How to Launch an Online Storefront — and Why E-commerce is Critical for Small Businesses

4 common misconceptions about e-commerce

Before we show you how to open an online storefront, let’s address some of the most common misconceptions the SOAR Innovation team hears about e-commerce.

Myth #1: You should already have a lot of customers

You don’t need a large database of customers to launch your online storefront. E-commerce opens up a whole new pool of potential customers — your only true limit is how many products you can keep stocked in your inventory.

Implementing proven strategies like content and social media marketing will help you attract qualified website traffic and increase your customer base over time.

Myth #2: You have to be from a bigger city to sell online

For some reason, people still think you need to be in a big city to get involved with e-commerce. But this couldn’t be further from the truth.

E-commerce enables businesses in small towns to source customers from around the world. It levels the playing field.

Plus, since you’re located in a lower-cost-of-living region of the country, your overhead costs could be lower than your competition, giving you an edge.

Myth #3: There’s too much competition

You don’t have to be Amazon-big to sell your goods online.

E-commerce allows you to target your niche of customers in a way that’s not possible for brick-and-mortar businesses. If your marketing efforts focus on what makes your company unique, the customers will find you.

Myth #4: Selling online is too costly for my business

We’ll be honest: setting up your online storefront will take time and some funds. You’ll also need to incorporate a system that covers order logistics, which may take some getting used to.

But these costs aren’t out of reach, even for solopreneur businesses. There are plenty of free and low-cost tools to get your e-commerce pages up and running. We’ll dive more into those later in this article.

A local success story from Big Bentley’s Pet Supply

Big Bentley’s Pet Supply is a shining local example of the growth opportunities to be explored through an e-commerce strategy.

Big Bentley’s products are currently sold in several brick-and-mortar retail stores throughout Appalachian Kentucky. The co-owners, Steven and Stephanie Evans, decided they wanted to build direct customer relationships and brand recognition — and turned to social media to explore the possibilities.

Steven and Stephanie tapped into the Pinterest-to-Amazon pipeline through the following steps:

Created a Pinterest account for the brand.
Developed messaging relevant to Pinterest users and their products: “How to remove pet odor” / “How to remove pet stains.”
Used Canva, a free graphic design tool, to develop graphics.
Linked their products from their Pinterest posts.

In just 30 days, Big Bentley’s Pet Supply received 26 Amazon sales, with 15 new customers leaving 5 star reviews on their page.

Over the long term, Steven and Stephanie want to continue using social media to attract users to their website, build customer loyalty, and generate more positive reviews and referrals.

Launching your e-commerce storefront

If you’re ready to delve into e-commerce for your small business, keep these considerations in mind. Your first step is to decide whether to launch your own storefront, get listed in online marketplaces, or do both.

What is an online marketplace?

An online marketplace allows business owners to create product listings and sell to a built-in audience. Many use online marketplaces to generate sales and handle logistics without having to launch e-commerce platforms.

Some marketplaces are global, such as Amazon or eBay, while others are more niche and industry-focused.

Pros of selling through online marketplaces

When launching your products through an online marketplace, you benefit from a built-in customer base, the size of which will vary by platform.

Some marketplaces offer logistics and shipping services for a convenient, all-in-one experience for sellers. Many offer free or paid marketing services to boost the visibility of your listings and get more customers to check out your products.

Cons of online marketplaces

The conveniences of online marketplaces come at a cost. There is often a flat or sliding-scale transaction percentage of every sale owed to the platform, plus potential membership fees, marketing fees, and other expenses.

To a certain extent, there can also be a loss of control. You may have to adhere to strict return and exchange policies, which may present challenges to both customers and your business.

Online marketplaces also have rigid product page templates. For some, this is a pro — especially if you don’t want to spend time designing attractive web pages. But for those who prefer to retain control of how their products are merchandised, this can represent a drawback.

Pros of selling on your own website

You can maintain more control over the customer experience when selling from your website. Customer service is under your roof, as well as online merchandising, pricing, and sales.

Building traffic to your website is valuable over the long term, especially if you aim to sell your business someday.

And if you leverage the free and low-cost tools available today, building your e-commerce pages can be cost-effective and straightforward.

Cons of selling on your own website

The drawbacks of opening an online storefront are pretty intuitive. It can take longer to build traction back to your website. Many businesses will experiment with listing on online marketplaces to start building a loyal customer base, then provide incentives to help customers transition to direct orders.

Managing your online shop can also be less convenient, especially if you’re concerned about the time spent shipping orders and processing returns. Be sure your pricing reflects these requirements.

Online marketplaces to consider for your small business

Large-scale marketplaces:

Industry-specific:

Poshmark (Secondhand fashion)
Made Trade (Sustainable products)

Preparing to launch your online storefront

E-commerce is much more than just launching a few web pages or marketplace listings. It’s about understanding your niche and how to funnel customers to your products.

To succeed, you’ll need to become fluent in online marketing best practices, including:

Content marketing
Social media
Email marketing
Search advertising
Search engine optimization

You’ll need to equip yourself with plenty of research on the overall market, ICP, and other core attributes of your business plan.

Don’t expect to become a global sensation overnight. Building an e-commerce business is like tending to a garden.

First, you’ll sow the seeds (setting up your website, marketplace listings, or both). The results will rely on your consistent maintenance and upkeep (marketing, sales, and optimization efforts). After some time passes, you can expect to start seeing some buds peeking out of the soil (new customer acquisition, building a follower and subscriber audience, and earning positive reviews)

All’s to say: you simply won’t go from storefront to Amazon-level sales — but you should expect sales to grow.

Stick it out, and discover the rewards e-commerce can offer in exchange for your hard work.

Reach out to SOAR Innovation for advice from small business experts

Reach out for SOAR Innovation’s free direct services, including help setting up a simple business website.

Download the Complete Guide to Entrepreneurship for step-by-step guidance on the marketing work that will bring traffic to your online storefront.

Contact the team if you have questions about getting started — and connect with former entrepreneurs who have launched successful e-commerce businesses

Comments