Did you know that the UK ecommerce market is projected to surpass £200 billion by 2025?
With online shopping becoming an integral part of everyday life, there’s no better time to dive in and start your own ecommerce business. Whether you’re looking to turn a passion into profit or scale an existing idea, the UK ecommerce landscape is ripe with opportunity.
Some impressive current and forecasted stats:
▪ 37% of the UK’s total retail market is now ecommerce.
▪ Worldwide ecommerce sales are expected to hit $6 trillion (that’s trillion with a T) by 2024.
▪ 20.1% of all global retail sales will be digital this year.
▪ The UK is the third-largest ecommerce market globally.
While the potential is huge, navigating the ecommerce world can be tricky. But no worries—we’re here to guide you through the steps.
Don’t have time? Here’s the wrap-up of this article in less time it takes to eat a taco 🌮
▪ The UK ecommerce market is booming—perfect for new businesses.
▪ Know thy niche, thy enemy (competitors) and the market trends before diving in.
▪ Build your website and marketplace profiles, optimising for mobile and SEO.
▪ Register your business legally and pick the right structure for your needs.
▪ Prepare for challenges like competition, logistics, and customer expectations.
▪ It takes time! Plan. Prep. Persist. ‘People overestimate what they can do in one year and underestimate what they can do in 10 years’. n.b. Stay Sharp, Stay Savvy and Keep Winning.
Skip right to…
- How to Start Your Ecommerce Business in the UK: 6 Step Guide 🛒
- 1- Why Now Is the Best Time to Launch Your Ecommerce Business?
- 2- Find Your Niche: Where Passion Meets Profit
- 3- Build Your Online Presence: Your Shopfront to the World
- 4- Secure Your Spot on Marketplaces
- 5- Register Your Business in the UK
- 6- Prepare for Challenges: Plotting Your Route Around the Potholes
- Conclusion
How to Start Your Ecommerce Business in the UK: 6 Step Guide 🛒
1- Why Now Is the Best Time to Launch Your Ecommerce Business?
With the ecommerce boom showing no signs of slowing down, this could be the golden moment to make your move.
The UK Ecommerce Landscape and market is flourishing. We are seeing rapid Growth as ecommerce is outpacing traditional retail, showing strong consumer demand. And you’re likely reading this on a mobile phone or tablet. Mobile Commerce, smartphones have become the primary shopping tool, making mobile optimisation key, so set aside your passive participation and actively work towards something!
We are quickly seeing a shift to Online Grocery Shopping, with post-pandemic habits sticking around (for good?) and the UK has seen a massive increase in online grocery orders, offering more niches to explore.
Marketplaces Rule the Roast and platforms like Amazon and eBay dominate, providing built-in customer bases for new sellers. Increasingly people are buying through engaged social media outlets like the transition seen in TikTok shop.
2- Find Your Niche: Where Passion Meets Profit
Before you jump in, you need to figure out where you’ll thrive in this vast market. Finding your niche is crucial, and it requires some strategic thinking.
Know Thy Enemy: Competitor Analysis
To succeed, you need to know what your competition is up to:
▪ Identify Key Players: List out the major competitors in your niche.
▪ Understand Their Strengths: What are they doing well? Look at their products, pricing, and overall customer experience.
▪ Spot Their Weaknesses: Where are they failing? Dive into customer reviews to see pain points you could solve better.
▪ Evaluate Their Marketing: Study their social media, branding, and how they’re engaging with their customers.
OMB Connect Pro Tip: Use competitor analysis tools like SEMrush or Ahrefs to dig into their traffic, keyword strategies, and backlinks.
Market Research: Where’s the Money?
Once you know who you’re up against, it’s time to explore potential niches:
▪ Follow Your Passion: Build a business around something you enjoy—this makes the journey far more enjoyable and sustainable.
▪ Leverage Your Expertise: Do you have skills or knowledge that could give you an edge? Build around that.
▪ Research Trends: Use tools like Google Trends and Statista to spot emerging markets.
▪ Engage with Potential Customers: Join online communities and monitor social media conversations to gauge consumer sentiment.
Validate Your Business Idea: Test Before You Commit
Now that you’ve zeroed in on your niche, it’s time to validate your idea to ensure there’s demand before you invest too much time and money.
▪ Create a Minimum Viable Product (MVP): Build a basic version of your product to test the waters.
▪ Run Surveys: Ask your target market directly for feedback on your product.
▪ Pre-orders: A great way to gauge demand is by offering pre-orders.
▪ Focus Groups: Get in-depth insights from potential customers.
3- Build Your Online Presence: Your Shopfront to the World
Now that you’ve validated your product, it’s time to build your online store and set up your marketplace profiles.
Crafting the Perfect Ecommerce Website
Your website is your primary storefront, so it needs to be slick, user-friendly, and conversion-optimised.
▪ Mobile-First Design: With so much shopping done on phones, ensure your website is responsive and looks great on all devices.
▪ Compelling Product Pages: High-quality images, clear descriptions, and easy navigation are key to driving conversions.
▪ Fast and Secure Checkout: Simplify your checkout process to reduce cart abandonment.
▪ Integrate a Secure Payment Gateway: Use trusted providers like Stripe or PayPal to ensure your customers’ data is protected.
Optimising for SEO and Getting Found Organically
Good SEO is the difference between being found by potential customers or buried on page 10 of Google results.
▪ Keyword Research: Identify relevant keywords for your niche using tools like Google Keyword Planner.
▪ On-Page SEO: Optimise title tags, meta descriptions, headers, and image alt text.
▪ Content Creation: Publish blogs and guides that provide value to your target audience (hint: like this one).
▪ Backlinks: Build high-quality backlinks from reputable sources to boost your domain authority.
4- Secure Your Spot on Marketplaces
In addition to your own site, selling on platforms like Amazon, eBay, or Etsy can boost visibility and sales.
▪ Complete Your Profile: Be as detailed as possible to build trust with customers.
▪ Professional Images: Invest in high-quality product photos.
▪ Optimised Listings: Use relevant keywords in your product descriptions.
▪ Maintain Positive Reviews: Excellent customer service and fast shipping will help boost your seller ratings.
5- Register Your Business in the UK
Now that your online presence is set, it’s time to make things official. Here’s how to get your ecommerce business registered.
Choosing the Right Legal Structure
You have a few options for structuring your business:
▪ Sole Trader: Simple to set up but comes with personal liability.
▪ Limited Company: Offers more protection from personal liability, ideal if you plan to grow.
▪ Partnership: Best suited for businesses with multiple owners.
OMB Connect Pro Tip: If you’re unsure, starting as a sole trader is often the easiest route for first-time entrepreneurs.
[Read more about legal structures here.]
Registering with HMRC
Once you’ve settled on a structure, you need to register with HMRC:
▪ Choose a Business Name: Ensure it’s unique and not already in use.
▪ Register for Taxes: Corporation Tax, VAT (if applicable), PAYE (if you plan to hire staff).
▪ National Insurance: Don’t forget to register for National Insurance.
Check out our complete guide for more detailed information on registering your business.
6- Prepare for Challenges: Plotting Your Route Around the Potholes
Every journey has its bumps in the road, and ecommerce is no different. Let’s take a look at the common challenges you may face.
Potential Challenges on the Ecommerce Path
▪ High Upfront Costs: Building inventory, marketing, and technology can be expensive, so budget wisely.
▪ Competition: The online marketplace is crowded, so you’ll need to differentiate your brand to stand out.
▪ Logistics: Handling shipping, warehousing, and fulfillment can be daunting, but there are services to help, like Fulfillment by Amazon (FBA).
▪ Building a Customer Base: It takes time and effort to establish your brand, so focus on building trust through excellent service.
Conclusion
Starting an ecommerce business in the UK offers exciting possibilities, but success depends on a solid foundation of planning, research, and execution. If you invest time in understanding the market, finding your niche, building a strong online presence, and ensuring legal compliance, you’ll set yourself up for long-term growth.
Let’s quickly revisit the 6 steps to success:
1. Understanding the UK Ecommerce Market: Know the trends, growth areas, and consumer preferences to ensure you’re entering the market with eyes wide open.
2. Finding Your Niche: Identify a profitable and passion-driven niche by conducting thorough market research and understanding your competitors.
3. Validating Your Business Idea: Test your ideas with an MVP and gauge market demand before committing too many resources.
4. Building Your Online Presence: Create a user-friendly, mobile-optimised website and leverage marketplace profiles like Amazon or eBay for maximum reach.
5. Registering Your Business: Choose the right legal structure, register with HMRC, and ensure all tax and compliance matters are taken care of.
6. Preparing for Challenges: Be mindful of upfront costs, competition, logistics, and customer acquisition hurdles that come with the ecommerce landscape.
With the right strategy and a commitment to learning, your ecommerce venture can thrive in this dynamic market. Remember, OMB Connect is here to support you through every step of your entrepreneurial journey. Stay sharp, stay savvy, and keep winning—your online empire is just a few clicks away!