Ecommerce Basics for Small Business Owners: Complete Beginner Guide to Selling Online
Are you a small business owner dreaming of reaching more customers? Do you want to sell your amazing products beyond your local area? Then you need a beginner ecommerce blueprint, and this guide is just for you!
This guide will walk you through the ecommerce basics for small business owners. We will cover everything you need to know to start selling your products online. It’s simpler than you think to begin your small business online selling journey.
This comprehensive ecommerce guide for small business will help you understand all the steps. You will learn how small businesses sell online and build a successful digital store. Let’s dive into the exciting world of selling online!
Understanding Ecommerce Fundamentals
Ecommerce is just a fancy word for buying and selling things over the internet. Instead of a physical shop, you have a website where customers can browse and buy your products. This digital storefront can reach people all over the world.
Think of it as your shop being open 24 hours a day, seven days a week. Customers can shop from their homes, at any time that suits them. This convenience is a huge draw for modern shoppers.
What is Ecommerce, Really?
Ecommerce involves all the steps from when a customer first sees your product online to when it arrives at their door. It includes showing off your items, taking payments, and arranging delivery. It’s a full cycle of digital business.
You use different tools and websites to make this happen. These tools help you display products, process orders, and connect with your customers. Understanding these tools is part of ecommerce fundamentals.
Why Should Your Small Business Sell Online?
Selling online opens up a whole new world for your business. You are no longer limited by your physical location or store hours. This means more eyes on your products and more potential sales.
An online store for small business can also be much cheaper to run than a physical shop. You save money on rent, utilities, and even staff costs. These savings can be put back into your business or enjoyed as profit.
You can also learn a lot about your customers when you sell online. Websites track what people look at and buy. This information helps you make smarter decisions about your products and marketing.
Planning Your Online Store: Ecommerce Startup Basics
Before you jump in and create a website, it’s really important to plan things out. A good plan makes sure you build the right kind of store for your business. This planning stage is crucial for ecommerce startup basics.
Thinking ahead helps you avoid common mistakes and saves you time later. It ensures your efforts are focused and effective. You’ll feel more confident knowing exactly what you need to do next.
What Will You Sell? Your Niche and Products
First, decide exactly what products you want to sell. Maybe you make handmade jewelry, or you source unique vintage items. Make sure your products are suitable for selling online.
Think about what makes your products special or unique. This is called your “niche.” A clear niche helps you stand out from other sellers. It also helps customers find you easily.
Do some research to see if there’s a demand for your products online. Are other businesses selling similar things? Can you offer something better or different? This is a key part of ecommerce basics guid.
| Product Type | Example Niche | Why it Works Online |
|---|---|---|
| Handmade | Custom pet portraits | Unique, personalized, easy to ship |
| Digital | Online courses | No shipping, scalable, high profit |
| Physical | Eco-friendly home goods | Growing demand, often unique designs |
| Services | Virtual assistant | Delivered remotely, flexible |
Who Are Your Customers? Knowing Your Audience
It’s super important to know who you want to sell to. Are they young adults, busy parents, or maybe people who love pets? Understanding your audience helps you talk to them better.
If you know your customers, you can choose the right words, pictures, and even colors for your online store. This makes them feel like your store is perfect for them. It’s all about connecting with the right people.
Think about their age, what they like, and what problems your products solve for them. This helps shape your entire marketing strategy. Knowing your customer is an essential part of ecommerce guide for small business.
Setting Clear Goals for Your Online Venture
What do you want to achieve with your online store? Do you want to make a certain amount of money each month? Or maybe you want to reach customers in different countries?
Setting clear goals helps you measure your success and stay focused. Your goals should be realistic and measurable. This way, you can tell if you’re on the right track.
For example, a goal could be to get 10 sales in your first month. Or to have 100 visitors to your website each day. These targets help you plan your actions and work towards success.
Choosing Your Ecommerce Platform
Once you know what you’re selling and to whom, it’s time to pick the place where your store will live. This is called your ecommerce platform. It’s like choosing the right building for your shop.
There are many options available, each with its own benefits and costs. The best platform for you depends on your budget, your tech skills, and what features you need. This decision is central to small business online selling.
Don’t worry too much; you can always change platforms later if needed. But making a good choice now will save you headaches. Let’s look at some popular choices for an online store for small business.
Popular Platforms for Small Businesses
- Shopify: This is a very popular choice for beginners because it’s easy to use. You don’t need to know how to code, and it has lots of features built-in. It’s like having a ready-made shop structure.
- Pros: User-friendly, good customer support, many apps, secure payments.
- Cons: Monthly fees can add up with apps, less control over complex changes.
- Etsy: If you sell handmade items, craft supplies, or vintage goods, Etsy is a marketplace you should consider. It’s like a giant online craft fair where people already go to shop for unique items.
- Pros: Built-in audience, easy to set up, lower initial cost.
- Cons: Less branding control, fees per listing and sale, competition can be high.
- WooCommerce: This is a plugin that turns a WordPress website into an online store. It’s free to use the basic plugin, but you’ll need to pay for hosting and a domain name. It gives you a lot of control.
- Pros: Highly customizable, free plugin, full control over your site.
- Cons: Requires more technical knowledge, you manage updates and security, hosting costs.
- Squarespace/Wix: These are website builders that also have ecommerce features. They are great if you want a beautiful website that also sells products. They focus on easy design.
- Pros: Excellent design templates, all-in-one solution, good for visual businesses.
- Cons: Can be less powerful for very large stores, some limitations on advanced features.
Key Considerations When Choosing
When you choose a platform, think about your comfort level with technology. If you’re not tech-savvy, a simpler, all-in-one platform like Shopify or Squarespace might be best. If you enjoy tinkering, WooCommerce offers more freedom.
Also, consider the cost. While some platforms have low monthly fees, others might have extra costs for apps, payment processing, or hosting. Make sure you understand the full price.
Think about how many products you plan to sell now and in the future. Some platforms handle large inventories better than others. It’s good to pick a platform that can grow with you.
| Feature | Shopify | Etsy | WooCommerce | Squarespace/Wix |
|---|---|---|---|---|
| Ease of Use | Very High | Very High | Medium | High |
| Cost | Monthly fee | Listing/Sale | Hosting/Themes | Monthly fee |
| Customization | Medium-High | Low | Very High | Medium |
| Target User | All small biz | Crafters, Vintage | WordPress users | Design-focused |
Setting Up Your Online Store
Okay, you’ve chosen your platform! Now for the exciting part: building your actual store. This is where you bring your brand to life online. This step is about getting the bones of your online store for small business in place.
Don’t feel overwhelmed; most platforms guide you through each step. Take your time and enjoy the process of creating your digital home. It’s all about making a welcoming space for your future customers.
Getting Your Domain Name
Your domain name is your website’s address on the internet. For example, google.com or yourbusinessname.com. It’s super important for your brand and for customers to find you.
Choose a name that is easy to remember, easy to spell, and relates to your business. Try to keep it short and sweet if you can. You can buy domain names from places like Namecheap or GoDaddy for a small yearly fee.
Make sure your chosen name isn’t already taken by another business. A unique and memorable domain name is a key part of your ecommerce basics for small business owners journey.
Designing Your Store and Branding
Your store’s look and feel are really important. It needs to look professional, trustworthy, and match your brand’s personality. Most platforms offer templates that you can customize.
Pick colors, fonts, and images that reflect what your business is all about. Keep the design simple and clean so customers can easily find what they’re looking for. A cluttered store can be confusing.
Your brand is what people think and feel about your business. Make sure your online store clearly communicates who you are. This builds trust and helps customers remember you.
Adding Your Products
This is where your products shine! For each item you sell, you need to create a product page. This page tells customers everything they need to know.
- Product Name: Clear and descriptive.
- High-Quality Photos: Use several pictures from different angles. Good lighting is key!
- Detailed Description: Explain what the product is, its features, and its benefits. Tell a story if you can.
- Price: Be clear about the cost.
- Inventory: How many do you have?
- Shipping Information: How much does it cost to ship? How long will it take?
The better your product listings, the more likely customers are to buy. This is a crucial element of ecommerce fundamentals.
Setting Up Payment Gateways
How will your customers pay you? A payment gateway is a service that handles online payments securely. It allows your store to accept credit cards, PayPal, and other payment methods.
Popular options include PayPal, Stripe, and the built-in payment processors of platforms like Shopify Payments. Make sure you choose a gateway that is reliable and trusted.
You’ll usually pay a small fee for each transaction. Compare these fees to find the best option for your business. Offering multiple payment options makes it easier for customers to buy.
Deciding on Shipping Options
Getting products to your customers is a big part of selling online. You need to decide how you will ship your items. This involves choosing carriers and setting shipping costs.
- Shipping Carriers: USPS, FedEx, UPS are common choices. Look at their rates for small businesses.
- Shipping Costs: Will you offer free shipping? Charge a flat rate? Or calculate costs based on weight and distance?
- Packaging: You’ll need boxes, envelopes, and protective materials.
Clear shipping policies build customer trust. Make sure your customers know what to expect. This entire process is a core part of how small businesses sell online.
Getting Found Online: Marketing Your Ecommerce Business
Having a great online store is only half the battle. People need to know it exists! Marketing is how you tell the world about your amazing products. This is where you truly start to understand ecommerce basics for small business owners.
You don’t need a huge budget to market your small business effectively online. There are many free and low-cost ways to get noticed. Consistency and creativity are your best friends here.
Learning these marketing strategies is key to making your small business online selling successful. It’s about reaching your audience where they already spend their time.
Search Engine Optimization (SEO) Basics
SEO means making your website easy for search engines like Google to find. When someone searches for “handmade dog collars,” you want your store to show up high on the list.
- Keywords: Think about the words people use to search for your products. Include these keywords naturally in your product descriptions, titles, and blog posts. For example, use “unique handcrafted jewelry” if that’s what you sell.
- Good Content: Write helpful and interesting information related to your products. This could be blog posts about how to choose the right gift or the benefits of your eco-friendly products.
- Website Speed: Make sure your website loads quickly. Slow sites frustrate visitors and search engines.
- Mobile-Friendly: Many people shop on their phones. Your site needs to look good and work well on small screens.
Learning a bit about SEO is a vital part of any ecommerce guide for small business. It’s how customers find you organically.
Social Media Marketing
Social media platforms like Instagram, Facebook, and Pinterest are fantastic for small businesses. They let you connect directly with customers and showcase your products visually.
- Pick the Right Platform: Where do your customers hang out? If you sell visual products, Instagram and Pinterest are great. If you have a local service, Facebook might be better.
- Share Great Content: Post high-quality photos and videos of your products. Show them in use, or share behind-the-scenes glimpses of your process.
- Engage with Your Audience: Respond to comments, ask questions, and run polls. Build a community around your brand.
- Use Hashtags: Hashtags help people discover your content. Research popular and relevant hashtags for your niche.
Social media is a powerful tool for building brand awareness and driving traffic to your online store for small business.
Email Marketing
Collecting email addresses from your website visitors and customers is a smart move. Email marketing lets you send direct messages to people who are interested in your brand.
You can send newsletters, announce new products, share special discounts, or send holiday greetings. Email is a very personal way to communicate.
Tools like Mailchimp or ConvertKit make email marketing easy. They help you design beautiful emails and manage your subscriber list. This is an effective part of ecommerce startup basics.
Content Marketing
Content marketing is about creating valuable and relevant information to attract and keep customers. This could be blog posts, videos, or guides related to your products or industry.
For example, if you sell artisanal coffee, you could write a blog post about “The Best Ways to Brew Coffee at Home.” This attracts people interested in coffee, who might then discover your products.
Content marketing builds your authority and trust with potential customers. It also gives you more content to share on social media and for SEO.
Paid Advertising (Brief Mention)
If you have a bit of a budget, you can use paid ads on platforms like Google or Facebook. These ads can get your products in front of a lot of people very quickly.
You can target very specific groups of people, so your ads are shown to those most likely to buy. It can be effective, but start small and learn the ropes before spending too much.
Managing Your Orders and Customers
Once sales start coming in, you need a good system for managing orders and keeping customers happy. This is the operational side of ecommerce basics for small business owners.
Efficient order management means customers get their products on time. Good customer service means they’ll come back for more! Both are crucial for repeat business.
Order Fulfillment: Getting Products Out the Door
Order fulfillment is the process of preparing and sending products to your customers. It sounds simple, but organization is key.
- Receive the Order: Your ecommerce platform will notify you of a new order.
- Pick the Product: Locate the item in your inventory.
- Package it Up: Use appropriate packaging to protect the item during shipping. Add a nice touch like a thank you note!
- Create a Shipping Label: Print a label with the customer’s address and tracking information. You can often do this directly from your platform or a shipping carrier’s website.
- Ship the Item: Take the package to the post office or schedule a pickup.
- Send Tracking Information: Email the customer their tracking number so they can follow their package.
Staying organized will help you avoid mistakes and keep customers informed. This is a core part of how small businesses sell online.
Customer Service: Keeping Buyers Happy
Great customer service turns one-time buyers into loyal fans. Be responsive, friendly, and helpful.
- Be Accessible: Provide an easy way for customers to contact you, like an email address or a contact form.
- Respond Quickly: Try to answer questions and resolve issues as fast as you can.
- Be Polite and Professional: Even if a customer is upset, remain calm and helpful.
- Listen to Feedback: Customer feedback, good or bad, can help you improve your products and service.
Happy customers are your best advertisement! They will tell their friends and leave positive reviews.
Returns and Refunds
Sometimes customers need to return an item or ask for a refund. It’s important to have a clear and fair policy for this.
- Clearly State Your Policy: Make your return policy easy to find on your website. Explain how long customers have to return items, what condition items need to be in, and who pays for return shipping.
- Process Promptly: When a return comes in, process the refund quickly.
- Learn from Returns: If many people are returning the same item, it might indicate a problem with the product or its description.
A good return policy builds trust and shows customers you stand behind your products. It’s part of delivering a great ecommerce guide for small business.
Basic Ecommerce Profit Calculator
To help you understand the finances of selling online, here’s a simple profit calculator. You can use this to estimate how much profit you might make per sale. This is a very basic model to help you grasp ecommerce fundamentals from a financial perspective.
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<div class="calculator-container">
<h3>Simple Ecommerce Profit Calculator</h3>
<p>Enter your product costs and selling price to see your estimated profit!</p>
<div class="input-group">
<label for="sellingPrice">Selling Price ($):</label>
<input type="number" id="sellingPrice" value="25" min="0" step="0.01">
</div>
<div class="input-group">
<label for="productCost">Cost of Product ($):</label>
<input type="number" id="productCost" value="10" min="0" step="0.01">
</div>
<div class="input-group">
<label for="shippingCost">Shipping Cost ($):</label>
<input type="number" id="shippingCost" value="5" min="0" step="0.01">
</div>
<div class="input-group">
<label for="platformFee">Platform Fee (%) (e.g., 2.9 for Shopify Payments + 0.30 cents, or Etsy 6.5% + $0.20):</label>
<input type="number" id="platformFee" value="3.5" min="0" step="0.1">
</div>
<div class="input-group">
<label for="fixedTransactionFee">Fixed Transaction Fee ($) (e.g., $0.30):</label>
<input type="number" id="fixedTransactionFee" value="0.30" min="0" step="0.01">
</div>
<button onclick="calculateProfit()">Calculate Profit</button>
<div class="result-box">
<h4>Your Estimated Profit: <span id="profitResult">$0.00</span></h4>
<p>Profit Margin: <span id="profitMargin">0%</span></p>
</div>
</div>
<style>
.calculator-container {
font-family: Arial, sans-serif;
background-color: #f9f9f9;
padding: 20px;
border-radius: 8px;
max-width: 400px;
margin: 20px auto;
box-shadow: 0 4px 8px rgba(0,0,0,0.1);
}
.calculator-container h3 {
color: #333;
text-align: center;
margin-bottom: 15px;
}
.calculator-container p {
font-size: 0.9em;
color: #666;
text-align: center;
margin-bottom: 20px;
}
.input-group {
margin-bottom: 15px;
}
.input-group label {
display: block;
margin-bottom: 5px;
color: #555;
font-size: 0.9em;
}
.input-group input[type="number"] {
width: calc(100% - 10px);
padding: 8px;
border: 1px solid #ddd;
border-radius: 4px;
box-sizing: border-box;
}
.calculator-container button {
background-color: #007bff;
color: white;
padding: 10px 15px;
border: none;
border-radius: 5px;
cursor: pointer;
font-size: 1em;
display: block;
width: 100%;
margin-top: 20px;
}
.calculator-container button:hover {
background-color: #0056b3;
}
.result-box {
margin-top: 25px;
padding: 15px;
background-color: #e2f0ff;
border: 1px solid #b3d9ff;
border-radius: 5px;
text-align: center;
}
.result-box h4 {
margin-top: 0;
color: #0056b3;
}
.result-box span {
font-weight: bold;
color: #007bff;
}
</style>
<script>
function calculateProfit() {
const sellingPrice = parseFloat(document.getElementById('sellingPrice').value);
const productCost = parseFloat(document.getElementById('productCost').value);
const shippingCost = parseFloat(document.getElementById('shippingCost').value);
const platformFeePercentage = parseFloat(document.getElementById('platformFee').value);
const fixedTransactionFee = parseFloat(document.getElementById('fixedTransactionFee').value);
if (isNaN(sellingPrice) || isNaN(productCost) || isNaN(shippingCost) || isNaN(platformFeePercentage) || isNaN(fixedTransactionFee)) {
document.getElementById('profitResult').textContent = "$0.00";
document.getElementById('profitMargin').textContent = "0%";
alert("Please enter valid numbers for all fields.");
return;
}
// Calculate platform fee based on selling price
const variablePlatformFee = sellingPrice * (platformFeePercentage / 100);
// Total costs
const totalCosts = productCost + shippingCost + variablePlatformFee + fixedTransactionFee;
// Calculate profit
const profit = sellingPrice - totalCosts;
// Calculate profit margin
let profitMargin = 0;
if (sellingPrice > 0) {
profitMargin = (profit / sellingPrice) * 100;
}
document.getElementById('profitResult').textContent = "$" + profit.toFixed(2);
document.getElementById('profitMargin').textContent = profitMargin.toFixed(2) + "%";
}
// Initialize calculator with default values on load
document.addEventListener('DOMContentLoaded', calculateProfit);
</script>
This calculator helps you see how different costs affect your final profit. Remember to include all costs, even small ones, to get an accurate picture. This is a very helpful tool for ecommerce basics guid understanding.
Legal and Financial Aspects
Running an online business still involves legal and financial responsibilities. It’s important to understand these to avoid problems down the road. This section helps you ensure your ecommerce startup basics are built on a solid foundation.
Don’t let these things scare you; they are straightforward once you understand them. Getting these right from the start gives you peace of mind. You can focus on growing your small business online selling.
Business Registration
Depending on where you live, you might need to register your business. This could mean getting a business license or registering your business name. Check with your local government or a small business advisor.
Registering your business makes it official and can offer legal protection. It also makes opening a business bank account easier. This is a fundamental step for any online store for small business.
Taxes
Yes, you still have to pay taxes when you sell online! This can include income tax on your profits and potentially sales tax on items you sell. Sales tax rules vary widely by location.
It’s a good idea to talk to an accountant who specializes in small businesses. They can help you understand your tax obligations and set up a system for tracking sales and expenses. Keeping good records is vital.
Terms and Conditions and Privacy Policy
Your online store needs legal pages to protect both you and your customers. These pages inform customers about your rules and how you handle their information.
- Terms and Conditions: This page outlines the rules for using your website and buying from your store. It covers things like payment, shipping, returns, and how disputes are handled.
- Privacy Policy: This page explains what personal information you collect from customers (like names and addresses), how you use it, and how you keep it safe. This is especially important for building trust.
Many ecommerce platforms offer templates for these pages, but it’s always good to review them. Being transparent is key to building a reputable ecommerce basics for small business owners.
Scaling and Growing Your Ecommerce Business
Once your online store is up and running, and you’re making sales, you’ll start thinking about how to grow. Scaling means making your business bigger and more profitable. This is the exciting next step in your ecommerce guide for small business.
Growth doesn’t happen overnight, but with smart planning, you can expand your reach and offerings. Keep an eye on your performance and always look for new opportunities.
Analyzing Your Data
Your ecommerce platform and tools like Google Analytics collect lots of information. This data tells you how people are finding your store and what they are doing once they are there.
- Sales Reports: See what products are selling best, and when.
- Website Traffic: Find out how many people visit your site and where they come from.
- Conversion Rate: This tells you what percentage of visitors actually buy something.
- Customer Behavior: See which pages people visit most and where they leave your site.
Understanding this data helps you make better decisions. You can improve your marketing, adjust your product offerings, and optimize your store. This is central to advanced ecommerce fundamentals.
Expanding Product Lines
As you learn what your customers like, you might want to add new products. This could be variations of existing items or entirely new categories. Always consider what your current customers might want.
Adding new products can attract new customers and give existing customers more reasons to shop with you. Do some market research to ensure there’s demand for your new ideas.
Reaching New Markets
Perhaps you started selling only in your town or country. Now, you might consider selling internationally. This opens up a huge new customer base.
Selling to other countries involves understanding different shipping costs, customs duties, and local regulations. But the potential rewards can be significant. This demonstrates how ecommerce basics for small business owners can lead to global reach.
Seeking Feedback and Improving
Always ask your customers for feedback. What did they like? What could be better? You can send follow-up emails after a purchase or use surveys.
Use this feedback to constantly improve your products, your website, and your customer service. A business that listens to its customers is a business that thrives.
Key Takeaways for How Small Businesses Sell Online
Phew! That was a lot of information, but you now have a solid foundation in ecommerce basics for small business owners. Remember, selling online is a journey, not a sprint.
Here are the most important things to remember from this ecommerce basics guid:
- Plan Ahead: Know your products, your customers, and your goals before you start building.
- Choose Wisely: Pick an ecommerce platform that fits your skills and needs.
- Build Trust: Create a professional-looking store with clear product information and secure payment options.
- Market Smart: Tell the world about your store using SEO, social media, and email.
- Serve Customers Well: Good customer service and efficient order fulfillment lead to happy, repeat buyers.
- Stay Legal & Organized: Understand your taxes and legal obligations.
- Keep Learning & Growing: Use data and feedback to make your business better over time.
You’ve got this! Taking these steps will help you successfully navigate the world of small business online selling. Your dream of an online store for small business is now within reach.
FAQ Section: Your Questions About Ecommerce Answered
Here are some common questions that small business owners have when starting with ecommerce. We’ll clarify these ecommerce fundamentals for you.
H3: What is the absolute first thing I should do for ecommerce?
The very first thing you should do is decide what you want to sell and who your target customers are. Knowing your product and audience makes every other decision much easier. This clear vision is part of ecommerce startup basics.
H3: Do I need a lot of money to start an online store?
Not necessarily! You can start very lean. Platforms like Etsy have low entry costs, and you can build a simple website with a modest monthly fee on others. Your biggest investments will likely be time and initial product inventory.
H3: How long does it take to set up an online store?
It can take anywhere from a few days to a few weeks, depending on your tech skills and how many products you have. Simple stores on platforms like Shopify or Etsy can be ready in a weekend. Complex stores with many custom features will take longer.
H3: What if I’m not good with technology?
Many ecommerce platforms are designed for beginners! Shopify, Squarespace, and Wix are very user-friendly with drag-and-drop builders. You don’t need to know how to code. This simplifies ecommerce basics for small business owners.
H3: How do I get people to find my online store?
Marketing is key! Use SEO to help your store show up in Google searches, share your products on social media platforms like Instagram or Facebook, and consider starting an email list. Word-of-mouth is also very powerful! This is central to how small businesses sell online.
H3: What are the main costs involved in running an online store?
Key costs include platform fees (monthly subscriptions), transaction fees (for processing payments), domain name registration, and potentially hosting if you use a platform like WooCommerce. Don’t forget marketing costs and the cost of your products themselves.
H3: Should I offer free shipping?
Free shipping can be a great way to attract customers, but it’s not always sustainable for small businesses. If you offer it, make sure you’ve factored the shipping cost into your product price so you don’t lose money. Be clear about your shipping policy either way.
H3: How important are product photos?
Extremely important! High-quality, clear, and attractive product photos can make or break a sale. Since customers can’t physically touch your items, photos are their main way of seeing what they’re buying. Invest time in good photography.
H3: Can I sell digital products (like e-books or online courses) online?
Absolutely! Selling digital products is a fantastic way to start, as there are no shipping costs or physical inventory to manage. Many ecommerce platforms support digital product sales. This is a great area for small business online selling.
H3: What if my products don’t sell right away?
Don’t get discouraged! Building an online business takes time and effort. Review your product descriptions, improve your photos, adjust your prices, and try new marketing strategies. Analyze your data to see where improvements can be made. Persistence is important in ecommerce basics guid.
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