Üzüm Teknoloji A.Ş.

Those who want to start a business from scratch... After you muster up the courage to start your own business online, you will have questions like "How do I do business?", "Where should I start first?".

Learning how to start e-commerce from the right place is a very important step in building a long-lasting and defensible brand. In this guide, we will cover 11 basic steps you need to take to lay the foundations of your online store.

These steps will help you start with a confident and solid strategy for both D2C (Direct to Consumer) and B2B (Business to Business) e-commerce.

How to Start E-commerce?

Choose a business structure
Choose an e-commerce specific business model
Choose the right products
Decide how you will get your products
Determine your unique selling proposition (USP)
Write a solid e-commerce business plan
Choose an e-commerce business name and logo
Choose an e-commerce platform and create your website
Manage your e-commerce finances
Create a marketing plan

1. Choose a business structure

You need to lay the foundations of your e-commerce business by choosing the right business structure from a legal perspective. In general, your business structure defines your legal liabilities, tax status, management structure, and other details.

(Important disclaimer: The content here is for informational purposes only and should not be considered professional legal advice)

The three most common business classifications used in e-commerce in Turkey are as follows:

Sole Proprietorship – This type of company is for small and medium-sized businesses due to the ease of opening and closing a company, not requiring a lot of capital, and being more budget-friendly. Once the necessary documents are collected, the company formation process is completed within a few days.

Limited Company – A type of company that has capital and is established by at least 1 and at most 50 people who own certain shares in the company capital. The minimum capital required to establish a limited company is 10,000 TL. The necessary documents for the establishment of the company are collected, the company articles of association are prepared and registered with the trade registry. Then, it is registered with taxation, power of attorney and other necessary official authorities.

Joint Stock Company – A type of company suitable for larger and corporate businesses. The minimum required capital for the start is 50,000 TL for public companies and 100,000 TL for non-public ones. The shares of the joint stock company can be traded on the stock exchange. Those who own shares in the company are only responsible for the company to the extent of the shares they own. The procedures for opening a joint stock company are longer and more detailed.

Each company model has different procedures for details such as capital, partnership, shares, responsibilities, registry, taxation. In addition, since laws, government incentives, etc. are constantly changing and updated, it is best to work with expert professionals in this regard.

Some of the documents required to start e-commerce include:

Tax plate
Tax identification number
Information about partners and shareholders
Chamber of commerce registration
Signature circular

It would be best to work with an accountant or financial advisor to learn about the necessary documents, procedures and incentives for establishing and continuing a company, and to get advice and consultancy on these issues. You can also access some up-to-date information and announcements on the Ministry of Commerce website.

2. Choose a business model specific to e-commerce

The e-commerce business model shows the structure of the trade you do, do not confuse it with your legal business structure.
So, what types of e-commerce business models are there? You will probably choose one of three popular models:

Direct to consumer (D2C) – The D2C business model refers to brands that eliminate middlemen, including wholesalers, resellers and retailers. It means that you sell your branded products directly to your customers through your e-commerce site.

Business to consumer (B2C) - Similar to D2C brands, B2C businesses sell products directly to consumers. However, they also sell other brands in their stores, operating like traditional retailers.

Business to business (B2B) - The B2B business model involves selling products directly to another business. This business may be the end user of your product or they may resell your products to other customers.

At this stage, you also need to think about how your products will be marketed and distributed. This brings you to the next stage: defining your ecommerce idea. The most popular ecommerce ideas are:

Private label - Private label allows you to bring your vision for a new product to life. In this case, you work with a third-party manufacturer, but you sell those products under your own brand. You have control over how your products are made, how they are priced, and how they are branded. Private label can be applied to your entire catalog or to a portion of your products.

White labeling - White labeling means that you are buying and selling products that are already being sold successfully by another company. However, you can add your logo to the products and possibly customize some aspects of the design. Print on demand is a popular white labeling method that allows for more personalization.

Dropshipping - Also known as dropshipping, this business model involves customers purchasing products from your online store. All orders are directed to your suppliers, who are then responsible for shipping those products directly to your customers. The dropshipping model is popular because it reduces startup costs and simplifies inventory management. You don’t have to store or ship the products yourself.

Wholesale - If you choose to be a wholesaler, you are expected to sell products in bulk (at a discounted price) to another business or retailer. While wholesale is considered a business-to-business (B2B) strategy, it can be combined with a business-to-consumer (B2C) strategy. For example, when serving wholesale customers, you can also sell your products individually.

Subscription service - Starting a box subscription business or offering product subscriptions in your store are two great ways to generate predictable revenue. To be successful, you need to create a solid strategy around fulfillment, marketing, and customer service.

3. Choose the right products

The possibilities are endless when it comes to choosing a profitable business idea. You may already have an idea of ​​what kind of products you want to sell.

If you don’t have an idea, take some time to research the best-selling products online or think about the areas you are most passionate about. Try to choose from the sectors and products that have the highest growth potential.

Tip: Remember that you can sell digital products as well as physical products. This way, you can sell online without the cost of storage and shipping.

Here are some tips to help you decide which products to sell:

Start with your target audience - Identify, research, and listen to your potential customers. Monitor social media, forums, and daily conversations to gather insights into their preferences. Decide which customer base you will reach and how you will approach them.

Discover trending products - Browse the best-selling products on online marketplaces like Trendyol or by searching on Google. Tools like Google Trends and Algopix can also help you identify the most popular products.

For example, let’s say you’re starting an e-commerce business selling supplements. You’re researching trends in the vitamin industry and discover trending topics like “best prenatal vitamins.” Learning about this search term can help you create a product that meets their needs.

Fill a need in the market – Make sure your product addresses a problem your target market is experiencing. In general, the more niche your solution, the more successful you’ll be.

Pursue a personal or professional passion – Look for products that align with your personal values ​​and beliefs. Love knitting and flowers? Maybe it’s time to start an e-commerce business selling plant pot covers.

Leverage keyword searches – Learn the keywords that people frequently use in the industry or products you do business in. Your favorite SEO (Search Engine Optimization) or other keyword research tools can be extremely useful for discovering frequently searched products, validating a concept, and/or analyzing competitors in a particular product category.

Account for your profitability – Determine your business’s potential to scale by calculating the revenue generated per dollar and/or per hour invested. A break-even analysis will help you determine the break-even point for each product and how likely it is to make a profit.

Understand your product’s potential lifecycle – Some products are built to last. Others naturally fade away over time. Knowing your estimated product lifecycle (the time it takes for a product to become obsolete) can help you create a multi-year plan for your ecommerce business.

4. Decide how you’ll source your products

Determine the right product sourcing method for your products. The four most common ways to source products are: dropshipping, buying from a wholesaler, partnering with a manufacturer, or taking a DIY approach.

To determine which product sourcing method is right for you, start with these questions:

Are there any parts of the product that you want to customize?
How much capital do you have to invest in new inventory?
Will you need to outsource other parts of your operations, such as fulfillment or warehousing?
How do your competitors source their products?
What is your contingency plan if there are problems with your supplier or sourcing method?
How will you scale your business?

The way your business operates will change depending on which sourcing method you choose. You can use more than one sourcing method if you prefer.

5. Identify your unique selling proposition (USP)

Your unique selling proposition (USP) is the features, benefits, and solutions that your product offers. Identifying why people should choose your brand is crucial to setting yourself apart from the competition.

You can also create your unique selling proposition based on factors like:

Price
Quality
Style
Function
Demographics
Geography

In addition to helping you stand out from the competition, your unique selling proposition should guide how you position your products and shape your brand overall.

It also provides opportunities to collaborate with companies and influencers who share your values. For example, a company that sells eco-friendly products could collaborate with environmentally conscious influencers and other types of businesses in the field. All of these parties can naturally become strong allies to grow their business without being in direct competition.

6. Write a solid ecommerce business plan

Document all the essential details of your business by creating a formal ecommerce business plan. This written document should clearly define how your business will operate, manage, and grow. Strong business plans keep your team aligned and help you attract the right business partners and investors.

The most basic elements included in a business plan:

Top executive summary
Company description
Products and services
Market analysis
Marketing and operations plan
Management and organization
Financial projections
Appendixes

Having a solid business plan can guide you to move your business forward in an orderly and systematic manner. It can also help you measure and evaluate your performance in the long run and help your company develop further into a corporate company. You can apply the SWOT Analysis method, which allows you to evaluate your strengths and weaknesses in an organized manner when determining your strategy.

7. Choose an e-commerce business name and logo

As part of your overall e-commerce branding strategy, decide on a business name.

You can start by creating a list of options. You can do keyword research, choose names related to your niche, or try alternative spellings to draw attention to your name. If you are looking for a foreign name, you can try our free business name generator that currently works in English.

Choose your favorites from the list of possible names you have created. Consider the following points regarding the names you choose:

It should be easy to read, say, spell and remember
It should be easy to search online
It should be available as a domain name
Check thoroughly that it is not already in use by another business

Once you’ve decided on a name for your ecommerce business, start thinking about a logo that will help differentiate your ecommerce store. You can work with a professional ecommerce partner to have a custom design created for you, or you can try a free logo design.

8. Choose an ecommerce platform and create your website

You’re now ready to bring your brand to life through your ecommerce site. Consider the following features of the platform you’ll use:

It should have a professional-looking, easy-to-customize ecommerce website builder.
It should allow you to maintain your website reliably and efficiently on both mobile and desktop.
It should have tools to simplify, optimize, and automate your back-end operations.
It should offer a pricing model that makes financial sense for your business, both now and in the future.

ecommerce is a powerful and secure platform that offers built-in tools for inventory management, pricing management, marketing, and more. Choose from hundreds of designer-created ecommerce website templates and customize your site as you see fit. You can use our article How to Make an E-commerce Site to get inspiration in this process.