How to Start and Grow Your Small Online Business in Australia

The global e-commerce space now generates more than US$4 trillion in annual sales and, according to Shopify, nearly 23% of consumer purchases are expected to happen online by 2027. That means if you are considering taking a traditional business online or starting a small online business from scratch, there’s an enormous opportunity to thrive.

Starting an online business in Australia is an excellent way to tap into the thriving global e-commerce market. Improved logistics and shipping solutions have helped connect small Australian e-commerce businesses with overseas markets. The planned expansion of key ports and a new international airport could further strengthen these connections.

But it’s not just about the global market. E-commerce growth in Australia is also fuelled by a shift towards mobile-first shopping, with 45% of e-commerce sales coming from mobile devices. 

Getting your business set up online also provides the flexibility to operate and serve customers 24/7 and can help you grow—highly digitally engaged businesses earn 60% more revenue per employee and grow 28% faster than businesses with poor digital engagement.   

To get your business set up online, you’ll need to build a strong digital presence, plan for shipping and logistics, and sustain your growth through effective customer engagement.

Read on for simple tips on how to start an online business in Australia. 

A well-designed website and a suitable e-commerce platform support efficient operations and ensure smooth business delivery.

1. Designing a professional website

Your site should consistently reflect your brand’s mission and values through its logo, colours, and imagery. Prioritize user-friendly navigation, responsive design across devices, and clear calls-to-actions (CTAs).

2. Selecting an e-commerce platform

Choose an e-commerce platform that aligns with your business goals and long-term growth plans. Consider factors like ease of use, scalability, customization options, and integration capabilities.

3. Integrating inventory management

Integrating inventory management software with your e-commerce platform ensures accurate stock tracking and automates order processing to save time, reduce errors, and prevent stockouts.

When starting a small online business, visibility is essential for attracting customers and driving growth.

One way to do this is through search engine optimization (SEO) which involves optimizing your website and content to rank higher in organic search results and drive organic traffic to your website. Organic efforts like SEO and encouraging customer reviews help businesses build sustainable growth over time.

Paid tactics aim to provide more immediate results and valuable data. For example, search engine marketing (SEM) can drive targeted traffic to your website via paid advertisements on search engines like Google.

Other tactics to help your business set up online and boost brand visibility include public relations (PR) and influencing key opinion leaders. For example, effective PR and coverage of your brand and products can help to build awareness and credibility for your business. Collaborating with influencers or industry experts through paid sponsorships can similarly promote credibility and help you reach new audiences.

When starting a small online business, reliable and efficient shipping and logistics are crucial. From selecting the right shipping partner to managing returns, here are key factors to ensure smooth operations and satisfied customers.

Even if your business already has a shipping strategy in place, moving online requires reevaluating whether your current shipping partner can meet your e-commerce needs. 

That’s because online sales come with specific challenges, such as processing and handling returns and managing higher order volumes. Safe and reliable delivery is also essential to providing a great customer experience.

For many online customers, shipping is the only physical touchpoint they’ll have with your business. That’s why things like packaging and timely delivery play a critical role in the overall customer experience, and should be considerations for those starting a small online business. 

A dependable shipping partner ensures packages arrive as promised, helping you build trust, encourage repeat purchases, and strengthen your brand reputation.

Incorporating branded elements or personalized thank-you notes in your packaging can help to further build customer relationships, and using eco-friendly packing fillers can help appeal to environmentally-conscious customers.   

Engaging with customers before checkout helps minimize cart abandonment, boost conversions, and improve overall business delivery. Consider these strategies:

• Retargeting: Use targeted ads and emails to remind potential buyers about items left in their cart, and encourage them to complete the purchase with timely reminders and special offers

• Price promotions: Offer first-time purchase discounts or vouchers to incentivize new customers and provide a sense of urgency to complete the transaction.

• Sign-up rewards: Encourage users to register for your site by offering exclusive discounts, loyalty points, or access to special deals in exchange for signing up.

• Enhanced user experience (UX): Ensure your website is intuitive and easy to navigate, with clear product descriptions, fast-loading pages, and a streamlined checkout process.

Maintaining communication after the purchase is essential for fostering loyalty and increasing repeat business. This is particularly important when starting a small online business. Key strategies include:

• Real-time order tracking: Provide detailed tracking updates so customers can monitor the status of their orders in real time. 

• Encourage reviews: Ask customers for feedback through emails or prompts on your website to gather testimonials that will help enhance your brand’s credibility. 

• Customer feedback loops: Send surveys or personalized follow-up emails to gather insights on their shopping experience to identify areas for improvement. 

• Ongoing engagement through CRM tools: Platforms like HubSpot, Zoho, or Salesforce help track customer interactions, personalize follow-ups, and manage long-term relationships. 

• Check out our small business centre for more guidance on how to start a small business 

• Learn how to seize e-commerce momentum and manage customer experiences 

• Master e-commerce fulfillment to keep your online customers happy 

• Use this quick checklist to solve key e-commerce challenges 

• Discover whether dropshipping is the right e-commerce business model for you

• Find out how FedEx can help improve your e-commerce fulfillment logistics