Imagine you run the most sought-after cashmere sweater brand in town—every new drop has customers lining up, eager to get their hands on the next one. You’ve mastered production, built strong relationships with manufacturers, and created a product people love. But why stop there? With the right strategy, your brand could reach customers across the country and around the world.
That’s where e-commerce comes in. By taking your business online, you can scale beyond local demand, tapping into a global market of cashmere lovers who are just as eager to buy. You can turn your local success into an international brand with the right digital strategy—effective marketing, seamless logistics, and a well-designed online store website.
Business owners love running an e-commerce brand because it allows them to work from anywhere while building a business around something they genuinely care about. Whether it’s a product they’ve perfected or a service they’re passionate about, e-commerce allows them to reach customers worldwide without being tied to a physical storefront.
What is e-commerce? Why get started in it?
E-commerce is the buying or selling of goods online rather than at a brick-and-mortar store. This shopping style has transformed how we shop, making it easier than ever for businesses to reach customers anytime, anywhere.
Whether through search engines, social media, or online marketplaces, consumers can explore and purchase products with just a few clicks—often at lower costs than in traditional stores. Websites today are designed to fit mobile and desktop sizes to make shopping easier and more accessible for users.
In Australia, e-commerce took off after the pandemic. Last year, online spending hit a record AU$56.07 billion, with fashion leading the way at AU$11.64 billion. Clothing (45%) and shoes (33%) were the most popular online purchases. With digital shopping habits continuing to rise, forecasts suggest Australia will have around 23.14 million online shoppers by 2029—a significant increase from 2020. So now is the time to seize and open an online e-com business.
How to start an online business in Australia
Now, let’s say you have a business with solid financial backing ready to be launched, you’re looking to switch to online selling rather than in-person shopping, or you might be starting a fresh business from scratch. No matter the stage you’re at, these are the steps you should consider:
Conduct market research
Markets can be highly competitive, so thorough research is needed before launching your e-commerce business. Understand who your competitors are and what they’re doing because it will help you identify ways to stand out. Pay close attention to industry trends and consumer behaviour in your chosen market to ensure your approach resonates with potential customers.
Once you have a well-defined niche or target audience, it becomes much easier to create your strategy and carve out your space in the market. After market research, test your product or service and get customer feedback until you’re fully ready to launch it.
Read up on legal requirements
Many ask, “Do I need to register my online business in Australia?” Yes, before going live, you must complete a couple of legal requirements. First, register your business with the Australian Securities and Investments Commission (ASIC) to prove it can operate legally and be recognised as a legitimate entity.
Then, apply for your Australian Business Number (ABN), which will be needed to open a business bank account, apply for loans, or register for Goods and Service Tax (GST) in the future. Be aware of the taxation regulations to avoid any legal issues.
Discover your preferred e-commerce website in Australia
Next, you must decide what platform to house your business on. Looking for integration options, payment gateways, and CRMS are all important. There are a variety of platforms available, depending on personal preference:
- Shopify: Easy to use with various templates and built-in tools for inventory, marketing, and payments.
- WooCommerce: A WordPress plugin that adds e-commerce features to existing WordPress sites, giving flexibility and control.
- Squarespace: Stylish, all-in-one website builder with built-in e-commerce tools, best for creatives and small businesses.
- Wix: A beginner-friendly, drag-and-drop website builder for small businesses wanting a simple online store.
- Ecwid: A flexible e-commerce plugin that lets you add a store to any existing website, including WordPress, Wix, and social media.
- PrestaShop: An open-source platform with strong customisation options, best for tech-savvy users who want control over their store.
- Sellfy: A simple platform designed for digital products, print-on-demand, and subscriptions.
- POSApt: Simple, user-friendly platform for creating custom online stores, ideal for retail businesses.
- OpenCart: A free, open-source e-commerce solution with many extensions, ideal for users comfortable with some technical setup.
- Volusion: A cloud-based platform with built-in analytics and inventory management tools, suitable for small-to-medium businesses.
- Weebly (by Square): An easy-to-use website builder with built-in e-commerce features, ideal for small businesses and startups.
- Magento: A powerful platform for large businesses that need advanced customisation but require coding knowledge.
- Big Commerce: Scalable e-commerce builder with built-in sales tools and multi-channel selling, great for growing businesses.
Research these, consider your business size and website design expertise, and pick what works best.
Set up and optimise a secure website
With a product or service ready to market and a platform picked, setting up a secure and user-friendly website is next. Whether you hire a web designer or build it yourself, your site must be optimised for sales and security.
Since customers will be making purchases, it is recommended that SSL encryption be implemented to protect transactions and keep customer data safe. Once designed, make sure your site is fully optimised for speed, mobile responsiveness, and seamless user experience.
Pick a payment method
A payment gateway is a service that processes online payments by securely transferring payment information between a customer, the merchant, and the bank. You need it for your e-commerce business.
It acts as the digital equivalent of a point-of-sale (POS) system in a physical store, so you must set it up for customer trust. It’s recommended to offer a couple of payment options in case people prefer to pay in different ways.
Below are some of the most popular ones:
- Stripe: A popular, developer-friendly gateway that supports various payment methods and is ideal for online stores.
- PayPal: A trusted and widely used payment processor that allows customers to pay via their PayPal account or credit/debit card.
- Square: Offers easy payment solutions, especially for small businesses, with online and in-person options.
- Shopify Payments: Integrated directly into Shopify, this gateway makes it easy for Shopify store owners to accept payments without third-party fees.
- Authorize.Net: A versatile payment gateway that provides online payments and supports credit cards, e-checks, and more.
- Afterpay: A Buy Now, Pay Later (BNPL) option popular with Australian consumers. It allows customers to pay in instalments.
- Braintree: A PayPal service offering various payment options, including mobile wallets, for a smooth customer checkout experience.
- Worldpay: A global payment provider that supports various currencies and payment methods, ideal for international businesses.
- Razorpay: A payment gateway focused on the Indian market, offering smooth integrations with banks, cards, and wallets.
- Klarna: Another Buy Now, Pay Later service that allows customers to pay for their purchases in instalments.
Read up on each one and see which would resonate best with your customers.
Connect with suppliers and establish a shipping process
With your online presence developed and the purchasing process set up, you will need your service or product to be produced. Let’s say you’re running a therapy business; you’ll need to source qualified therapists to provide online therapy services before you begin advertising your counselling sessions to customers.
If you’re running a mug business, you’ll want to figure out where the mugs will be manufactured and shipped. You can source suppliers by looking at online directories, speaking to people in your network, or attending industry-specific trade shows. It’s crucial to look for someone with good communication skills, timely deliveries, and reliable operations.
Implement inventory management tools
When running an online e-commerce business, implementing tools to manage your inventory is helpful so you don’t run out of stock. A tool that automatically monitors stock levels and analyses product purchasing trends will be able to notify you when a particular stock is low and needs replenishment. It’s vital to keep popular items consistently available so customers are happy and nobody is buying no longer available products.
Develop a digital marketing and sales plan
The last step is to advertise your brand to your target market. You can do this by developing a comprehensive digital marketing plan that shares your product or service through social media channels, brings awareness to the brand through SEO tactics, and sends out tailored emails to those interested in your offerings. You can also set up a branded app to improve mobile usability and shopping abilities. Running promotions right as you start your business can attract new customers.
These are the eight key steps to kickstart and launch your e-commerce business in Australia! With these steps to actively take, plus your motivation to succeed, anything is possible.
Start your online e-com business before it’s too late
E-commerce in Australia is booming—why not take advantage of the momentum? Melbourne Connect Coworking is the perfect place to start. Our space offers the flexibility to work on your schedule while providing a professional meeting setting. Located in Carlton, near the heart of the CBD, we’re close to the action yet offer the quiet and space to focus. Build your e-commerce business with our support.
Learn about our office, desk, and networking opportunities today.
Contact us now for further questions.