By Abdullah Mana
Many research papers have discussed the requirements and key components of starting an e-commerce business. However, only a few of those research papers dive deep into the specific needs and wants of different countries or cities around the world; they mostly focus on giving information on starting a business rather than giving examples about one. This research aims to provide the necessary information to start an e-commerce business while focusing on giving examples of starting one in the UAE.
Starting an online business, such as e-commerce, is currently considered the easiest and fastest way to earn money and amass great wealth. It is also a beneficial way for young teens to learn about the financial world. Many success stories of teens starting e-commerce businesses have spread throughout social media. For example, Ryan Hickman, who started Ryan's Recycling Company at age seven, has made significant environmental and financial impacts through his business efforts (Investopedia, 2023). Another example is Moziah Bridges, who began Mo's Bows at age nine, turning his passion for bow ties into a successful enterprise (Investopedia, 2023).
Although many teens are interested in e-commerce, they are often unsure of how to begin their own business. While having sufficient funding is crucial, knowledge is the key to starting, running, and maintaining an e-commerce business. Research indicates that understanding market needs and leveraging unique personal experiences can significantly contribute to business success (Fundera, 2020).
Market research is a key part of every successful e-commerce business. "Marketing research often focuses on understanding the 'Customer' (purchasers, consumers, influencers), the 'Company' (product design, promotion, pricing, placement, service, sales), and can also be expanded toward the environment to include 'Competitors' (and how their market offerings interact in the market environment)" (Abu Dhabi University, n.d., p. 12). It helps you understand what products or services are most needed or most wanted. And it is critical when a business has multiple competitors trying to outshine them in the market. While market research is important for businesses trying to improve themselves, it is also important for teens or people who have little to no knowledge or experience about starting a business. The first step in market research is to analyze products similar to yours that are already being sold. A great way of doing this is to scour through Amazon and read the titles, descriptions, and reviews of the products; read the good reviews to know what to include in your own business, and read the bad reviews to come up with solutions for potential problems. And understand which keywords appear the most when searching for a specific product. Another way to search for keywords is to use the online Google Trends tool. This tells which keywords are the ones that appear the most when searching for something specific, and it can be used to later design a Google Ads campaign for the online store. It would be much easier to construct a business plan after researching the market and analyzing it. Another way to understand the market and how businesses work is by working in one. Working in a business provides valuable information and experience that can then later be used to create an e-commerce business. And this strategy is very different from researching the market because it is direct information and experience.
Choosing the product to sell in the online store is a critical decision that will determine the course of the e-commerce business. This step generally comes after being done with the market research because there will be an understanding of the target audience and their needs and wants. Deciding which product to sell depends on the target audience, current trends, and region. For example, e-commerce businesses selling umbrellas or coats in the UAE would not be successful since the UAE has a warmer climate with little to no rain. However, people in the UAE would most likely want to buy products to cool them off. For example, a business selling electric fans would most likely be successful since it would provide a solution to the heat experienced in the UAE. An easy way to determine what product a business should sell is by understanding the problems that consumers face and then choosing the product that would best solve the problem.
Along with market research, creating a strong online presence is vital for the success of the e-commerce business. Why is this important? It is important because social media is an easy place to look for businesses. Nowadays, many up-and-coming businesses are advertising their products or services online on social media platforms such as Instagram. This is a smart way to advertise new businesses because most of the world uses social media. As of April 2024, there were 5.44 billion internet users worldwide, which amounted to 67.1 percent of the global population. Of this total, 5.07 billion, or 62.6 percent of the world's population, were social media users (Statista, 2024). Some businesses prefer hiring others to do the advertising instead of them; they sponsor famous influencers to display the business's products or services and advertise them, and in return, they pay the influencer a certain sum of money. Another way of driving traffic to the business website is by using Google ads. This marketing strategy can be combined with the previously mentioned marketing research tips to create an excellent Google Ads campaign that increases the traffic to the business website. Using social media as a way to advertise business products or services can be time-consuming, while Google ads or Facebook ads require minimal time and effort to create, the only downside being the cost of running the ad campaign.
The final step is maintaining the e-commerce business and making sure it is successful. The best way to do that is by researching the market to make sure that the business is up to date and following the current trends. Another way to maintain the business is by adding new products to the online store to drive more customers to the website and increase traffic. By adding more products and regularly conducting market research, the e-commerce business should steadily grow and become much more profitable. A great example of a successful e-commerce business in the UAE is Sharaf DG. This business is known for its up-to-date tech and devices. “Founded in 2005 by Nilesh Khalkho, Sharaf DG has evolved from a 15,000 sq ft electronics store in Dubai to a dominant e-commerce company in Dubai.” (Global Media Insight, 2024).
Some people may not agree with the order of steps stated in the paper: conducting market research, choosing a product based on results from market research, creating an online presence on social media and advertising, and then maintaining the e-commerce business. The disagreement would be in the first step: market research. Some people might consider market research a waste of time, so they choose to ignore it and move on with the rest of the steps. While it is possible to start an e-commerce business purely by choosing a product and properly advertising it on social media, it would be nearly impossible to maintain the business without market research. Market research is the key to starting a successful e-commerce business. It is a crucial step for beginners in the business field. Some well-educated and experienced individuals may not need to research the market because they already have the information they need. However, this is different for beginners entering the business world; they must gain as much knowledge and information about the market as possible when starting their own business if they want to ensure its success. Market research can be considered a long-term tool; it is used to maintain the business and make sure it stays successful for a long time.
To summarize what has been stated so far in this research paper, there are 4 major steps to starting an e-commerce business: first is researching the market and analyzing different business strategies used by other businesses; second is choosing a product based on the market research and analysis conducted; third is creating a strong online presence on social media and creating an online store; and last is maintaining the e-commerce business by regularly researching the market and keeping the business up to date. All four of these steps are necessary to ensure a successful e-commerce business. All of these steps should be slightly easier when done in the UAE because of its business-friendly policies (LinkedIn, 2024). In short, if all four of those steps are executed correctly, there should be a successful and profitable e-commerce business.
References:
- Al-Shatanawi, H. A., Osman, A., & Ab Halim, M. S. (2014). The importance of market research in implementing marketing programs. International Journal of Academic Research in Economics and Management Sciences, 3(2), 150.
- Tuten, T. L. (2023). Social media marketing. Sage Publications Limited.
- Worldwide digital population 2024. (2024, May 22). Statista.
- Gupta, A. (2014). E-Commerce: Role of E-Commerce in today’s business. International Journal of Computing and Corporate Research, 4(1), 1-8.
- Zerqane, R. (2024, April 20). 12 Reasons To Navigate The UAE Business Landscape.
