Business
8 Things to Consider When Setting Up An eCommerce Business
Published by Jessica Weisman-Pitts
Posted on February 3, 2022
6 min readLast updated: January 28, 2026
Global Banking & Finance Review®
Company
Published by Jessica Weisman-Pitts
Posted on February 3, 2022
6 min readLast updated: January 28, 2026
Learn the essential steps for starting an eCommerce business, including product sourcing, warehousing, shipping, sales channels, and customer targeting.
Starting an online store can be both exciting and incredibly daunting. After all, the process is a lot more than just starting a website with a few products.
From sourcing to shipping, there are quite a few different areas that need attention and consideration for you to be successful. Forgetting any one of them can really spell disaster for your new brand.
Need a few examples? To help ensure your launch into this new field is as successful as possible, we rounded up eight different things to consider when starting an eCommerce business. Let’s dive right in.
The first question to ask is how you plan on sourcing your product. Are you going to get items from one or more distribution companies? Do you have a wholesaler? Maybe you even plan on just manufacturing things yourself.
Some new eCommerce brands also choose drop shippers. This is a situation where the company that makes or distributes the products you sell packs them up and ships them directly to the customer. It is a method that’s incredibly useful while you’re still getting your feet under you as a retailer.
Either way, thinking about how you plan to do this is really the first step of opening an eCommerce store.
Next, you need to decide where you’ll store items. You certainly don’t want pallets of product sitting around your garage or across your business office. Instead, decide whether you’ll rent a warehouse, use dropshipping, or hire a 3PL company.
According to eCommerce solution Tradefull, Third party logistics (3PL) refers to an outside company that stores your items, then packs and ships orders as they’re placed by the customer. Often, working with this type of provider is a lot more cost-effective than attempting to handle everything yourself.
If you’re going the dropshipping route, this is probably something you don’t need to worry about just yet. However, it is a great topic to keep in mind as your brand grows and you want to expand to a bigger product catalog.
Another area that you’ll need to consider when setting up an eCommerce business is how you want to handle shipping. After all, getting products to customers is the main point of selling online.
If you’re using a 3PL company or dropshipping, they’ll generally take care of this for you. Most of these types of companies do such a large volume that they get really great shipping rates, which is definitely a bonus for using them.
However, if you’re shipping yourself, then you’ll need to find the best carrier for your needs. Also, decide how you’ll pack orders and whether you’ll offer customers free shipping or the actual cost to send.
When starting your eCommerce business, you also need to consider which channels you plan on using to sell products.
Do you just want to have a Shopify or BigCommerce website? Or will you utilize bigger retail platforms like Amazon, Walmart.com, eBay, and others?
In most cases, successful brands utilize a combination of multiple methods to get the most exposure to their potential target market. However, not every platform is suitable, so it really is a good idea to think about if the shoppers you’re trying to reach use those websites to make purchases.
Those starting a new eCommerce business should always clearly know who their target customer actually is. How do you do this?
Well, there are actually a couple of methods. You can always do target research and ask those that you think are your primary demographic if they would buy products like you’re offering. And you can also create buyer personas, which are essentially fake bios of what you think your target customer would enjoy, how they live, their key characteristics, etc.
Don’t be afraid to get creative with this process! Some brands even give their ideal shopper a name, talk about their family members, and add other characteristics that make it easier to tailor the brand experience to people exactly like that.
New eCommerce brands also need to be thinking forward about how they plan to market items to a wider audience.
This is somewhat of a general topic, as it really depends on your exact niche and the type of customer you hope to reach. However, having a general idea of whether you want to use strictly social media marketing or a combination with search engine optimization, content marketing, influencers, paid ads, or whatever else is important.
Those who want to start a new eCommerce business should also have a good idea of the platform they want to use for sales.
If you’re starting your own website, Shopify and BigCommerce provide great options for new retailers. You can also opt to keep things small at first, such as using Facebook Marketplace as a basic way to reach customers until you decide to expand.
Other options include Fulfilled by Amazon (FBA), eBay, and WooCommerce.
Finally, be sure to take time to ask yourself what your overall goals are for opening an eCommerce brand. If you simply want to make money and be an entrepreneur, you might turn your focus to how you can help others while you embark on this endeavor and why your product matters.
Others just simply want to solve a problem they’ve experienced or show the world a cool idea they’ve had. Either way, be sure you know your focus before trying to take your brand into the world of online retail.
Starting a new eCommerce business can seem a little scary, but it doesn’t have to be impossible. With the eight tips we’ve included here, you can easily venture off on the right foot towards success.
Contributed Article
The article discusses key considerations for setting up an eCommerce business.
How should you handle product sourcing for an eCommerce business?
What are the benefits of using a 3PL company for shipping?
Explore more articles in the Business category
