Starting an e-commerce or online store can be a game-changer for your small business’s success. Whether you’re selling handmade crafts, vintage clothes, or professional services, taking your business online opens up a world of opportunities.
This blog article will walk you through the steps to get started. You’ll also learn about Payroller, an app that streamlines payroll, making your business journey easier. Over 180,000 Aussie businesses use Payroller to manage their payroll. Now, let’s talk about getting your business online!
Why create an online store?
Before diving into the steps, let’s explore why you should consider creating an online store instead of starting a physical store.
You’ll reach a wider audience
Unlike a physical store, an online store can reach customers across Australia and internationally. Imagine showcasing your products not just to your local town but to the entire country or even the world!
An online store allows you to use digital marketing tools to reach your ideal customers based on demographics, interests, and online behaviour. This allows for more focused and cost-effective marketing efforts.
Your business can operate 24/7
Have you ever heard the phrase make money while you sleep? Here is your chance! Your online store is always open, allowing customers to browse and purchase anytime, day or night. This is particularly convenient for those with busy schedules or living in different time zones.
Customers can browse and purchase anytime, leading to potentially higher sales compared to a traditional store. You also have the flexibility to manage your online store remotely, allowing you to work from anywhere with an internet connection. This can be ideal for those who desire a work-life balance or want to expand their business internationally.
You’ll deal with lower overheads
Compared to a traditional brick-and-mortar store, online businesses can benefit from lower operational costs since you won’t have to pay for rent or utilities. This will help you avoid any dire financial risks when running your business.
Instead, you would have website hosting fees and staff to help you process your transactions and deliveries. Depending on your business model (e.g., dropshipping), you may not need to carry a large physical inventory, reducing storage costs and cash flow management issues.
- Reach a wider audience: Unlike a physical store, an online store can reach customers across Australia and internationally.
- Operate 24/7: Your store is always open, meaning customers can shop at their convenience. (Have you ever heard the phrase make money while you sleep? Here is your chance!)
- Lower overheads: Running an online store usually costs less than maintaining a physical shop.
Australian e-commerce stats you should know before starting an online store
E-commerce in Australia has seen significant growth in recent years. According to the Australia Post’s 2022 e-commerce Industry Report, online shopping accounted for 16.3% of total retail sales, with over 9.2 million Australian households shopping online. This trend shows no signs of slowing down, making it an opportune time to start your online store. Small businesses can leverage this growing market to reach a broader audience and increase their sales.
The Australia Post’s 2023 online shopping report had some interesting insights and statistics.
In 2022, Australians spent a record-breaking $353 billion on retail goods, marking a 9.2% increase from 2021. With the end of COVID lockdowns, in-person shopping rebounded strongly, while online retail saw a modest 1.7% increase to $63.8 billion, representing 18.1% of total retail spending.
The retail industry is rapidly changing due to high inflation, which is pushing prices up and leading to decreased savings. Inflation is expected to ease in 2024 but may slow retail sales. Rising interest rates will likely make consumers more selective with spending. To drive growth, innovation and new customer engagement strategies are essential.
Below is an infographic to help you visualise which types of online products made their way to Australian households during the research period:
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How to set up an online store: 5 steps to start your e-commerce business
Follow the steps below to start an online store.
Step 1: Choose your niche
The first step is to decide what you want to sell. Choose a niche that you are passionate about, and that has demand. Consider the following:
- Market research: Look at what products are popular and identify gaps in the market.
- Target audience: Understand who your customers are and what they need.
By specialising in a specific niche, you better understand your target audience’s needs, preferences, and buying habits. This allows you to curate a product selection and tailor your marketing messages to resonate more effectively.
Ask yourself the following questions: What are you passionate about? Do you have unique knowledge or skills in a particular area? Using your existing knowledge and interests can be a great starting point.
Step 2: Register your business
Before you can start selling, you need to ensure your business is legally registered. This includes:
- Choosing a business structure: Decide if you want to operate as a sole trader, partnership, or company.
- Registering for an ABN: An Australian Business Number (ABN) is essential for trading legally and registering for Goods and Services Tax (GST).
- Business name registration: Register your business name with the Australian Securities and Investments Commission (ASIC).
- Obtaining a TFN: A Tax File Number (TFN) is a unique identifier for your business for tax purposes.
Step 3: Set up your online store
This is the exciting part where you create your digital storefront. Here’s how:
Choose an e-commerce platform
Several platforms make setting up an online store easy. If you’re a beginner, prioritise ease of use and platforms that offer drag-and-drop interfaces. These will require minimal coding knowledge and enable you to get started right away.
Some popular options include:
- Shopify: User-friendly and offers various templates.
- WooCommerce: Great for WordPress users.
- BigCommerce: Scalable and feature-rich.
E-commerce platforms typically have monthly subscription fees or transaction fees. Compare pricing structures to find a solution that fits your budget.
Design your store
First impressions matter! The design of your store should give potential customers the same effect as walking into a physical shop. When designing your website, keep two things handy:
- Templates: Use pre-made templates to make your store look professional.
- Branding: Ensure your store reflects your brand identity with a logo and colour scheme.
Ensure your store looks great and functions flawlessly on all devices. This is especially important since smartphones have become a dominant shopping platform in Australia. Make navigation intuitive, with clear categories, search functionality, and product information easily accessible.
Add your products
Product pages on your online store should be chock-full of information that can compell users to purchase. This means that descriptions should have clear titles, descriptions, details on variations (size, colour, etc.), and high-quality images.
Optimise your product listings to include words and phrases that users would typically type into search engines to find similar products. This will help boost your visibility on organic platforms and may attract new visitors who are meeting your brand for the first time.
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Payroller simplifies your payroll process, making managing employee payments easy and staying compliant with Australian tax laws.
By integrating Payroller into your business, you can save time and focus on growing your online store.
Step 4: Set up payment and shipping options
Payment gateways
Choose a reliable payment gateway to process transactions. This makes it easier for customers to push through with a purchase since it’ll be just as fast and easy as making a purchase in person. Some options include:
- PayPal
- ShopPay via Shopify
- Stripe
- Square
- Afterpay
- ZipPay
- Klarna
- ApplePay
- Amazon Pay
Remember, not offering popular payment options can push your customers to buy from competitors instead. Look into what your target audience prefers using to make sure you can provide the best options.
Shipping
Offer clear shipping options and rates relevant to Australia, considering factors like size, weight, and delivery speed. Consider calculating shipping costs for your products and offering free shipping depending on location.
Consider a shipping platform if you’re short on options within your own operations. These can connect your online store with a mail distribution system, making product delivery a breeze.
Step 5: Market your online store
Once your store is set up, you need to attract customers. Here are some marketing strategies:
Social media marketing
- Platforms: To reach your audience, use platforms like Facebook, Instagram, TikTok, and YouTube. Do some research into what your target audience uses the most, and invest in those platforms.
- Content: Share engaging content and promotions that will help your audience feel closer to your brand.
Email marketing
- Newsletters: Send regular updates to your subscribers, including information on your new products.
- Promotions: Offer exclusive deals to your email list to foster brand loyalty.
Search engine optimisation (SEO)
- Keywords: Use relevant keywords in your product descriptions and blog posts.
- Backlinks: Get other websites to link to your store to improve your visibility online.
Paid advertising
Paid ads can significantly boost your online store’s visibility and attract more customers. Below are the different types of paid advertising you can consider for your online store.
Google Ads
- Search ads: These ads appear when users search for keywords related to your products. They are a great way to reach potential customers who are actively looking for your products.
- Display ads: These visual ads appear on websites within Google’s Display Network. They are excellent for building brand awareness.
- Shopping ads: These ads showcase your products directly in Google search results, complete with images, prices, and store names.
Social media ads
- Facebook and Instagram ads: These platforms allow you to target specific demographics based on interests, location, and behaviour. To engage users, you can run photo, video, carousel, and story ads.
- LinkedIn ads: Ideal for B2B businesses, LinkedIn ads can help you reach professionals in your industry.
Retargeting ads
- Retargeting: These ads target users who have previously visited your site but didn’t make a purchase. Retargeting can remind them of your products and encourage them to complete their purchase.
Setting up your ad campaign
- Define your goals: Decide what you want to achieve with your ads, such as increasing sales, driving website traffic, or building brand awareness.
- Set a budget: Determine how much you’re willing to spend on your ad campaigns. Start small and scale up as you see results.
- Create compelling ads: Use high-quality images and persuasive copy to attract your target audience.
- Monitor and adjust: Track the performance of your ads and make adjustments as needed to improve results.
Step 6: Employ staff where you need assistance
In most cases, small business owners creating an online store will start out as a one-person show. You’ll be handling marketing, product photography, customer service, and everything in between.
After some time running your online store, you’ll be able to identify the bottlenecks in your operations. Where are you spending the most time that could be better utilised elsewhere? In these areas, delegating tasks can free up your time to focus on strategic growth.
Freelance or casual employees can offer remote support for various tasks from product listing creation to social media management or more specialised tasks like web development and grapgic design. Initially, focus on what you need right now so that you can start small.
Remember, even small businesses with only 1 employee are required to run ATO-compliant payroll. Fortunately, there are easy-to-use payroll-only software like Payroller that can help you report STP, create Fair Work-compliant payslips, and manage super for a small fee. No accounting experience necessary!
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Ready to take your small business to the next level? Start your online store today and streamline your payroll with Payroller.
Sign up now and see how easy managing your payroll can be!
Critical takeaways
- Plan thoroughly: Research and plan every step before launching your online store.
- User experience: Focus on providing a great user experience on your website.
- Marketing: Invest time and effort into marketing your store to attract customers.
- Streamline operations: Use cloud-based software to simplify your business processes, especially in e-commerce transactions, payment solutions, and shipping.
“Efficiency is doing better what is already being done.” – Peter Drucker
Starting an online store is an exciting venture that can bring many rewards. With careful planning and e-commerce tools, you can simplify your operations and focus on growing your business through an online store. Happy selling!
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