Blog: Starting an online business (and making it successful) — Company Address

4 Dec 2017

Every business needs to devote time, money and effort to their online presence. With a rising number of businesses operating entirely online, there’s an opportunity for entrepreneurs to start a successful business without the overheads of a physical location.

Starting an online business is very different to opening an offline business. While your company will be a legal entity just like any other, it will look very different in terms of budget and assets. Some businesses might run completely online with no need for any physical premises or assets beyond the founder’s home office and computer!

In this guide, we’ll take you through the process of starting an online business that’s set up to succeed. We’ll start with advice on research and website development that will apply to any business type. In the second half of the guide we’ll shift our attention to ecommerce, as dedicated ecommerce businesses are unique and tricky to run well.

Of course, any business needs an address with which to register; all of our address services are available to online businesses to use as addresses with which to register with Companies House, and mail forwarding and virtual address include mail handling services, too.

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How to start an online business - the fundamentals

These tips will help anyone looking to start an online business, whether you’re selling novelty hats or downloadable software. Even if your business won’t be exclusively online, the steps relating to website design and build will still be useful.

This guide assumes you’ve already researched and registered your business. You can find out how to do this, along with more general tips for setting up a business, in our guide to starting a successful business.

1. Secure your domain name

Online businesses must consider their website domain when they’re in the process of choosing a company name. Other companies have an identity apart from their websites, but online businesses don’t. Your website is your shop and the domain name is the high street sign.

It is a common misconception that it’s a good idea for your domain name to match the top search terms for whatever you’re selling. This idea explains why you might see a domain like www.cheapcarinsurance.co.uk for a company that’s actually called something completely different. The thinking was that an ‘exact match’ domain ranks better in search, but this is no longer true.

It’s far better for your domain name to be as close to your business name as possible. It’ll be easier to remember and there’s less chance of someone accidentally visiting a competitor’s site when they’re trying to look for you.

Make sure you choose a good domain before proceeding any further. It might be costly to buy a domain that’s more common, but most reasonable prices will be worth it for the benefit it will bring.

2. Choose the best website platform for your site

Wordpress? Magento? Drupal?

There’s no single ‘best’ website platform to build your site on, but different platforms will be better suited to some types of business than others. When choosing which is the best for your site, you should consider the needs of your business and how the platform meets those needs.

Most entrepreneurs who lack their own design and coding skills will outsource web development. This is a good tactic, but it doesn’t mean you shouldn’t consider some technical aspects yourself. Having a working knowledge of different platforms will give you a higher chance of ending up with a website that meets your business needs. This will help you to maintain it in the future without the need for an agency or dedicated employee.

There are three very popular platforms for online businesses. The list is nowhere near exhaustive, but it’s a start:

Wordpress: A versatile and easy-to-use platform, Wordpress is used by countless businesses of all shapes and sizes. For easy content publishing there are few better options. The platform can be customised easily with various plugins, including Woocommerce, which allows you to sell products through your Wordpress site. It’s a great choice for most service-based and lead-gen businesses. Ecommerce businesses selling a limited number of products should also consider it.

Magento: One of the largest ecommerce platforms, Magento is the go-to option for many big ecommerce stores. Not many platforms make it easier to upload new products and categories. The interface might not be as nice as Wordpress, but it’s not hard to master. If you have a large product range to start with, or you think your range will expand significantly in the future, Magento is worth a look.

Drupal: This platform can do all kinds of things, but it’s much trickier to use than Wordpress and Magento. A high level of technical ability is required to make it do more than the bare minimum. If you have a background in web development, Drupal is a flexible, powerful CMS that will give you a lot of control over your site. If you lack the technical knowledge, sticking to a more user-friendly option might work better.

3. Competitor website analysis

Now that you have a domain name and platform to work with, competitor analysis will help you to refine the specifics of what you want the site to do.

You need to identify what competitors do well that your website should also do, as well as what you could do better. Having done the research for your platform, it’s likely that you’ll have some idea of what your website can and should do. Understanding your competitors will make sure that you’re reaching the industry standard in doing so. Take the best elements and improve the worst elements of competitor sites to lay the foundations for an industry-leading website.

These are some aspects of competitor websites that you should pay particular attention to:

Colour and branding
Site functionality (what can or can’t it do?)
User journey (how does the user go from entering the site to completing a key goal, such as filling out an enquiry form or buying a product?)
Site speed (the faster the better)

All of the above are key metrics in site performance or design aspects. They are what consumers will use to judge your site and, by extension, your business.

4. Design and build your perfect site

The heading might look intimidating, but as we noted previously, you should outsource this stage if you don’t have the time or skills to do it yourself. What’s important is that you’re involved in the planning process. You should be happy with the way the developers and designers are going about creating your site.

Working with an external web team should be a collaborative exercise. They should know their stuff, so they should know how to manage the process, but as the business owner you should also have a good level of input. You know your niche better than they do and, if you’ve done your research, you’ll have a good idea of what works for your industry.

It’s important to arrive at a website that you’re happy with as the owner and that your agency is happy with from a professional point of view. If you tick those boxes the chances are good that you’ll end up with a great site.

5. Populating the site

Populating a site means adding essential content to it before it goes live. This includes any informational or service pages, enquiry forms, a full product/service range (with each product in the right category) and complete product pricing details.

You will also need to ensure that the right legal documents, such as privacy policies or terms and conditions, are in place. Contact details are a must. Having an address on the site that they can reach you at is good practice and a good trust signal, even if it’s not strictly necessary given the online nature of your business. A virtual office address can be a great solution if you don’t have an office.

Starting your online business with high quality, accurate content puts you in a strong position to maintain that level of content in the future.

How to start an ecommerce business

Ecommerce businesses are an important subset of online business with a unique set of requirements. For example, unlike service- or software-based businesses, they require physical stock and somewhere to keep it.

And while lead-generation businesses only really need to focus on their own site and, perhaps, a couple of quality directory listings, there are numerous places online for an ecommerce business to sell its products. Your own site, eBay, Amazon, Etsy (for some) and Google Shopping are all options.

Knowing where to sell your products, how to market them and how to match all of that up to physical stock lists and delivery commitments means that starting and running and ecommerce business takes a lot of careful thought.

The rest of this guide will focus on ecommerce businesses. We’ll start with some tips for your own site and business management, then touch on alternative ways of selling your products at the end of the guide.

Trust signals

Trust signals are anything that you can use to show new customers that your business is trustworthy and dependable. They reassure customers that you’re not going to run away with their cash, that your products are high quality and that their transactions are secure.

The quality of your website is one of the biggest trust signals. A good site will give new visitors the best first impression, making them more positively disposed to your business as they browse. Make sure your products are clearly visible, that the website is easy to use and that any USPs are prominent.

The importance of high quality photography cannot be stressed enough. Good photographs should show your customers exactly what they’re buying, especially if you’re selling unusual products or products that your business has made itself. Have a look at this product from MVMT watches to see a perfect example of high quality photography.

Reviews are the secret currency of the online world. We all like making money, but if you want to keep making money, you need to do everything you can to encourage positive user reviews.

Reviews are powerful. They influence pretty much every step of the sales funnel, from deciding which product to buy, to deciding which website to buy it from. There are a number of ways to gain reviews, from hosting a reviews page on your own site to Google reviews and external companies like Feefo, but whatever platform you choose, make sure your average rating (or something similar) is prominently displayed on your site. Of course, it’s another story if your reviews are bad, but if that’s the case it should be a priority to turn that situation around.

Awards and accreditations might not be immediate priorities, but as your business gains momentum you should aim to pick up some kind of certification. Being a Google-certified shop, for example, will help reassure customers that your business isn’t a front for a scam and gives an avenue for feedback at the same time.

A secure payment gateway is a must for an ecommerce store. Common examples include WorldPay, SagePay and PayPal. If you’re using a known, trusted gateway it can be beneficial to include the logo somewhere on the site like the footer or in the checkout process. Doing so will add an important level of legitimacy to your ecommerce site, especially for first-time customers.

Where to store your stock

Ecommerce businesses differ from other online businesses in that they require some amount of physical space outside of your home office. If you’re selling physical products, you need somewhere to keep them. An important part of setting up a successful ecommerce business is finding a convenient, cost-effective storage location.

For some ecommerce founders, they have all the space they need at the start right there in their own home. This might be in an unused garage or a spare room in the house. As you build your business from the ground up, having all of your products at hand all the time saves you time and money.

However, not everyone has the space in their home. If you’re running your business from a city centre apartment, it’s unlikely you have an empty double garage that you can keep all your stock in and even if you have this space, there may come a time when the business outgrows your home.

In these cases, off-site storage of some description is necessary. Various commercial and temporary storage units are available for low prices - and we have no vested interest in saying that! Before you can buy or rent your own facility, a storage unit close to your home or office is likely to be the best option.

Selling on alternative platforms

While we would always recommend setting up your own ecommerce website (allowing you control over what and how you sell, as well as your branding) established ecommerce platforms eBay, Amazon and Etsy can all help you to grow your business and gain exposure in front of ready-made audiences.

How to sell on eBay

Selling on eBay is as simple as setting up a free eBay seller account and listing products following an easy, step-by-step process. Once you’ve set up an account, click ‘sell’ at the top of the screen (if on desktop) and go from there. If you’re on the mobile app, it’s even easier.

Most ecommerce businesses will benefit from setting up a shop rather than a private account. A shop is essentially an ecommerce site set up within eBay. With a shop, businesses still sell items and fulfil orders through eBay’s site, but it allows all your products to be seen in one place and for some company information to be published. For a great example, take a look at the GoPro Certified eBay shop.

When selling on eBay, there are several things to get right:

Product images. As with your standard ecommerce store, good product photography is key. Your photos should be clear and informative, showing the exact condition of your products.
Product titles. Most eBay shoppers use the site’s search feature. In order to show up, you need to choose descriptive, accurate product titles that match searchers’ keywords.
Product descriptions. Make your descriptions informative, direct and persuasive. Include key information about the product and anything that will make a shopper choose you over another seller (like delivery speed).
Pricing. eBay is a competitive market where consumers can compare different offers very easily. Your products have to be priced competitively or you’re not going to sell anything.
Paid promotion. eBay offers some paid advertising features to its members. If you have a key product to boost or you need awareness quickly, consider using paid methods to give you a helping hand.

Many ecommerce stores sell on eBay as well as their own site. You don’t have to choose one or the other. Yes, there are fees that come with being a shop on eBay, but you’re paying for access to the millions of people around the world that use this established shopping platform every day. It’s sort of like a physical shop paying a premium to be in the shopping mall rather than a side street.

How to sell on Amazon

Like selling on eBay, selling on Amazon is a way to reach more people with your products. Many of the same considerations apply. The retail giant lays out a 5 step process for selling on the platform:

Register for a seller account. This requires a credit card and bank account, along with company and contact details.
Upload product listings. Amazon mentions using web-tools and text files to upload product listings. Much of the optimisation we mentioned for eBay is a consideration for Amazon.
Customers see and buy the products.
Sellers deliver the products.
Amazon sends an email notification whenever a product has been bought, as well as an update in the Seller Central dashboard. Payment is received. Amazon pays the balance of the sales (minus fees) into the registered bank account.

A further consideration with Amazon is their Fulfilment By Amazon (FBA) program. This is where Amazon actually keeps sellers’ stock for them and fulfils the delivery, which means these products are eligible for Prime delivery as well. Using FBA means handing over a big chunk of control to Amazon. There are benefits, of course, but you’re also sacrificing a lot of autonomy.

How to sell on Etsy

Etsy is another popular option, but won’t work for everyone. According to their own FAQs, the site ‘provides a marketplace for crafters, artists and collectors to sell their handmade creations, vintage goods (at least 20 years old) and both handmade and non-handmade crafting supplies.’

If your business falls into one of those categories, Etsy provides you with a highly engaged audience who are looking to support businesses like yours. Creating a shop is a simple process akin to Amazon and eBay and, like eBay, comes with the ability to create your own unique, branded shop within the Etsy site.

If you’re selling unique products that people won’t be searching for ordinarily, Etsy is almost always going to be a better option than eBay and Amazon.

Comparing alternative selling methods

	eBay	Amazon	Etsy
Use for	Most products	Most products	Unique, handmade or craft-related products
Fees	From £25 to £269 + additional fees if allowances are exceeded	£25 + additional fees depending on product and sales	$15 (approx. £11) for an Etsy Pattern Shop + £0.15 per listing, 3.5% of total transaction & 4% + £0.20 for payment processing
On-site shop	Yes, fully branded	Yes, minimal branding	Yes, fully branded (and option for Etsy Pattern Shop)
Monthly users (US, March ‘17)	96 million	183 million	32 million
Seller control & visibility	High. Lots of ways to optimise products and a fully unique shop.	Low. Often competing on the same product listings as Amazon and other sellers. Minimal branding in shop.	High. Lots of ways to optimise products and a fully unique shop.

There are lots of different ways to set up and run and ecommerce business. The best advice we can give is to do extensive research and consider what is right for your business given the products you sell and your competitors’ activity. Fulfilment By Amazon might be perfect, or it might be best to ignore these platforms altogether.