• How To Start An eCommerce Business Mar 21, 2021
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    So, you’ve decided to go for it, start a business and sell products online for the first time.

    Congratulations! This easy guide will help you learn exactly how to start an online business.

    We’ll go through each step, from setting up your website and how to market it to what kind of business you should legally register as.

    Let’s get started.


    You hopefully already have some idea of your business model.

    Businesses fail all the time due to a lack of planning, so you shouldn’t rush this – think everything through carefully.

    More specifically, planning how to start an eCommerce business means you should have a firm idea of your audience.

    Who are you selling to?

    This will affect the kind of site you create, how you design it and how you’ll market it to them.

    Beyond that, what makes your website special?

    This is called its USP, or unique selling point – the reason someone would visit it over Amazon, eBay or anywhere else.

    If you don’t have a good answer for this, you should get one before launching.

    Figuring out how to start an eCommerce business that will hit the ground running also means getting your supply chain functional before you go public.

    If you already have a supplier lined up, that’s great, but if not, consider looking on sites like Aliexpress to find a third-party drop shipper who can help fulfill your orders.

    Domain names and registration

    Getting a website domain name

    We’re now getting into the practical details of how to start an eCommerce business.

    The first step is registering a domain name: this is like a plot of land where your company’s website is going to live.

    There are three things to know about domain names:
    • They’re your website’s chance to make a good first impression
    • You can’t change them once you’ve bought one (without ruining your website's SEO progress)
    • Some are more expensive than others
    In other words, you should think about your domain name for a while before you buy it.

    You want one that captures the name and purpose of your business, but isn’t too competitive (unless you have money to burn, that is).

    Prices of domain names can vary depending on the provider, so you're always best to compare.

    Registering your company

    The next step in preparing for how to start an online business is to register your business.

    There are 3 main options for online trading – sole trader, limited companies or partnerships.

    Each comes with different responsibilities and benefits. Registering as a sole trader is easiest, but it ties your personal funds to the business, which entails risk.

    Starting a limited company means you’re at less risk if the company goes under, but you have more duties when it comes to reporting your finances.

    You’ll also have to pay more fees and taxes than if you were a sole trader, where you simply keep all your profits.

    For new entrepreneurs, it’s usually best to start off as a sole trader because of how quick it is to get started.

    You can always register as a limited company later if you want to expand your operations or hire employees.

    The UK government’s website has information on setting up a business and the requirements.

    Your new eCommerce website will also need to comply with data protection law.

    Do you need an internet merchant account?

    If you research how to start an online business yourself, you might get confused by the mention of ‘internet merchant accounts’.

    To put it simply, these are like special bank accounts online traders use to help reduce fraud. You need one to accept card payments online.

    However, if you use a website builder to create your site, they’ll let you link with several ‘payment processors’ or ‘payment gateways’, like PayPal or Square, which skip this step by acting as big merchant accounts for all their users.

    To make your own life easier, you should make sure to choose one which handles all of this for you.

    Choosing a website builder

    Once you’ve got your domain set up, the next step is to decide how you’re going to create your site.

    The easiest and cheapest option is using a website builder, which lets you make a site with a visual editor, rather than manually writing computer code.

    There are several options out there, so it's best to use a website builder that matches your requirements, as there is no one-fits-all. Here's a useful guide to give you more information on website builders.

    Website builders enable you to get your site online in a matter of hours, not days, and you can see exactly what it’s going to look like before you take it public.

    This is because website builders typically offer free templates that you can use and modify to take most of the hard work out of creating a site’s basic design.

    If you’re unsure which website builders are best, you should check out our comparison page to learn more about what you should expect from the products you find online.

    A big benefit to using these sites is that they’ll often also ‘host’ your site.

    One of the more confusing parts of learning how to start an online business is realising that simply creating a site doesn’t mean other people can see it.

    It first needs to be hosted, which means putting it on a server that other people can download it from.

    It’s possible to host a site on your own computer, but you likely don’t have the specialised hardware or internet connection necessary.

    Instead, you should let website builders or dedicated hosting services handle this – it’s cheaper and easier.

    Creating the website

    Alright, you’ve chosen a builder. Now for the fun part – actually creating your site!

    You might have been planning website designs since you first decided you wanted to learn how to start an online business.

    If so, now’s the time to start putting it into action.

    If not, try looking through the website builder’s library of pre-made templates for inspiration.

    You’ll be able to change your mind later, so don’t worry about being locked into your choices just yet.

    You’re going to want eCommerce features on your site, so it’s a good idea to choose which payment provider you want at this stage.

    You don’t want to leave it until later and find out that the payment portal doesn’t work with the design of your site.

    Different website builders work with different payment processors.

    Once you’ve verified that the payment system is working, it’s time to start actually adding products to your catalog.

    This process differs slightly depending on your platform, but the basic principle is always the same.

    You’ll need to fill in the product’s title, its category, if it has any variants (different colours, for example), prices and amount in your inventory.

    Many website builders also offer inventory managers that will handle some of this work for you.

    With all of your products filled in, take a look around your site. If everything looks OK, go ahead and launch it – congratulations, you’ve just started your online business!

    Marketing your website

    Once your site is live, you might think it’s finally time to sit back and relax for a moment.

    Unfortunately, your work is only just beginning!

    When learning how to start an eCommerce business, nothing is more important than understanding how to market your hard work.

    Digital marketing is fundamentally different from traditional advertising. Pay-per-click models, like Google Ads, make it more economical for small businesses to start ad campaigns right away.

    Rather than relying on word of mouth, you can kickstart your site by buying spots in Google’s search results for keywords relevant to your content.

    But what if you don’t want to pay? That leads into the complex topic of Search Engine Optimisation, or SEO.

    Without turning this blog into a novel, it's going to be impossible to discuss SEO. But please know that it is vital and it takes time to see results.

    Social media and email marketing are also vital, regardless as to what sector you're in.

    I this blog gave you some useful things to think about?

    If you're setting up a new business, here's a helpful guide and checklist of everything you need to do.

    Good luck!
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