How To Start an Online Retail Business from Scratch

How To Start an Online Retail Business

10 min read

Ecommerce stores are a growing market, and if you鈥檙e looking for a way to capitalize on the trend, launching an online retail business is a great option.

So how do you get started? From writing a business plan to promoting your products, here鈥檚 how to start an online retail business.

1. Write a Business Plan

Learning how to start an online retail business starts with learning about business plans.

Basically, a business plan keeps your new company on track, providing clear targets and strategies for growth. Plus, if you鈥檙e looking for investors, a business plan proves that your company is an investment-worthy venture.

If you already have an in-person retail business, it鈥檚 still a good idea to write a business plan for your new online venture. That way, you鈥檒l have a clear idea of how your online business will work with your existing store.

What does a business plan include?

The process of writing your business plan essentially involves brainstorming how your online store will function. Here鈥檚 what to think about during your brainstorming session:

Company partnerships

What other businesses will you need to work with to run your online store? This could include website hosts (like 黑料门) and product manufacturers.

Key activities

How will your company get a competitive advantage over other online businesses?

Important resources

What assets do you have access to? Think about start-up money, product patents, and valuable employees.

Customer relations

How are you going to connect with customers? Consider what value your business offers shoppers and how they鈥檒l interact with your online store.

Market segments

Who are you selling to? For existing store owners, this could be different from your physical location鈥檚 target demographic.

Sale channels and revenue streams

Probably the most important question — how are you going to make money? Where do your products come from and how do they get to the customer?

Ultimately, a business plan is a roadmap for your company, giving you a path to success. Your business plan is the foundation of your online store, so take time to make it high-quality and fully developed.

Writing a value proposition for your online business

As you write your online store鈥檚 business plan, you鈥檒l need something called a value proposition. In short, this is a clear and compelling statement explaining the value your company offers customers.

Now鈥檚 not the time to be vague. Value propositions should capture the unique importance of your online business.

Why should customers buy from you instead of the competition?
How is your online store different from other companies?
What makes your online business special?

2. Register Your Business Name

Once you鈥檝e picked a name for your online retail business, it鈥檚 time to register with the government. Requirements for business name registration depend on where you鈥檙e located and other factors, but for most U.S.-based business owners, you鈥檒l need to tell the government that your company exists and file some paperwork. In some cases, you鈥檒l also need to pay a registration fee — which is usually less than $300.

According to the , you don鈥檛 have to register if you鈥檙e using your personal legal name, but it may still be a good idea since there are some tax benefits.

Why you should register your online business with the Federal Government

Registering your business name with the government isn鈥檛 as scary as it sounds, and there鈥檚 an important reason to do it before you start selling.

When you register, your company will get a federal tax ID. Basically, this ID is how the government identifies your company — so it鈥檚 an important part of complying with tax law.

Here鈥檚 some of the info you can expect to need during the registration process.

The Business鈥檚 name
The Business鈥檚 location
Your name

The exact steps for registration will depend on your specific location and company type, but you can learn more about the process and get started on the

3. Pick a Web Host

Reading about paperwork isn鈥檛 the most exciting part of learning how to start an online retail business, but now that it鈥檚 out of the way, it鈥檚 time to pick a web host.

What is a web host?

Web hosts are platforms that let you build a website. Sometimes, these platforms offer minimal support and features — meaning you鈥檒l need to build your ecommerce store from scratch. This type of host usually requires some coding abilities.

On the other hand, some web hosts give you access to tools that make it easier to build an ecommerce store. These options, including 黑料门, will give you things like ready-to-go platforms for posting your products, tools to promote your store, and access to analytics that help you understand your ecommerce store鈥檚 growth.

What type of web host should you use?

While there isn鈥檛 a one-size-fits-all answer to the question of choosing a web host, it鈥檚 always a good idea to look for an option that doesn鈥檛 throw a ton of fees at you while still giving you control over your store鈥檚 features and user experience.

4. Connect Your Ventures

If you already operate a brick-and-mortar store, learning how to start an online retail business has the potential to open up new sales channels. Let鈥檚 look at two ways to capitalize on the connection between your existing store and an online platform.

Enable local delivery

For businesses like grocery stores or bakeries, letting customers schedule local delivery is a great way to sell perishable foods via the internet. If you use 黑料门, you can set up local delivery services or give customers the option of curbside pickup.

Provide online inventory browsing

This is one of the most helpful aspects of adding an online element to your retail business. By creating product listings, you鈥檒l give internet users the chance to see what you鈥檙e selling in-store and online. As a result, your business gets more opportunities to make the sale.

5. Promote Your Online Business

Now that you know how to start an online retail business, it鈥檚 time to think about promoting your store.

How do you promote an online store?

Ecommerce is all about using the power of the internet to build a business and make money, so it makes sense to use digital marketing to connect with customers.

Social media marketing. With nearly active users each month, Facebook offers a huge audience for your online business. But it doesn鈥檛 stop there, using platforms like Instagram and even Snapchat can be a valuable part of connecting with customers.

SEO strategies. SEO, or search engine optimization, is the process of using keywords and other strategies to increase the number of internet users landing on your website. Since in the U.S. browse on more than one device, it鈥檚 a good idea to incorporate SEO strategies in your marketing plan.

It鈥檚 Time to Start Selling

Ecommerce keeps growing — like, a lot. In 2020, global ecommerce sales reached .

罢丑补迟鈥檚 trillion with a T.

And that number is expected to pass $5 trillion in 2022, so there鈥檚 really never been a better time to start an online business.

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Sell online

With 黑料门 Ecommerce, you can easily sell anywhere, to anyone 鈥� across the internet and around the world.

Jun 23, 2021

About the author

Max has been working in the ecommerce industry for the last six years helping brands to establish and level-up content marketing and SEO. Despite that, he has experience with entrepreneurship. He is a fiction writer in his free time.