Best Ecommerce Business Ideas and How to Get Started

Best Ecommerce Business Ideas and How to Get Started

These ecommerce ideas will get your small business or startup going in the right direction.

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Whether you're checking email or scrolling through social media, opportunities to buy (almost) anything with just a click are everywhere - and customers are clicking faster than ever. Research finds 53% of customers prefer to engage with businesses digitally, and 59% of shoppers make purchases from companies via social media, according to Salesforce's State of Commerce Report.

With seemingly limitless avenues for consumers to shop on their smartphones, maybe it's time for you to join the action and launch your own ecommerce business. But where to start? Read on to learn how to transform your ecommerce business idea into reality.

What you'll learn:

• Identifying your ecommerce niche
• Choose your market
• Exploring ecommerce business models
• Ecommerce challenges to overcome
• Turn these ecommerce business ideas into great ones

Identifying your ecommerce niche

As a small and medium business (SMB) owner, the key to finding your ecommerce niche is to not cast too wide of a net. If you cater to everyone, you risk catering to no one. Honing in on a specific, targeted audience will help you stand out in a crowded market.

Think about where there may be a gap in the marketplace, how you can put your unique spin on the product or service you're offering, and find something you're passionate about. For instance, instead of selling a random assortment of sneakers, think about offering eco-friendly kicks made from ethically sourced fabric and soles made from renewable resources.

Questions to ask before you get started

Is there a demand for your product or service? If a niche is too competitive, it may be challenging to break into. But it shouldn't be too obscure. Weak demand may not be sustainable.

What's your unique selling proposition? Think of the ways your product or service stands out from the crowd as you form your unique selling proposition. Clearly define what sets you apart, whether it's exceptional customer service, product quality, or a specialized focus.

What are your passions? If you're genuinely interested in something - whether it's pet costumes or writing code - you're more likely to stay motivated and build a better business. Consider your strengths. What industries or skills do you already have experience in? Your existing knowledge can give you a competitive edge in a crowded market.

Are there gaps in the marketplace? Do a deep dive and study your competition. Analyze their practices to see what they're doing right - and where they're falling short. Check their reviews and read customer feedback. If there's a common thread of complaints, figure out if that's something you can address. Find an audience neglected by mainstream competitors, or look at a popular product or service and consider how you can put a new spin on it.

What's trending? Use online tools to track industry trends and identify emerging markets. Read newspapers and trade publications to see what's being covered by reporters in your industry. Check out social media to see what products or services people are raving about. Don't be afraid to explore evolving technology that could create new demands for your products or services.

Is it profitable? Take a look at the margins to determine whether the products or services in your niche offer a viable profit margin. High competition may drive prices down, so be sure to consider both pricing and sourcing. Also, think about whether your niche realistically has long-term potential for growth.

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Research your business idea in 10 steps

The common advice to "measure twice and cut once" also applies to starting an ecommerce business. Invest in spending time on validating the market viability of your product or service. A few days spent on research can avoid headaches during the launch of your business - and even help to avoid a major flop.

Here are 10 steps to take during the research stage:

1. Analyze your target market to understand their needs and wants, along with their preferences and purchasing behaviors.
2. Look at the competition to see what kind of products or services they offer, their price points, and marketing strategies.
3. Conduct interviews with potential customers to validate their interest in your product or service. Understanding their pain points clarifies your offerings.
4. Offer surveys on your website to gauge interest from customers and gather feedback on your ecommerce idea.
5. Launch a landing page that showcases your ecommerce idea. Offer a call-to-action (CTA) button for customers to sign up for updates. If your customers have a positive response, you may be on to a terrific idea.
6. Create social media accounts to showcase your product or service. Monitor engagement metrics like likes, shares, and comments to see if potential customers are interested in your idea.
7. Run a few ads on social media to drive traffic to your website. You can use Google Ads or boost a post on your social channels.
8. Get feedback on your idea from professionals in your industry. They may offer insights about your product or service that you've not previously considered.
9. Test your idea with a small batch of products or a prototype to gauge interest before fully committing to the niche.
10. Research keywords related to your product or service. This can help you identify what people are looking for online - and just how competitive those niches are.

Open your small business anywhere in the world - with a digital storefront.

Choose your market

It's a bit like choose your own adventure, but in the real world. With evolving times, several niche markets have emerged in recent years. These categories are thriving because they meet specific consumer needs and capitalize on emerging trends. They also highlight how personalization, sustainability, and technology are reshaping the ecommerce world.

Here are a few trending niche markets:

• Green products and services: The effects of climate change and other environmental concerns are driving demand for green products and services. Brands that focus on zero-waste packaging, sustainable sourcing, and ethical manufacturing can win over clients who don't prioritize sustainability.
• Resale marketplaces: The resale industry is booming, especially for vintage and luxury items. No longer relegated to dusty thrift stores and pawn shops, previously worn merchandise is now marketed as a way for those on a budget to access pricey designer items.
• Subscription box services: Subscription services that deliver curated products on a regular basis are winning legions of fans. Businesses have popped up that curate regular deliveries of almost anything you can think of - collections of beauty products, meal kits, pet toys, and even rare books.
• Artisanal products: Turned off by big box stores, many consumers are seeking unique products made by artisans and crafters. A range of online selling platforms have made it easier for shoppers to buy artisanal products like fruit preserves, candles, and hand-knit sweaters.
• Health and wellness: With the rise of alternative health practices, products that focus on specific health needs are a growing market. This niche can include things like organic supplements, CBD products, personalized vitamin services, and holistic health supplements.
• Direct-to-consumer brands: Just like it says in its name, direct-to-consumer (DTC) brands cut out the middleman, creating a direct relationship with consumers. Selling things like eyeglasses, mattresses, and razor blades, these DTC brands leverage social media marketing to get the word out about their products - and build loyal communities.
• Online education: With the rise of remote work, many schools have raced to fill the need for online education. These virtual institutions of higher learning offer online courses, e-learning platforms, and digital products aimed at improving skills and professional development.
• Pet products and services: Niche pet products like premium pet foods, designer outfits, and wellness products are all growing. Watch the pet tech sector for advances in smart pet devices like GPS tracking collars and HD cameras that can distinguish between people and animals.

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Explore ecommerce business models

An ecommerce business model is a framework that outlines how to generate revenue through online sales, including the types of products or services offered, the target market, and the methods used to reach and engage customers.

Let's say that you love animals - and you love the fact that pet owners in the U.S. spend more than $136 billion on their furry, feathered, and scaly friends per year, according to Forbes. There's a wide variety of business models that can cater to pets - whether it's custom dog sweatshirts printed on demand or dog food sold in bulk to commercial kennels.

No matter what online business idea you pursue, consider which ecommerce model might be your best approach:

Model 1: Print-on-demand

Print-on-demand is a business model where products, such as books, clothing, or artwork, are only printed and produced once an order is received, eliminating the need for inventory and reducing upfront costs.

With a print-on-demand model, businesses can offer highly customizable products with relatively low upfront costs. Customized products are created after the order is placed, reducing potential problems with inventory risk. This model is especially popular for personalized apparel, art, and accessories.

Model 2: Private label

Private label refers to the practice of manufacturing or purchasing products that are branded and sold under a retailer's own brand name rather than the manufacturer's, allowing the retailer to have control over pricing, marketing, and product exclusivity.

Manufacturers partner with companies to create a branded product with minimal investment in product development. The main advantage of this model is that you can sell products without holding inventory. It's also quick to bring products to market, and (relatively) easy to scale. Many ecommerce brands use this model by buying unbranded products and applying their label to clothing or packaging.

Model 3: D2C Commerce

Direct-to-consumer (D2C) commerce is a business model where companies sell their products directly to customers, bypassing traditional retail intermediaries. This approach allows you to have more control over your brand, customer experience, and data. By eliminating middlemen, D2C companies can often offer better prices and more personalized services. For small businesses, this model can be particularly advantageous as it helps build a loyal customer base and scale operations efficiently. Salesforce provides powerful tools and platforms that enable small businesses to manage and grow their D2C commerce, offering everything from customer relationship management (CRM) to ecommerce solutions, making it easier to connect with customers and drive sales.

Model 4: Dropshipping

Dropshipping is a retail fulfillment method where a store doesn't keep the products it sells in stock. Instead, when a store sells a product using the dropshipping model, it purchases the item from a third party (like a manufacturer or wholesaler) who ships it directly to the customer. This means the store doesn't have to worry about inventory management, storage, or shipping logistics. It's a popular business model for online retailers due to its low overhead and flexibility.

Model 5: Crowdfunding

Crowdfunding is a way to raise money for a project or idea by asking many people to contribute small amounts, usually online. Instead of getting a loan or finding big investors, you can reach out to a large group of people who might be interested in what you're doing and want to support it with a little bit of money.

Sourcing money from donors can be especially effective for innovative or one-of-a-kind products. Products are then marketed and sold before they are made, allowing you to validate demand before sinking your life's savings into the venture.

Model 6: Affiliate marketing

Affiliate marketing is a business model where an affiliate earns a commission for promoting and driving sales for another person's or company's product. It's essentially a referral system where the affiliate searches for a product they like, promotes it to others and earns a piece of the profit from each sale they make.

The main advantage of this model is the low barrier to entry, the lack of need for inventory or product creation, and it allows you to build a business around your expertise or niche interests.

Model 7: Cause-based brands

A cause-based brand is a company that aligns its business operations and marketing efforts with a social or environmental cause, aiming to make a positive impact beyond just profit. These brands integrate their chosen cause into their core identity and actively support it through various initiatives, such as donating a portion of profits, advocating for awareness, or implementing sustainable practices. By doing so, they appeal to consumers who share similar values and want to support businesses that contribute to the greater good.

Model 8: Freemium model

A freemium model offers a product or service for free while charging for premium features or upgrades. Common for software, tools, or apps, the freemium model allows you to build a large user base, with a percentage of them converting to paid users over time.

Model 9: B2B ecommerce

Business-to-business (B2B) ecommerce refers to the sale of products or services between businesses through an online platform. This model's advantage for B2B commerce is that most companies need a constant supply of office products and business solutions, which often leads to consistent sales.

Ecommerce challenges to overcome

Starting an ecommerce business is a different project than opening a company with a physical location. Instead of finding or building a brick-and-mortar site, you'll be creating an ecommerce storefront that needs to be functional and intuitive.

Here are some potential challenges - and what you can do to overcome them:

Attracting traffic: New ecommerce sites often struggle with visibility and driving traffic. When using a popular search engine, 75% of users never scroll past the first page of results, according to Zipdo. Invest in search engine optimization (SEO) to optimize product pages and utilize paid ads to build brand awareness. Collaborating with social media influencers can also boost traffic.

High cart abandonment rates: The average cart abandonment rate is more than 70%, according to research by Baymard Institute. Get customers to click "buy now" by simplifying the checkout process. Some things to try include reducing the number of steps to complete a purchase. offering guest checkout options, and using cart abandonment email reminders.

Establishing trust: Almost half of consumers who avoid online shopping cite a lack of trust as their primary reason, according to a CIGI-Ipsos survey. Build trust by displaying customer reviews and testimonials. Offering exceptional customer support also helps to build credibility.

Shipping and logistics: Shipping delays, high costs, and complex logistics can negatively impact the customer experience. Partner with reliable shipping providers, offer multiple shipping options, and set clear expectations for delivery times.

The good news is that these challenges can be overcome with the right tool. Choosing the right ecommerce platform is key for your small business to grow. We advise choosing an ecommerce platform made for small businesses, based on ease of use, scalability, and features that suit your needs. It should reflect the spirit of your business with clear, cohesive branding.

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Turn these ecommerce business ideas into great ones

Your ecommerce business idea has limitless potential. To be successful, your idea requires finding the right niche, market research, and the right tools - and then testing it out before launch. All of this can be done with a CRM powered by AI that connects marketing, sales, service, and commerce in one platform. This foundation will help your ecommerce business flourish and grow. Get set up for success with your ecommerce business from day one with Starter Suite.

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