Whether you're starting your first company or moving an existing one onto the web, it's important to understand the ins and outs of building an online business.
Ecommerce sales continue to boom post-pandemic, and they're only expected to increase as customers seek convenience and accessibility.1 By starting an online business, you can open up a new source of income and tap into an audience of customers who are ready to buy.
Here, we'll unpack what you need to know before embarking on this new venture.
The most important steps to start an online business include the following:
Read on for what you should know.
Every great business starts with an idea. If you're still deciding on a concept for your business, you may consider:
Once you have your idea, you'll want to conduct research to make sure it's viable. Here's an overview of how to do market research for an online business:
Any online company needs a website. It's the front door to your business and the gateway to your products and services.
You can make an online website yourself using a platform like Squarespace or WordPress. Or you can pay a designer or developer to create a website for your online business. Your decision will likely depend on your budget and level of customization needed.
If you're comfortable using web design software, for example, you may try building the site yourself. But if you need a multi-page, interactive site and you have the budget, you can hire an expert to lead the process.
You'll need a domain name to launch your website and point customers to a dedicated URL for your business. You can use a domain hosting site like GoDaddy.com to purchase a domain and find the right one for your business.
For guidance on how to choose a domain name, ask these questions:
Make sure your website is designed to be compatible with both desktop and mobile devices. So if you're on a DIY design or hosting platform, use the mobile-optimized templates and previews to test your website layout for small screens. You can even use Google's Mobile-Friendly Test to see if your site is ready.
It's also important to design a website that's intuitive and easy to navigate. Keep copy simple and informative, try to avoid overloading your pages with too many visuals, and ensure the navigation bar is always visible. Taking these steps can help create a better user experience for customers and reduce cart abandonment.
Once customers are ready to buy, you want the checkout process to be as smooth as possible. That’s why you'll need to set up and customize a shopping cart integration on your website.
Ideally, this checkout functionality should:
Depending on the number of products you offer, updating each piece of inventory on your ecommerce platform can be a time-consuming task. That's why you may use an inventory management solution to track sales, shipments, invoices, returns, and availability from one place.
With an automated management platform, you can see changes to your inventory in real time. This way, you can better regulate your volume of products to match customer demand.
Be aware of the legal hurdles and potential risks that come with starting an online business. For example, you'll want to make sure you:
Since these requirements can vary by location and industry, it's important to research the specific legal regulations that apply to your business. You may also consult with a small business attorney to provide guidance.
With your ecommerce website set up, you can leverage strategies to drive traffic to the site and start generating revenue.
For example, you can grow your business with social media outreach, affiliate marketing, influencer partnerships, and email newsletter subscriptions. You can also use SEO tactics to get your website listed on the first page of search results.
There are plenty of online business ideas out there to provide inspiration and help get you started on your journey, including:
You can also check out these small business success stories for helpful ideas.
Starting a business can seem overwhelming. But you don't have to do it alone. PayPal provides a range of tools to help you start selling and keep growing.
First, you can open a Business account and get set up in minutes. PayPal is also integrated with the most popular ecommerce platforms, including Shopify, GoDaddy, and BigCommerce, so accepting payments is a breeze.
Once you open your account, you can streamline your business with other helpful solutions. Use PayPal Checkout to securely accept a range of payment methods or PayPal Pay Later to help customers pay in easy installments. And create, send, and track invoices right from the PayPal Business app.
In partnership with three expert business owners, the PayPal Bootcamp includes practical checklists and a short video loaded with tips to help take your business to the next level.
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