An online store seems like a natural step for many businesses. If you can sell online, why not give it a go? But an online store is not just a nice-looking catalogue with a shopping basket. You need products, logistics, payment systems, content, maintenance and a clear plan for how people will find your products.
E-commerce can be very beneficial when the products are straightforward, demand is clear, and the business is ready to fulfil orders. E-commerce may sound like a broad concept, but in day-to-day practice it still comes down to the basics. The product, price, delivery, payment and trust. However, if the products are complex, require a lot of consultation or are sold through bespoke offers, it is sometimes better to start with a simpler website.
First of all, consider what you are selling
An online store works best when customers can work out the product, price, delivery and options for themselves. If they still have to ring up to ask about every little detail, the shop risks becoming nothing more than a more expensive catalogue.
Sometimes, a clear presentation of services or products and an enquiry form are all that is needed. The article discusses a wider range of options when it comes to channels website or social media.
For example, an online store can work very well for standard products. The same applies to handmade items, provided there are clear photographs, delivery details and stock levels. However, for complex B2B services, enquiries, consultations and clear informational content often work better.
We need to think about more than just the launch
Digitising a business does not mean that everything is sorted once the shop is up and running. A digital business needs to be managed, as products, prices, stock levels and customer enquiries are constantly changing. You’ll need to upload products, manage prices, descriptions, stock levels, discounts, emails, payments and delivery. If you don’t have time for this, your shop will quickly become outdated.
Online retail also depends on visibility. Online sales don’t happen simply because a website has a shopping basket. People need to be able to find the products and understand why it’s worth buying from you. If your shop doesn’t appear in search results and has no traffic, technical functionality alone won’t deliver results. It’s also worth reading about attracting customers without advertising.
When is it worth starting with an online store?
- when the products are straightforward and can be purchased without lengthy consultation
- when you are able to manage stock levels and orders
- when there is a clear process for delivery and returns
- when you’re planning your SEO, content or advertising campaign
When is it better to start with a catalogue rather than a shop?
You don’t always need a fully-fledged online store straight away. Sometimes it makes more sense to start with a catalogue featuring clear product descriptions and an enquiry form. This is particularly suitable when the price depends on quantity, production, delivery or individual preferences. In such cases, a shopping basket can cause more confusion than it saves.
The catalogue allows you to check whether people are interested in the products, what questions they have, and which product descriptions work best. Later, once the processes become clearer, you can add payment options, delivery terms and automated order processing. In this way, the solution grows alongside the business, rather than working against it.
- Choose a catalogue if prices change frequently
- An online store is suitable when the purchasing process is clear
- Before you start, check the delivery and returns policy
- Don’t forget the quality of your product photos and descriptions
What you need to do before setting up an online store
Before setting up an online store, it’s worth preparing more than just product photos. You need clear categories, descriptions, prices, delivery policies, returns policies and a clear answer as to who will manage the orders. If these elements are missing, many decisions will be made in a rush during the development phase. This will then be evident to the customer.
It’s very helpful to consider a few realistic purchasing scenarios. How will a customer find a product? What do they need to understand before adding it to their basket? What happens after payment? What will we do if the product is out of stock? Such questions may seem administrative, but they have a direct impact on trust and sales.
- product categories and filters
- clear descriptions and photographs
- Delivery and Returns Policy
- responsibilities for order management
- emails after purchase
How to work out whether an online store is worth the investment
Before setting up an online store, it’s worth doing some very simple calculations. How much is earned on average from a single order? How many orders would be needed per month to cover the costs of setting up and maintaining the shop? How much time will be needed to list products, prepare photos and manage orders? If these figures are unclear, the decision may be based solely on the desire to "have a shop".
Sometimes the figures show that it’s worth starting off on a less risky footing. For example, with a catalogue, a few top products or a enquiry form. You can then gauge demand, understand buyers’ queries and only then expand the functionality. It’s a slower route, but often a healthier one for the business.
- Estimate the average profit per order
- Work out how many orders are needed to break even
- include the time spent on maintenance and content preparation
- Consider whether a catalogue or an enquiry form would be sufficient to start with
Examples of who the shop is best suited to
An online store can be a great option for handmade products, provided the items are clearly photographed and described. A restaurant doesn’t always need a full-scale online store, but it can be useful for gift vouchers or advance bookings. For B2B services, a catalogue with enquiry forms often works better, as prices depend on the specific situation.
The most important thing is not the shopping basket itself, but the clarity of the purchasing process. If a customer can choose, pay and understand the delivery arrangements independently, the shop has a sound basis for operating. If everything still has to be sorted out manually, it’s worth starting with a simpler approach.
If you’re thinking about the digital side of business, it’s worth having a read of this as well Website or social networks?. In the context of business digitalisation, the following will also be useful: How does a digital website save time and money?.
If you’re wondering whether an online store is really necessary for your business right now, please get in touch. We can help you assess whether it’s worth setting up a full-scale shop or starting with a simpler solution.