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How to research an ecommerce business idea. ECommerce Articles | June 21 Kahale Warring Shirt , 2009
Ecommerce is well known as being a low overhead route to market but that doesn't mean that you can be complacent about your business model.

I'm going to give you some ways in which you can test out your ecommerce business idea before you get in too deep.

A common way to set up an ecommerce site is to start with your business idea, talk to a design or web agency who will provide you with a project proposal to design and build your website. Once built and paid for you then begin to wrestle with ways to generate traffic to your new website, given that the site is new and has few (if any) inbound links you'll soon be setting up your Google Adwords account and paying for visitors on a Pay Per Click (PPC) basis.

Given that you've just paid to design and build the site and are now paying for your traffic Max Scharping Shirt , this isn't a good time to find out that there simply isn't the demand you thought there would be for your products, or that given the cost of traffic and overheads you can't make a profit on what you sell.

Let's look at some ways of avoiding a situation like this. By taking a range of steps using existing online tools and services you can get some real world research to find out a bit more about your potential market, and then with a minimal investment test how receptive that market is to your proposed products and price point.


Step 1. Where is the search?
Your first step should be to write down a list of the phrases you believe potential customers would use to find your products Lonnie Johnson Shirt , once you have these phrases use some online keyword research tools to find out how much traffic there is for each term, as well as the level of competition each phrase has.

You need to bear in mind that the figures for search volume will vary dependant upon where you go for the figures and the marketplace you are looking at. Google's keyword research tool is geared towards Adwords and by default will give you figures based upon their 'Broadmatch' setting which includes similar searches, and as such by default gives unusually high traffic figures.

I prefer to use Yahoo! or Wordtracker for this kind of information as the figures are more realistic Tytus Howard Shirt , if you do use Google's keyword tool then make sure you enclose the search term in speech marks as this will match the phrase directly.


Step 2. How many competitors are there?
You might find that you have a healthy search volume, but then if this is an already well mined niche with many existing competitors you will be at an immediate disadvantage as your competitors will be trading with an established website and you will be starting from scratch.

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