How To Start an Online Store in 2024 (The Comprehensive Guide)

Ryan Patrick

Jun 20, 2024 • 18 min read

Technology has shifted most activities from the traditional ways of operation to digital. Today, how we work or do business is different from the way it was a decade back.

Although brick-and-mortar businesses are still in existence, online stores are slowly taking over. Business owners who haven’t transitioned their business to digital platforms might not be enjoying the same profit margins. WHY? You may wonder. Creating an online presence allows a business to meet more potential customers. With the right channel, content, tools, and guidance can influence conversions leading to more profits.

Creating an online store can be daunting for beginners, but with the right information, the venture is rewarding and profitable. An online store will not only help you reach a wider audience but also grow your business to new levels.

You can start an online store to sell products from a manufacturer, wholesaler, dropshipping, or unique handcrafts. To attain success online selling any of these products, you need a website or a fully functional eCommerce store.

If you’re wondering where to begin, Incorpuk, in this post will shed light on how to start an online store in 2024.

1. Know Your Target Audience

When starting a new business, your Target Audience (TA) must be your primary consideration. Knowing your target audience increases the chances of opening and running a successful business online. You want to sell products that your TA needs or is interested in, which leads you to the niche market of your products.

If you already know what you want to sell online, it can also lead you to identify your target audience. Without the two, consider an audience you can relate to; choose a brand or product you value and use regularly. Who needs these products? Are there people in your life you can supply with these products?

Like in all businesses, it helps to find a purpose that motivates you and will keep you motivated for a long time. After all, eCommerce is not all about sunshine, but there are many logistical and financial questions you must address.

Reminding yourself why you’re running a business and for whom regularly, you stay on track. Plus, you can establish buyer personas to help you think like your customers and make decisions that resonate with them. Buyer personas can also assist you in making decisions, designing your eCommerce website, and employing the right marketing strategies.

Here are the factors that can influence your target audience:

Demographics - gender, age, education, occupation, and income.
Location - What geographic location will you serve? A specific area is better due to shipment costs.
Interests - Capitalise on the psychographics of your audience like personality, opinions, attitudes, and lifestyle.

2. Choose a Niche

Identifying a profitable niche market is one of the facets of establishing a successful online store. Research different niche markets and analyse the data to determine which one is in accord with the market demand, interests, and skillset. There are three components you must consider when choosing a niche to ensure your new venture takes off running. They include:

Niche Profitability - Success in a business is measured by Return On Investment (ROI) or simply put, profits. Buying a product from the manufacturer or wholesaler at a high price means it has a slim chance of making reasonable profits. Similarly, a product that’s too expensive to ship might be better sold from a physical store than online.
Searchability - The product you’re selling must be what people are searching for. Use SEO to reach your target audience by stocking in-demand products in your eCommerce store. If you’re selling “silicone phone covers”, ensure the exact term is in your keyword search like in product tags, product descriptions or reviews.
Passion/Interests - Let your passion or interest drive you to the kind of products you’ll be selling. A passion is something you love. Going into business to sell something you like means you’re likely to stick with it for a long haul even when things are thick. Plus, dealing with a product that interests you means customers will know you as an expert and are likely to refer others to you.

3. Curate a Product Line

Now that you know the niche market you want to venture into, the next step is to organise your product line. Conduct market research to find trending products, assess consumer demand, and analyse competition.

Go for products that provide a Unique Selling Point (USP) and make your product store unique so it stands out from competitors.

Some of the factors to consider as you organise your product line include availability, quality, and pricing. Additionally, you should make sure you have sufficient resources and infrastructure to handle inventory, storage, packaging, and shipping logistics.

4. Partner With a Dropshipper (Where Necessary)

If you don’t have your products to sell, you can partner with a dropshipper to provide you with the products you want to sell. Starting a dropshipping business will help you launch an online store fast and start selling.

Dropshipping is convenient and you need minimal upfront costs to begin the business, not forgetting managing the business is easy. In a dropshipping business, there are many tasks you don’t have to worry about like manufacturing, inventory, packaging, and shipping.

These tasks are accomplished by your dropshipper and all you have to do is to partner with a reliable manufacturer. Here’s how dropshipping works:

Choose the products to sell in your online store from a supplier
Set prices for the products then list them on your dropshipping website
Shoppers purchase the products from your dropshipping store and then pay on your site
Forward the order and pay the supplier
The supplier ships the order to the customer’s address

5. Create a Brand Name

With the product you want to sell in mind, you must choose a brand name (business name) and then create your brand assets like a logo. For new entrepreneurs, this step might be a challenge.

However, you can do a name search to filter through those you have in mind by registering a domain name. As you search the register, you’ll find out which name is available and you should make sure it matches your business name.

Branding is a vital part of your online success and your brand needs to stand out. Today shoppers are open to the idea of buying from brands they’ve never heard of, but only if they leave a strong impression. Use a strong eCommerce branding strategy to create your business name, logo, and tone of voice. Your online business brand should strongly create a mood for the company you’re creating. These branding factors will be important for:

Your website
Invoices
Emails
Product packaging
Marketing campaigns
Shipping materials

A business logo is easy to create on Canva, and if you’re new, worry not. They have a tutorial to help you design a logo that fits your business. The platform (Canva) has dozens of templates you can customise for your business logo and it’s all free. All you have to do is sign up and start designing. However, if you can’t handle designing a logo, you can outsource the service to a professional from a platform like Fiverr.

6. Choose and Register a Business Structure

Reading this far means you’re serious and stoked about starting your new eCommerce business. However, before jumping the gun, there are some legal things you need to get done to make your business official.

Some of these legal matters include registering a business structure to make it recognised by the government. Registering your business also makes it a legal entity before the law, meaning it’s eligible to get business funding, meet tax obligations, and limited liability. Here are the most popular business structures you can register your online store under:

A Sole proprietorship is a business structure owned and managed by a single entity. Before the law, the business and owner are legally and financially bound together. It’s the easiest form of business to start and run.
A Limited Liability Company (LLC) is separate from its owner in finances, taxes and asset ownership. The owners of an LLC owners keep business and personal assets separate which lowers the risk of losing personal finances.
A Partnership is a business owned by two or more partners. The partners must sign a partner agreement to determine how the business will be run and how profits will be distributed. A partnership agreement also tracks each partner's roles, investments, responsibilities, and rights.
A Corporation refers to an established business with shareholders and employees. There are different types of corporations and they can be initiated by a single entity or a group of people.

Setting up a sole proprietorship business is easy as you can do so without any formal action. However, you must apply for relevant permits and licences in your jurisdiction. You can find the details of the relevant legal documents you need to start and operate a sole proprietorship at the Companies House web service.

Before setting up a partnership, LLC, or corporation, get a business lawyer to explain all the legalities surrounding each structure.

7. Choose a suitable eCommerce Platform

After figuring out what to sell, branding it, and where to source your product, we’re almost in business. Now you need to establish the site you’ll use to list your products.

The site you decide to list your product will be the face of your brand; this is where you’ll have ultimate control over the entire buyer process. From this site, you’ll parade your product, accept payments and handle crucial tasks like forwarding orders to complete the process.

In short, you’ll find all the solutions to your selling online on this site. Thus, you need to get the most dependable eCommerce platform to host your site and don’t be swayed by the loud whistles of a platform. Look through the different choices available and vet them equally to settle for nothing but the best.

Factors to Consider When Choosing an eCommerce Program

When choosing your eCommerce platform, let your current and future needs guide you. Some platforms may be attractive, yet offer short-term solutions, but a reputable channel will get you off the ground and support your future growth. Here are the features to look for when choosing an eCommerce platform:

Usability - Every platform is unique and some are more user-friendly than others. Some platforms are like blank pages that need a developer’s help to set up and sustain while others don’t need any coding skills to use. As a beginner, you choose a template, blocks, and apps to create an online store without complications. You also link your favourite payment method, track inventory, and automate sales and taxes without any issues.
Speciality businesses - Check if the site you settle for supports your kind of business.
Mobile view - A dependable website builder must be optimised for mobile use. WHY? Most people today access online stores on mobile devices like phones. Your shoppers must also be able to pay for their orders via phone. Mobile commerce is now popular and if your site isn’t mobile-responsive, you’ll be missing out on many sales.
Scalability - Moving across platforms may be challenging in future. Hence, you should go for a system that supports your business now and in the future. When starting, consider if there’s room to upgrade with ease to access more professional tools that will help grow your business. Some of these tools include discount campaigns, ads, and pre-orders.
Web security and reliability - Many novice online sellers only consider web security and reliability after falling victim to a disaster. However, security and reliability should come first when looking for a platform to host your website. Can your platform of choice prevent a site crash when sales spike? Is your online store safe from hackers or fraudulent transactions? Some of the factors to look for in an eCommerce platform include public key certification (SSL or TLS). Using a platform with these features helps you build credibility between you and your customers.
SEO - Optimisation is the use of SEO to help your site rank high on Google. Ranking high on search engines can only happen when you use keywords properly in your product description or product reviews. Here are more ways to optimise your site:
Search engines use title tags to rank pages on Search Engine Results Pages (SERPs). It must be descriptive and relevant to the product or service you’re selling.
A meta description is the text that search engines display below the title tag in the SERPs. Use an interesting language that properly describes the product and encourages visitors to click through to your site.
H tags are the headings on your page and they should be descriptive enough to help explain what the page is about.
Images on your page should be clear and properly tagged with keywords.

Build Your eCommerce Website

Since you know the eCommerce platform to use for your online store, let’s create an account on this platform and build your online store. Note that the steps you follow will vary depending on the platform you’re using to build your website, but they’ll involve more or less of these steps:

Go to the eCommerce platform of your choice and create an account.
Select a domain name which is mostly included in a plan and if not, you pay for it separately.
Choose a suitable template or theme.
Add your business name and logo.
Customise your homepage and other web pages - About, Product category, Contacts.
Add products and create a listing.
Include your payment method.
Configure settings like tax or shipping calculators.

When creating your website, you can put all your creative skills to good use. You create a well-branded optimised for conversions. As much as your online store must be impressive to look and feel to your customers, they should also find and access your products with ease to make a purchase.

Tips for Creating Your Website

Your website must be highly responsive and user-friendly to allow users navigate the site with ease to find what they’re searching for: Here are tips to create your website:

Use an eCommerce template to customise your store and make it look unique.
Don’t clutter the navigation bar with many actions to avoid confusing your customers and use terminologies your audience can understand. You can do this by comparing other competitor sites and brands for a smooth user-experience.
Ensure your website follows the three-click rule. It’s a general rule of thumb that the product should be accessible in three or less clicks. Your customers should move from your homepage or landing page to the desired product page with ease. Having to dig through different layers to find a desired product can chase customers away leading to a low conversion rate. Key links like shipping information, contact info and return policy should be in your footer.
Clarity on what you sell will tell your visitors what you’re selling on arrival. Your marketing efforts off the site will help with this, but it all reaffirms through:

Clear page headings
Clear search menus
Use of powerful imagery
Your site’s metadata should include the type of store you are.

5. Write clear Calls-to-Action (CTAs) throughout the buying process to enable customers to know their next action. Use clickable button text and other intuitive and compelling prompts like buy now, get your when they’re still in stock, or add to cart.

6. Write detailed product descriptions. Skimping in your descriptions can make you miss out on selling opportunities. Even if your manufacturer already provides a description copy, ensure you write your original descriptions to influence visibility, return sales and conversions.

7. Be intentional with your product images. It’s not rocket science that product photography is a vital aspect of selling online. Customers will filter through images to determine if they should go on. Thus, they highly rely on your photos to make a purchase decision and if they don’t see what they need from your images, you may lose them. Make sure you use professional photos and videos to display what the real product looks like, feels, its size, and proper use.

Key Pages on Your Online Store

Besides the product pages on your website, there are other critical pages you must set up for your online store to: help build trust, tell a story about your brand, answer lingering questions, and let customers know how to contact you. They include:

The About page is where you capture all small details about your online store to earn trust as a new seller. You can create a connection by introducing yourself as the store founder on a video, providing links to your awards, press mentions, images that explain the supply chain, or anything that helps your customers know you.
Contact page - provide the easiest way for customers to reach you and ask any questions or get support. It can be a phone number, physical address, email address, or contact form and the hours they can reach you. You can also install live chat apps to provide support to shoppers.
Policy pages - Any online business needs a policy page to help customers understand how the business is conducted and what to expect. Your policy page acts as a reference in case there’s a customer dispute and they include:
Return policy. Can a customer return or exchange a product they ordered? Make your return policy generous to increase customer confidence when buying from you.
Privacy policy. Tell customers how the data you collect from them is utilised.
Terms of service. Let your customers know the agreement on how you operate and the rights you reserve.
Shipping policy explains manufacturing times, shipping costs, and delivery speeds to different regions.

Provide a Payment Method

Connecting a payment method to your online store tells your customers how they’ll pay you. Find out if your eCommerce platform has preferred payment gateways then clarify the following:

Payment options. Inform your customers the viable payment methods they can use like credit cards payment services like PayPal, NFT, bank transfers.
Use multiple currencies to sell. Enable a currency selector to convert prices into your customer’s currency for clarity.
Set your preferred payout schedule. Specify when you get paid: weekly, bi-weekly, or monthly.
Fraud prevention measures like provision of a CVV or postal code to verify payment and add an extra layer of security.
Customise your appearance on customer’s bank statements to help them connect to your store.

Get Ready to Launch Your Store

Your store is almost complete, but there are a few steps remaining to make it professional and ready to present it to customers. They include:

1. Buy a Custom Domain

Buying a domain is like securing a piece of land for business on the web and it’s commonly known as a web address. A custom domain has a branded URL unique to the site you set up. You may have purchased one from your eCommerce provider (if they offer it) or buy a custom domain then go to your store settings and update it.

2. Install Relevant Sales Channels

In addition to your own online store, there are additional sales channels you can use to sell your products. Not every sales channel will be relevant for your unique business, but here are some that are worth highlighting:

Point of sale (POS) solutions is the provision of in person payments and a seamless connection of physical retail sales with your online store and inventory.
Social network accounts allow you to sell products on any social media platform where your audience hangs out like Instagram and Facebook, or set up a shop on TikTok.
Marketplaces like Amazon, Etsy, eBay, or Walmart and you can link these channels to your online store.
Google is the most used search engine in the world. The search engine allows you to run free shopping campaigns and a list of your products in the Shopping tab which appears on Google search results.

3. Customise Email and SMS Notifications (Voluntary)

There are automation tools you can use to set up email flows to ensure prompt communication with your customers in every stage of the sale. These tools make sure customers opt into your email list and are in the loop after making a purchase and tracking their delivery. Automation tools help you to increase productivity, provide excellent customer support, and lower customer service debt.

Market Your Online Store

Marketing campaigns will play a pivotal role in driving traffic and conversion sales to your online store. A mix of digital and traditional tactics will develop a comprehensive marketing strategy that reaches your target audience effectively. Here are marketing elements your online store can leverage:

Social media platforms are places where people can share information to a wider audience. Sharing information about your online store will grow your audience organically and when you’re able, you can run paid ads. Here’s how to leverage the use of social media to market your online store and get the most out of it:

Depending on your target audience, you don’t have to use all channels, but only those your audience frequents. If your target audience is Gen Z, TikTok is your best channel while the older folk are on Facebook.
Don’t make your marketing strategies too salesy, but add value to the content you publish. The Ads and branded content you produce should have a seamless flow through users’ feeds alongside content that adds value. Make sure that your audience finds the content helpful and relevant to them.
Consistency is key throughout all social media platforms you use. Plus, the content and ads should be the same as they appear on your online store in terms of colours, images, and voice tone.
Use social selling tactics that enable shopping features on every channel to avoid friction and use your link in bio to direct your audience to other pages. These strategies push followers to find your products on landing pages, content, or special offers.

2. Use Search Engine Optimisation to Boost Findability

Many shoppers use search engines to find out more about a product they saw or heard about. Thus, if your online store is well-optimised, it will be easy to find and compare to others as the customer purchasing journey begins.

If your online store is easy to find online, organic traffic will increase visits and sales conversion. The use of SEO tactics in product listings and product descriptions will help you enhance visibility to potential audiences. Here are more SEO tips to drive traffic to your website:

Use a keyword research tool to find relevant keywords to your business. Use data on search volume and prioritise keywords that are directly connected to your business.
Write content that answers common queries about your product to help it rank on search engines for those keywords.

3. Analytics

Analytics is the data you come up with after monitoring traffic and the sales you generate. From this data, you can tell what’s working and what’s not. Capitalise on selling the products customers love to ensure you get high Return on Investment (ROI).

More Ways to Market Your Business

Marketing is not a one-shoe-fits-all, meaning the strategies you use to promote your online store will depend on the nature of your business. Running successful marketing campaigns involves the strategies below at once and even if not all employing most of them will bring you positive results. They include:

Adding your brand to online directories.
Hiring influencers to promote your brand.
Create social media accounts and remain active.
Referral or loyalty programs.
Use press releases to tell the world about your groundbreaking products.
Become part of an affiliate marketing program.
Try word-of-mouth marketing through friends or family.

Pitfalls to Avoid When Starting an Online Store

When starting an online store, especially beginners, there are mistakes you can make to hamper your success online. To ensure you don’t fall victim to these mistakes, here are some errors to steer clear of:

Lack of planning and research means you get into a business you don’t understand. Proper planning and research will help you understand the niche market, target audience, and your competition.
Poor product selection will leave you waiting for customers who will never show up. The right product choice must be valuable to your target audience, a good profit margin, and easy to source or produce. Don’t overstock or offer items with limited demand.
Inadequate website design will leave your customers stranded resulting in slow or lack of sales. If you can’t create a professional-looking and user-friendly website, hire the services of a web designer to do it for you. Your website should be quick to load, easy to navigate, have clear product descriptions, use high-quality product pictures and have a seamless checkout process.
Ineffective marketing and promotion means your target audience will not hear of your business and they’ll not be showing up. Avoid overreliance on direct traffic but actively promote your online store on different channels on social media, use SEO tactics, email marketing, and targeted advertising.
Neglecting customer service is grave, as it builds trust and loyalty between you and customers. Prioritise excellent customer service by responding to customer questions on time, be professional in addressing concerns, and handling returns efficiently.
Ignoring shipping and order fulfilment process. Don’t assume all is well after forwarding the order to your supplier, but follow up or track the entire process to ensure the customer receives the order in good shape and in time. You can establish a reliable and affordable shipping and fulfilment process to ensure the customer is satisfied.
Underestimating financial management can lead to losses. Ensure you keep an accurate record of expenses, income, and inventory for consistency. Installing financial management tools can help you make informed decisions and ensure profitability.
Failing to adapt and evolve will keep you lagging with unwanted products. You must stay up-to-date with eCommerce trends and customer inclinations to provide the right products. Ensure you improve your website and marketing strategies to suit the market trends and demand.

Frequently Asked Questions

Is there a limit to the number of products I can sell online?

There is no limit to the number of products you can list for sale online. After opening an online store, sales logistics and maintenance capabilities will help you determine how many products you can list in your catalogue.

Can I sell products online for free?

You can sell products for free online sites like Etsy offer free listings for handmade or unique products but there’s a limit to the number you can list. Other platforms where you can sell products online include Craigslist, Facebook Marketplace, or NextDoor.

Will I profit from owning an online store?

eCommerce is profitable for small businesses. Online stores are ideal for owners with minimal upfront investment due to small overhead costs. However, such businesses can be difficult to take off due to stiff competition.

Are You Ready to Make Your Business Official?

Start a limited company with Incorpuk. This platform is loved and trusted around the world, and numerous entrepreneurs have expressed their satisfaction with the team’s prompt and dependable support, creative business strategy, and superior customer care. Being business specialists, we can help you choose the best Limited Company types for your needs and support you through every stage of starting your own company. Contact us today.

In summary

Hopefully, you're now knowledgeable on how to start an online store in 2024. If you’re planning to start a business venture online, you can sell anything from handcrafted products to digital products.

Starting an eCommerce business is a work in progress and the more you sell, the better you become and your business will grow.

Before thinking about profits, it’s crucial to understand what you’ll be selling, to whom, and where to source the products. Do thorough research on these issues so that you know which eCommerce platform to join and the product you’ll be dealing with.

Setting up an online store is easy, but you must make sure the products you’re selling are valuable to your audience. If you don’t have a product in mind you want to sell, you can begin with products you use and know their benefits. As a result, you can tell people about a product you know too well, make good sales, and make more profits. If you have questions about how to start an online store, kindly contact one of our experts here.