How to start an e-commerce business like Amazon (2023)

How to start an e-commerce business like Amazon (1)

Through the hyperlocal cloud

May 25, 2023

How to start an e-commerce business like Amazon (2)

Digitized people are used to buying a wide variety of products online in the e-commerce market. With one click, you can buy coffee mugs for the office, TVs, bedding and pretty much everything with delivery at your fingertips.

According to the internet, at least one new e-commerce website is launched every day. Plenty of advanced ready-to-use scripts available today make it easy to start an online clothing store or any type of online business. You can start these online businesses without any IT experience.

Today, setting up an online store like Amazon is as easy as shopping online. Read on to learn the secrets to a successful launchAmazonov klon.

E-commerce websites are becoming more and more popular

  • There are an estimated 12 to 24 million e-commerce websites worldwide, and new e-commerce businesses are popping up every day.
  • Amazon's US e-commerce sales accounted for 44% of total US e-commerce sales in 2017.
  • It is estimated that by 2040, 95% of all purchases will be made via e-commerce.

Why should you start an e-commerce app like Amazon?

The online market is experiencing explosive growth, so it is beneficial to set up and run an online store like Amazon.

1. An e-commerce website can help you reach your customers anytime, anywhere in the world.

2. You can give customers the flexibility to access your online store 24/7, which they will appreciate.

3. E-commerce platforms can save a lot of money on overhead costs such as store rent, security systems, utilities, and employee benefits because they do not need to maintain a physical location or employ a large number of employees, resulting in lower operating costs than traditional storefronts.

4. People are starting to appreciate the convenience of online shopping. Previously, people had to search for products in brick-and-mortar stores despite heavy traffic and busy schedules. But now life is easier for everyone involved thanks to online shopping. Stop dragging heavy shopping carts or wasting time searching for specific items.

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(Video) HOW TO START AN E-COMMERCE BUSINESS IN 2023 (Beginners Guide)

How to start an e-commerce business like Amazon

Value propositions

If you want to create something like Amazon and be successful, you need to know what sets your website apart from the competition. Guerric de Ternay, author of The Value Mix, helps define your value proposition.

A value proposition is a customer's perception of the benefits of buying, using, or consuming a particular product or service compared to available alternatives.

Amazon makes it easy by having two types of customers:

  • Sellers
  • The customer

The customer value proposition highlights the following benefits.

  • Lower costs
  • Various products are available on the platform.
  • Hassle-free transactions
  • Convenient delivery worldwide
  • It's convenient for customers to shop in their native language, track shipments, set import fees in advance and access help at any time of the day or night.

Statista lists several factors that customers consider before making a purchase on an e-commerce platform like Amazon.

  • Fast and free delivery - 80%
  • Wide selection of goods - 69%
  • Best membership - 65%
  • Best price - 50%
  • Simple return process - 44%

Amazon's marketplace can help sellers earn more from their online stores.

  • A convenient sales platform
  • A place where they advertise their services
  • Access to the widest customer base

The ability to convert a brand into an Amazon store to protect intellectual property and sell through Amazon's ordering system.

Create a scalable business plan

To be successful, e-commerce store owners need a solid strategy. With a solid business plan, you can anticipate potential pitfalls, identify existing problems, and set specific growth goals. The specific business plan of your webshop determines whether you will expand or limit it. Merchants who think carefully about their e-commerce strategy will succeed, while those who rush will fail.

Choose a business model

Amazon and other online marketplaces use a "hybrid business model" that combines multiple revenue streams for a more stable income.

Amazon Marketplace generates revenue from commissions, fixed fees and membership fees.

Fees:Online markets have proven that this business model is the most effective. Depending on the category, Amazon commissions range from 12% to 16%.

Lump sum:Marketplace charges a flat fee of $0.99 per transaction.

Subscription:Amazon Prime subscribers get several benefits, including free two-day shipping, access to unlimited movie streaming and music playlists, unlimited photo storage, and more with the paid membership service. It costs them $119 a year. There are currently more than 100 million paying customers and that number is constantly growing.

Taking part:Affiliate links displayed on their sites may earn the affiliate 1-10% commission on sales.

Start your online e-commerce

There are two ways to start an e-commerce store like Amazon.

1. Create a brand new platform/website or app

2. Selection of a ready-made solution

Build your online store from scratch

Building an online store from scratch is a complex and time-consuming process. It takes a few months to get your online business up and running with the features you need for your store. There are many e-commerce platforms available online that you can use to start your online business. With so many platforms available that offer different features, it can be difficult to choose a platform that effectively meets your needs and fits your budget.

For example, if you want to sell different types of products, Shopify is the best option.

Based on our experience, we recommend choosing a turnkey solution for your e-commerce business.

Choose a ready-made solution

With the help of a ready-made solution, you can set up your webshop in a few days. A reputable e-commerce development company like Hyperlocal Cloud can help you set up an Amazon clone e-commerce platform in just a few days. Turnkey solutions offer advantages such as:

(Video) 7 Things to Know BEFORE You Start an E-commerce Business

  • They are not expensive.
  • Sellers can customize it with less customization.
  • It is pre-designed and requires no coding.
  • Your online store can be launched immediately.

These scripts can help businesses launch an Amazon-like platform with little or no hassle. These giant platforms inspire these scripts by sharing their look, feel, interface, philosophy and design. Download the script, configure it, adapt it to your e-commerce requirements, fill it with product and service information and run.

Selection of technology set

The team must select the most appropriate technologies to implement all relevant functions. Typically, the choice of technology stack is dictated by factors such as time, money, and feature complexity.

MVP development

The architecture development phase includes back-end and front-end development, and user interface and experience design and testing. Once it's up and running, we prefer to maintain the product to keep everything running smoothly.

Create product listing pages

An online store should always have a wide range of products. Once you've set up your website, build your product catalog by creating detailed listings for each item. Categorize and organize your posts now to make it easier for future site visitors to manage and discover.

Prepare accounting, inventory and payment methods

After your e-commerce site is populated with products, there are some important details to take care of, like setting up a payment processor and enabling inventory and tax tools. When choosing a payment gateway, consider fees, security measures and site compatibility.

Set up inventory management software to track product availability and inventory levels. Also consider using tax tools to help you manage taxes in your online store.

Use these resources to determine the right tax rate for you and your customers. Make sure they are well versed in the latest tax laws.

Test and run

You can test the page and publish it after all the necessary conditions are met. To pass the tests, the user must ensure that each link and page works properly and provides a satisfactory experience.

Try to manage your shopping cart and shop efficiently. In most systems, you can simulate a payment without actually using the card. Make sure a confirmation email is sent to the correct recipients after a transaction is approved or declined.

Finally, make sure the mobile version of your site is displaying and working properly. Try using different web browsers to evaluate the site's functionality.

Implementation of the right market strategy

To model your e-commerce business like Amazon's marketplace or follow its business model, you need to use a successful B2C or B2B marketing strategy. Your store can use social media marketing, digital marketing, email marketing, search engine optimization services, etc. to spread the word. An estimated 3.196 billion people worldwide participate in social media. Estimates show that this number increases annually by 13%.

Measuring meaningful data

To measure success, you need access to key performance indicators or KPIs. Examples include:

  • Sales increase.
  • Increasing website traffic.
  • Dealing with unsold inventory at the end of the month.
  • Develop a sales strategy.

Start your multi-million dollar e-commerce like Amazon solution for just a few dollars

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Key points for starting an e-commerce business like Amazon

Build an audience:In order to attract popular brands to partner and sell through your online store, you need to build a huge audience willing to buy from you.

Create a subscription program:By creating a monthly subscription program, you can manage sales and ensure a steady stream of income. The company may offer recurring product shipments, access to exclusive brands, or give a monthly discount.

Cooperation with sellers and quality products:At first, you may be tempted to accept any product from any brand that comes your way. Resist the temptation. NO! Attract more established quality brands, starting from a strong position. If you have more premium tags, you can attract more premium tags.

(Video) How To Sell on Amazon | Seller Registration Complete Step By Step Process

Make customer service your core business:Put the needs of your customers first in everything you do and you will succeed.

Basic features of an e-commerce site like Amazon

You should first identify the most important aspects of an e-commerce site like Amazon before attempting to build one. We've compiled a list of the most important features for supplier and buyer dashboards.

Features for the administrator

Main dashboard:The main dashboard provides the administrator with a bird's eye view while managing the e-commerce platform.

Product management:Admin can manage all products in the store by adding, removing and changing categories as needed.

Inventory management:Admin can set minimum and maximum inventory levels for inventory and be notified when inventory falls below those levels.

Supplier management:The administrator can easily manage the activities of merchants by managing their selling permissions, setting selling commissions and monitoring real-time purchase visibility.

News:The admin can mark the section of the e-commerce platform as "News" to display and sell the latest products to your customers.

Sales:Easily track and analyze your sales data on a daily, monthly and yearly basis with this sales feature.

report:Admin can view reports with detailed product list, price comparison and wish lists for more efficient management.

Features for sellers

Log in and register:Users should be able to easily register and log in with their phone number, email address or social media.

auctions:Sellers who register a vendor account must be able to list their products. Vendors must have full control over their product pages.

Message:Users can stay up-to-date on all account activity, including orders, listings, and offers, using notifications.

Payment system:A merchant's payment system should display information about each transaction, such as fees, credits, ratings, adjustments, past orders, and refunds.

Shipping management:Amazon sellers can ship their packages themselves or use the Fulfillment by Amazon service.

Order management:Merchants can better manage their product orders using the order management feature. This feature allows the company to print bills of lading, assign IDs to product orders, and view shipping information. Sellers can also use this site to contact buyers.

Ratings and reviews:Ratings and ratings allow sellers to track their opinions, answer questions and see how they compare to the competition.

report:The reporting feature allows sellers to view customer reports, view specific survey reports, and organize reports by order date.

Features for customers

Log in and register:Registering as a buyer requires less hassle than registering as a seller. During registration, the Customer must enter his name, e-mail address and a strong password.

Payment system:The payment system should simplify the payment process for customer purchases. PayPal, Braintree, Stripe, MANGOPAY, Adyen and Dwolla provide customers with a secure and easy shopping experience through their marketplace payment solutions.

Shipping management:Customers go to the "Your Orders" page on the e-commerce site to view tracking information and adjust their shipping preferences. Customers can track their orders in real time, see estimated delivery times, and learn all about different shipping options and the exact location of their packages.

Procurement management:To purchase items on Amazon, click the "Buy Now" button for instant payment or add them to your virtual cart.

News:Sellers can answer customer questions about the product or provide clarifications through the messaging system.

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Ratings and reviews:Companies should allow customers to provide feedback on the products they purchase to help other customers make informed decisions. The rating system increases the credibility of the company and the number of customers it attracts.

Message:Customers can choose to receive service notifications. E-commerce apps keep customers informed about their orders, deliveries and payments.

Customer service:Customer support helps customers raise concerns, get answers to burning questions, and contact site administrators.

Wish list:Users can add items to their wish list that they want to buy later.

disputes:Merchants may receive quality of service complaints from customers using this feature. For example, if the customer does not receive the purchased items, they can dispute the transaction.

Build a custom Amazon-like e-commerce store with industry experts and proven strategies

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How much does it cost to build a website like Amazon?

Several features determine the cost of building an e-commerce app like Amazon, aonline marketplace with multiple vendorsin his heart. Creating an Amazon clone can cost between $200,000 and $300,000. You can start with a boneless product and upgrade later.

A custom e-commerce site with all the features like Amazon can cost anywhere from $73,200 to $105,000.

However, we recommend reducing your costs with a white-label e-commerce solution. You can build a website with basic Amazon-like functionality using the standard features of an eCommerce platform for $18,000 to $25,000.

Several factors can affect the cost of building a website like Amazon. However, we have to consider the most important things like complexity and number of features to be implemented.

Based on our previous work on similar projects, an Amazon-style MVP website costs around $40,000.

  • Access module
  • E-commerce module
  • Order emails/texts
  • Payments/refunds via Stripe
  • Provider/Service Module
  • Control module
  • Analytical modules
  • CMS module for blogs and websites
  • Performance and SEO

Create an online e-commerce app like Amazon with us

You can improve your business by promoting a solid strategy and a flexible, easy-to-use application. Hyperlocal Cloud can help you set up an online store or e-commerce application to bring your business to a wider audience.

We have a lot of experience as leaderssoftware development company. What sets us apart from the competition is that we are committed to achieving the best results for our clients. Our moral compass is based on the performance of our customers.

Our dedicated team of developers will design, build and launch web and mobile applications that will increase revenue and expand your user base. Do not hesitate to contact our experts if you are thinking of creating a mobile e-commerce application, such as Amazon, to complement your company's offer.


(Video) Make your free eCommerce store like Amazon | Earns in Lakh | New way to Earn Money Online | Shopify


How to start an e-commerce business like Amazon? ›

What is ecommerce? Ecommerce is a method of buying and selling goods and services online. The definition of ecommerce business can also include tactics like affiliate marketing. You can use ecommerce channels such as your own website, an established selling website like Amazon, or social media to drive online sales.

What is e-commerce answer key? ›

What is ecommerce? Ecommerce is a method of buying and selling goods and services online. The definition of ecommerce business can also include tactics like affiliate marketing. You can use ecommerce channels such as your own website, an established selling website like Amazon, or social media to drive online sales.

What is needed to start an e-commerce business? ›

How to start an ecommerce business from scratch in 5 steps
  • Researching and validating your business idea so you know what's likely to sell.
  • Procuring products or sourcing them from reliable suppliers.
  • Choosing selling channels to connect products with shoppers.
  • Setting up an online store and listing products.

What is the 1st step to start an e-commerce business? ›

Research what products you'd like to sell or can source to sell, select a business name, register your business with the government, obtain permits and licenses, choose an ecommerce platform and create your website, load your products onto the site, launch and start marketing your business.

How do I start an ecommerce business with no experience? ›

  1. Step 1: Decide on your niche. ...
  2. Step 2: Choose between dropshipping or holding your own products. ...
  3. Step 3: Brainstorm a business name and register your domain name. ...
  4. Step 4: Choose products to sell. ...
  5. Step 5: Create your website with an online store builder. ...
  6. Step 6: Set up a company and get a sales tax ID.
Feb 28, 2018

What are the 4 types of e-commerce? ›

The Most Common Types of Ecommerce Business Models
  • B2C (Business-to-consumer). B2C businesses sell directly to their end-users. ...
  • B2B (Business-to-business). ...
  • B2B2C (Business-to-business-to-consumer). ...
  • B2G (Business-to-government). ...
  • C2B (Consumer-to-business). ...
  • D2C (Direct-to-consumer). ...
  • C2C (Consumer-to-consumer).

How can you explain the 3 types of e-commerce? ›

There are three main types of e-commerce: business-to-business (websites such as Shopify), business-to-consumer (websites such as Amazon), and consumer-to-consumer (websites such as eBay).


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