So, you’re ready to dive into the world of e-commerce. First off, congrats! Taking the leap into this fast-paced, ever-evolving space is no small feat—and it’s where the real fun begins. The ecommerce industry is experiencing rapid growth, offering opportunities that set it apart from traditional brick and mortar stores by providing greater scalability, lower entry barriers, and global reach. Let’s be real: e-commerce is crowded and competitive. Technology, customers, pricing, and even tariffs are shifting every single day.
But here’s the good news: I’m breaking it down into five key steps to help you launch, grow your revenue, and scale your e-commerce business with confidence. Today, a wide variety of ecommerce businesses—ranging from B2B to B2C and beyond—operate at different scales, making it more important than ever to find your niche and stand out.
Where E-commerce Is Heading Now And In The Far Future
Before we jump into step one, let’s take a quick look at where e-commerce is headed. The numbers don’t lie: we’re ordering more online than ever, and that trend isn’t slowing down. Ecommerce sales have seen significant growth year over year, with many independent sellers reporting impressive annual sales figures that highlight the profitability and seasonal fluctuations of the industry. It’s not just books and batteries anymore. Now we’re getting everything from dinner to groceries delivered right to our door. From health subscriptions and vitamins to cleaning supplies and paper towels, e-commerce is touching every part of our lives.
Pretty soon, we’ll be telling our grandkids stories about the days when we actually had to drive to the store, wander the aisles, and wait in line just to buy groceries. Compared to a traditional brick and mortar store, today’s online business models leverage online marketplaces like Amazon, eBay, and Etsy, offering immediate product visibility and streamlined processes for sellers and buyers alike. Remember hauling bags through a freezing parking lot? Those days are fading fast. E-commerce is now the name of the game, and logistics are racing to keep up. We’ve got drone delivery, flex delivery, and everything is getting faster and more efficient by the day. E-commerce is booming, but it’s competitive. That’s why you need a proven process to launch and grow your business the right way.
Let’s dive into the five simple steps to help you scale your e-commerce business.
Step One: Market Research (Customer, Industry, Competitors, Trends)
This is where it all begins. I’ve worked with tons of entrepreneurs and startups, and trust me, this step is crucial. From small businesses to large e-commerce brands, I’ve seen what works—and what doesn’t. The biggest mistake? Skipping the research. Conducting thorough market research is essential to validate your business idea and identify your target market, ensuring you understand who your target audience is and what they need.
Know Your Ideal Customer
Ask yourself: is this something people actually want to buy? This is the number one question. If there’s no demand, even the best marketing won’t save you. You need real demand, and you need to know your customer inside and out. At Big Red Jelly, we always say: obsess over your customer.
Start by clearly defining your target audience—identify who your ideal customers are, research their characteristics, and develop personas. Use customer insights gathered from surveys, feedback, and analytics to tailor your offerings and marketing strategies to better meet their needs.
Would they buy your product? At what price? How often? Would they refer it to friends? Where do they hang out—online and offline? What keywords are they using to search? What pain points does your product solve? What status does it give them? What emotions drive their decisions? You can never go wrong digging deep into your customer—especially in e-commerce. Understanding your customers at this level not only helps you serve them better, but also builds customer loyalty over time.
Research the Landscape & Competitors (both primary and secondary)
Next, research your industry and the landscape. For example, maybe you’re launching a healthy green drink. You should know this space inside and out—and hopefully, you’re passionate about it. Perhaps you’re a personal trainer or nutritionist ready to launch your own product. If so, you’ve probably already done a lot of research. Either way, you need a solid perspective on your industry. What’s trending? What’s not? What are people craving? What’s the industry jargon? What are the do’s and don’ts?
Finally, research your competitors—both primary and secondary. Primary competitors are other brands selling similar products. Secondary competitors might be water, milk, or even people who just aren’t interested in healthy drinks. As part of your analysis, look at their competitive pricing strategies to see how they set prices to attract customers while maintaining profit margins. Also, consider whether a business to business (B2B) model is relevant for your product, as some competitors may target other businesses rather than just individual consumers. Don’t get too hung up on those outliers—focus on your ideal customer and the competitive landscape that matters.
Don’t Forget Trends… But Don’t Focus On Them Too Much…
And don’t forget to research trends. Where is your space headed? Stay one step ahead of the curve. Use tools like Google Keyword Planner and Google Trends to see what’s hot right now. Ecommerce tools can also help you analyze market trends, manage inventory, and track analytics, making it easier to spot opportunities. Optimizing your content for search engine and search engines ensures your site is visible when trends emerge, helping you attract more organic traffic. Capitalize on trends by using the right keywords and creating content that’s in demand. Answer the questions people are actually asking. For example, if “beeftalo” is trending, jump on that conversation. You might even get ideas for your next e-commerce brand just by watching these trends. But don’t chase every hype train. Keep an eye on trends, but focus on long-term value.
Step Two: Test for Product-Market Fit & Talk To People!
Too many entrepreneurs pour time and money into a product before testing if people actually want it. Let’s say you’re selling a healthy green drink. Before you build a brand, create content, or buy inventory, start by making the product. Even if it’s just a homemade sample or Minimal Viable Product (MVP), take it to a farmer’s market. Try selling at a health trade show. Hand out free samples to friends, family, and colleagues. Gather real feedback. If people don’t like it—even for free—it’s time to pivot before you invest more.
After testing your product, creating a business plan and reviewing other business plans can help you build a profitable ecommerce business or profitable online business by clarifying your strategy and goals.
Testing also helps you discover who your ideal customer really is. Who are the 20% of customers driving 80% of your revenue? And who are the 20% causing 80% of your headaches? Focus on your tribe—the loyal 20% who love your brand and drive your growth. These are your early adopters and biggest fans. They’re the ones spreading the word—so talk to them, learn from them, and keep them engaged. When engaging with early adopters, experiment with different strategies for selling products, including digital products and services online, to attract new customers and validate demand. Get to know your loyalists. Be part of their community. That’s how you take your brand to the next level.
Customer retention is key for long-term growth, and developing your own products can help you stand out in the market and increase profitability.
Step Three: Know Your Key Numbers Early
I won’t go deep into e-commerce finance 101 here, but this is critical. Hopefully, you’ve started this already, but don’t underestimate your costs. How much does it cost to make your product? To ship it? What about taxes? What will it cost to work with wholesale partners or source from wholesale suppliers? To market and advertise? What’s your customer acquisition cost (CAC)? Remember to factor in all operating costs, including website fees, marketing expenses, and especially shipping costs, as these can significantly impact your bottom line. Carefully consider your initial investment and any upfront investment required to launch and scale your store.
Can you offer subscriptions, bulk discounts, or buy-one-get-one deals? Are you set up for wholesale, and do you have relationships with third party logistics providers to streamline fulfillment and delivery? Using inventory management tools can help automate stock tracking and order fulfillment, making your operations more efficient. Maintaining healthy profit margins is essential, so always look for ways to keep low startup costs and maximize profitability.
Ensure your finances are in order so you don’t get caught off guard. Underestimating costs can sink your business fast. Most people do—don’t be one of them. Figure out your costs, Key Performance Indicators (KPIs), and strategy early. The sooner you’re profitable, the sooner you can reinvest in growth, customer acquisition, and product development. Choose the right sales channels for your products, and consider integrating a cross sell app to boost revenue and increase average order value.
Step Four: Build a Strong Brand and a Loyal Community
The best e-commerce brands—especially in a niche—have a loyal tribe that takes them to the next level. Every big e-commerce brand started with a small, passionate group of customers. Developing a strong brand identity and choosing a memorable business name are essential first steps in building recognition and trust. Building your own business or own ecommerce business can help you stand out as an ecommerce company in a crowded market. Build your community by knowing exactly who your ideal customer is and why they love your product. Lean into what works and don’t get distracted by shiny new features or products. Most of the time, your customers aren’t asking for more bells and whistles. For example, Hermès invests 80% of their marketing budget on just 8% of their audience—their true tribe.
So, how do you build a brand and community like that? Create an exclusive newsletter, a private Facebook group, or a VIP experience. Implementing a marketing strategy and marketing strategies—such as email marketing and paid advertising—can boost visibility, engage your audience, and drive more sales. Think about your sales collateral and packaging. AG1 does this really well. When I got my first AG1 order, I was blown away by the packaging. The brochures were informative, educational, and included a freebie. Invest in an experience that stands out. How can you customize your packaging—especially for your first few hundred (or thousand) customers? All of these efforts contribute to building a successful business.
Step Five: Build The Hype Before You Launch
There are tons of tactics, but the best brands start building excitement long before launch day. You see this on Kickstarter and everywhere else—don’t wait until launch to drum up interest. Start building hype and demand months in advance so you have revenue ready to go on day one.
A few quick tips: set up pre-orders so people can buy before you launch. That way, you get revenue early. As you prepare, set up your ecommerce website or ecommerce site on a reliable ecommerce platform or ecommerce platforms to ensure a smooth launch. Design your ecommerce store or online store with best practices in mind and get ready to start selling as soon as you go live. Create a newsletter, tease what’s coming, and start reaching out to your future customers. Line up strategic partners, affiliates, brand advocates, and influencers. Many ecommerce businesses and ecommerce store owners consider a dropshipping business model, which can be a low-cost way to launch your new business without holding inventory. Don’t forget guerrilla marketing. Go to events and trade shows in your niche. When launching your business online, having your own website gives you more control over branding and customer experience compared to other business models. Carefully choose your business structure and legal structure, as these decisions impact your liabilities, taxes, and registration process. Build the hype before you launch. Start building your social following, email list, and pre-orders as early as possible. That way, you’ll have cash in the bank before your product even launches. Remember, your ecommerce business sells products, so selecting the right sales channels is crucial for growth.
Final Thoughts – Time To Launch Your eCommerce Business!
I hope these five tips help you get started. Following these steps is key to starting an ecommerce business and building a successful ecommerce business. Launching a successful e-commerce brand is a process. It can feel overwhelming and competitive. But with the right process, you can spot gaps in the market and find real demand for your product—even if it’s just a fresh twist on something familiar.
You don’t have to invent something brand new. Look at Liquid Death—they didn’t invent water, they just nailed the branding and knew their tribe. The water is nothing amazing; it doesn’t taste that much different from the bottled water you might get at the gas station. They know how to market. So don’t stress about inventing something totally new. It can be something as simple as a different branding and marketing approach, or embracing a key differentiator of your product. Also, choosing the right business model for your goals—whether it’s dropshipping, manufacturing, or another approach—can make a big difference in your success.
And I can’t say this enough: obsess over your ideal customer and always listen to their feedback. Otherwise, you’ll forget who you really are, and your cash will start to suffer as a result. So, follow this process and good luck launching your new e-commerce business!
If you need any help with brand strategy, product branding, e-commerce, or marketing, reach out to our experts. We offer free consultations, and we are more than happy to help you scale.
