- eCommerce

Guide to Starting an E-commerce Business

Thinking of Starting an E-commerce Business in the Middle East – Here’s how

Kuwait is the focus of this article as .kw has just arrived and the e-commerce market is set to explode.

From a time when selling was conducted over the phone and more recently email, online commerce is becoming big business in the Arab world and has been around since the early 2000’s.  And just like other regions is going through a paradigm shift in consumer preferences, searches, and expectations.

Kuwait is no exception and is fast becoming an e-commerce magnet in the region.  Of late we have seen some notable buyouts and acquisitions in the country and subsequently a mass proliferation of websites, app development, and new platforms all vying to be the next target of a buyout.

However, somewhat inevitably this has led to some sub-par apps appearing on iOS and Playstore with one or two-star rankings and many companies asking themselves the question of why and how this happens?  The answer is quite simple; the wrong platform was chosen from the very beginning.

E-commerce is a natural bandwagon to jump on but if you have little experience with it and little to no background on online business in Kuwait or other Arab countries you will struggle, as there is a different dynamic here, and new SEO techniques are crucial in getting noticed by the consumer and big businesses alike.

If structured correctly from the start an online business with e-commerce is very viable, and with strong Kuwait SEO implementation, it can yield significant profits.

Here I pick out some essential elements that if you get them right will put you on the road to quickly realizing your ROI.

You need four things when you start your online business and SEO in Kuwait:

  • The right product or service to provide
  • Suitable e-commerce platform and software
  • Reliable payment gateway
  • Partner with an SEO company in Kuwait 

Here are 5 Important Factors to Help Start an Online Business in Kuwait

1). The Right Product or Service for Your E-commerce Site in Kuwait

My first tip is don’t be closed minded.  While many people always tell you to do something that you love, and to an extent that can be true, but more often than not, it can be detrimental to you making a profit.

Because you don’t like seafood, for example, that should never stop you if you see a gap in the market or know of a niche in the seafood market that is working well in a neighboring country form doing your research and giving it a go in your local area.

Job satisfaction doesn’t always come from doing what you love, the profits you make can enable you to do what you like on the weekends! Identifying a category that has a viable potential to be successful should be your starting point.

Research – Use tools such as Google Adwords and Google Trends as they are useful tools to assess demand on your idea. Simple high demand with low volume search should perk your interest, of course, this is the Holy Grail and won’t be easy to find, but you won’t know unless your search.

Once you find a niche that has a high volume of searches, then use Google Trends to see if the demand is on the increase or decrease, as the same as a stock market investment, the upwards trends are where you want to position yourself for long-term sustainability.

Google and Yahoo have useful keyword suggest tools for you to use.

If of course, you stumble into searches that show you your passion is in demand, well done you got lucky.

Research tools:

  • adwords.google.com
  • trends.google.com
  • Google search suggest

2). Researching your competition – Thoroughly

In today’s world rarely will you end up in a niche with zero competition. Remember if you do run into an almost ‘copycat’ situation then do your research and plan how to differentiate yourself and promote this is in your SEO marketing campaign.

For investigating the competition again Google Adwords keyword planner and Google Trends are handy (free) tools to see what your competitors are doing. Check on their SEO by using GTMetrix and Google Page speed as this can give you indicators.  If this is not your forte, then go about finding a SEO company in Kuwait that will help you with the analytics.

As an example you or the SEO Company in Kuwait search for ‘cheap airline tickets’ and you find 340,000 searches a month, that sounds great, but there could be over 375 travel agencies so there will be considerable competition. But, if you or your SEO Company put a good e-commerce digital marketing plan together and it’s on-point you can still find success, so don’t be afraid of competition, use it as a marker and better it.

3). Choosing Your Domain Name

Don’t overcomplicate the domain name, ideally look for the following:

  • One word – One Syllable
  • Memorable
  • Multiple meanings
  • Try to work it as a Keyword for the business

There is a multitude of hosting companies available online, I’m not even going to start listing them and with special offers and discounts should cost you anywhere from US$9.99 upwards.

Pre June 2018 I would have recommended .com followed by .net and .co if you couldn’t get what you wanted, but with .kw now being available this should be your target and easier to get what you want and be one of the first.

4). Setting up a Payment Gateway

Collecting payments is, of course, the final and most important part of both yours and the customer’s journey.  In Kuwait, the dominant force in the marketplace is KNET, processing payment by both Visa and MasterCard as standard and debit cards from over 15 different banks in Kuwait.

You also have:

2Chekout.com

But with Skrill.com and Stripe.com you need a presence outside of Kuwait namely in the US and Europe.  Plus 2Chekout.com processes in Kuwaiti Dinars.

5). Setting up the E-commerce Platform

A crucial part of the process

All e-commerce entrepreneurs need a solid foundation in which to grow a profitable business. There are many options out there that it is easy to get overwhelmed and ask yourself how effective these will be in an Arab country.

Shopify, or WooCommerce, what about Magento?

These are the typical questions that you will be asking yourself and here are a few pointers to speed up your decision making:

5.1 Magento – Heavy on the license fee starting at KD 30,000 and hosting is not cheap.  Although it a comprehensive platform, it’s not ideal for a start-up.

5.2 Shopify – Shopify is a good little platform and ideal for the Western US and European small e-commerce shops but the plugins are not plentiful, and if you have ideas to be a big online store this may not be for you.

5.3 Prestashop – Relatively new to the market comes with fast load speed and easy-to-use interface. However, it is limited in options and design layout.  It is usable with KNET and easy to connect. Hosting is reasonably priced so I’d recommend checking it out.

5.4 WooCommerce – Picking holes in WooCommerce is hard. It’s a solid all-around platform. Load speed is super-fast, and hosting is not overboard, has plentiful plug-ins and customizing options, probably more than all the others put together. I would give WooCommerce the nod over the competition as it stands at the back end of 2018.

Further Information

You want longevity in an online store, income generation and growth are essential, but too many e-commerce start-ups disappear quickly.

A common mistake is to think that the above is the hard work and once you are online the sales will come flooding in and you can put your feet up on the beach. WRONG. The above is just laying the foundations to be successful, success itself has to be continuously worked on.

Phase two is optimization, content, keywords and SEO marketing. Then comes perfecting, content development and marketing, this is the expensive part.

Logistics

Depending on the product you are selling and how far your outreach goes will determine how you go about it. Do not make the mistake of thinking ‘Let’s see if we get some orders first’. Big mistake. Logistics should be worked on at the same time as registering the domain! It is that important.

Marketing Spend

Investment in marketing is up there with the most important spend your business can do.  If you think having a niche e-commerce website will make people come to you, then think again. Social media marketing, SEO and email marketing are crucial.  My advice for a start-up is to begin by using professionals, use an SEO company in Kuwait who are full-service digital marketing. They will set you on the path, then throughout the first 12 months, self-educate so you are aware of how this side of the business works for the future so you can look to bring this in-house and not outsource your dollars.

Cut no corners or expense on this part of your business plan.

Conclusion

E-commerce can be relatively simple to set-up but don’t rush it, use the advice above and map out a plan-of-action, what steps you need to accomplish in what order but make sure you achieve all of them and lastly don’t sell plastic forks and spoons online in Kuwait, identify a marketplace that will yield profits.  Finding a niche is one thing if it’s too small, then there’s no money in it.


Author Bio

Sandy Bennington is an experienced tech blogger with an interest in business affairs, she loves eating out and is quite decent in the kitchen herself.  She is associated with SEO Kuwait – a full-service marketing and SEO company Kuwait.

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