How To Start An E-Commerce Business


– One of the companies I used to own is actually E-commerce business. It’s one of the most successful ventures that I have done in my career. And, we were doing millions and millions of dollars every year and actually won the Online Retailer of the
Year Award by Canada Post. So, when it comes to E-commerce maybe you’re thinking about starting an e-commerce business, you
don’t know where to start. Today I wanna give you three
keys, kinda three lessons I’ve learned during that time
before I sold the company. Number one, when it comes to E-commerce conversion matters a lot. Conversion matters a lot. So, you should be constantly measuring your conversion rate on different pages. Your bounce rate, meaning
people hit your homepage. Where are you seeing people
exiting from your site? Where are you losing people? Now, one of the things that we notice when I was running an E-commerce business that we were losing a big chunk of the customers at the checkout, right? At the checkout page, we’re losing a big, so they like the product,
they click the product, they add to cart by the
time they get to buy, we lose a whole lot of people. So, I was saying to myself,
okay, this is not good. What could we do? So, then we added a lot
of different things. Example, we added actually testimonials during the checkout process. We streamlined it and
simplified the checkout process. So, in the beginning,
back then I didn’t know, we had a multi-step process. And then, we changed all of that to make it much shorter, right. They see the product, they click, if they are add in the cart,
they continue as a guest, that’s fine, all right,
credit card information. Instead of that many steps, we shorten it to this many steps. And, we noticed sales
dramatically increased. So, conversion matters. You have to measure everything. You’re looking at data,
you’re looking at your pages. You have to know exactly what is going on. It is not so much just about the product. It’s about your customers,
visitors behavior, right. And when you have got some
products that are selling well, make sure you feature
those on your homepage. That’s key number one. Key number two, you need
to have a content strategy as well as a paid strategy. So, we were running a
lot of ads on Google, Pay-Per-Click, we were
spending a lot of money, right. But, in the beginning
especially no one knows why they should come to
our store, online store. So, we were just doing a lot of that. But then, later on, we also
spent quite a bit of money optimizing our website
for search engine traffic, just organic traffic. So, we were creating a lot of pages and rank certain key words in Google so people could find us just organically. So, in the beginning what’s interesting is 90-somewhat percent of our
sales were coming from paid. Pay-Per-Click, we were
spending a ton of money, right, To get some traction. But later on, actually later, a few years afterwards within the company, the
revenue, then it’s almost 60-40. 60% of our sales were coming
from organic, free traffic. Well, I wouldn’t say they’re
entirely free because we do invest time and money
creating content for them. But, only 40% comes from paid. So, to do E-commerce I believe if you have your own store,
meaning you’re not selling through Amazon ’cause Amazon
already has all the traffic. But let’s say you’re not
selling through Amazon, you have your own E-commerce store. I believe you need to have
a very good organic strategy as well as a paid strategy. And, last lesson I wanna share with you when it comes to E-commerce
is, inventory kills. Inventory kills. What would kill you the most is you have way too much inventory of
products that you don’t sell. Depends on what kinda products
you sell, do they expire? Assuming your products don’t expire you’re gonna sit on a lot
of products that don’t sell. And, you’re sitting in
a lot of cash, right? So, you’ve gotta be very, very careful when it comes to inventory management. Now, before I sold the E-commerce company, we were sitting on millions, millions of dollars worth of inventory. Now, I’m glad I could
sell all of that, right. And get all that money back, otherwise if there’s any problem, we would have been sitting
on a bunch of dead inventory. So, be very, very careful, very mindful when it comes to inventory. I would rather you have fewer
products in the beginning. Test it out to see what your customer, your marketplace likes, right,
whoever your audience is. See what they like first,
before you go crazy and have so many skew, have
so many units and products. Oh, I’m gonna buy 1000
of these, 2000 of these because you’ll be tempted. Wow you know, if I order way more, my cost per unit goes way down. But, what you don’t think
about, you don’t consider, factor in is, what if it doesn’t sell? Now, you’re sitting on
thousands of something that it doesn’t sell. It becomes a big problem,
so inventory kills. And, this is also why I
stress if you’re thinking of earning more money,
before you go out there and start an E-commerce business, I talk about that through my wealth triangle. You should develop your
high income skill first. You can go watch my
high income skill video. I talk about why it’s so critical to develop your high income skill first before you go out there and
start that scalable business, before you start that E-commerce business. So, go watch that video.

90 Replies to “How To Start An E-Commerce Business”

  1. Ecommerce is an insane way to make money online, dan you are awesome I really appreciate the value conversation is key to success keep it up

  2. To the last point about inventory: What do you think about Amazon FBA? It makes it a lot easier to not have to build your own infrastructure. Though anyways the assess you deliver there are bound capital – but it helps you to reduce recurring cost

  3. E-Commerce Business is a great way to make money! However you need to be patient because success takes time. Love from a small YouTuber showing support to those who need help ♥️

  4. These are some great tips 💥 Making use of your analytics is extremely important, to see where you are losing your conversions and help you understand where you can improve

  5. Conversion means a lot, however, if you have a loyal audience. I you don't that it's better to pay attention to bring value and help people. When you have audience then pay attention to conversion rate.

  6. E commerce is such an amazing business to start with, i started mine just over a year ago and have now grown it to 6 figures in sales, one of the best decisions i have made in my life. Yes there was times were it was a struggle but those struggle helped me grow my business and my self.

  7. Thank you master chifu. Timely. Im planning to start my e-commerce business. Selling digital products – a specialized skills. Thank you for the powerful tips.

  8. I think I am going to be unique one: 1280 USD waits to be invested in e-commerce but I want somebody to do it. Dan.. Here is an offer:

    I give you 30% of the profit for you. Rest is for me to manage except 10% for the stock exchange so we can get extra money. Do the buisness stuff and make sure it will give out 1 000 000 dollars in at least 2 years. From one dropshipping store… Are you in, Dan?

  9. What if you're banned of using paypal/stripe because of your nationality? I am an artist looking to sell assets online but all good platforms like gumroad needs paypal and even if I found a website I can use. not seeing paypal as an option is a turn off for most people specialy from unfamilier website to them

  10. Hey Dan great video as always. I was wondering if you got any more tips to start e-commerce store because my grandma is opening a store to sell decor and misc from Mexico and I wanted to set a e-commerce store to help sell her stuff online along with a physical store. Can you help me please?

  11. Your tips are so great !! I really learn many things from this , it will help me in the future
    Tks you so muchh ❤️😇

  12. Thank you so much
    Anis zuhdi from indonesia
    Exportir agarwood,ambergris & other indonesian products.
    +62-857-8414-4657
    https://wa.me/6285784144657

  13. hi.. i m 19yrs old ..and i likes to become a rich women .. but how?.. if anyone can plzz help me.. tell me some good tips plzzzz

  14. I love the concept of wealth triangle. So powerful. Because in order for you to scale up an e-commerce or any business, you need to reinvest the revenue while having a high income skills to support the business.

  15. Sir Dan, How to start an auto/home sanitizing services, its pros and cons? thank you. Your avid fan from the Philippines.

  16. This generation is seeing the biggest shift in consuming buying patterns and behavior – E-commerce is definitely one of the best ways to go.

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