The foundation of your e-commerce business journey depends on the initial decisions you need to make as you dedicate many hours of hard work to its development. Amazon and eBay have become the primary shopping platforms that have replaced typical stores for most customers in today’s market. The e-commerce marketplace features both dominant firms, such as Amazon, and numerous micro-businesses which operate online. Physical stores act as the foundation for some e-commerce traders, but virtual traders construct websites to export their goods and services. Internet connectivity in Guinea continues to improve but remains unstable for genuine trade activities and promotional purposes. Since 2013, Guinea has established submarine fibre optic cable connections near its coastal regions. The decrease in costs and growth of internet access will drive a proportional rise in electronic commerce. The physical obstacles from Guinea’s inadequate transportation system and lack of proper addresses and delivery systems will continue to affect physical product shipments made through online sales. Business-to-customer goods delivery needs substantial coordination because customers must understand business addresses properly. Guinea shows fast growth in mobile internet connectivity due to “medium technology” phone adoption, which enables basic internet access at 3G and 4G speeds, but the country does not expect immediate deployment of 5G technology.
Determination of suitable products for online sales constitutes the initial stage
Your ability to sell products online constitutes a fundamental first requirement. The initial requirement for starting an online business involves confirming that both your products and services have market demand and generating profits through their sales. Research the pricing and sales potential of related products to determine their relationship with your costs. You can reach your business goals through the Market Analysis Tool of ITC, combined with Marmalead, which analyses online platforms such as Etsy through machine learning algorithms.
Check out the competition
You should examine your future online product before proceeding to study market competition. An e-commerce startup must perform better than rivals to thrive in the market because its business model duplicates existing concepts. Your business plan needs to be developed after you determine your market competitors and their strengths and weaknesses, alongside your ability to differentiate your business.
Will your products be feasible for shipping
Modern customers expect instant delivery of their goods, so your product must be simple to ship. Consider the dimensions and weight of your products, together with associated shipping charges, when selecting your products. High value density products for e-commerce businesses remain profitable because they combine small size with shipping costs that are lower than the product values. You must examine alternate shipping solutions for big or fragile items with low monetary value. Itc defines this process as “e-commerce engineering”, which involves selling products at optimal prices alongside suitable shipping solutions.
Find out how to get paid
Any e-commerce business depends heavily on its capacity to sell products and receive payments through online methods. The use of PayPal and other payment service providers remains unavailable to some individuals. To eliminate uncertainties, you must verify which payment options function in your region and which ones customers in that area tend to utilise. The process of payment represents a complex matter for new businesses; therefore, starting by consulting local sellers about their payment methods becomes an effective initial step. Getting advice on payment methods from competitors is not advisable because payment issues are considered sensitive.
Working out your margins
Online profit potential stands as the fundamental question which should be answered. The costs required for marketing and shipping add up to the fees charged by marketplaces and payment solution providers and banking expenses, and currency fees, together with transportation expenses and chargebacks and returns expenses. Marketplace commissions range between 5% and 40%, whereas payment solution providers usually bill approximately 5%. The majority of customers retain rights for product returns, so you need to decide on a returns policy. The process of handling returns and chargeback expenses is a significant financial resource. In the forthcoming discussion, we will dedicate complete attention to this matter.
Writing a business plan
You may proceed to develop your business plan after finishing your competitor analysis. Using a business plan, you will have a direction to follow. The basic structure of a business plan contains profit target information along with sourcing descriptions and funding specifications, though no official template exists. The document functions as a fundamental tool to determine your business focus, in addition to guiding customer acquisition.
Launching your business
For your e-commerce business to achieve success, it must utilise your specific abilities. Before beginning a new business, all entrepreneurs must understand their key skills. Profitable businesses become successful when founders can display their unique traits and skills. Following these guidelines will help you materialise your business vision. Additional information about e-commerce exists in the other learning resources found within this section.
Local eCommerce sales rules & regulations
The Regulatory Authority for the Post and Telecommunications (ARPT) manages e-commerce operations through its authority granted by the Ministry of Posts, Telecommunications and Digital Economy. The Guinean legislation, which governs e-commerce activities, came into effect in June 2016.
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