Ecommerce Business Model: Start an Online Store Like Amazon
Mohammed Wasim Akram
First Published on:
December 4, 2019
Last Updated on:
February 5, 2023
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If you want to start an ecommerce business just like Amazon to start selling products online from your own website then in this article I have shared the 5-Step Framework to kick-start your Amazon-like e-com business successfully.
Even if you are a beginner and not sure what to do? How to do? Where to start? Then don't worry and keep reading my "5-Step Framework" as it will help you clear your confusion by showing you the right steps to begin your Amazon-like ecommerce business journey.
TABLE OF CONTENTS
Select A Niche for Your Ecommerce Business Store
In order to start an ecommerce business like Amazon, you need to decide on a single niche or category for your online store.
I know! I know! You might be thinking what you're talking about Wasim, I'm here to know how to start a business like Amazon, and they sell almost everything under the sun, then why the heck you're asking me to select a single niche for my online store?
Then my answer is; in the beginning, Amazon never started as a general ecommerce store as it is today that sells all sorts of products at the same time under the belt.
But when Jeff Bezos launched Amazon.com at that time he was only dedicated to dominating the Book Market Place, which he did eventually.
Once he succeeded with his goal which was to dominate the book marketplace, he gradually started to expand the categories of Amazon by adding more product portfolios.
It took a long period to become the Amazon that we see it as today.
Also, there are so many other benefits of getting started with one niche, for example:
Maintaining your inventory will be much easier because of limited products.
You will only need to focus on one kind of customer and the marketplace.
You will get to know your customers much better than anyone else.
You would know much better about your products, which is a great thing.
It will be easy for you to sell the products as you have deep knowledge.
It will be less overwhelming for you to manage your business.
Now hopefully you agree with my opinion to figure out a single niche or category to start your e-com store.
Therefore, take some time thinking and coming up with a niche that you want to enter into, in order to find the niche you need to look around you or the market you want to target, then try to understand what problem they are facing in their day-to-day life.
Once you identify the problem that people are struggling with within their day-to-day life, then you need to think about what it will take you to solve that particular problem and how passionate you're to solve that problem.
In this way, you will be able to find your niche which is the foundation of your e-commerce business like Amazon.
Find Out The High Potential Products
Once you select your business niche, the next step is to find out the high-potential products in that niche.
The reason behind this is that you cannot sell anything just because that is under your business niche as it can lead you to potential failure.
To make it more clear, let me give you an example.
Suppose your niche is clothing, and you sell clothes for men and women, now just assume that you have purchased the stocks of winter wear because it is wintertime.
And when you try to sell those winter wears you realize that no one is buying them because the winter is now going away and people started buying clothes for the summer as it's approaching.
Therefore, you always need to use your brain and do proper research to find out the products that have the potential to become the best-selling products to grow your business fast.
There are so many ways to find the best products, and I am leaving you with the 3 best ways to find the high potential products.
Amazon Best Sellers
eBay Top Products
& Google Trends
Import Products from Alibaba or Locally to Create an Inventory
To start an ecommerce business like Amazon you need to purchase the products and create your inventory and there are 2 ways to do that, which I am sharing with you below.
#1. Purchase Products Stock from The Wholesale Market Locally
You can find a local wholesale marketplace near you and purchase products at wholesale prices in large quantities.
There are a few advantages and disadvantages if you select this way.
You can see and touch the products yourself physically.
But you have to go out and invest your time to find out and bring the products.
If you find something wrong with the products, then you can go and talk to the vendor.
But they don't need to replace the product or refund if something goes wrong.
You can build a relationship with the vendor and get a good price for the products.
But if you purchase the products from different vendors, it can harm the relationship.
#2. Import Products Stock from Alibaba China
You can import any kind of products from Alibaba.com at a cheaper cost directly from China as Alibaba is an online wholesale marketplace for bulk buyers where all the Chinese manufacturers sell products directly themselves.
There are a few advantages and disadvantages to this method as well:
Find all sorts of products sitting at your home and get delivery to your doorstep.
But it can take a long time to get the package, and you might need to clear the custom.
You can see the product images and all the details without talking to anybody.
But you might not get the same quality of products as compared to the images.
If you don't like any product even after delivery, then they always have a refund policy.
But it might take a very long time to get a refund, and you might end up paying extra charges.
Build A Modern Ecommerce Website for Your Business
Now the most crucial step should be to create an ecommerce store for your business that should be modern with all the necessary features yet affordable as you are just starting your ecommerce business like Amazon.
If you're looking for inspiration from people who already achieved something similar to what you want to accomplish then you should read their words of wisdom. Therefore in this article, I am going to share with you Top Business Quotes from the experts to keep you motivated and inspired in your journey to Digital Entrepreneurship.
If you are looking for a go-to resource where you can find almost all the good social media marketing courses available on the internet, then this article is made for you as here I am going to share with you an Ultimate List of Social Media Marketing Courses that will help you to pick the best courses to learn social media marketing to boost your social presence.