How to Start an E-Commerce Business: A Guide for New Entrepreneurs

E-commerce represents a new commercial world encompassing all commercial transactions including buying, selling, services, and data exchange, but through the Internet. The platforms hosting these e-commerce transactions handle these processes to form a market comprising sellers, customers, and software tools that allow for the leasing of digital infrastructure to create stores.

E-commerce has several fundamental pillars that must be present in every e-commerce activity, which are as follows:

1- Platforms and websites: These represent the essential element of e-commerce. They are the virtual infrastructure through which products and services are displayed and dealings with customers and clients are conducted.

2- Payment systems enable buyers to pay for their purchases, including credit cards and digital payment gateways.

3- Providing customer assistance and supporting their services, such as securing live chat, responding to inquiries, and handling complaints.

The main areas of e-commerce include:

• Electronic products and technology-related devices.
• Fashion and apparel.
• Food and beverages, which have achieved significant sales in Saudi Arabia.
• Games and entertainment amuse individuals are also popular in Saudi Arabia.

Types of e-commerce:

• Marketing of a company’s products directly to users, known as Business to Consumer (B2C).
• Marketing of a company’s products to another company is referred to as business-to-business (B2B).
• Marketing a company’s products to a government institution (Business to Government, B2G).
• Marketing a company’s products to another company for sale to consumers (Business to Business to Consumer, B2B2C).
• Individuals selling goods or services directly to a company (Consumer to Business, C2B).
• Marketing from consumer to consumer (C2C).

Famous e-commerce examples include Alibaba, Amazon, and Haraj platforms. Key features of e-commerce are its unique services, wide product range, and ease of access both locally and globally. It provides convenience, as customers can shop from home, and is known for reduced operational costs. E-commerce offers personalized shopping experiences and supports the growth of small and emerging businesses. In Saudi Arabia, e-commerce has grown significantly due to supportive legal frameworks and infrastructure. The country is ranked 27th in global e-commerce markets, with expected revenues of 11.98 billion Saudi Riyals by 2027.

Steps to start an E-commerce store:

• Establish a commercial register for legal compliance.
• Study the market and consumer preferences.
• Select products for the store.
• Choose a suitable platform.
• Develop a marketing strategy.
• Implement credit card and electronic payment methods.
• Offer shipping and delivery services.
• Provide excellent customer service.

Essentials for e-commerce business:

• Choose a profitable niche.
• Build an easy-to-use online store.
• Utilize digital marketing for awareness and sales.
• Find suppliers for quick, efficient sourcing.
• Use local or international shipping services.
• Establish effective customer service.
• Monitor product performance with analytics.
• Build strong customer relationships with special deals and loyalty programs.
• Create innovative marketing campaigns.
• Develop a positive reputation through excellent service and meeting customer expectations.

In conclusion, the world of e-commerce is no longer just a means for buying and selling online. It has become a comprehensive system of creativity and skills demonstrated by those active in the field, along with the services and advantages they offer to provide unique experiences for customers.