Consumers are increasingly shopping online. According to research, online shopping has increased by 30% since the start of the COVID-19 crisis. Even today, more and more people prefer online shopping.
Below, I will introduce twelve essential foundations you need to consider before starting an online business. These tips will help you avoid mistakes and establish a successful base for your online venture.
1. Decide What Products to Sell Online
The first step is to clearly define which products you will sell. These could be physical items such as clothing, cosmetics, or tech gadgets; digital products like eBooks and software; or even services such as courses or consulting. If you already have products you sell without an online store, I recommend reading my blog What Types of Products Can You Sell Online?
2. Budget for Your Online Store
Before setting up your online store, it’s crucial to prepare a clear budget. Online stores involve various costs that should be understood in advance. Below are key aspects worth considering in detail:
- Domain and hosting
- Platform selection
- Appropriate design and layout of the store
- Taxes and accounting
- Supply of physical products or materials for the final product
3. Domain and Hosting
To run a successful business, you need your own domain, representing your recognizable web address. Additionally, reliable hosting is crucial, especially if you plan to use platforms like WordPress. Hosting should be tailored to your needs for speed and reliability.
4. Platform Selection
Dedicated platforms like Shopify and Squarespace allow quick store setup, but they come with higher monthly costs if additional features are required since you depend on the provider’s servers.
For greater flexibility, open-source solutions such as WordPress with WooCommerce, PrestaShop, and Magento offer extensive customization options. WordPress is the most popular choice, powering over 42% of all websites, while WooCommerce dominates the eCommerce world. These platforms are free but require more technical expertise during setup. If you want an online store that grows with your business, open-source systems are often the best choice.
5. Store Design and Development
If you want your online store to have a professional design, hiring an expert is often the best decision. A professional can save you significant time and ensure your online space is unique and tailored to your eCommerce needs. Investing in professional design often pays off in the long run, as you’ll gain a high-quality and functional online store that supports your business growth.
6. Global or Local
For global sales, you will face additional challenges. Start by addressing the following:
- Which countries will you sell in?
- Multilingual websites can either include multiple languages on the same domain or use separate domains for each language.
- If selling physical products, you need a logistics strategy. International shipping is more expensive and requires reliable partners like DHL, UPS, or GLS.
- Research tax and customs regulations for your products.
- Set up warehouses for product distribution if selling physical goods.
7. Taxes and Accounting
When setting up an online store, consider your tax obligations. In Slovenia, businesses must register and regularly comply with tax requirements, such as VAT. To manage these obligations efficiently, it is recommended to work with an accountant who can assist with financial management and tax compliance.
8. Legal Considerations
In eCommerce, ensuring legal documents are properly prepared and compliant with regulations is essential. Properly drafted terms and conditions, privacy policies, and refund policies can simplify dealing with dissatisfied customers. Some documents are also legally required, so it’s advisable to seek help from a legal expert to ensure everything is in order.
9. Product Costs
These vary depending on the type of products you sell. If you produce items yourself, consider material, labor, and packaging costs. If purchasing products from suppliers, costs depend on the quantity ordered.
10. Proper Product Presentation
Online, it’s a challenge to present products clearly and attractively since customers cannot see or try them in person. Tailor your presentation to your target audience. For a high-quality presentation, include the following:
- Attractive product images or videos showcasing usage
- Additional images for a better overview
- A short description in one or two sentences
- A detailed description for in-depth presentation
- Attributes (for variable products)
- Product categories
- Stock availability
- Product SKU
When adding a product to the online store, you must specify the name, price, tax rate, and product type. User experience and flow are also crucial for offering multiple purchase options. Learn more in my blog How to Improve the Purchase Process and Boost Order Value.
11. Store Maintenance
After building the online store, the work is far from over. Regular maintenance ensures seamless functionality, including updates, performance monitoring, and backups. Updates enhance security and minimize risks of breaches. Backups can be used in case of issues.
It’s also essential to regularly add and update content, such as new products, blog posts, and data changes.
12. Promotion and Advertising
Once your online store is live, the real work begins. Promotion is key to attracting customers. Consider how to present your offerings to a broader audience through ads on Google, Facebook, Instagram, or TikTok. Other channels include email marketing, influencer partnerships, SEO, and content marketing like blogs or videos. Without a solid advertising strategy, it’s unlikely customers will find your store on their own.
