10 essential questions for launching an ecommerce business that works

It is curious, but despite how much ecommerce has evolved over the more than 15 years I have been involved in it, some questions remain just as relevant.

The following 10 are a good example. They are the questions put to us, the speakers on a round table at the Ecommerce Tour Málaga a few weeks ago.

If you are considering creating your online store, here are the questions you should ask yourself and my answers.

And if, after taking the test, you realise you need help, here are two links:

• My ecommerce course to build a business—not just an online store, which matters—that works from scratch.
• The ecommerce consulting service, with a contact form so you can tell me about your case, should you prefer.

Right, let us get on with the test.

First, here it is on video:

Here is the Ecommerce Tour round table:

And below, all the content in text. In case you are like me and prefer reading.

#1. What are the essential first steps for launching a successful online store?

The first thing to do before making any important decision in life—and starting a business is one—is analyse. Then decide.

For a digital business, I suggest using a Lean Canvas, which will summarise, among other information:

• Demand analysis: find out whether people search for what you want to sell. How much they search for it. And how they search.
• Competitor analysis: understand who you are up against and how large the sector is. Because if you think “getting 5% would be enough”, you may not even get a tenth of that.
• Cost analysis: how much the whole joke will actually cost you. Then you will know how much you need to make before the project starts looking worthwhile.
• Scenario planning: above all, one realistic and one pessimistic. To know what you consider normal and what would happen if you failed to reach that threshold. We do not create an optimistic one because exceeding it is never a problem.

#2. Which digital marketing strategies do you recommend for attracting and retaining customers?

Let us take it step by step.

These are my preferred channels for attracting customers:

• Transactional SEO from day one. You will need to define certain requirements before you start building the website.
• Google Shopping if you offer good prices compared with Amazon, for example.

Once you have attracted the customer, here is what I suggest to retain them:

• Email marketing. Done properly, nothing beats it for this.
• Later, once you have a certain volume of customers, a Telegram channel is also a good option.

#3. How can the user experience in an online store be optimised?

The first point is obvious: you need a fast website with no apparent errors.

There are two levels for avoiding errors:

• Basic level:
  • Heuristic, best-practice, UX or CRO analysis: before launch if possible, or as early as you can. Analyse both yours and your competitors’, as they will give you ideas—not to copy outright, but to make your own.
• Take care of the copywriting: if you do it from the beginning, defining a brand voice and applying it to every text, it is easier. Copywriting techniques also help sales A LOT.
• Advanced level:
• Personalisation: with few users you may not see much benefit, but as you grow, an automation tool can make your life much easier and enable things such as:
  • Personalised product recommendations.
  • Mostrar los últimos productos vistos.
  • Los comprados juntos.
  • Recordatorios de compra en base a la caducidad o el consumo del producto.
• …

#4. Which ecommerce platforms do you consider the most effective and why?

There are quite a few, and each has its own audience.

If your margins are small, you have little choice but to use open-source solutions. The best option within that group depends on the project:

• For small projects—fewer than a thousand products—and in-house management: WooCommerce.
• For more ambitious projects: PrestaShop.

If, on the other hand, your margins are high—over 30%—things change slightly:

• If you have a good in-house IT team: PrestaShop.
• Without an IT team, there is no doubt: Shopify.

#5. What are the most common mistakes new ecommerce entrepreneurs make, and how can they avoid them?

I will repeat what I said at the start: launching without doing your homework is a mistake.

A good business analysis is essential, because it acts like a traffic light: green if the project has real potential, or red so you stop before wasting money and time.

Another important mistake: delegating accounting and finance does not mean forgetting about them. You need to understand and monitor them to avoid future surprises and scares. Your margins and cash flow can make the difference between dying and surviving.

Finally, you cannot run an ecommerce business without an analytical mindset. For everything: business, marketing, logistics, purchasing, customer service… Everything.

#6. What role do social networks play in the success of an ecommerce business?

It depends on the sector.

In my project's sector—Yo pongo el hielo, selling food and drink—none.

In other sectors, such as beauty or clothing, they are essential.

#7. How can inventory and logistics be managed effectively in an online store?

It depends on the approach.

When you are starting out, a daily purchasing model may suit you: you avoid stocking and warehousing in exchange for time and slightly higher purchase prices.

Another essential point is to have, from day one, two alternative shipping companies at minimum: for price and unforeseen problems—system outages, disagreements over incidents or returns, and so on.

#8. How important is customer service, and how can it be improved in a digital environment?

Absolutely vital, as it is the most important driver of repeat business.

A customer who has a bad experience will not return.

This does not mean automatically agreeing with the customer, only when they are right. But you must try to help them understand the reasons for your position. Sometimes an agreement will be necessary.

On the other hand, you must always monitor ORM . It can hinder conversion if handled badly, especially when you are starting out.

#9. Which current ecommerce trends do you think will have the greatest future impact?

Use of AI at a much more advanced level and across every area. Whoever manages AI well will have a significant cost advantage.

Alongside that, carefully managing communication at every level — website, messages and advertising — creates a better customer experience..

On the other hand, the entire channel has become more professional across all sectors in recent years. Ecommerce now has its own P&L, which is a good thing.

However, I am seeing a clear shift in purchasing towards marketplaces and social shopping, with some decline in traditional online stores, and it needs watching.

Another trend is retail media: both advertising investment and inventory. It affects you as an advertiser and as a potential channel. Give it some thought.

#10. What advice would you give for scaling an ecommerce business sustainably?

First, unless it is linked to a physical shop or I have extensive knowledge of the sector and supplier purchasing, if I sell multiple brands I would not start by investing in stock and warehousing. There are other ways.

Then, if you do things properly, organic growth is the usual outcome.

Getting the numbers right and maintaining rigorous control—bank reconciliation, logistics and marketing analytics—will allow you to reinvest profits in marketing to attract more customers while reducing unit logistics costs.

If you keep optimising this and hire key members of the team —attitude matters more than aptitude—the project will become robust. It will develop strong roots.

Finally, or in parallel, when you consolidate your sales and repeat-purchase model —if you began with minimal investment, it will take several years to get here—that is when you truly have control and can consider scaling faster.

Yes, because you will be able to invest properly in advertising, rather than merely spend, which is not the same thing.

Conclusions

As I said at the beginning, these answers summarise what I tell my clients during ecommerce consulting sessions..

Obviously, during consultations we get into the details of every point. We apply them to the client’s business, in an order based on the importance of each case, and use examples so they can see it with their own eyes.

Of course, consultations are for clients who have already launched their business.

If you are at an earlier stage and my answers resonate with you, I think this would suit you:

Ecommerce training

There I expand—considerably, no fewer than 400 pages—on every point, so that you can navigate the deep waters of the ecommerce world.

It is genuinely well worth it.

On the other hand, if you have made it this far without planning to start your own business, thank you for reading.

And let me clarify that every week I write an article about digital business like the one you are reading here, on my blog.

You can subscribe here to receive it by email and, while you are at it, get a couple of emails each week.

Or you can also see what I have for you on my YouTube channel.

That is another option.

However you choose to follow along, see you next time.