Being the largest exporter of goods, China has captured about 11.4 percent share of the world market when talking of day-to-day products. The main secret to success lies within the quality of products that are available at an affordable price range, making Chinese products one of the best options to consider when considering starting a business.
However, it is not an easy task. One needs to acquire adequate information along with skills to master the niche. For instance, you must know the correct way of selling the products. Don’t worry if you are a newbie who doesn’t obtain crucial information, as we are here to hold you back. Keep on reading; this article will introduce an ultimate guide to teach you about essentials of starting an ecommerce and must-to-be-known information. So, let’s get on with the article without any further due.
How to start an ecommerce business for selling Chinese products
The below-mentioned guide is derived into several steps to ensure your understanding about the ecommerce order fulfillment . Please have a look
Step 1: Research the ecommerce space and find your niche
Research is the key to success if you want to ensure order fulfillment . There is a vast number of Chinese and non-Chinese residents competing with each other. Hence Do not even think of missing this step if you want to rest-assure profit. So, on what metrics must you start your research?
Find out what the market’s current demand and the trend is. Remember, demand and trends are directly proportional to each other. Whenever the graph of one goes high, the line for the other also enhances. You can gather data for your research via all the available e-commerce platforms, such as Amazon. Try to find a demand with low competition because the struggle to maintain the margin is difficult in highly crowded niches.
Once you are done determining your niche and products that fit into those criteria, the next thing you would want to do is select 2 or 3 products out of them that you feel you know about already. For instance, you want to start with a business related to the health and fitness niche. Now it is essential to investigate health supplements instead of products that aren’t connected to this category.
Selecting products that belong to your area of interest could be of great benefit to your e-commerce business. So, keep your hobbies and profession in mind while you are on step.
Step 2: Select your business name and choose a legal structure
Chinese do love their language. The same is why the government has even stopped using words that belong to other languages to be chosen as the brand name. Hence it becomes crucial for any new brand owner to go with a name that belongs to the Chinese language. You can select a name for your Chinese e-commerce business in four ways.
The Chinese name sounds like Chinese, but the meaning has no resemblance to any Chinese word.
A name that has 0 resembles the original sound or meaning
A Chinese name is closely related to the original meaning, but the sound is the opposite.
The name which sounds like the original brand name.
Some great examples include Heineken, Audi, Colgate, Reebok, Nike etc.
Once you are done with choosing the brand name, here comes the second part of the second step: determining the legal structure. There are different types of structures, such as sole proprietorship, partnership, limited liability company or a public corporation. Now selecting an option depends upon the scale at which your business currently is. Go with a partnership or proprietorship for starting a small-scale business. Or you go with the options of a public liability company or a public corporation if you are launching your business on a larger scale.
Step 3: Apply for an EIN
EIN ( also called as the employe identification number) is an abbreviation for an Employer Identification number. It is a nine-digit number assigned to the organization by the IRS to be used at the time of tax return or payroll tax return. You must obtain an EIN to pursue business operations without any legal obligation. Here is how you can apply for an EIN:
Determine your eligibility for an EIN. You can visit any government office nearby to know the eligibility criteria.
Gather the necessary information. Review the PDF version of the requirements and determine each document you would need for the application. Usually, business owners are asked to provide proof related to citizenship, income and taxes.
Apply for an EIN by mail or fax. You can also apply online.
Wait till you get the answer.
Step 4: Obtain business permits and license
A business license refers to any permit you must have to provide services in any region. Hence, after you get your EIN, it is time to get your business licensed by the legal governing body. There are various types of business license available, including:
Seller’s permit: most states require you to have a seller’s permit if you sell goods online. It is needed to collect sales tax from customers.
Business operating license: this is the most significant business license if you plan to run your e-commerce business on a larger scale. It allows you to do any business within the locality.
DBA or Fictitious name statement: The DBA business statement is crucial as it allows you to operate any business under a definite name from a legally registered business name. You can register a DBA at your state or local level.
Special permits: various industries need special permits for smooth operation. The case gets even more critical if you run a brick-and-mortar e-commerce business. It would help if you had it for planning, zoning, buildings etc.
Industry license: organizations and businesses need this license to perform in service industries such as salons, childcare, electrical, medicine, plumbing, etc. It can be obtained from any relevant licensing board in the state.
Step 5: Choose an e-commerce platform and create your website
This step involves exposing your business to the outer world for the sake of fulfillment order and attracting customers using all possible mediums. Making a brand page on social media and ecommerce platforms is pretty straightforward. However, selecting these platforms requires an immense amount of effort. Hence, it is vital to go with renowned options such as eBay and amazon to assure maximum attraction.
Along with the e-commerce platform, your business must obtain a separate website to prove its existence to international clients. According to research, e-commerce businesses will make up about 22 percent of global sales by 2023. Hence, the importance of websites remains intact with this being said. You can hire a developer or can create your ecommerce website easily by yourself.
Steps to create a website for e-commerce business
Signup with an e-commerce builder. It is the step where you make crucial decisions. So choose a reliable website builder and decide the domain name you wish to create your account with. It is better to keep the brand name as your domain.
Create your WordPress website. Confirm by clicking on the confirmation link you receive in your mailbox. Enter the domain name in the domain checker tool to confirm your desired domain is not already occupied by any other existing business.
Connect your WordPress site with WooCommerce. Install the plugin to get this task done quickly. WooCommerce is, it is one of the most popular plugins to transform a WordPress website into a professional e-commerce store.
It is completely free and user-friendly to use.
Fine-tune your ecommerce website’s steering. At this step, enter all crucial elements such as payment gateways, shipping options and automatic tax calculations for customers. Also, personalize your website according to your preference and your business needs.
Add products you want to sell. Upload pictures and all other crucial information about the products, such as expiry date, colour, designs, and instructions for usage for ease of customers. Also, write a short description to elaborate on your product’s features. Click on publish when done.
Add plugins and some extra content to boost conversion in the shortest possible time frame.
Make your ecommerce website public. Once you are happy with how your website looks, worlds and feels, it is time to make it public.
And that is it; you are one with the process and all ready to attract new customers from all over the state or world.
The bottom line
To conclude, The business world has transformed itself into a digitalized world. Hence the potential for e-commerce business has read at its peak. The case gets even more profitable when talking about Chinese products as they have conquered about 11 percent of the world market.
The content above is a complete guide that will let you know how to start an ecommerce business for Chinese products with some simple steps. It will also teach you how to create an e-commerce website readily. However, do not forget to do your e-commerce business insurance to avoid problems in the long run. So, do read the entire content very carefully. Rest, we wish you Good Luck.