Online Sales – Everything You Need to Know

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Online Sales – Everything You Need to Know

• Online Sales – What Does It Mean?
  • How to Sell Online – Where to Begin?
  • Step 1: Market Research for Online Sales
  • Step 2: Defining the Type of Products for Your Online Store
  • Step 3: Defining Your Target Audience
  • Step 4: Choosing the Right Online Sales Model
  • Step 6: Formalities Related to Your Own Store – Business Activity
  • Step 7: Logistics and Payments in Online Sales
  • Step 8: Online Store Marketing
  • How to Sell Online – Marketing
  • Online Store Advertising
  • SEO Optimization for Online Stores
  • Online Sales – Customer Communication via Social Media
  • Customer Service
  • Online Sales – Summary

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Do you want to increase sales and reach new customer groups? Running a physical store alone no longer has the same business impact as it did years ago. The key is online sales. What does it involve? How should it be managed? How do you start an e-commerce business? What tools can be used? We have prepared a comprehensive guide with all the essential information.

From this article, you will learn:

• What online sales entail;
• How to sell online and choose the right business model;
• What the technological and logistical aspects of running an online store look like;
• What potential customers expect and how to build their loyalty.

Online Sales – What Does It Mean?

Selling online refers to the distribution of goods or services through various digital channels. While online shopping was once considered a technological novelty, it has now become the standard.

How to Sell Online – Where to Begin?

Starting an e-commerce business requires going through several key stages to build a strategy aimed at success. The most important steps include:

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• Market research;
• Defining the type of products to be sold;
• Identifying target audiences and the brand’s Unique Selling Proposition (USP);
• Choosing an online sales model and, consequently, determining logistics solutions;
• Selecting the right e-commerce platform and necessary integrations;
• Developing a marketing and promotion strategy for the online store.

Let’s take a closer look at each of these steps.

Step 1: Market Research for Online Sales

Before launching an e-commerce business, you need to carefully consider what products are worth selling. The answer to this question may be more complex than it seems. First and foremost, you must define the product category for your online store. You can align with one of the most popular categories, which currently (and for several years) include:

• Clothing, accessories, and fashion items;
• Footwear;
• Cosmetics and perfumes;
• Travel and reservations;
• Electronics, home appliances, mobile devices, and related accessories;
• Pharmaceutical products.

However, keep in mind that online sales in these industries are highly competitive. To succeed, you must find a way to differentiate yourself and make your e-commerce business effective. If online sales are a completely new venture for you, it may be best to focus on one of these established categories.

Before opening your online store, conduct thorough market research. Analyze how many online stores operate within your niche, what makes their offerings unique, and their estimated marketing budgets. Then, determine what you can offer to potential customers that would make them choose your store. This is the first step toward defining your Unique Selling Proposition (USP).

Step 2: Defining the Type of Products for Your Online Store

Now that you know the most popular product categories in e-commerce, which one suits your business best? Keep in mind: you don’t have to sell what everyone else is selling. Instead, focus on a niche where your store can cater to a small but highly engaged audience. This approach may help you build a strong online sales foundation step by step.

What if you already run a physical retail store? In that case, start by selling the same products online. The reason is simple: you already have established relationships with suppliers and manufacturers, and you know your market well. This will make it easier for you to respond to customer inquiries and provide high-quality service.

Step 3: Defining Your Target Audience

Your online store cannot cater to everyone. That’s simply unrealistic. Instead, your offerings should appeal to a specific customer segment—those whose needs you can fulfill.

Important! To increase online sales and attract new customers, defining demographic characteristics alone is not enough. The better you understand your target audience, the more effectively you can convert them into buyers. Ask yourself:

• Who are your customers?
• Are they primarily looking for the lowest prices, or are they seeking premium products and expert advice?
• How will you communicate with them?
• What values will your brand represent?

Although these considerations may seem theoretical, failing to define your audience beforehand can make it difficult to stand out in the competitive e-commerce industry.

Once you determine what you want to sell, to whom, and why, you will also clarify your brand’s Unique Selling Proposition (USP)—the core characteristic that, when effectively communicated, will help your business gain traction in the market.

Step 4: Choosing the Right Online Sales Model

How should you sell online? One of the key aspects to consider is the business model you’ll use for e-commerce. Logistics plays a crucial role in this decision. Specifically, you need to determine whether you will sell products:

• Produced or assembled in-house, where you control the entire production process;
• Stored in your own e-commerce warehouse, handling inventory and logistics internally;
• Through a fulfillment model, outsourcing storage and shipping to a third-party logistics provider;
• Via dropshipping, where your online store functions as a sales platform for wholesalers, without managing inventory directly.

Each of these models comes with its own advantages and challenges.

Selling Own Products (DIY)
When selling self-manufactured products, such as in the DIY model, you can expect high margins. At the same time, the distribution volume will be relatively low. This model can serve as a good starting point for individuals who already have an audience interested in their creations (e.g., personalized cake decorations) and treat the business as a side activity.

In this scenario, an independent online store will initially generate supplementary rather than primary income. However, running it will not incur high costs.

Online Sales with an In-House E-Commerce Warehouse
An in-house e-commerce warehouse, managed by you and/or your team, is a good solution if you plan to operate an online store on a small or medium scale. Handling logistics independently involves significant costs, including warehouse space rental and operational management. These expenses are not always cost-effective, especially given that logistics centers offer competitive service conditions.

Online Sales in the Fulfillment Model
Fulfillment is a model in which a logistics center takes over most of the tasks related to product storage, packaging, order processing, and shipping. Such a provider can also handle returns. In this model, your responsibilities include:

• Coordinating with manufacturers or wholesalers—ensuring the delivery of products to the designated logistics center.
• Managing customer interactions—handling sales inquiries, providing customer support, and operating the online store.

This option allows you to save time and money on logistics (although fulfillment services also generate costs). It enables you to focus on effective product sales and customer service.

E-Commerce in the Dropshipping Model
Dropshipping is an e-commerce model where you sell products owned by another entity—usually an online wholesaler. Your e-commerce store acts as a “front” and an additional sales channel. You are responsible solely (and crucially) for marketing and customer acquisition, without dealing with inventory management, shipping, or returns.

This model is a good choice for those who want to launch an online store as a supplementary business. In theory, it requires little initial investment. However, in practice, dropshipping stores typically operate with low margins, compete on price, and allocate significant budgets for marketing and brand development.

Step 5: Choosing an E-Commerce Sales Platform
Online sales can be conducted in two primary ways—through an independent e-commerce store or via a marketplace. Each of these options has its advantages and drawbacks.

How to Sell Online – Marketplace
A marketplace is the first response to the question of how to sell online. It is a platform that connects sellers (merchants) with buyers and provides a complete set of tools for managing online transactions, including order processing, payment handling, and logistics coordination.

Advantages of selling via a marketplace:

• Access to a large audience – The most popular marketplaces in Poland, such as Allegro and Amazon, attract over 20 million users, offering significant customer reach.
• Faster trust-building – Establishing brand credibility independently can take years, whereas selling on a marketplace leverages the platform’s existing trust.
• Low entry barrier – There is no need to build an online store from scratch, including website development, hosting, domain registration, and SEO efforts. Essential tools are available for free.
• Operational convenience – Sellers can focus on e-commerce sales rather than technical aspects like payment processing or logistics management.

Challenges of selling via a marketplace:

• Profit reductions due to commissions – Most platforms charge fees per completed transaction, impacting pricing strategies and overall profitability.
• High competition within the platform – Customers search for products rather than specific sellers, often choosing offers based on the best price or value, requiring competitive pricing and promotional strategies.
• Brand visibility limitations – Building brand recognition on a marketplace is difficult since individual sellers’ brands often get overshadowed by competing offers.

How to Sell Online – E-Commerce Platform and Independent Online Store
The second option is to operate an independent online store under a unique brand. This approach also has its benefits and challenges.

Advantages of using an e-commerce platform and launching your own store:

• Full control over the business model – An independent e-commerce platform allows for tailored sales strategies without marketplace-imposed limitations.
• Higher profit margins – Selling under your own brand eliminates intermediary fees (e.g., marketplace commissions).
• Brand development and recognition – Establishing and growing your brand fosters long-term customer loyalty.

Challenges of this approach:

• Higher entry costs – Setting up an online store requires investment in technology, including website development and platform integration.
• Traffic acquisition challenges – Organic search ranking takes time, requiring alternative customer acquisition methods such as Google Ads or Facebook Ads, which necessitate a dedicated marketing budget.

When choosing an e-commerce platform, there are several options:

• Open Source platforms (e.g., WooCommerce, Magento) – These solutions provide access to source code and allow extensive customization. They support various plugins for payment processing and logistics and do not incur licensing costs. However, they require technical expertise and can be expensive to maintain.
• SaaS platforms (e.g., Shopify, Sky-Shop) – These subscription-based, cloud-hosted solutions are valued for their ease of setup and operation and lower initial costs. However, if you stop paying the subscription, you effectively lose access to your online store.

The choice of platform depends on your business model, growth strategy, and budget. If you seek a cost-effective and low-risk entry into online sales, a SaaS platform is the optimal choice. However, if you require scalable software with full control, consider an Open Source solution or, for even greater customization, a dedicated platform—though this involves significantly higher costs, which must be factored into the business plan.

Step 6: Formalities Related to Your Own Store – Business Activity

This step is optional and required only for those who are just starting their business. To legally sell goods online, you must operate as a registered business. This is a general requirement, unless you anticipate minimal sales that allow for unregistered business activity (with revenues up to PLN 3,225 per month – as of the second half of 2024).

In most cases, however, you will need to register a business and consequently pay social security contributions (ZUS). Keep in mind that the general PKD code under which you can register online sales is 47.91.Z. You can also choose a more specific one, such as 47.59.Z for furniture stores or 47.71.Z for clothing stores. Proper registration is crucial to avoid future issues with tax authorities.

In addition to business registration, it is essential to take care of other key matters, such as online store documentation. You will need terms and conditions, a return and refund policy, and GDPR-related documentation. Do not underestimate these requirements. E-commerce is fully regulated by law, and you must comply with all legal obligations. Ignoring them can result in significant penalties.

Step 7: Logistics and Payments in Online Sales

Before launching your online store, you must define the operational framework. In practice, this means making decisions about:

• Accepted payment methods – The more payment options you offer, the higher the chances of attracting customers. It is advisable to use tools that enable payments via credit card, BLIK, other digital payment systems, and fast bank transfers. For high-value products, consider offering installment payments and cash on delivery.
• Product delivery methods – Effective online sales require fast and convenient shipping options. Customers should be able to collect parcels at courier service points, parcel lockers, or via efficient home delivery. Utilizing fulfillment services can further streamline the shipping process.

Step 8: Online Store Marketing

Successful e-commerce starts with effective marketing. Promoting an online store is a challenge, whether you operate through your own e-commerce platform or a marketplace.

How to Sell Online – Marketing

With the increasing popularity of online shopping, competition among e-sellers is also growing. Regardless of your industry, a strong marketing strategy is essential. Marketing allows you to capture time, space, and attention from your target audience—valuable and limited resources in a crowded market. Your potential customers are exposed to multiple sales funnels simultaneously.

You have already established the foundation of your customer communication plan while developing your e-commerce business strategy. You know what you want to sell, who your target audience is, and what differentiates you from competitors. Now, it is time to implement tools that will help you attract new customers, build loyalty, and increase sales.

Online Store Advertising

The first pillar of effective online sales is paid advertising, which can be utilized both on marketplaces and your own online store. Various advertising tools can immediately boost the visibility of your offers, thereby increasing conversion opportunities.

The available ad tools depend on the sales channel:

• Marketplace sales – Utilize internal promotional systems, such as highlighting your offers in search results or featuring them on the platform’s homepage. A prime example is Allegro Ads.
• Own online store sales – Leverage a full range of advertising tools like Google Ads, including sponsored links, search result promotions, and display campaigns across various websites. A well-planned strategy can yield a high return on investment (ROI).

Additionally, you can promote your online store through social media advertising using platforms like Facebook Ads, Instagram Ads, and TikTok Ads to enhance visibility and drive sales.

SEO Optimization for Online Stores

The second pillar of successful online sales is SEO optimization, which improves visibility in organic search results. This is particularly important if you operate an independent online store rather than selling through auction platforms. Competing for high rankings on Google is a fundamental requirement.

Key SEO optimization aspects for e-commerce include:

• Fast and seamless website performance, influenced by hosting quality, e-commerce platform efficiency, and clean website code.
• Logical website structure, with well-organized categories, subcategories, and an intuitive interface guiding users toward a purchase.
• Unique, high-quality content on the homepage, category pages, and product listings.
• Effective use of meta tags, ensuring alignment with Google’s algorithm requirements.
• Regular content updates, such as blog posts that contribute to long-tail SEO optimization.

SEO efforts resemble a marathon rather than a sprint, but they are essential for long-term e-commerce success.

Online Sales – Customer Communication via Social Media

Social media plays a crucial role in modern e-commerce. Beyond running paid ads on platforms like Facebook and TikTok, maintaining engaging social media channels helps attract and retain target customers. The more valuable content you provide, the higher the likelihood of increasing sales. Ensure your presence on the platforms where your customers spend time.

Customer Service

Customer service is more than just processing online orders; it directly impacts your business reputation and customer loyalty. Ensuring a positive customer experience can lead to repeat purchases and positive reviews.

Best practices for exceptional customer service include:

• Efficient and timely order fulfillment
• Attractive packaging, such as branded boxes with thank-you notes inside
• Automated email notifications for order status updates
• Well-structured customer support channels, including hotlines, chat services, and email support
• Loyalty programs offering discounts on future purchases

A well-designed customer service process increases the chances of positive feedback and repeat business.

Online Sales – Summary

In summary, successful e-commerce requires careful planning and a well-executed operational strategy. Before launching your online store, consider the following:

• Thoughtful selection of product assortment
• Clear understanding of your market position and target audience
• Defining your unique selling proposition (USP)
• Choosing the optimal sales model (marketplace or own e-commerce store)
• Effective logistics solutions (own warehouse, fulfillment services, or dropshipping)
• Reliable shipping and payment options
• Strategic marketing efforts

To sustain long-term success in online sales, continuous business development and innovative customer acquisition strategies are essential.