Starting a B2C E-Commerce Website In a Recession

How a Lagging Economy Supports New Online Business

Jun 1, 2009

Starting a new business venture can be intimidating at the best of times. Is it really safe to take that leap during a recession?

In short, yes. Employees who may have preferred to stay in their respective positions are finding themselves suddenly out of work. Job security seems a distant memory. It might seem like the worst possible time to start a new business venture, but e-commerce offers an affordable, quick-start solution for would-be entrepreneurs.

Retail E-Commerce Revenue on the Rise

While the manufacturing industry has taken a dive, online retail business revenue for the first quarter of 2009 rose to $34.7 billion, up 0.7% over the last quarter of 2008, according to the U.S. Census Bureau's Quarterly E-Commerce Retail Sales - 1st Quarter 2009 Report.

Entrepreneurs interested in B2C, or Business to Customer, e-commerce can get started in as little as a week, depending on the size and scale of their operation.

Planning to Launch a New B2C E-Commerce Business

Getting an e-commerce business off the ground requires the same careful planning and projecting as its brick and mortar counterpart. However, entrepreneurs may find the overhead and start-up costs dramatically lower in online business, especially if they are operating from a home office.

A number of free small business tools also help reduce start-up expenses, such as these top three user-rated accounting software downloads.

Five B2C E-Commerce Website Must-Haves

Regardless of the product or service offered, e-commerce websites must have, at the very least:

Finding a Niche Market in Online Retail

Many entrepreneurs already have an idea of what they would like to sell online. Others aren't sure, but recognize the opportunity and are interested in starting a retail e-commerce business.

The initial business planning stage is an opportunity to investigate several markets and realistically determine which products or services offer the highest earning potential. Always consider all expenses associated with the product, including storage, shipping, import taxes, or packaging, to get a realistic projection of the cost of selling it.

Projecting Sales, Costs and Profits in B2C E-Commerce Business Planning

Financial projections are an important part of any business plan. Of course, it is impossible to tell at the planning stage how well a business might perform. However, market and competition research allows entrepreneurs to make educated guesses, which are included as graphs or charts in the business plan.

This process is very important. New B2C e-commerce companies can launch quickly, so taking the time to properly research and plan acts as a reality check. If an idea sounds great in theory, but doesn't make sense after seeing the projected numbers, it is best to move on to the next possible product. The alternative is sinking money (which is already at a minimum) into a dud business.

The copyright of the article Starting a B2C E-Commerce Website In a Recession in Business-to-Customer E-Commerce is owned by Miranda Miller. Permission to republish Starting a B2C E-Commerce Website In a Recession in print or online must be granted by the author in writing.