How to Develop Your Business Online

The internet has become a medium where companies can operate successfully, and the apparent ease of creating a “page with a payment gateway” has led many entrepreneurs to establish their presence on the internet.

However, it should be taken into account that an online store does not sell on its own, but it is governed by the same parameters as any other company, even if its natural environment is the internet.

Go through this guide and learn how you can develop your business online.

1. Determining your niche:

In today’s competitive market, it is no longer worth setting up generic online stores that do not differ from each other. Find your niche, either for very specific products with little competition or covering needs that are not well covered by the market. At this point, making an exhaustive business plan analyzing the product, the competition, and the market can be vital in deciding whether or not to start the company.

2. Product suppliers:

One of the most critical issues for your company that will define the initial amount of investment and the structure that you are likely to choose is how you will work with your suppliers.

The rules are very simple, the greater the purchasing power, the better margins, and the better service. If you are going to buy in small quantities, the cost of your product will be higher and therefore your margin will be smaller. But you should bear in mind that if you buy a lot, you run the risk that your market will not be able to absorb your products and you will be left with excess stock.

Another way of working with suppliers is the “dropshipping” system through which the seller is engaged in the resale of goods. They become an intermediary in the relationship between the manufacturer and customers. The drop shipper does not store the products because they do not have their own warehouse. The drawback of this system is poor stock control, you should consider how your store connects in real time with the stocks of your suppliers.

Thus, before starting the business, select suppliers, analyze different sales scenarios, and assess all possible options for product acquisition. 

3. Transport agency:

Whether you use your own warehouse or opt for drop shipping, we recommend working with a transport agency. The most appropriate choice will depend on the type of distribution you have to do, the type of product you sell, and the service that the agency itself offers you.

Today, there are many options and they are all very different. Analyze all the points, prices, volumes, merchandise insurance, delivery times, the connection with your store for goods traceability, the different formulas for managing returns, and order changes.

4. Banks:

There is no store without payments, so you should offer maximum payment formulas to avoid losing sales. It is important to have a virtual point-of-sale (POS) terminal which allows sellers and buyers to make transactions at a distance. After the transaction is completed, the money is credited to a company’s account, and the client receives proof of purchase by email.

Besides a POS terminal, you probably need more things, such as a loan for equipment or technological developments, a credit agreement to acquire products and cover specific trading issues, good conditions in transfers to pay your suppliers and employees, and, above all, treating you like a company and taking you seriously.

That is why, you should present a detailed business plan to the bank, sell them the idea, and let them believe in it, after all, they are going to be your supplier and you need them.

5. Financial management:

This point is crucial for the management of payments, and, in general, for the financial “health” of your company. 

If you are not a financial expert, we recommend having one in your work team, either as an employee or as a partner, to ensure that you will always be positive with business outcomes or at least to help you when you are not able to solve the problem with your financial provider. To find the best team member, you can use Leadar to search for potential employees by job titles, professional skills, education, etc.

6. Customer service:

In front of and behind an online store, there are people who sell goods (you, your team, and your suppliers) and those who buy them (your customers). Above all, the latter need to feel that behind the store there is a company and people who are going to solve their problems if they do occur.

Do not hesitate to call your client by phone, check information, listen to their queries, and know who buys from you and what they expect from your store so that you can improve customer experience. Also, before buying, your clients may ask many questions about the product, the service, the company, and the guarantees. If you do not make it easy for them to resolve their doubts, you will lose sales. Again, if you can’t handle all of this, you will need someone to deal with this, you know, an employee or partner.

7. Being an authority:

Do not set up a skate shop if you have no idea about that sport, no matter how many niches you have detected. Your client cannot know more than you about what they are buying from you because in such a case you will not know how to offer them what they are looking for or you will not understand their doubts. If you have found a niche but you are not a specialist in it, you already know what you should do, have someone in your team capable of tackling those issues. 

Final thoughts

The internet provides many opportunities for doing business online. By selecting a proper niche, organizing cooperation with suppliers, transport agencies, and banks, managing your finances effectively, ensuring the best customer experience possible, and being an authority in your sphere, you can achieve significant success and greater profits.