How to start an online business
According to RMB Namibia, online businesses - sometimes referred to as e-commerce - have become a more common source of income for many people, especially after the devastating effects of the Covid-19 pandemic.Whether it’s selling or buying a product or service, you can do almost anything online.
“We have all witnessed the advent of the Covid-19 pandemic further reinforcing the importance of being able to buy and sell goods and services or transmitting funds or data over electronic networks,” the financial services group said.
But starting an online business should be treated the same as when starting any type of business. Anka Hendricks, who has successfully been running her own online business for more than five years, agreed with this statement.
Hendricks runs an online retail business called ‘Shop Closet SA’, where she liaises with suppliers for limited stock of various clothing to supply to the public.
When asked what tips she would give to the next person who is looking into starting their own online business, she said:
- Study your market: Know what is needed! Do people really need what you are trying to sell them, and can you make a profit with your product or service?
- Know your target audience: Knowing who you want to sell your product or service to helps you to market it to them.
- Know what you want before choosing a supplier: This helps you stay focused and helps you avoid purchasing items you do not need.
To add to Hendricks' list of tips, Allen Moon wrote an article in the Entrepreneur on 21 June on how to start an online business. Here are a few pointers from him:
- Determine a niche and find the ideal market
- Conduct market and product research
- Write a business plan
- Source products or materials
- Design and build a website
- Define the brand with dynamic copy
- Use search engines to drive targeted buyers to the site
- Establish the company (or brand) as an expert
- Use email marketing to turn visitors into buyers
- Increase income through back-end sales and upselling
Hendricks added that a lot of people disregard the fact that having an online business does not mean that there are fewer challenges or risks.
She shared some of the most common challenges she faces on a regular basis:
Not selling everything she has in stock. This means items sometimes stay on the shelf too long and she is forced to reduce the price, which results in her not making her desired profit.
Clients can be unreliable sometimes. "They put in an order with you and when the time comes to make payments, the clients simply stop responding," she said.
Starting an online business in Namibia has become very common - just take a look at the ‘order with me’ businesses. But even ‘order with me’ business owners need to take these tips and challenges into account before starting their business.