Just like any type of business, e-commerce businesses need to have a fully fleshed strategy. The first step is to set goals. Do you plan to increase revenue from existing customers? Gain new customers? Increase the average order value? Sell through new channels? Lower prices? Once you have figured out your goals, the next step is to set a plan.
Your first step is to conduct a SWOT analysis and assess the strengths, weaknesses, opportunities and threats of where your business is. What does the market look like? Where does your business excel, and where does it falter? Review your entire business, not just segments of it. Evaluate external opportunities, because this is the often the primary place to invest time and money. Be honest with yourself when analyzing weaknesses and threats, or else the analysis will not be helpful.
After the SWOT analysis is done, see how it fits into your overall vision. Where do you see your business in five years? In 10 years? This will help you set business objectives for the current year, where you set objectives for sales, profits, customers, traffic, new systems, and new staff. After the objectives are set, a strategy can be put in place, either by you or by a hiring an e-commerce consultant.
In addition to having a strong business strategy, it’s important to have a basic understanding of e-commerce law. There are different legal and financial considerations, especially with privacy, security, copyright, and taxation. The Federal Trade Commission (FTC) regulates most e-commerce activities, including the use of commercial emails, online advertising, and consumer privacy. Through any average day, businesses collect and retain personal information from their customers — information that is often sensitive. You are subject to federal and state privacy laws, depending on the type of data that you collect.
There are also online advertising laws that protect consumer privacy and ensure truthful marketing practices online. As an e-commerce business, online advertising is a major part of your strategy. Over the past decade, federal and state governments have passed new online advertising laws — it’s important to be familiar with these.
In addition to protecting consumers from data leaks and misleading online advertising, digital works are also protected on the Internet via the Digital Millennium Copyright Act (DMCA). There are a number of provisions that e-commerce businesses need to be aware of, including copyright infringement liability and a service provider’s responsibilities.
Like any digital technology or consumer-based purchasing market, e-commerce has evolved over the years. As mobile devices became more popular, m-commerce because its own market. With the rise of Facebook and sites like Pinterest, f-commerce and s-commerce (social commerce) have become the newest versions of e-commerce. As the market changes, businesses must also change to stay relevant and understand business opportunities out there in the e-commerce world.
