How to Set up Your Ecommerce Business as Amazon Expands Into New Markets?

As the e-commerce business keeps expanding, more businesses are trying to take their share of the market by setting-up their e-commerce platforms. Many choose to go the route of Amazon, which has now become a major player in many markets.

However, how do you set-up your e-commerce business to take advantage of this wider marketplace? What do you need to do to ensure that your business can compete in this expanding marketplace?

If you have been thinking about setting-up your e-commerce business, now is the best time to do so. But how do you going to do that? Keep reading to find out how to set-up your e-commerce business as Amazon expands into new markets!

Amazon's expansion into New Markets

As a multinational technology company, Amazon relies on e-commerce, cloud computing, digital streaming, and artificial intelligence. It is setting an example for the biggest brands.

GrowthJockey has observed that since its inception, Amazon has been one of the most innovative and disruptive companies in the world. It has been rapidly expanding into new markets and categories. Its sheer size and scale have allowed it to dominate many industries. Recently, we saw the expansion of Amazon in healthcare. In the healthcare space, Amazon has now partnered with primary care provider One Medical for $3.9 billion. Its goal is to make healthcare more affordable and convenient for consumers. The addition completes the company's existing healthcare offerings. They already have an online pharmacy and Amazon Care, an online urgent care in-home service.

According to Statista, Amazon generated total net sales of approximately $116.44 billion in the first quarter of 2022. It generated $108.52 billion in the same quarter of 2021.

Why is E-commerce important for Small Businesses?

In today's digital world, e-commerce is essential for small businesses. It allows you to reach a larger audience and sell your products and services online. Having an e-commerce website also gives you a competitive edge and helps you grow.

There are many reasons why e-commerce operations are important for small businesses.

1. E-commerce provides small businesses with access to a much larger market. With e-commerce, small businesses can sell their products and services to customers all over the world. This leads to a significant increase in sales and revenue.

2. E-commerce helps small businesses reduce their costs. This way, they can avoid the high costs associated with traditional businesses.

3. Finally, e-commerce can help small businesses build and maintain strong relationships with their customers. Customers can purchase the products easily online. They can also get notifications about new products and services.

What do you need to set-up your E-commerce Business?

There's a lot to think about when setting-up an e-commerce business, but with careful planning and execution, it can be a very successful endeavor. Amazon has become one of the world's largest retailers by leveraging the power of e-commerce, and many other businesses have found success using this model. With the right approach, your e-commerce business can reach new heights.

Growth Jockey walks you step-by-step through the process of establishing your e-commerce business store:

1. Research the Business

First, you need to have a complete research and analysis plan before setting-up the e-commerce business. Determine who your target customer is and what their problems are.

All you have to do is start answering the following questions to identify the product needed:

1. What are the pain points for your target customers?

2. Will your product be the solution for their pain point?

3. Are these products already on the market? If so, what next?

4. How can you capitalize on the idea and turn it into an e-commerce business?

5. What is the budget, and from where to get funds?

6. What are the facilities needed to start the business online?

2. Validation of your Research Plan

Now that you have a research plan in your hands, you need to validate it to know whether it will work in the market. Before starting your e-commerce business, it is crucial to explore and analyze your potential marketplace. It helps you understand your customers better and determine whether they will buy your product or not. Enhance demand for your product and understand your competitors by doing a competitor analysis.

3. Identify the Business Goals and Objectives

Once you have the blueprint of your e-commerce business, you need to set your business goals and objectives by doing a SWOT analysis:

1. Set specific, quantifiable goals that give your e-commerce business the best chance of success.

2. Make sure each of your goals is clear by stating the who, what, where, when, and why behind it.

3. Your goal must contain benchmarks so that you can assess your performance.

4. In light of your resources and time constraints, are your aims attainable?

5. Establish deadlines for goals and develop a schedule to record each goal. Make sure to revisit them often to know where you stand and where to improve.

4. Source Channels

Finding the ideal source for the products is the next step after setting-up the plan. Products with good quality will contribute to the success of your new e-commerce business. Selecting the appropriate channel to source the product is very important.

After identifying the source partner, decide on the following:

1. How are you going to source the product?

2. What are the channels to source the product?

3. Where are you going to store it?

4. What is your shipping and logistics strategy?

5. How are you going to pack the product?

6. Have you identified the right shipping partner to deliver it to the customer's place?

Once you get answers to all these questions, you are good to start setting-up your e-commerce operations.

5. Setting-up your E-commerce Business

After all, the pre-work is done, and now it's time to start up your e-commerce business. You need to select the brand name, logo, and design for your business.

You can either build your website or use an existing platform like Amazon, depending on the funds you have. Before spending a lot of money to build your website, it is better to use the existing platforms to give your customers a great experience with a quick checkout and precise system.

For example, you can avoid spending on SEO-optimized websites, pay-per-click advertising, website branding, and traffic. Rather, you can invest those funds properly in other channels and use existing platforms like Amazon.

With Marketplace 360, you can showcase your products in such a way that your customers feel their presence online.

6. Create a Pricing Strategy

Creating a perfect pricing strategy is very important for your e-commerce business. Consider the following points while coming up with the pricing strategy:

1. How much does a similar product cost on the market?

2. What is the price you have fixed for your product?

3. Is there any tax applicable to the product?

4. How much can you fix as a discount or as an offer?

5. Are you charging for shipping and delivery?

6. What is your return policy?

By taking these key steps, you can set-up your e-commerce business successfully.

Tips for Success in the E-Commerce Business

As Amazon continues to expand its reach into new markets, e-commerce businesses need to stay ahead of the curve. GrowthJockey helps you with tips for your business to stand out in the ever-changing world of e-commerce:

1. Keep your product offerings up-to-date

Make sure you are offering the latest products to your customers. This way, they'll keep coming back to your site for their shopping needs.

2. Offer competitive prices

To stay ahead of the competition, it's important to offer competitive prices on your products. Use Amazon's price-checking tools to ensure you are always offering the best deals.

3. Provide excellent customer service.

Make sure your customers are always happy by providing excellent customer service. Respond to inquiries quickly and efficiently, and take care of any problems that may arise.

4. Stay on top of trends in the marketplace

Keep an eye on industry trends so you can adjust your business strategy as needed. This way, you'll always be ahead of the curve and ready for whatever comes next.

Conclusion

As Amazon expands into new markets around the world, it's important to make sure that your e-commerce business is prepared to take advantage of this growth. By following the tips in this article, you can ensure that your business is well-positioned to succeed in the ever-changing world of online commerce. Thanks for reading, and best of luck with your e-commerce venture!

Whether your goal is to start a business or grow an existing one, Growth Jockey provides you trusted specialists, who will help you handle everything from specific tasks to project management.

At GrowthJockey, our sole focus is on creating custom solutions that address the unique challenges faced by our clients in the e-commerce industry. We are committed to helping businesses of all sizes, from small-scale enterprises to large corporations, harness the power of technology.

Get in touch with us today to scale your business with our expert eCommerce solutions !