitor Analysis: Regularly analyze your competitors to understand what they are doing well and where they are falling short. This can give you insights into the needs and preferences of your target audience that your competitors are not addressing.
Keep in mind, deciphering your target audience isn't a 'one and done' deal, but rather a relentless journey that demands ongoing dedication and flexibility as both your audience and the eCommerce world continue to transform.
B. Analyze Your Competitors
Identifying your Main Competitors
The competition! A critical point in the early stages of planning. Know your eCommerce landscape!
Identifying your main competitors is a crucial step in the journey of running a successful eCommerce business.

Not only does it give you a clear picture of the market landscape, but it also helps you understand the strengths and weaknesses of businesses you're up against.
A thorough competitive analysis can unveil opportunities for differentiation and help you tailor your offerings, marketing strategies, and overall business approach.
Here are some key points for beginner website owners to consider when identifying main competitors:
Research Market: Start by researching your market to identify who your direct and indirect competitors are. Direct competitors offer similar products or services, while indirect competitors offer substitute or related products.
Analyze Offerings: Examine your competitors' product range, pricing strategies, and unique value propositions.
Study Online Presence: Analyze their website, social media channels, and online reviews to understand their online presence and customer perception.
Identify Marketing Strategies: Understand the marketing and advertising strategies your competitors are using, both online and offline.
Examine Customer Base: Try to understand who their customers are, what they like about your competitors, and what they dislike.
Analyzing Your Competitors Strengths & Weaknesses
Diving into the world of ecommerce is exciting, but before you plunge headfirst, it's essential to assess the strengths and weaknesses of your competitors.
This isn’t about replicating their strategy, but about understanding what they do well and where they fall short.
Are their websites user-friendly? Do they offer free shipping? Are their customer reviews mostly positive or negative?

Analyzing these aspects can give you valuable insights into what your target audience values, and where there might be a gap in the market that your ecommerce business can fill.
Remember, every crack in a competitor's armor is a golden opportunity for you to shine even brighter.
A few tips we put together to help you get started!
Conduct a SWOT Analysis:Identify the Strengths, Weaknesses, Opportunities, and Threats (noted above in the graphic) of both your competitors and your own business.
Monitor Competitor Online Activity: Pop in and regularly check your competitor's website, social media pages, and online presence to identify any new strategies or offerings they have.
Customer Feedback: Analyze the reviews and feedback of your competitor's customers. This can provide valuable insights into areas where your competitor is lacking and where you can improve.
Compare Product Offerings: Compare the range, quality, and prices of your products with that of your competitors.
Analyze Marketing Strategies: Analyze the marketing strategies of your competitors. This includes online and offline marketing, content marketing, SEO strategies, and social media presence.
So, grab a cuppa joe, slap on your detective cap, and kickstart your sleuthing adventure!
C. Identify Your Unique Value Proposition
Determining what sets your business apart
Identifying your Unique Value Proposition is pivotal in carving out your niche in the bustling e-commerce landscape.
It's not just about identifying what you do well; it's about recognizing what you do distinctly well and leveraging that to your advantage.
Your UVP is the unique blend of product features, customer service, brand personality, and overall value that only your business can provide.

Source: Peter Thompson
It's what sets you apart from the sea of competitors vying for your target audience's attention and hard-earned dollars.
Understanding your UVP entails a deep dive into the specifics of your business operations, your offerings, and most importantly, the needs and preferences of your target audience.
What is it that you can offer that no one else can? Is it exceptional customer service? Exclusive products? Competitive pricing?
A unique shopping experience? A combination of these? Pinpointing your UVP is key to not only distinguishing your business from competitors but also to forging a strong and lasting connection with your audience.
Highlighting your unique selling points
Understand Your Audience: Thoroughly research your target audience to understand their needs, preferences, and pain points. This will help you tailor your offerings and your marketing messages to meet their specific needs.
Analyze Your Competitors: Conduct a comprehensive analysis of your competitors to understand their strengths and weaknesses. Identify what they do well, where they fall short, and how you can differentiate your business.
List Your Strengths: Clearly list down the strengths of your business. What are the things that you do exceptionally well? It could be your superior product quality, exceptional customer service, competitive pricing, or fast delivery times.
Identify Gaps: Identify the gaps in the market that your competitors are not addressing. This could be a specific product feature, a customer service element, or a particular market segment.