More than 73% of Australian households shopped online in 2018, spending a whopping $27.5
billion. But if you’re opening an online store , you not just selling to Aussies - you
can reach customers right around the world.
Ecommerce platforms such as eBay, Amazon and Shopify provide many of the tools you need
to get started, so let’s take a closer look at how you can become a successful online seller.
Maybe you already manufacture your own products, and an online store will open up a new sales
channel for your business.
Perhaps you’re thinking about selling online as a side-hustle to grow your income, or maybe
you’re planning to private label and rebrand an existing product and market it better.
Your overall approach will influence where you set up shop and with what product.
Some online sellers focus on everyday items that are always in high demand, while others
concentrate on a specific niche.
The key is finding a gap in the market that you can fill - either with a new product,
better marketing or a better price.
If you can’t decide what angle to go with, check out the top selling products on popular
marketplaces – what are their biggest selling points?
Globally, books are the most popular category at Amazon, followed by Health & Beauty then
Electronics & Accessories.
According to the Amazon.com.au trends report: toys, wellness, fashion and beauty are the
biggest categories here in Australia.
Choose your platform
One option is to create and brand your own online store using an ecommerce platform like Shopify.
Shopify helps you market products on social media and accepts payments from customers around
the world. It’s your store, set up exactly the way you want.
Then there are online marketplaces like Amazon or eBay. Over 10,000 Aussie small businesses
are now on Amazon Australia,
But that’s just the tip of the iceberg. Alibaba, Etsy, Wish, Newegg, Gumtree - there
are plenty of platforms to choose from.
Getting your products shipped quickly is a big factor in shopper satisfaction, so it’s
crucial to get your strategy right. You’ve got a few options here.
One is to store and ship the items yourself. This gives you more control over your supply
chain, but it can be time-consuming and require a lot of space.
If you’re using Shopify, you can find apps from the Shopify App Store to help you calculate
shipping rates and compare quotes from different courier companies.
Amazon offers its own fulfilment service, Fulfilment by Amazon that allows sellers to
store and dispatch their goods through the retail giant’s mega-warehouses.
eBay also has its own fulfilment partner for orders within Australia, while there are lots
of other companies that can handle international shipping.
In fact, there are plenty of third-party dropshipping providers that can warehouse and ship items for you.
Just remember that you’re responsible for meeting the safety, labelling and documentation
requirements of the countries you’re selling into.
Shipments outside Australia may also be assessed for import duties, customs fees and taxes.
Running out of cash is a major cause of business failure. Even a profitable online business
can fail because of poor cash flow. Cash flow is simply the amount of money you have coming
in and the amount of money you have going out. It’s the single most important issue
for any business.
Your cash flow management needs to cover a variety of expenses such as suppliers, advertising,
telco costs and also marketplace fees…. which vary
And don’t forget about tax. Businesses that sell to Australian customers and have an annual
turnover of $75,000 or more will need to register for GST and lodge a Business Activity Statement.
We also recommend speaking to a tax expert.
If you’re doing business overseas, international online seller accounts from dedicated money
transfer providers allow you to send and receive payments in multiple currencies and lock in
a better exchange rate when converting back to AUD. All helping to maximise your margins..
You’ll also want to be ready to capitalise on opportunities when they come up. A recent
survey of 500 Aussie SMEs found half have lost at least $10,000 by abandoning a project
or sale because of cash flow issues. That’s where business savings or financing from banks
and alternative lenders like Capify can help.
Once your online store is up and running, your social network is just the starting point
for spreading the word.
When you make a sale, give customers an opportunity to sign up for special offers or give them
discount codes to share with friends.
And do research to find out the best way to present your product features, price, and
sales history to rank well in search results Marketplace search optimisation.
The platform you choose will also offer its own marketing tools.
For example, Amazon sellers can set up cost-per-click advertising campaigns to promote individual
products or their brand as a whole.
On eBay, you can set up a Promoted Listing to increase your product’s visibility, or
use the Promotions Manager to offer discounts and coupons.
To recap, the most important part is preparation. Decide on an online selling strategy that
suits you, compare ecommerce platforms before deciding where to sell, and research the products
that are most likely to succeed in your online store.
With promotional and marketing campaigns to attract repeat customers, you’ll have everything
you need to start growing your business.
We hope you like this video. There are plenty of guides on Finder to help you start or grow your business
You can find the links below.