Online retail in the UK has been gaining ground in the past decade and the value of online retail sales in the UK was estimated to be worth £106bn in 2022.1
Setting up a new online store website can be easy and beneficial for your business to start selling online. Many long-established brands have successfully developed ecommerce platforms after selling solely in-store for many years. More recent start-ups have taken advantage of selling online from day one. So they can target their niche markets effectively.
Why start an online store?
Even if you already have a website for your business, you could see many benefits from selling your products online:
- Attract new customers and more sales – the right ecommerce platform can make it easier to reach your target audience and expand your customer base.
- Widen your reach – an online shop allows you to take international orders from your ideal customer, not just those from your local area.
- Boost profits – ecommerce costs are low and your shop is available 24/7.
Building an ecommerce platform isn't without challenges. Even if you take security precautions, there’s a risk of fraud. Establish how your online business operation fits with other sales channels. Are you going to charge the same prices online as you do in-store? Consider how your business structure will support these decisions.
Disadvantages of selling online
- The costs of setting up a website, including hosting fees, security certificates and custom domain charges.
- Heavy reliance on digital marketing, there’s no physical store for potential customers to walk past so you’ll need to take your shop to customers. And that can be expensive – for example, if you are using paid advertising such as Google Ads.
- Technical issues – there’s always the potential for something to go wrong. This could effect your website from working correctly and prevent people carrying out purchases.
- Security – online stores can be a prime target for criminals to steal payment data so you’ll need to invest in robust protection.
How to create a successful online store
- Product pages with detailed product descriptions and high-quality images – clearly display what you sell to engage shoppers.
- Payment processing, so your business can accept payments online, usually by credit card.
- Have an online store FAQ and handle enquiries effectively to address customer feedback and questions.
- Stock control – do you want to display stock levels online?
- Shipping rules and returns can be complicated and expensive, whether you’re sending items abroad or within your country.
Building an ecommerce store
There are three main ways to build your ecommerce platform:
Online marketplaces
Sites such as eBay and Amazon, and more recently Facebook and Instagram, offer marketplaces where you can sell online. Because these channels take care of all the important online shopping functions, it's easy to get started. You also benefit from Google Search Engine Optimisation (SEO) and search engine rankings by being visible on one of these popular marketplace sites. But, they can lack flexibility and can be expensive because they take a cut of every sale you make.
E-commerce Services
These website builder packages include everything you need to set up your own online store. Services like Square Online provide templates allowing you to add product categories and descriptions, offering ways to get started if you don't already have a website.
Shopping cart systems
Shopping cart systems are designed to add online shopping functions to an existing website. They offer flexibility for small business owners, allowing you to build an entirely customised online shop. The downside is, they take longer to set up and are typically more expensive.
When evaluating these options, think about how well-suited they are to the type and volume of products you sell. For example, some marketplaces and ecommerce platforms restrict the number of items you can offer for sale.
Web hosting
Whatever website builder you choose, you need to make sure your web hosting is reliable. A slow or unresponsive site will not only mean customers may go elsewhere. It can also negatively impact how your site ranks with Google and other search engines.
It's often essential to keep costs low – especially if you're starting with ecommerce sites.
Payment options and processing
Your online shop will have to be able to process payments. If you have a ready hosted package, payment processing will likely be included. If it doesn’t, you'll need to find a payment service provider (PSP) such as PayPal, Apple Pay, SellerDeck and WorldPay. Most offer similar key features but make sure you understand the level of fraud protection. Also, check how the feature can be integrated with your online shop.
We advise that you get started with a credible platform that customers recognise, such as PayPal. However, they charge processing fees for every transaction for smaller online retailers.
Make sure your online store follows the UK's rules for handling credit card data, known as the Payment Card Industry Data Security Standard (PCI-DSS). If you process payments through a PSP, it’s easier to stay compliant because customer data and personal and business assets are protected.
How to promote and market online stores
The final thing to remember when planning how to set up an online shop is marketing. Marketing campaigns become much more of an investment – you need to increase your marketing efforts to get your shop noticed. Your brand assets and marketing strategies are crucial.
If you've chosen to set up your ecommerce site, SEO techniques can help boost your shop's visibility in search engine results pages. Additionally, setting up profiles on social media is an easy and effective way to promote your online store. You can share promotions, highlight new products, and connect with your followers to boost web traffic, gain repeat customers, and build a profitable online store.
Click here to find out about ecommerce insurance.
Sources
1. statista.com/online-retail-sales-in-the-united-kingdom
