Start Small Business Online

How to Start and Grow Your Small Online Business in Australia

With more shoppers going online, small businesses are adapting to meet customer expectations, expand market reach, and stay competitive in a digital marketplace.

Introduction to launching an online business

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. 

Set up your online presence

There’s a lot to consider when starting a small online business – from selecting the right e-commerce platform to ensuring your brand stands out in a crowded market. 

This guide offers practical tips to help you get started. While it’s not a full roadmap, these essentials will help you lay the groundwork for building a strong online presence and driving growth.


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Building a professional website or store

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.

Boosting visibility through online brand-building

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.

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Digital marketing tips for beginners starting a small online business

1. Set a budget 
Allocate funds based on goals and focus on cost-effective strategies like SEO and social media. 

2. Define your audience 
Identify target demographics, interests, and online behavior. 

3. Choose the right platforms 
Focus on where your audience spends time–social media, email, or search engines. 

4. Use targeted ads 
Run ads tailored to specific audiences to maximize engagement. 

5. Track performance 
Monitor clicks, conversions, and traffic using tools like Google Analytics. 

6. Optimize for SEO 
Use relevant keywords and optimize content to boost search visibility. 

7. Leverage online reviews 
Encourage customer feedback to build trust and credibility. 

8. Improve ROI 
Refine strategies based on performance data to maximize returns.

 


Plan for shipping and logistics

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.

Exploring business shipping services

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.

Choosing suitable shipping solutions

Selecting the right business shipping services depends on balancing costs, delivery times, and customer needs. 

While customer satisfaction is a priority, businesses also have specific requirements to consider, such as service coverage, special handling needs for fragile or temperature-controlled items, and customs support for international shipping. 

Offering a range of shipping options like express, standard, and budget delivery helps meet varying customer needs while enabling flexibility for your business operations.

And using a reliable, all-in-one solution allows you to manage everything from small packages to large freight through a single provider. This can streamline your shipping processes, so you can have more time to manage all of the other priorities that come with starting a small online business.


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How to choose the right shipping partner

To evaluate potential shipping partners, ask:

Customer returns: Do they support seamless online returns?

Capacity to scale: Can they handle an increase in delivery volume?

Tracking and notifications: Do they offer reliable tracking and delivery updates?

Service coverage: Does the courier deliver to all the areas you service?

Reliability: Do they have a track record of delivering during challenging times?

Special handling needs: Can they handle temperature-controlled goods or fragile items?

Customs support: Are there tools available to simplify customs clearance?

 


Packaging and timely deliveries

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.   

Sustain growth through customer engagement

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Customer engagement is key to boosting sales and building loyalty, particularly when you’re starting a small online business.  
 
According to a study by Rosetta Consulting, an engaged customer is likely to buy 90% more frequently, may spend 300% more than other customers, and be five-times more likely to choose your brand for future purchases.  
 
To use customer engagement to drive the growth of your e-commerce business, focus on pre-purchase strategies that reduce cart abandonment and post-purchase tactics that encourage repeat business and long-term relationships.


Pre-purchase engagement

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.

Post-purchase engagement 

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. 

Additional resources

Frequently asked questions

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