When starting an ecommerce business, the first important step is to get your finances aligned with your cost projections to avoid getting stalled by surprises. Many of those who offer their ecommerce development services say that the cost of having an ecommerce website is relatively low. Still, it’s important to know what other upfront costs you need to pay in order to get your online store not just rolling, but also ready to compete in the fast growing world of ecommerce.
In the US alone, latest market reports state that there are more than 9.5 million active eCommerce sites, while many more are created every day. The number of online shoppers across the entire globe has boosted retail ecommerce sales, which in 2021 reached about US$4.9 trillion. Reports also state that as much as $3.56 trillion of those online retail sales are attributable to mobile ecommerce operations.
Important Facts to Know When Running an Online Retail Store
While running an online retail business looks promising in terms of profitability, you still need to understand that an online store works just like physical businesses. You still need to pay business registration fees, licenses and the appropriate business taxes.
Although you don’t have to pay advance and monthly rental payments for a brick and mortar commercial space, you also have to pay hosting fees for your website .Ecommerce website developer Brainvire gives advice about some of the bare minimum requirements of an online retail outlet, which include:
- The domain name;
- Website development and maintenance fees,
- Fees of the ecommerce platform furnishing the point of sale (POS) system;
- Transaction fees charged by the payment processor that facilitate the financial transactions transpiring between merchants, suppliers and customers;
- Professional fees and salaries of technical and customer support team,
- Service fees of digital marketing professionals, including SEO strategists, whose work can make your business website competitive amidst the burgeoning world of ecommerce.
- Costs of the merchandise to sell online.
Nowadays, you can buy items to sell directly from manufacturers and then ship them directly to end-user customers. If you are the manufacturer, you can simply sell your products directly to an online retailer. Known as the drop shipping method of selling, the direct-to-consumer approach eliminates the increments added by wholesalers or dealers to the prices of the products sold to retail buyers.
What matters is to ensure the selling of high quality items that you can buy at reasonable prices.
Although at first you might not need to employ extra hands, be sure to include hiring of additional people in your future cost projections. Another aspect that makes online retail appealing is that as retailers, you can simply focus on growing your business without having to man your virtual storefront with lots of people.