Few sectors of modern business have experienced the rapid growth that has been enjoyed by the e-commerce sector. From humble beginnings in the early 1990s (when Amazon was an online bookshop rather than a huge store where you could buy virtually anything), e-commerce is now an important part of global commerce. It is estimated that the worldwide e-commerce market is now worth in the region of $6.3 trillion and is forecast to continue growing year-on-year. The success of this form of online business makes it an attractive option for entrepreneurs who are seeking to start a new business. However, whilst the barriers to entry into this marketplace are low, it is important to consider some key points when starting an online business from home. In this article, some top tips and advice will be discussed to help you set up an e-commerce firm that has the potential to grow and succeed in an increasingly crowded online marketplace. 

Ensure you have fast and reliable home internet

Firstly, it is important to recognize that you will need a high-performing home office setup to launch your company website and manage the firm from home. An integral part of this will be to have fast and reliable internet access. You will need to design the website, add in key applications, and manage your online business effectively. If your internet is not of a suitable speed, you will encounter difficulties when creating the site and running online applications. If you are based in Connecticut and need faster internet, search online for Connecticut internet providers. You should be able to find firms that offer a range of fiber plans that allow you to enjoy superfast internet access with no monthly limits on data. Ideally, choose a supplier that has built a reputation for providing consistent download and upload speeds and offers 24/7 customer support if you encounter any difficulties. In short, a fast and reliable internet connection is a key part of any effective home-based e-commerce venture.

Know your target market

You must have a clear understanding of your target market when launching your e-commerce business. It is estimated that around 90% of new e-commerce firms fail in the first 120 days of trading. This sobering statistic should illustrate the difficulty in launching an e-commerce firm that can survive the first year. Often, the reason for failure is down to a lack of understanding of the target market your company intends to serve. It is vitally important to conduct market research to determine if there is a suitable demand for your product or service. Use platforms such as Google Trends to identify current consumer behavior and read existing market research in your sector from marketing companies such as Mintel. You must be assured that there is a market for what you intend to sell, and you should also be able to identify the group(s) of people who are most likely to make purchases from you. It can be beneficial to undertake consumer focus group sessions when launching a product on your e-commerce site. Invite consumers who share the demographic traits of your ideal customer to try your product and explain what they like and dislike about it. This can be a key way to create a product that enjoys suitable demand from your target market.