How to Start an E-Commerce Business

Have you ever shopped online and thought, ‘I wish I could sell my products like this?’ E-commerce business has exploded due to factors such as the pandemic and rising costs of commercial rent for high street shops. Everyone is trying to cash in on the money that is to be made from selling a unique product or service online. It can be overwhelming to know where to begin.

What is an E-Commerce Business?

Simply put, an e-commerce business is any business that conducts transactions electronically on the internet. Your computer, tablet, phone and other smart devices can be used to purchase goods and services for you. Almost anything in 2022 can be bought electronically.

Companies such as Boots, UberEats and Apple have soared online since 2019 when more and more of us started working from home. The pandemic led to a surge in customers wanting health products, food and electronics delivered straight to their door. Even e-commerce services such as Zoom and Microsoft have seen growth like never before as businesses purchase software to stay in touch with their employees remotely.

To help you out with your e-commerce business, we have put together a quick checklist on how to get set up and start selling your products online.

7 Steps to Building an E-Commerce Business

1. Create your offer: The hardest stage of all is probably at the beginning. What are you going to market and sell? Is it a physical product? Are you going to offer a service? Make sure that whatever you are going to offer, it’s a solid idea and most importantly, you’ve done your market research and know that there is a demand.
2. Do your research: This is essential before you even open a website builder. Your business is an investment and should be treated as such. Who else offers this product? It’s critical to know your competitors, especially if you are going into a saturated market. How will you be different, what makes you stand out from your competition?
3. Factor in costs: How much will your product cost? How much time will this take up? What expenses will you have? Many businesses run up high costs at the beginning but don’t drown yourself in debt if you can’t afford to pay it back. A chat with our team can certainly help you get to grips with what you can realistically do.
4. Create a business plan: A business plan is your roadmap for running your own business. It brings all your ideas together in one place and signposts what to do next. This plan will evolve as your business grows so you can reach new customers and markets.
5. Choose a name: Another big decision is what you are going to call your e-commerce business. Are you going to name it after yourself or your product? Remember, your businesses name will be everywhere. Make it memorable.
6. Register with HMRC: As you may know with any business, tax must be paid based on how much revenue the business has earned. Make sure your business is registered with HMRC, so they know you are trading. It doesn’t matter whether you’re a sole trader or a limited company, this must be done. You must register within three months of starting to trade.
7. Create your website: Make sure you have a customer-centric online store set up so purchasing your goods or services is straightforward. Sites such as WordPress, Squarespace or Shopify all have easy to use templates. Then you can list your products or services and start selling! Keep your website up-to-date and don’t forget to work on your SEO so you can be found. When you don’t have a shop front, you’ll need to work harder on your online presence to gain customers.

What are the advantages of online businesses?

Running an e-commerce business provides many advantages over a traditional run business. Yes, it’s hard work - but it’s also very rewarding. You can control and expand where your product is sold, which clients you work with and how you want to market your brand. One big advantage is that most e-commerce businesses can be set up from home on your laptop! There’s no need to pay for office rent or travel costs. It couldn’t be easier to get started.

Where do I get support if I want it?

To get help with your e-commerce startup or accelerating growth in your established e-commerce business, get in touch with David Masih, our client relationship partner. David can explain how our business advisory services can benefit your business during a no-obligation chat today. Call 03330 067 123 or email info@onthegoaccountants.co.uk.

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