How to Set Up eCommerce Platform for Online Business
Ethereal Multimedia Technology offers top-notch consultancy in eCommerce Technology – especially on how to set up eCommerce platform for online business. We take you through the process of setting up wealth creation platform using the Internet, Information and Communication Technologies. We welcome enquiries from prospective entrepreneurs and developers of eCommerce platforms.
This blog post provides a general perspective of the nitty-gritty involved in setting up of an online business platform. It sheds light on some the technical and nontechnical aspects to be factored in when running business on the cyberspace.
Every human being lives with a burning desire to do something that naturally appeals to him. These desires express themselves in form of habits that people cultivate over a period of time. Mostly, things we do naturally with love (not by coercion) tend to be the things that determine our preoccupations or hobbies. By default, our passions are expressed through our natural gifts, talents and abilities.
The uniqueness of our passions creates our personality. No two persons (not even twins) have same personality. It is our uniqueness that makes us stand out. Tailoring our lives to conform to another person’s makes us lead “fate” lives of imitation, mediocrity, low self-esteem; and thus not attaining our full God-given potentials.
Thus, our passion should be garnished with our personality in order to understand the purpose of our individual lives. A purpose-driven life helps us have focus, vision, dreams, goals and targets in whatever we do. A purposeful person is always true to his passion with persistence and prudence.
Living with a purpose in life makes us zealous to attaining our dreams regardless of the challenges we face. However, it is not enough to have zeal without having the right and adequate knowledge necessary to achieving our set goals. We remain “crude” in our dealings if we are only and always doing what we know. We can “refine” our passions (i.e. hobbies) by knowing what we do. This implies acquiring the requisite skills and training, which make us professionals (as we earn a living through career pursuit).
Committing our professional skills to providing solutions is the key here. The solutions could come in form of products and services. Common products are tangible, such as physical goods/hardware and intangible, such as software and multimedia (music, video, ebooks, animations, photos etc.). Services may include training, consulting, apprenticeship, research and development in any field of endeavor.
Once we are through with the production, next comes the packaging of the products and services. This stage takes care of how the products/services are preserved and presented to clients/customers. Packaging depends solely on the product/service at hand; however, good packaging is necessary “bait” that attracts your potential and prospective customers.
On the Internet, products are presented in multimedia forms (text, photographs, sound, music, video, animation etc.). On the catalog of the online store, the products are showcased using a combination these multimedia forms. Thus, they must be of high quality as they depict the packaging of such products. For instance, it is a common practice to showcase eBooks as realistic three dimensional images. See Figure 1 as an example.
Figure 1: Realistic three-dimensional view of an eBook
Once your product/service is packaged, it is time to consider pushing it to the market place. Basically, there are traditional and contemporary platforms for making your products available to prospective customers and clients. The traditional commerce platform is strongly dependent on face-to-face-buy-and-sell strategy. This is very common especially in places where technology is not yet the mainstay. Ethereal Multimedia Technology offers consultancy services that specifically address both administrative and technical aspects of selling your products/services via the contemporary eCommerce platform. We guide you on how to set up eCommerce platform for online business.
The eCommerce platform is fundamentally driven by the Information and Communication Technology – where computers, automated machines/terminals, mobile devices, cyber networks, telecommunications, media and the Internet are used for business transactions.
Good pricing strategy helps in determining the price point at which profits are maximized on sales of your products or services. When setting prices, you need to consider factors such as production and logistics costs, competition, customer target, etc. Naturally customers refrain from buying high priced goods. However, setting low prices for your goods may not cover all of the business costs. This blog post, how to set up eCommerce platform for online business, show the following pricing strategies as a starting point for your products:
If you are selling a unique-highly-in-demand product, setting a high price would still guarantee high turnover rate (especially in the early days of a product’s life cycle).
This is a deliberate act of attracting buyers (to new business or product) by offering lower prices on goods and services. However, this strategy tends to result in an initial loss of income for the business. Once you’ve noticed considerable response from the buyers (with increase in traffic on your online store), you could raise the prices to better reflect the state of the cost of business.
This pricing strategy is meant for existing products (especially large companies) with very high turnover rate. From time to time these products are sold at discounted prices. This enables buyers (especially middle class) that are most price-conscious purchase the products they need without frills. This strategy should be carefully employed by small and medium enterprises.
This strategy enables you maximize sales on new unique products and services. This mostly involves setting high prices during the introductory phase of the product; then it is later lowered gradually as competition sets in. This strategy creates an illusion of quality while it helps business recoup its initial setup and development costs.
It encourages buyers to make purchases in a more rational way than logical. For example, repackaging the same product gives buyers a feeling of improved product. The goal of this strategy is to increase demand by creating an impression of enhanced value for the buyer.
This strategy helps businesses sell a collection closely related products at lower prices than buyers would have purchased each of the item individually. This is an effective way of disposing physical products which take up space in the warehouse. At the same time, the buyer gets more fulfilled buying products that he needs in a bungle. This pricing strategy is more effective for businesses that sell complimentary health, beauty, software products.
Your products must be seen, heard of, noticed and even tested before sales begin to flood in. Therefore, there must be concerted and deliberate efforts (involving funds and strategies) to promote and market your products in order to get the attention of prospective customers. The following methods for promotion could be considered: free/giveaway product samples, email marketing, social media advertising, print media advertising, TV/Radio advertising, blogging, word of mouth advertising, etc.
Successful promotion and marketing strategies are measured in terms of the number of sales. You need to create strategies to make your customers buy and keep buying your products. This blog post, how to set up eCommerce platform for online business, presents some of these strategies:
- Creating urgency of scarcity (indicating how many stocks are left or limited discounted period available etc.);
- Buying a product with a free gift included (for instance, buying toothpaste with free toothbrush);
- Selling products at discounted prices and with next-purchase discount coupons;
- Purchasing products with free shipping option;
- Creating price variants for the same service/product (where the differences in the prices is attributed to value, time, quality and quantity);
- Have a respected return policy (indicating, where applicable, notice such as 100% money-back guarantee, lifetime warranty, free returns, etc.);
- and showing number of sales, reviews and rating of your products.
As sales flood in, you will begin to get revenue. Before you get profits, lots of factors come into play. They include loan repayment, tax/VAT, recurrent expenditure, cost of production, initial cost of setting up business (capital, land etc.), demand and supply, economic health (recession, boom/upturn), overhead/running cost (accounting fees, advertising, insurance, interest, legal fees, labor burden, rent, repairs, supplies, taxes, telephone bills, travel expenditures, and utilities), etc.
Checklist of How to Set Up eCommerce Platform for Online Business
Briefly we present some of the key aspects that help prospective entrepreneurs on how to set up eCommerce platform for online business:
Physical Business Address (Rentage/Lease)
Business Location and Warehouse
Choice of Company to Incorporate
Minimum number of shares
Choice of three unique company names
Educational Qualification of Board of Directors
Issuance of certificate of incorporation
Filing of annual returns
Corporate Logo [2d/3d/Animated]
Private Mail Box
Shop Front Signboard
Social Media Accounts
Corporate Tax Registration
Tax Identification Number
Monthly Tax Return
Corporate Bank Account
Internet Banking (token…)
Corporate Current Bank Account
Corporate Domiciliary Bank Account
Search Engine Friendly [SEF]
Human Eye Friendly [HEF]
Single Domain Name Registration
Bulk Domain Name Parking
Shared/Dedicated [canonicalizable] IP address
Sitelock Malware Scanner & Trusted Site Seal
Consultancy, Analysis and Facts Gathering
Multimedia production, editing, streaming and authoring
Design & Development/Programming
Mobile App [iOS, Android]
eCommerce and Shopping Cart Systems
Currency / languages [translation]
Online Payment Gateways/Processors/Merchant
Website Security and Maintenance
Upgrade and Update
Auditing and Quality Assurance
Marketing / social network accounts / integration
Search Engine Visibility
Advertisement and Boosting Traffic
Creating Ads Banners
Support Ticket System
Online Chatting System
Social Media Network
Final note on how to set up eCommerce platform for online business
For more information on how to set up eCommerce platform for online business, you can contact Ethereal Multimedia Technology for consultancy and contract execution.