How to Start an eCommerce Business in 2024

How to Start an eCommerce Business in 2024

In 2024, the opportunities for prospective entrepreneurs in the eCommerce space are truly limitless. Online shopping is hotter than ever, and the eCommerce sector is soaring to new heights. The proof is in the numbers.

According to recent industry reports, global eCommerce sales are estimated to reach a whopping $5.4 trillion in 2024. This massive figure highlights the seismic shift in consumer behavior toward online shopping and away from brick-and-mortar visits. It’s safe to say this is only the beginning of the rise in eCommerce.

Despite the boundless potential for success in eCommerce, the field doesn’t come without its challenges – from selecting the right products and understanding your target audience, to rising above the competition and creating a seamless user experience. That said, with a strong sense of resilience and good guidance, there’s nothing you can’t achieve.

If you’re pondering starting an eCommerce business in 2024, but you don’t know where to begin, you’ve come to the right place. We’ll guide you through the steps of setting up a successful eCommerce store that is sure to thrive in 2024 and beyond.

Identifying Profitable Product Opportunities

Many prospective eCommerce business owners are stumped when it comes to choosing what they want to sell. The truth is, it’s a decision that should not be taken lightly. In a world where digital storefronts have become the norm, the significance of product selection cannot be stressed enough.

A business is only as successful as the product that it’s selling, so we strongly urge prospective entrepreneurs to invest time and research into zeroing in on the right products to sell – and the right audience to sell the products to. Not only will this ensure more sales, but it will also assist with sustained growth and customer retention in the long run.

Strategies for Finding Profitable Products

In order to pinpoint the perfect product to sell, there are several strategies to consider. We’ve compiled the top 12:

Trend analysis: As an eCommerce business owner, it’s important to always be in-the-know about the latest and greatest products that are captivating consumers. Whether it’s plant-based skincare or medicinal mushrooms, analyzing trends is a great first step to determining what product(s) you wish to sell in your online store.
Niche specialization: Focusing on a specific area of the market (such as eco-friendly products, for instance), will enable you to find your target audience much faster, and determine a hole in the market that you can fill.
In-demand research: Beyond trends, it’s important to understand what products are always in demand. We recommend using platforms like Google Keyword Planner to find popular searches, so you can get to know precisely what products consumers need.
Marketplace exploration: It’s hugely helpful to explore the marketplace more broadly. For instance, try checking out Amazon’s “best sellers” list to get a feel for what people are purchasing the most.
Consumer reviews: When it comes to starting an eCommerce business, analyzing the reviews of other online shops is critical. Doing so will offer first-hand insight into what consumers love about certain products – and, conversely, what they do not.
Problem solving: People love products that purportedly solve problems – such as ergonomic office accessories. Try to find a product that clearly and effectively addresses a common problem people deal with.
Social media monitoring: Similarly to online customer reviews, monitoring the social media profiles of competitive businesses and observing discussions in the comments section can do wonders to inform you about the kind of product you want to put out on the market.
Competitor analysis: Once you’ve narrowed down the specific industry you wish to focus on, it’s key to get familiar with potential competitors in the field. Studying successful competitors provides essential insights.
Cross-border opportunities: Not only should you explore trends in Canada, but you should also dive into in-demand products in other parts of the world. Identifying popular products elsewhere can help you tap into new markets domestically.
Partner with locals: Consumers love unique products, and they are also more inclined to support local artisans. Search around for local artisans and product makers to potentially partner with.
Product bundling: The only thing better than a perfect product is a collection of perfect products. Creating curated bundles, such as workout gear and supplements, is a great way to attract new customers, and add value to their shopping experience.
Crowdsource ideas: At the end of the day, it’s up to consumers to determine the hottest products on the market. That’s why running ideas past your customer base is a great way to nail down what product(s) you should start selling. Use surveys or polls on social media to generate insight.

Places to Find Profitable Product Ideas

Entrepreneurs and eCommerce business owners find inspiration all over the place – whether it’s on social media or out on the streets, observing everyday life. If you’re looking for a spark to start an eCommerce business in Canada, here are a few sources of inspiration to tap into:

Social media: The power of social media for product ideation simply cannot be overstated. Instagram, Pinterest and TikTok, in particular, offer tons of visual cues on trending products and styles that consumers are craving more of.
Online marketplaces: Whether it’s amazon on Shopify, scouting popular online marketplaces and getting a feel for consumer preferences is a great way to spark creativity and innovation.
Trend reports: Professionally drafted industry reports offer data-driven insights into consumer spending habits, and can be a great source for finding product ideas.
Niche forums: Sometimes, inspiration can come from the most unexpected of places. Finding niche forums online, like Reddit, for instance, can be both highly revealing and motivating. Don’t discount all the internet has to offer in terms of being a useful source of information and inspiration.
Trade shows: Attending trade shows is a great way to unveil new ideas, and they present a great opportunity to network face-to-work with people in a given field.
Blogs: Personal blogs, specifically produced by successful influencers and marketers, is a great place to find inspiration for product ideas. Influencers tend to tap into trends as they’re evolving, so it’s useful to take note of what they find up-and-coming.
Media: Staying up-to-date with current events and regularly reading popular magazines and media sites is an excellent way to ideate. You never know what you might read about, and being informed about the world around you is critical to creating a product that will resonate with a broad demographic.
Popular culture: Paying close attention to the latest films, television shows and celebrity gossip can spur new ideas that will undoubtedly draw in a captivated consumer base.
Government publications: Remember, there are all sorts of industry-specific government-enforced regulations. If there’s a particular industry you’re interested in, it’s helpful to look into government publications to gain a better understanding of how the field is policed.
Friendly chatter: Don’t discount the benefit of chatting with prospective consumers in person, and gauging the types of product they’re interested in. Keenly observing the people around you and how they live is a useful practice for galvanizing idea-generation.

Trending Products to Sell in 2024

Based on our own research and company experience in the shipping and logistics space, we’ve compiled a list of trending industries in 2024, and some of the most promising products to sell online:

Health and wellness technology: Perhaps due to the covid-19 pandemic, people are more invested in their health than ever before. Health and wellness technology, therefore, has been booming. Individuals are always seeking more proactive and efficient ways to monitor their health, which is why fitness trackers and smartwatches are such appealing products.
Sustainable fashion: As people become increasingly aware about the perils associated with global warming, consumers are more and more keen about sustainable clothing options. Companies with an eco-friendly ethos are highly attractive in recent years, and sustainable fashion, in particular, is projected to grow significantly in the future.
Plant-based food: If you thought the plant-based space was already booming, think again. This field is expected to surge in popularity in the future, as more and more people are becoming aware of the benefits – including environmental – of eating plant-based diets. This broadened awareness will undoubtedly continue to drive demand for plant-based food products well past 2024.
Personalized jewelry: Consumers are increasingly captivated by customized products that cater their individual needs. The jewelry world, in particular, is embracing the personalization trend, allowing consumers to choose certain states and inscriptions that make their jewelry purchases even more precious.
Remote work solutions: It seems as though “work-from-home” isn’t going anywhere any time soon. In fact, it has become standard practice for many companies in Canada. As a result, there’s been a driven demand for home office furniture and gadgets.
Mental health products: Products that alleviate stress, anxiety and depression are surging in popularity, in tandem with the mental health crisis that much of the world is undergoing.
Fitness equipment: Just as working from home is the norm, so is working out at home. Fitness equipment has seen a major boom of late, and its demand is expected to surge even more in the future. Fitness products – including mats, weights, and stationary bikes – have become hot commodities.
Smart gadgets: Thanks to technological advancements, consumers are consistently trying to carve out “smarter” lives by investing in smart technology – in their homes, workplaces and even for their pets. Now, smart pet feeders, wearable trackers and health monitoring devices are all the rage.
Home decor: More than ever, people are looking to make their homes more comfortable and beautiful. As such, it’s no wonder that the demand for candles, blankets, and wall art have skyrocketed in recent years.

Existing eCommerce stores for sale

For those looking to dive immediately into the world of eCommerce, purchasing an already existing eCommerce venture is an alluring option. There is no shortage of turnkey operations primed for takeover. The perk of opting for this type of eCommerce venture is that you’ll already have a strong sense of the company’s potential for growth and revenue generation. In essence, you’ll have a much better idea of what you’re getting yourself into than if you were to start an eCommerce project from scratch. Acquiring an eCommerce store is like taking a shortcut into the market, allowing you to tap into an already existing customer base and revenue stream.

Before acquiring an eCommerce store, though, it’s important to conduct extensive research and market analysis to identify the most lucrative opportunities. When it comes to finding available opportunities out there, there are several avenues you can take:

Online marketplaces: Check out websites like Shopify Exchange, Flippa and Empire Flippers. These platforms specialize in facilitating the buying and selling of eCommerce businesses and stores.
Business brokerage firms: There are several companies (including Quiet Light Brokerage and FE International) that deal with selling digital assets such as eCommerce businesses. They broker the entire process, providing professional insight and advice.
Online forums and groups: Sites such as Reddit, Facebook and other forums (there are more specialized platforms, such as Warrior Forum or eCommerceFuel Community), are great for finding untapped opportunities in the eCommerce space. You’d be surprised how many potential leads you can find if you look hard enough and network with the right people.
Industry events: Attending eCommerce events and conferences is a great way to meet other entrepreneurs in the space, including those who are seeking to sell their businesses.
Direct outreach and networking: Although an eCommerce store owner might not be actively looking to sell their business, if they are approached with an enticing offer, they might be inclined to take it. Targeted outreach to eCommerce store owners is a useful practice that can actually yield real results. Not only could it help you find a store that’s for sale, but you’ll also learn a lot about the market in the process.

Ideas for Starting an Online Business in 2024

Fortunately, there is no shortage of promising potential business ideas that will likely be a big hit in 2024 and beyond. Based on client intel and our own research, we’ve brainstormed some great ideas that could help you start an eCommerce business in Canada:

Sell your art online: As mentioned above, people are seeking to warm up their homes, and simultaneously, supporting local artists is attractive to many consumers. If you’re crafty and entrepreneurial, selling your art products online would be well worth the effort.
Start a clothing brand: This one might seem daunting, but if you’ve got a passion for fashion, making a clothing line that’s unique to you could be hugely rewarding – and profitable. These days, it’s simple to use product-sourcing apps that will link you to apparel printers and clothing manufacturers. In most cases, manufacturers can also look after your fulfillment, which means you can stick to being the brains behind the business.
Subscription-based hobby kits: Consumers are spending more and more time at home, and they are therefore increasingly drawn to at-home activities. Subscription-based hobby kits – which typically include DIY arts and crafts – are very intriguing to consumers, and they’re simple to put together.
Start a wellness brand: Given society’s collective interest in health and wellness, starting a brand in this space is a smart plan. If you can come up with a product that will pique the interest of wellness gurus, you’ll likely be a huge success.
Start a blog: Believe it or not, blog writing is a hugely profitable way to start an eCommerce business in Canada, as if you grow your platform large enough, you can use it to sell various products. Blog writing enables you to develop a close bond with your consumers, so you can get to know them and the products they prefer.
Create handmade goods: In our increasingly saturated world of carbon-copied products, truly nothing beats handmade goods. If you’re crafty in some capacity – whether it’s being an avid baker or an astute seamstress – try starting a website, and selling your handmade goods there. You’ll be surprised by how captivated consumers are.
Sell on marketplaces: If you’re just stepping into the eCommerce world, it can help to start off by selling your product on already existent marketplaces. Massive seller platforms, such as eBay, Etsy and Facebook Marketplace, do all the heavy lifting for you, so you can focus primarily on your products. It’s a very affordable way to start an eCommerce business in Canada, and it’s highly sustainable.
Offer online services: Remember, your product can be people, too! Online services are huge these days, including online fitness trainers, tutoring, consulting and the like. If you’ve got a certain talent that you wish to share with the world, why not start offering classes online? Sell your own skills as a product.
Start a YouTube channel: If you’ve got a knack for content creation, starting a YouTube channel – or a podcast, for that matter – is a great way to dip into the eCommerce business world. If you attract a large enough following, selling products to them becomes simple, and acquiring affiliate marketing partners becomes easy.
Start a membership/subscription business: The benefit of starting a membership-oriented business is that – if your product strikes a chord with consumers – you can pretty much bank on recurring monthly income. Personalized pet care subscriptions, for instance, are becoming increasingly popular, and similar personalized membership platforms are, too. People are looking for customization and consistency in their lives.

Validating Your Product Ideas Through Market Research

In order to ensure you’ve selected the best possible product to base your eCommerce business around, doing background research is essential. Before you dive headfirst into production and promotion, we strongly urge you to conduct extensive market research. Not only will this ensure you have a good grasp of your target audience, but it will mitigate risks and help you gain a competitive edge.

In our experience, there are five main methods for conducting market research, including exploring surveys and questionnaires, customer interviews, competitor analysis, social media listening and prototype testing.

Surveys and questionnaires

It’s super useful to create online surveys targeting your potential customer base. Tools such as SurveyMonkey or Google Forms are great for gathering valuable insight from prospective shoppers. Ask people about their preferences, pain points and expectations that will inform your product development.

Customer interviews

Have one-on-one interviews or even informal conversations with potential customers. This personalized approach provides deep insights and allows for a nuanced understanding of your target audience.

Competitor analysis

Do a deep dive into your competitors, both directly and indirectly. What are they doing well? What could they improve upon? We recommend platforms like SimilarWeb or Ahrefs, which can provide useful information on competitor strategies, traffic and customer engagement.

Social media listening

Social media is a free research resource that should not be overlooked. It’s filled with tons of useful data and information that could help you elevate your business in meaningful ways. Leverage social media platforms to observe conversations around your niche and potential products. Pay very close attention to what people are saying/commenting, and their reactions to existing products on the market. How could you give them more of what they want?

Prototype testing

Once you’ve done the vast majority of your research and have narrowed down your product, work on developing prototypes or minimum viable products (MVPs) to gather real-world feedback. Beta testing will allow you to refine your product based on actual user experiences before releasing it to the broader market.

Sourcing Products for Your eCommerce Store

There are a number of ways you can source products for your eCommerce store, but selecting high-quality items should always be top of mind. How you source products can substantially impact your business model, profit margins and overall efficiency as a company.

Traditional method

Traditional product sourcing involves engaging directly with manufacturers and suppliers, who offer bulk discounts. Essentially, you’ll order items in large quantities which translates to lower per-unit costs. Working with manufacturers and suppliers allows for better control over product quality, and you’ll have more control over branding and customization options.

The central downside of this traditional sourcing method is that it requires a high upfront investment. Additionally, managing excess inventory can be challenging, and shipping and storage logistics can also become costly. Still, it is a surefire approach, and you can always negotiate favorable terms with manufacturers and suppliers, as well as shipping carriers and third-party logistics companies, such as Stalco.

Dropshipping

Dropshipping is a retail fulfillment method that negates the need for a business owner to manage traditional logistics and inventory management. This allows entrepreneurs to focus on selling products without dealing with the physical stock – which can be cumbersome. Instead, the retailer partners with a third-party supplier who manages the inventory, fulfills orders and ships directly to customers.

If you’re hoping to start an eCommerce business and minimize upfront costs, dropshipping could be a great option for you. In addition to low risk, dropshipping also allows you to test out a wide range of products without the need for storage space – which also offers flexibility. The downside, however, is that profit margins can be slim due to the higher per-unit cost from dropshipping suppliers, and business owners have limited control over quality and fulfillment speed. If your company uses dropshipping to source products, you’ll be totally depending on third-party suppliers, so make sure to choose wisely.

Print-On-Demand

If you’re keen to start an eCommerce store that sells personalized or branded products, a print-on-demand sourcing plan could be your best bet. It’s incredibly low risk, as products are created only when an order is placed, thus reducing the risk of excess inventory.

While print-on-demand services offer a variety of products from apparel to accessories, the cost per-unit tends to be higher which can impact profit margins. Likewise, quality can vary widely among print-on-demand providers, and longer production times can slow down delivery speed.

Setting Up Your Online Store

Naming Your Business and Designing Your Logo

Sometimes, the toughest part of starting an eCommerce business is settling on a name and brand theme. The reason being is because it’s arguably the most high-pressure decision – as it directly affects your company’s identity. Your name and logo act inform people’s first impression of your business, so choosing a catchy, unique name and visually appealing logo is critical.

Choosing a name

When choosing a name for your business, there are three main things to keep in mind: memorability, differentiation and SEO benefits. For starters, you want the name to be one that’s easy to remember, which will help your business stay top-of-mind for potential customers. You’ll also want to make sure the name is different from your competitors – and unique. This will set you apart and make your brand more distinguishable. A well-selected name can have a positive impact on search engine optimization, making your brand easier to find online.

Our best advice is to ensure your business name is easy to spell and say, and it should also reflect the essence and identity of your brand. Once you’ve settled on a name you’re happy with, be sure to ensure the website domain is available and secure it immediately.

Designing a logo

A logo matters more than you might think. We live in a highly visual world, and people are naturally more drawn to things that are visually stimulating. It’s worth it to commission a professionally designed logo, as it will enhance brand recognition and help customers identify your business from even a quick glance.

Having a polished, refined logo instills a sense of trust and credibility in consumers, since it signals to them that your brand is professional and reliable. A well-made logo can also evoke emotions and foster a connection between your brand and your target audience.

When contemplating your logo design, consider the symbolism, color psychology and scalability of your logo to ensure it is versatile across a number of different platforms.

Understanding and Leveraging SEO

SEO – otherwise known as search engine optimization – might seem like a buzzword, but it really is an important consideration when starting an eCommerce business. Mastering the basic principles of SEO will ensure your website ranks well on search engines – which is a huge business driver.

In short, SEO enhances your website’s visibility on search engine results pages, which makes it more likely for potential customers to stumble upon. Websites that rank higher in search results are often perceived as more credible and trusted by consumers. Not to mention, compared with paid advertising, organic traffic driven by SEO is a sustainable and cost-effective way to attract visitors.

One of the best ways to leverage SEO is by researching keywords. Keywords reveal what users are searching for, and you should aim to align your content with their needs. Analyzing competitor keywords can be helpful for finding untapping opportunities and areas where you can differentiate. Targeting specific, niche keywords can also help attract people to your site.

We recommend using keyword research tools, such as Google Keyword Planner, SEMrush or Ahrefs to pinpoint relevant keywords for your eCommerce niche. Then, you can incorporate the keywords intro product descriptions, blog posts and more.

Building Your Store and Selecting Sales Channels

Fortunately, there’s no shortage of eCommerce platforms that make opening an online store super simple. There are a number of leading platforms, such as Shopify and WooCommerce, both of which allow you to streamline your dropshipping operations and enhance the efficiency of your eCommerce venture.

When you’re ready to set up an online store, you want to start by selecting a domain name that is relevant to your business and reflects your brand identity. Use a domain registration service, such as GoDaddy, to secure your chosen domain.

Once you’ve locked down a domain, selecting a hosting provider. Choose a dependable hosting provider that aligns with the requirements of your chosen platform. Shopify, for instance, provides hosting as part of its service, while WooCommerce users will need to select a WordPress-compatible hosting provider.

Pay attention to the payment processing system your platform uses. Shopify and WooCommerce support various payment methods, providing a secure and convenient shopping experience for your customers.

After you’ve chosen your hosting provider/platform, you’ll want to follow the platform-specific instructions for installing and creating your online store. Customize the appearance of your store using the designed templates or by hiring a professional designer. Finally, once the design is in place, you can start adding products to your online store. Include eye-catching visuals and compelling product descriptions, as well as accurate pricing information to attract new customers.

Once you’ve set up your store, it’s useful to look into different streamlining operations, such as automated order fulfillment and inventory management. Use the features of dropshipping apps to keep track of your inventory in real time.

It’s also important to make your store mobile-friendly, as an increasing number of online shoppers use their smartphones rather than computers. Additionally, you should consider implementing SEO strategies into your store to enhance its visibility. Use tools and plugins offered by your eCommerce platform to optimize product pages, meta tags and other elements for search engines.

Last but not least, explore marketing features and analytics tools provided by your chosen platform. There are certain functionalities that help monitor consumer behavior, run marketing campaigns and optimize your store to bring in more sales.

Developing Your Shipping Strategy and Defining KPIs

In conjunction with having a strong online presence, eCommerce businesses also need to develop a strong shipping strategy – which plays a major role in shaping customer satisfaction. In an era of instant gratification, having fast and reliable shipping is not just a bonus; it’s an expectation from consumers.

Part of your shipping strategy should involve being transparent and clearly communicating with customers. Transparency is shipping costs and delivery times builds trust, and unexpected fees or delays can lead to immense disatisfaction.

The eCommerce world is itself difficult to navigate, and the logistics realm adds a whole new layer of complications. We strongly urge eCommerce business owners to partner with a third-party logistics provider, such as Stalco, to ensure the smoothest possible shipping and delivery process.

Shipping and Fulfillment Guide

Given that eCommerce businesses depend entirely on shipping to customers, having a solid fulfillment process in place is paramount to running a successful operation. As experts in the space, we’ve outlined a complete guide for shipping and fulfillment – including best practices and potential pitfalls.

Choose shipping partners wisely: Work with reliable shipping services to ensure timely and secure deliveries, while also catering to customer preferences. Negotiate for the best rates, and ask for bulk shipping discounts.
Smart packaging: Optimize packaging to safeguard products during transit and minimize damage to the good. Plus, opt for sustainable packaging if you can, to bolster your brand’s commitment to sustainability.
Order tracking and communication: Keep customers in-the-know about the status of their orders. Communicating regularly with consumers builds trust – which goes a long way for customer retention.
Return process: Make the return process as hassle-free as possible for customers. Have clear directions on your website to make returns seamless.

As you solidify your shipping strategy, defining your key performance indicators (KPIs) is very important. It will help you measure your success. When setting your KPIs, you’ll want to hone in on four key factors: conversion rate (the percentage of website visitors who make a purchase); average order value (the average amount of money spent by a customer in a single transaction); customer satisfaction (the likelihood that a customer would recommend your business to others; and cart abandonment rate (the percentage of shoppers who add items to their cart but do not complete the purchase).

Understanding the Costs of Starting an eCommerce Business

Before starting an eCommerce business, it’s important to wrap your head around the costs associated. Research indicates that the initial investment for an eCommerce startup can be around $40,000 in the first year. This cost includes platform and website development, product sourcing and inventory, branding and marketing, shipping and fulfillment, and other miscellaneous expenses, such as legal and compliance fees.

Of course, every business is different, and your expenses will vary based on your business model, niche and unique requirements. Developing a comprehensive financial plan, closely monitoring expenses and adapting your strategy as needed will help your business stay stable.

Investing in the Long-Term Success of Your eCommerce Business

The saying “it’s not the destination, it’s the journey,” completely applies to starting an eCommerce business. Your goal shouldn’t solely be striving for immediate, short-term success – if you’re really aiming to grow a brand and business, you need to keep the future in mind. Investing in the long-term growth of your company means educating yourself about the broader industry and consumer behavior, and keeping up with product demand. As a business leader, you must continually invest in all elements of your eCommerce venture.

Running a successful eCommerce business is no easy task, but is indeed one of the most rewarding endeavors out there. Best of luck to you as you build your business!