Countless ideas pop up in your head that are suitable for e-commerce or traditional business projects that can earn you money and help you solve challenges faced by many people, some of them you thought were impossible, and to you are just an interesting idea, while others capture your heart and roam and reach your mind for days, your brain does a quick filter of applicable and difficult to implement ideas, research and science is prepared around it, it becomes called a feasibility study, so what is it? What is its importance and the most important steps? Which Arab companies provide this research service to other companies?
E-commerce project feasibility study
In short, a feasibility study answers a generally big question: Will the idea work in practice? This is a report that examines the idea and its applicability from several perspectives. The expected success of the idea can be measured by the expected return on investment and the degree to which the promises made by the project can be achieved within the specified time frame.
A feasibility study is not limited to material and time factors, but is a comprehensive study that includes the level of interaction and acceptance of the idea by the research community, as well as operational, legal and technical factors. It also includes challenges and risks that the project may face, and how to address them, either avoid them or reduce their risk, and take preventive measures to control them.
It is worth noting that the study does not exclude e-commerce projects, as it is valid for every project idea, regardless of its field.
Therefore, a feasibility study for an online store usually answers the following questions:
- How much is the project expected to cost?
- When will the return on investment be realized?
- What is the market for the proposed product or service?
- Who are the consumers of the product or service?
- Who are your potential competitors for your product or service?
- What price can consumers pay for the service or product?
- How much market share is the company likely to gain?
- What is the importance of preparing a feasibility study for an eCommerce project?
The Importance of E-Commerce Project Feasibility Study
By looking at what is a feasibility study, I think you have formed a general picture of the importance of a feasibility study in your imagination, but it contains much, much more detail, and we mention the following from its return:
1. Create a clear project picture
Having a clear picture means asking all the questions related to the project, big or small, on the one hand the financial possibility, the readiness of the staff to start the project, or the number of staff required, and the potential risks and alternative plans in case of any danger. Ideas can be brilliant and applications realistic, but the time is not right, and this study will remind you of that so you can start learning at the most opportune time.
2. Simpler layout
Research enables you to identify your strengths and weaknesses so you know when to start and when to back out, while a backup plan enables project workers to work with more confidence and focus, with a clearer vision of their immediate vision and understanding the consequences of each available option.
3. Direct execution
For example, if research shows that an online store project is applicable, it prompts you to implement it as soon as you plan for greater resource savings, and provides excellent information to bring your steps closer and closer.
4. Set goals and objectives
Research can more precisely identify goals and objectives, thereby prompting project workers to adhere to the means of achieving that goal, rather than using other means that may take you away from the goal. If the goal of your online store is to offer a specific item in a specific geographic area, this will give you the option of expanding over a specific period of time and instead focus on offering the desired quantity of the item.
5. Create a special logo for e-commerce projects
Identity is formed when you give the customer what he needs and you know the value of what you offer him in your online store.
6. Identify deficiencies and work to fix them
For example, if an online store requires more advanced technology than what is available, you must look for advanced alternatives to provide it and hire engineers who are more knowledgeable about the new technology.
Steps to Prepare a Feasibility Study for an E-Commerce Project
All these reasons motivate you to start a feasibility study before starting your eCommerce project, now we go on The most important steps in preparing a feasibility study:
Step 1 – Preliminary Analysis
Feasibility study is a detailed, comprehensive, long-form report, so instead of starting at once, you can start with the preliminary analysis, get the results, and then decide whether to proceed to the next step of the feasibility study or stop. The most important steps in the initial analysis:
- Start planning the idea; why is it so important? What do you want to achieve with this project?
- Market valuation; Are there examples of similar project ideas in the market? How successful is it?
- Assess your competitive advantage; given the market and competitors, how will you stand out in it? What’s the difference that will ensure your project’s success?
- Identify project risks; put your hands on any shortfalls that might pose a challenge to the project, and think about how to overcome it?
This analysis provides you with an initial visualization of all potential business ideas and scenarios, the results of which can determine your next steps.
Step Two – Create Project Size Table
Of course, if you decide to open an online store selling Amazon products that are not available in the Arab world, it won’t be as big as an online clothing store on Instagram, and in this step we will answer the following questions:
- Is the plan technically feasible?
- Is the program legal?
- Is the plan operationally feasible?
- Is the plan feasible within a reasonable time?
- Is the plan economically viable?
After answering these questions, you will be able to outline the fundamentals of the project, such as the current state of the project, the problem to be solved, the goals to be achieved, the impact expectations of the project, and the requirements to achieve that goal. Before starting this step, it is useful to identify the strengths and weaknesses of the organization, which directly affect the success of the project.
Step 3 – Conduct market research
At this stage, even if the goal of the project is not to compete, it allows you to examine who came up with the idea before you, how successful it was, how it was dealt with, what are the most important risks they face, and why agency “A” succeeded and agency “B” failed. Of course, eCommerce projects are similar in many ways, so researching previous projects can give you a clear idea of the opportunities available, risks, etc.
As for the benefits of this stage, there are:
- Identify available market opportunities (such as new customers) for your project.
- It gives you an up-close look at your competitors, including their products, services, marketing options, and customer base.
- Provide market information, such as the size and needs of potential customers.
- It enables you to infer whether the project was successful in the past, how much it cost to complete, and what the success criteria were.
- Gain insight into the best way to execute a project, such as time frame, personnel required, and even management techniques.
As for the methods of conducting market research, here is a list of the most common ones, which are best used in a variety of ways, since their results vary, some are subjective, some are general, etc.:
- special group.
- investigation.
- Conduct personal interviews with potential clients, experts or staff in the field.
- Monitor competitors.
- Information received from social media.
By completing this stage, you will be able to determine the suitability of your product or service in the market, as well as the demand for your product or service.
Step Four – Calculate Material Costs
You might think that this step precedes many of the previous ones, but it belongs to the fourth and penultimate phase of the feasibility study, so don’t be rash to rely on it and forget about the rest. And considering that the cost of an online store may be much lower than that of a traditional store, but of course it is not a simple cost, so I did all-round research on this issue.
In this step, try to answer the following key questions:
- Are your financial resources coming from within the organization or from external funds?
- What is the financial cost of failure in implementing the project?
- Which risks create an undue financial burden on your project budget?
- After the project starts, what is the profit break-even point?
- Given the potential risks, what budget is required to complete the project?
It is always good to overestimate the financial cost of a project, as this will become clear after assessing potential risks and determining expected costs. This can be a flimsy reason to fail if your expectations exceed actual costs, but it puts you on the safe side if expectations are lower than actual costs.
After this stage, you will have a clear picture of revenues, expenses, and costs in terms of human resources, materials, third-party services, equipment, etc., in addition to being able to predict the impact of project failure on the organization (if you have one) or on you personally.
Step Five – Review report and submit findings to relevant personnel
Make sure the report answers the general research questions and that it is accurate. Try not to hand over incomplete work to help make the right decision. If the answer comes with some challenges or concerns, that’s not a reason to reject or stop the project. Instead, it could be an opportunity to move forward and come up with new ideas to solve the first problem.
See every challenge as an opportunity to learn something new, don’t accept rejection of a project if it falls on someone else, know what’s lacking and work on it.
Step Six – Implementation Phase
At that point, you’ve got the equipment ready and the green light for the project’s progress has come, try to stick to the established plan, don’t be surprised when anticipated risks occur, and handle them professionally so you can succeed.
Most Important Arab Companies Providing Feasibility Study Services
This professional work, usually if you are new to the field of e-commerce or any field of labor market, it is better to seek the help of experts in order to start strong and steady, and there are many Arab and Saudi companies that provide this service, including the following:
1. Bay House Smart Solutions and Consulting
The office is located in Al-Ahsa, Saudi Arabia, where the most important economic advisors and economists in Saudi Arabia are gathered. The office provides consulting services, project appraisals, feasibility studies, research, e-marketing services, programming and other smart solutions, working with offices and companies in Saudi Arabia and abroad to provide the best possible experience for clients.
2. Motor economic consulting
Located in the Arab Republic of Egypt, the office provides feasibility study services for various economic sectors, has a professional team of experts and consultants, provides services inside and outside the Arab Republic of Egypt, and has cooperated with more than 30,000 clients worldwide.
3. Publish the brand
Headquartered in Riyadh, Saudi Arabia, it is a leading advertising agency in brand building and digital marketing, providing feasibility studies to clients from the Gulf region and throughout the Arab world.
4. Your project
It is a leading company in the field of consulting and feasibility studies, has served more than 95,000 clients, and submitted more than 5,000 feasibility studies to more than 22 countries around the world, and has been approved by many external financing institutions. Its research is based on a reliable global database covering all industries and different geographical locations.
No matter what project you accept, don’t let enthusiasm lead you into difficult corridors of implementation, but write about the success of your project by learning and implementing it like a second time, the first time on paper and the second time in reality, so that every step you go through is familiar to you and not difficult, allowing you to overcome challenges and reach the desired goal with minimal loss.