How to Sell Online in 2023: A Step-by-Step Guide

Estimates predict there will be nearly 290 million e-commerce buyers in the United States alone by the end of 2027. There are already over 270 million digital buyers, representing a huge market for selling goods online.

Want a slice of the pie? Getting started is easier than you might expect, even if you’re new to the world of e-commerce.

This helpful guide will tell you everything you need to know about how to sell online, the benefits of e-commerce, and how to start your own digital store in seven easy steps.

Benefits of selling online

Selling products and services online comes with significant perks, including:

• Minimal startup costs: You can start a digital store with minimal upfront investment, especially if you use a dropshipping method, in which your supplier maintains the inventory and ships goods as customers order.
• Total freedom: You won’t be locked into a lease or stuck at a physical location. You have the freedom to sell to anyone from anywhere.
• Extensive customer reach: You’ll reach customers across the globe via your digital store.
• Scalability: You can easily add and remove products from your digital store, especially if your suppliers maintain inventory. Keep top performers and ditch subpar products once your audience loses interest.
• No operating hours: Sell goods 24/7 via an automated checkout process and an always-open digital storefront.
• Better margins: You can avoid the overhead costs of a storefront, like utility bills and lease payments, leading to better profit margins and higher revenue.
• Tracking capabilities: Online selling allows you to track orders and shipments, meaning you can keep a close eye on the performance of your business.
• Fewer conversion barriers: The convenience of online shopping makes converting quality leads into paying customers far easier.

Consumers everywhere have embraced e-commerce. You must build a robust digital store and go where the customers are to capitalize on this trend.

How to start selling online: 7 steps

Accelerate your e-commerce journey using these seven tried-and-true steps.

1. Do your research

The e-commerce ecosystem has a low barrier to entry, which is a double-edged sword; although it’s easy to start selling online, this ease has produced a saturated market.

As such, you must do extensive research and find a viable niche. Ensure there’s an adequate customer base for your product in a vertical you’re passionate about. 

2. Decide what you want to sell

E-commerce products fall into two categories: commoditized and niche.

Commoditized products are popular or high-demand goods, such as clothes, toys, and consumables. Conversely, niche products have a small yet devoted customer base that demands high quality. These goods may be handmade or one-of-a-kind.

Choose wisely, as the products you sell will have the most significant impact on your business’s trajectory.

3. Identify your audience

You must clearly define your customer base. It’s okay for your audience to be broad, but you should know their demographics, including age, income, and interests.

4. Pick a platform

You can sell your goods on a dedicated e-commerce platform like Shopify or use a pre-built e-commerce marketplace like Amazon or Walmart. With Shopify and similar platforms, you can create your own branded website. On a marketplace, your products will be available through the host platform’s site, offering convenience at the cost of customization and unique branding.

5. Create content to promote your products

Promote your products with ads, organic social media posts, blogs, and product descriptions. Search engine optimization will raise your spot in a Google search, but customer testimonials will determine if clicks turn into sales.

6. Build your store

It’s finally time to build your digital store. Include captivating imagery, an intuitive user interface, and a streamlined checkout process.

7. Market your business

Marketing your online business is an ongoing process. Even after you start generating revenue, you must continuously publish fresh content and run ads to keep the traffic flowing.

Where to sell online: platforms and marketplaces

There are many different platforms and marketplaces to sell online. Here are some of the most popular options:

Walmart Marketplace

Walmart is one of the world’s largest omnichannel retailers. Its marketplace boasts no monthly fees or startup costs, making it a good match for any e-commerce brand. If you want to learn more about how to sell on Walmart Marketplace, check out Orderful’s guide.

Amazon Marketplace

Amazon offers fulfillment services and has one of the largest audiences in the world. They charge a regular fee, but you get a lot of back-end support in return. Read our guide explaining how to sell on Amazon marketplace to learn more.

Facebook

Facebook Marketplace is an excellent option for small businesses. It’s free to use, mobile-friendly, and highly customizable.

Instagram

Instagram Shopping includes many of the same functionalities as Facebook Marketplace, letting you reach a broader customer base with minor strategic adjustments. Getting started is easy; all you need is a Facebook business profile. 

Shopify

With Shopify, you can create your own branded website, integrate your platform with suppliers and fulfillment service providers, and access a wide array of drag-and-drop store-management tools. Shopify even offers a free trial, so you can try before you buy.

Target

Target Plus marketplace is smaller than Walmart's online storefront, but it’s still user-friendly and offers access to a broad audience of consumers.

Tips for selling online

These tips on how to sell online are practically guaranteed to help you stand out from the competition and put together a winning business model:

1. Build a great website. Your website is your store, so make sure it provides customers an enjoyable experience.
2. Invest in SEO. Search engine optimization makes your store easier to find, which means more leads and customers.
3. Work with influencers. Social media influencers can lend you credibility and generate buzz about your products. Find a few influencer partners whose audiences align with yours and watch the leads pour in.
4. Start a mailing list. Email remains an effective promotional tool, so put it to use by building segmented email lists and targeting your audience with curated content.
5. Offer BNPL. Buy now, pay later solutions encourage larger order sizes and remove purchasing barriers.
6. Use eye-catching images. Grab your audience’s attention with high-quality, captivating photos.
7. Make customer service a priority. Always put your customers first; doing so can boost your reputation and cultivate loyalty toward your brand.

FAQs

Here are some common queries of first-time online sellers:

What are the primary components of an online store?

The central components of your online store include the name, logo, website design and layout, product pages, and back-end shipping and logistics. Dropshipping is a popular beginner method for covering fulfillment.

What are the best products to sell online?

You can sell virtually anything online as long as you present the right product to the right audience with appealing marketing strategies.

Find a product you’re passionate about, generate some buzz, and make the customer journey frictionless. Before you know it, you’ll be racking up sales.

Do I have to pay taxes when selling products online?

You must pay taxes on your revenue if you operate an online business in the United States. You’ll also need to collect sales tax on each transaction. Tax rates vary by state, so talk to an accounting professional to ensure you pay the appropriate amount. 

Accelerate your journey with Orderful

Selling products online is a great way to generate revenue and connect with potential customers. But if you want to thrive in the online marketplace, you need a reliable way to communicate with your e-commerce fulfillment partners.

Orderful can help with API-powered electronic data interchange (EDI) solutions, which tear down communication barriers between you and your trading partners. Talk to an expert about implementing an EDI so you can start selling online.