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It is predicted that world-wide e-Commerce sales will reach USD 5 Trillion in 2021! Global e-Commerce sales grew 27.6% to USD 4.28 Trillion in 2020. In 2020 18.0% of all retail sales came from e-Commerce and by 2024 it is forecasted that e-Commerce will contribute 21.8% of total retail sales globally*.

Due to unprecedented lockdowns, quarantines, work from home, general fear of going out, and not having opportunities to spend money on services, dining out, and travel, consumers are left with extra cash that is being spent on retail goods via e-Commerce channel in categories such as electronics, home furnishings, toys, hobby items, groceries, and many others.

We witnessed a leap of 10 years’ e-Commerce growth prediction in one year. Consumers are getting accustomed to new shopping experiences online and are going to stick to them even after the cities, and stores start opening up. It’s a great time for entrepreneurs to seize this amazing opportunity of growth in e-Commerce business.

Here are top 5 learnings in my e-Commerce journey. 

1. Pick a niche that you’re passionate about

This is one of the most important discoveries that you will make about yourself. Think about the areas that you’re passionate about. The things that you are really good at. I don’t recommend anyone who is starting off in their e-commerce journey to follow the trend as trends keep changing. You might lose interest in it after some time or you might not be really good at it, or you might not be able to relate to your audience well. Follow your instinct, the calling from within, and the things that you’re really passionate about. Since you will have to work with it day in day out you might as well pick the niche that you’re passionate about. It will help fuel your energy and keep you going. Additionally, the passion / niche that you select must meet two more important criteria. First, you must be really good at it. You must know the subject inside out, and you must be able to relate to the people of the same community / tribe. Second, it must have enough critical mass or large enough market size so you can make a business and generate profit out of it.

2. Know your audience 

This is the second most important discovery that you have to make. Once you’ve identified your passion (niche) you must know your audience or target market. Who are your customers? Think about their demographic, interest, behaviour. Research the problems they are facing, where do they hang out, what communities are they part of, what inspires them, who are the influencers that they follow, and everything that you can find out about them. People don’t buy what you sell, but they buy why you sell. Meaning, they buy the values and benefits of using your products. This exercise will help you build a customer profile to further research if there is enough critical mass to generate sustainable income. Moreover, it will help you build a solid foundation for your business plan, and marketing plan going forward.

3. This is not a get rich quick scheme

Those who have experience in starting your own business will know that it takes time to build a successful business. 80% of businesses fail in the first 3 years according to a leading market research firm. Don’t start a business thinking to make money. Of course, you will have to be profitable to sustain your business. Perceive money and profit to be a by-product of your business. The real objective of starting a business is you are passionate about solving or fulfilling specific needs for specific sets of customers that are lacking today or you can make it better. Focus on long term investment to grow your business. You must keep investing to build the brand for your business. You will have to test many different things before you get everything right. You will never get it right the first time. It's all about investing time and money in testing different areas before you are able to get the right product to market fit, price to market fit, and really understanding your customers’ needs.

4. Cash is King!

When it comes to e-Commerce business, you must be willing to invest to build your brand, acquire customers, drive traffic, build a team, continuously learn new things, set up operations, etc. In this process you must set a budget to invest for each activity in your business and must prioritize them well. You must track how you are performing as a business on a daily or a weekly basis. How much money is coming in and going out, and plan your investment well. With the right investment, you will be able to accelerate your success. Always keep a pulse on the finances and manage your cashflow diligently.

5. Build your dream team

Build a team of people who will help you achieve your dreams. That’s why it’s called a dream team. Because these are the people who will help you achieve your dreams, not theirs. Don’t think about saving money by doing everything yourself. Invest your time in high value activities that will help you grow the business. Hire people to run your business and let them make money for you. If you want to keep all the profits to yourself, then you will never be able to grow your business. You must automate your business by hiring the right people and treat them like your partners. You must know their needs and help them achieve those. You must hire people who complement your strengths. Empower your team to make decisions so they don’t come to you for every small thing. Make decisions faster and focus on progress over perfection!

The best time to start e-Commerce business was 20 years ago, and the next best time is Now! I would be keen to learn more from you on your eCommerce journey. Whether it's working for e-Commerce enterprises, Omni-channel retailers, or whether you’re running your own e-Commerce business. 

*Source: eMarketer Global e-Commerce Report, January 2021.