how to start an ecommerce business on shopify

if you want to be your own boss and take,charge of your future,then starting an e-commerce business,could be the best decision,that you ever made consumers are,increasingly buying products online,and the tools and knowledge that you,need to reach them are more accessible,than ever there has never been a better,time to start an e-commerce business,than right now,for beginners starting an e-commerce,business can feel overwhelming,so this video will offer you a simple,blueprint for starting one that will,take you from choosing a product,all the way to making your first sale by,the end of 2021,worldwide retail e-commerce sales will,reach 4.9,trillion dollars and according to nasdaq,by the year 2040,as much as 95 of shopping will be,facilitated by e-commerce,needless to say the future for,e-commerce is incredibly bright,so if you want a slice of that pie let's,get started,the first step to starting an ecommerce,store is knowing what product,you are going to sell direct to consumer,for many people,this is one of the hardest parts and a,lot of would-be business owners,stop here after becoming overwhelmed by,the sheer amount of choices available,now before we get to powerful techniques,for finding profitable products,we need to lay our foundation by,identifying the problem,we are trying to solve there's no one,way to do this but,here are some great ways to unearth,product ideas,start by writing down a problem,statement and brainstorm,multiple products that could serve as a,solution for example,let's say the problem was that many,people find it more difficult to stay,focused and productive while working,from home potential solutions could be,a productivity journal a desk organizer,blue light blocking glasses or noise,cancelling headphones,now once we have done this it's time to,turn our attention towards the internet,to learn more about these markets and,populate our list with more potential,products,here are some great avenues for,discovering products,trend hunter as the world's largest,trend community,trend hunter uses data artificial,intelligence and real humans,to identify consumer insights and new,opportunities,then we have reddit and as the front,page of the internet it showcases forums,about pretty much every topic under the,sun,diving into niche specific subreddits,can help you unearth some pretty,interesting product ideas,social listening this can be as basic as,looking at trending hashtags on twitter,and topics on facebook or as advanced as,using social listening tools,like buzzsumo to identify and monitor,trends over time,you can also gather inspiration by,checking out what's popular and trending,on other marketplaces,browse sites like amazon etsy and ebay,checking out their curated list,and other categories that showcase,current customer demand,to make your life super simple we've,created a webinar on how to find,and source winning products to sell in,this 40 minute webinar,you'll learn everything you need from,research to validation,to sourcing your products if you want to,learn in a matter of minutes,instead of in months make sure to sign,up and reserve your spot today,now look at your product list by now it,should be pretty substantial,cross off any products that are too,large or heavy as these are going to be,pretty expensive to ship,and are not a good place to start your,ecommerce journey cross off any products,that are too fragile,or you stand the risk of losing money on,refunds if the product breaks while in,transit,cross off any products that have,excessive regulations,these will be a hassle cross off any,products that are perishable,this one is obvious cross off any,products that are,too easy to buy locally once you've done,this you should have a short list of,products,and now it's time to do some deeper,research you see before investing,any significant amount of time money or,energy into your venture,you need to have a good understanding of,the market what is the competition like,in the space,and how much market demand is there,don't make the beginners mistake of,building a business on a hunch,to do this run the products through,google trends this will give you a good,idea about how search interest,is growing over time the goal is to see,if your product is trending upwards in,interest be sure to check the,geographical concentration of the,searches,this can help you identify where your,customer base would be most heavily,concentrated,and lastly be sure to take note of,seasonality does,search interest dramatically change at,different points in the year,this is something you'll definitely want,to know next you'll want to conduct,keyword research on your product idea,using a tool like google's keyword,planner,this will help you determine how many,people each month are searching for,keywords related to your product idea,and it's going to give you a good,concept of how in demand it is,next you should run the main keywords,for your product idea through buzzsumo,to better understand,how many people each day are talking,about your potential product,while these techniques do not give us,complete certainty that these,communities of interest,are markets of buyers they give us,confidence that curiosity exists,the next thing you'll want to do to,narrow down your product idea is,run a competitor analysis this is where,you see how your business would compare,to other players in the space,the more you understand about the,competitive landscape before you start,your business,the less potential surprises you'll face,later on,by evaluating the strengths and,weaknesses of your competition,you can begin to formulate how you can,give your company an advantage,to do this simply run a google search,and take a look at the top,ranking sites you can also use a tool,like sem rush to identify competitors at,a glance,you see competition is good because it,confirms there's an existing demand for,what you plan to sell,when conducting a competitor analysis,make sure to take note of these things,who their target customers are what,market share do they currently own,what is their main differentiator or,unique value proposition or unique value,add for their business and products,what are the key features and benefits,that they highlight in their sales,materials,what are the price points for products,across different marketplaces,how do they approach shipping what are,their marketing tactics,what is their social media engagement,and what social channels are they using,have they received any funding or,venture capital and,take a look at their customer reviews,specifically look at the language used,around products,and any recurring complaints make sure,not to skip this step,it's impossible to differentiate,yourself as a business without knowing,who your direct competitors are,and what makes you different by now,you should be able to narrow down your,product idea to one,standout product that not only is data,to back it up but resonates with you,as a founder now as i stated earlier,interest,doesn't always translate to sales real,product validation,only happens after money changes hints,if you can try to make some initial,sales,that is definitely the best way to know,you are fulfilling a genuine need,for example if you were to sell handmade,jewelry,you can sell in person at a craft show,or listed on a marketplace like etsy,for some product ideas this will,obviously be a lot more difficult,especially if your product requires a,significant investment to get to market,so here are two other options for,validating your idea,test the market by building a landing,page to promote your potential product,run a few paid ads to drive traffic and,then capture the emails of interested,customers,another way is to create a crowdfunding,campaign and this is a proven way to,test demand,if your campaign is successful you'll be,in an excellent position to transition,into a sustainable business,by leveraging the audience you built,through your efforts crowdfunding,to succeed you'll need a firm timeline,and a lot of focus to reach your goal,i'm going to post a link to a shopify,article below that will tell you,everything you need to know about,crowdfunding,once you have validated your product,idea your next step will be creating a,plan,to obtain your products now there are,four popular ways,to obtain products for your ecommerce,business each with its own pros and cons,making your own products is a common,approach for hobbyists,giving you precise control over quality,and your brand while keeping startup,costs low,now whether you're making physical goods,like beauty products,or creating digital products like an,online course,this is a great option for the,do-it-yourselfer however it does have,its drawbacks,there will likely be a large time,commitment and if you're selling digital,products you can have issues with,scalability,another viable option for acquiring your,product and inventory,is to find a manufacturer to produce the,product for you,you'll have the option of choosing a,domestic manufacturer,or finding a less expensive manufacturer,overseas,manufacturing your product is a good,idea for those people that have a unique,idea,or a variation of a current product idea,that doesn't exist currently,now it's for people that have definitely,validated their market for their product,and found significant demand this is,super important,as manufacturing will require the,greatest financial investment up front,domestic directories like thomas net and,makers row,and international directories like,alibaba are great places to find,manufacturers,buying wholesale is a lower risk,business model compared to manufacturing,for a few reasons,first you're dealing with brains that,are already validated,also you don't have to purchase nearly,as high a quantity compared to,manufacturing your own product,now purchasing products wholesale is a,good option if you want to get up and,running quickly,or if you want to sell a variety of,products and brands,one thing that's important to note here,is that these products,won't be exclusive to you directories,like worldwide brands and sales who,are great places to find wholesalers,drop shipping is by nature the cheapest,option to get started,therefore drop shipping is for people,that would prefer to keep startup costs,as low as possible,and are less concerned about margins and,customizability,directories like oberlo and aliexpress,are great places to source products to,dropship,for everything you need to know about,starting a dropshipping business,check out the detailed video that we've,already made on this subject,with your competitive analysis and,knowledge of how you'll obtain your,product,it is time to write a business plan a,business plan is a roadmap that will,help align your efforts,and give you focus knowing which actions,to prioritize is vital to building a,successful business,business plans help you clarify your,strategy,understand what resources you need and,understand potential roadblocks,a business plan is a document describing,a business its products or services,how it earns or will earn money its,leadership and staffing,its financing its operations model and,many other details that are essential to,its success,now a lot of people dream about building,a successful brand but the reality is,most people just don't know where to,start so to make your life super simple,we've created a handy template that will,take you step by step,through everything you need to,accomplish to create an amazing brand,the difference between those who succeed,and those who don't,is that they act on knowledge so make,sure to download this template and fill,it out,it'll be your first step towards your,entrepreneurial journey,a business plan will have these vital,components,executive summary write this section,last,as it really is a high level overview of,your business plan,and is a condensed version of your most,important information,next we have the company overview this,section of your business plan should,answer two fundamental questions,who are you and what do you plan to do,include your mission,values company structure objectives key,staff members and what you sell,then we have market analysis and this,should show how big you estimate the,market for your products is,it should include an analysis of your,business's position,in the market and an overview of the,competitive landscape,you'll need to use research to back this,up with hard data,products and services this part is,fairly straightforward,simply provide detailed information on,the products you intend to sell,including where they are sourced from in,this section,you'll want to include how your products,are different key attributes for,differentiation are price,design and function customer,segmentation,one of the worst mistakes beginner,entrepreneurs often make is believing,they can sell to everyone,the reality is is you can't afford to,market to everyone,not even if you have a great product,that's why this is where you include,information,on your ideal customer it should answer,where they live,common behavior patterns their beliefs,values and opinions,how much they earn and where they spend,their free time,next we have the marketing plan your,marketing plan is one of the most,important parts of your business plan,a marketing plan should outline your,current decisions,and how your future strategy will unfold,with a focus on how your ideas are a fit,for your ideal customer,here's what it should include how much,your products cost and why,what problem you are solving and how you,are solving it what is different about,your brand and product,from your competitors how will you get,your products in front of your ideal,customer what marketing channels will,you use,and where will you sell your products,then we have logistics and operations,and this is the part of your business,plan where you will discuss processes,that will make your big plans a reality,in this section you will want to know,who will your suppliers be how much,inventory will you keep,how will you ship and fulfill your,orders and what tools will you need to,keep up and running,the last component is the financial plan,now it goes without saying that,businesses,live and die by their financial,feasibility so take some time on this,part,the most vital components of a financial,plan are the income statement,the balance sheet and the cash flow,statement to help you understand this in,more detail,and also to get you started we've,created a beginner's guide to cash flow,management which i'm going to link right,here,once we have our business plan in place,now it's time to start building our,brand,in e-commerce choosing a great name is,vital to building a memorable,brand there's no doubt that choosing a,name can sometimes feel frustrating,as it can seem like all the best names,are already being used,there's definitely no one way to come up,with a great name but a naming tool like,shopify's name generator or brainstorm,sessions with people that you trust,can be great ways to come up with ideas,now if you're stuck for a name another,great option is by crowdsourcing a name,on a platform,like namingforce.com it can be a really,cost,effective solution make sure when,choosing a name that you check to see if,the domain is available,try and choose a name that has a dot com,available as a top level domain,signals trust to potential customers,once you've chosen a name and secured,your domain you will need to get a logo,designed,take this seriously as logos are a point,of recognition for customers and can,inspire brand loyalty,a good logo is simple memorable enduring,versatile and business appropriate,online logo makers like hatchful are a,great place to start if you're looking,to save time and money,however if those aren't large concerns,hiring a professional designer,through fiverr or upwork will help you,create something that is completely,unique to your business,if you're looking to create a serious,business it's important that you invest,time and money into making your business,legal,the reason for this is that some,suppliers won't actually work with you,if you're not,a legally registered business not only,that,but you can create a lot of tax,headaches for yourself later down the,line,if you don't set your business up,properly from the get-go,now since i'm not a lawyer and every,business is completely different,i'm just going to give you a high level,overview of the most,important steps in making your business,legal,first you need to decide on a business,structure,second legally register your business,third,setting up a business checking account,and credit card,and lastly learn and abide by the,regulations for collecting sales tax,based in your region search engine,optimization is a process by which,websites and content are created and,enhanced in a way,that makes finding them on search,engines like google easier,before you dive into creating a website,you'll need to have a basic,understanding of seo,in order to structure your site properly,as it's really going to affect how,easily search engines can find your,products,in your store it's important that you,take the time to get this right from the,start,now seo is a pretty deep topic so to,give you a better understanding we have,created a separate video which you can,see,here once you have a basic understanding,of seo it's time to get started building,your store,now if you plan to use shopify the theme,store gives you access to premium,designed ecommerce website templates,at a really affordable price i really,recommend this option as it's a lot more,cost effective than hiring a designer,and will be the quickest way to get your,store live when building your store,here are some things that you should,really keep in mind write brand copy,that communicates brand values,and speaks to your ideal customer write,product descriptions that entice,customers with product benefits,take high quality beautiful product,photography,you don't need to have thousands of,dollars in camera equipment,to make beautiful photos check out our,video that shows you how to take,really great photos on your cell phone,your website design can have a huge,impact on your seo,as a best practice make every product,page as few,clicks from your home page as possible,your page design can also have a huge,impact on your conversions design your,pages with simplicity in mind,trying to weave your brand's dna into,the page so that at a glance a visitor,knows,exactly what you're about use social,proof,social proof adds credibility and,definitely boosts conversions,reviews photos from instagram and first,person testimonials,are a great way to build trust and,encourage purchasing behavior,now let's talk about shipping before you,make your first sale it's incredibly,important that you map out a defined,shipping strategy,here are the most basic things that you,need to know number one is who pays for,shipping,are you gonna pass the full cost of,shipping onto customers will you offer,free shipping or will you offer flat,rate shipping,there's pros and cons to all of these,but you need answers,shipping rates and methods are the next,thing that you need to keep in mind,calculating shipping cost depends on a,variety of factors,such as package size package weight,origin country,destination country carrier additional,shipping options like,tracking and insurance luckily shopify,makes this a lot more simple,if you're based in the us or canada you,can pay for usps,ups dhl express and canada post shipping,right through shopify and receive,pre-negotiated rates,next thing is sourcing your packaging,you can order free packaging from usps,ups or dhl or invest in branded,packaging,one thing that's really important to,consider with e-commerce is that,packaging,is a part of the customer experience,which is central to the overall brand,experience,people do unboxing videos for a reason,then of course we have customs,declarations and forms,if you're shipping outside of your own,country you'll need to include the,proper customs documentation,check with your country's postal service,to find out exactly which forms you need,to attach,to your package next we have labeling,many new e-commerce entrepreneurs start,off by writing the ship to,and return addresses on the package by,hand although this can be a great way to,start,it tends to be pretty time consuming,tedious and not scalable as your,business grows,shopify shipping happens to solve this,problem allowing you to print and pay,for multiple shipping labels directly in,shopify lastly we have fulfillment,warehouses,shipping is undoubtedly one of the more,challenging aspects of starting an,e-commerce business,fulfillment warehouses help simplify,this process,by automating and handling the shipping,for you they accomplish this by keeping,part of your inventory at their,warehouse,fulfillment warehouses can help you get,cheaper shipping rates and shorter,shipping times,but it's going to come at the cost of,customizability,now that you have launched your store,the work of marketing your products,begins,it's time to make some sales now the,goal of digital marketing is to drive,targeted traffic to your site,here are some effective digital,marketing strategies,first we have paid advertising paid ads,allow you to target users,based on demographics interests and,traits,to serve ads to prospective buyers that,can turn them,into paying customers now while this,does require a budget and there is a bit,of a learning curve,paid ads can be one of the fastest ways,to acquire customers,when it comes to the world of online,advertising facebook ads and google ads,are among the largest providers of paid,traffic,next we have influencer sponsorships if,you have a marketing budget,one of the quickest ways to get your,product or brand in front of a relevant,audience,is by paying someone with an online,following to promote it for you,this involves finding influencers that,have an active engaged following,who would be interested in your product,they also need to have the creative,ability to produce content that reflects,well,on your brand then we have building an,email list and this involves,generating leads by collecting,information from potential customers,in order to nurture them or retarget,them with ads that will eventually,convert them into a customer,there are plenty of ways to build an,email list from driving paid traffic to,a page with an email capture,to offering a welcome discount on your,website for new subscribers,email lists can be one of your most,valuable assets as a business owner,of course we have search engine,optimization,when looking for a product or service,many consumers begin their search on a,search engine,like google doing keyword research and,implementing your findings into a,content strategy for website pages and,blog posts,can really help you climb in google's,rankings which can bring you a lot of,search traffic,filled with potential customers then we,have social media marketing,social media is such a powerful tool for,reaching new customers,building brand authority and creating an,audience that can help you consistently,make sales,while each platform is unique they all,follow the exact same principles,you need to create content that is,relevant and valuable,you need to collaborate with other,social media accounts to broaden your,reach,and you need to post consistently to get,recognized and figure out what works,and what doesn't now the subtopics of,marketing shipping,operations finance and basically,everything we discussed here today,are huge topics with tons more to learn,consider this video a roadmap to,e-commerce,guiding you towards the most important,things you need to learn about further,to create a successful online business,make sure to subscribe to our channel,because we're going to be doing some,deep dives on each one of these topics,hopefully this video has given you a,blueprint to help you start your,ecommerce journey,let us know in the comments what other,videos you'd like to see and we'll make,it happen,also don't forget to like and subscribe,so you don't miss out on more tips to,grow your online business,remember we're a channel for small,business owners with big plans,i've been your host tyler and i'll see,you next time on learn with shopify,you

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