What is an Ecommerce Storefront? 20 Facts You Need To Know

An ecommerce storefront is the online location at which people buy products or services. An ecommerce website is a web page that is designed for online sales transactions. There are many types of ecommerce websites including storefronts, mobile stores, marketplaces, virtual shops, and catalogs.

What is an Ecommerce Storefront?

Many firms are able to undertake online commercial transactions using the storefront model of electronic commerce, or “ecommerce,” because of the Internet. Ecommerce is conducted entirely via the Internet and is typically based on a website showcasing products, services, and other items that can be offered to customers.

In addition, the majority of e-commerce portals provide customers with product photographs and descriptions, pricing information, a shopping cart, a payment processing system, and customer support contact information.

What is an Ecommerce Storefront?

There are numerous benefits to using an ecommerce storefront as a global business strategy. An ecommerce storefront is a low-cost method for businesses to offer products or services using a web-based system.

This is particularly useful for a tiny or virtual company that want to conduct international commerce without requiring a real storefront or a complete staff.In addition to being a cost-effective solution, an ecommerce shop may be run 24/7 to provide customers with more access to information and resources.

A web-based shop can be visited outside of normal business hours, unlike a conventional storefront. This raises the likelihood of increasing revenue and recruiting international clients.

Another intriguing aspect of ecommerce is that the web “shop” may be tailored to reflect the organization’s identity. This Internet shop can be modified as the business evolves or as new products and services are added.

In addition, it is considerably simpler to promote an ecommerce business by putting Internet advertisements in online publications, conducting social media marketing campaigns, and networking with other online merchants.

Frequently, internet storefronts enable businesses to sell things without maintaining a physical inventory. This practice is known as drop-shipping, and it is becoming an increasingly cost-effective approach to sell a variety of products online.

This form of virtual business promotes seasonal or specialized products that are popular with consumers and can be linked to online auction portals to generate more revenue.

Many businesses that have historically relied on physical storefronts are now also utilizing virtual stores to attract the millions of consumers who now do the majority of their buying online.

In addition to the proliferation of virtual stores, ecommerce enables even the most inexperienced businessperson to offer a product or service for sale online rapidly and affordably.

How Will The Look Of The Site Reflect Your Branding?

A storefront is a terrific asset to your business if it’s designed properly. Customers will judge the quality of your items and services (and possibly the company) based on the appearance of your online store.

What is an Ecommerce Storefront?

The general layout and usability are crucial elements. Ensure that your brand’s colors, images, and general messaging are aligned with those of your company’s primary website. Every piece in your store must reflect the position, value, and promise of your brand.

What Products Will Be Available For Purchase?

First, you must choose whether your e-commerce website is for internal use or for customers. Perhaps it’s both! Determine how your prospects will utilize your platform and make the procedure as simple as feasible.

If it’s for internal usage only, provide things or items that are useful to employees’ jobs. Consider imprinted clothes or notebooks, promotional products, industry-standard forms, and/or computer accessories.

Before selecting on featured products for a storefront facing customers, it is crucial to evaluate the potential of your firm. Have you stocked enough inventory to fulfill demand? Consider that you may be required to pre-order a specific amount of things.

Can you possible meet the needs of your customers? If you’re unsure, it’s not a bad idea to begin with just a few products, such as branded apparel or industry-specific promotional items, then add more as your store expands.

How Long Should You Keep The E-Commerce Sorefront Open?

Determine whether you’re in the e-commerce business for the short or long term. Perhaps you’re using e-commerce to launch your firm and build brand awareness.

For instance, you may just need to sell promotional things for a one-time event, such as a school spirit store at homecoming or a huge company event where employees can order event-specific items or clothing.

You may also require a permanent method for your franchise locations to order business cards and other location-specific branded goods or clothing. Alternatively, you may wish to be accessible 24/7/365. Discuss the situation with your e-commerce staff in order to discover the optimal solution.

Do They Recommend User Self-Registration Or Manual Setup?

When putting up their online stores, many small business owners tend to overlook this issue. This is another aspect that will vary based on whether your shop is for staff, consumers, or both.

Your e-commerce team will have the option to use a manual setup procedure in which users are pre-programmed into the system; some systems even allow you to personalize the items to which customers have access. (Consider having items that can only be read by or ordered by personnel with a particular qualification.)

Alternatively, if the majority of your site’s visitors will be customers, you should likely choose user self-registration, which is the process of consumers creating their own profiles by providing their own information. Determine how your customers want to shop on your platform and make the transaction as simple as feasible.

What is an Ecommerce Storefront?

What Are The Order Fulfillment And Shipping Logistics?

Who is accountable for actually shipping these orders? is another way of phrasing this question. Will your e-commerce staff have the products on-site and fulfill the orders, or would you rather keep the products in-house and handle the fulfillment yourself? What are the costs involved if your e-commerce team is responsible for fulfillment? What is the turnaround time and shipping method?

Before making a final decision, make sure to discuss all of the facts with your e-commerce staff, who will likely have a few predetermined solutions to choose from. The success or failure of your e-commerce site depends on the technical and logistical decisions you make.

What Payment Options Are Available?

If you intend to collect payments for your products, you must have payment methods in place. The functionality of the shopping cart must be strong and scalable to allow for product customisation, inventory management, and future expansion.

It must also interact with a payment gateway that supports numerous transaction types and is able to organize, process, and trace all transactions securely.

Moreover, distinct e-commerce teams will offer distinct payment choices. There may be credit cards that are accepted or not accepted, and it may be possible to link Shopify or PayPal.

Split payments may also be available for employee-only stores. This is a system in which the corporation can pre-pay a lump sum for each department or location, and those departments or locations can order whatever up to the pre-paid amount.

Any expenditures beyond this threshold may be charged to individual credit cards, thereby dividing the payment between the company and its employees.

Techopedia Explains Electronic Storefront

An electronic shop may comprise product display, online ordering software, inventory management tools, a billing and online payment system, and payment processing software. Web analytics and secure socket layer (SSL) security are also essential components.

The majority of online stores have a shopping cart interface; this interface works in tandem with customer checkout software. Some electronic shops have analytic interfaces for expanding online enterprises and predictive analytics for predicting future shopping trends. If required, a retailer can receive custom-designed websites and technical support.

Users often pay a one-time setup fee and then either annual or monthly fees when opening a storefront account. The costs may be proportional to the amount of product listings, which are usually fixed.

The disadvantage of employing an electronic storefront service provider is that payment gateway alternatives may be limited. In addition, websites with higher-than-expected traffic may be required to pay higher hosting rates than anticipated.

What is an Ecommerce Storefront?

How Does an Electronic Storefront Work?

There are a variety of software solutions accessible to merchants, including electronic shopping carts and secure payment gateways. When launching or running an online business, storefront vendors are especially useful for merchants who lack eCommerce technological expertise.

History of Ecommerce

Michael Aldrich established the basis for electronic commerce in 1979. Using his telephone line, he linked his television to his computer. His notion sparked the concept of shopping without visiting a real store.

The majority of individuals at the time did not own computers. Bill Gates and Steve Jobs promoted computers among the general populace. Bill Gates has even stated that his objective is to place a computer on every desk and in every home. Without computers, e-commerce would look very different.

In 1994, Jeff Bezos launched Amazon as an online bookstore that sold more than a million distinct titles at launch. Amazon would ultimately become the most popular online retailer for all types of merchandise.

People began adding computers to their homes in the mid-1990s and early 2000s, laying the path for the expansion of e-commerce.

In the early to mid-1990s, there was no internet payment gateway to facilitate the movement of funds from customers to businesses. Credit cards were readily accepted when PayPal was created in December 1998, which simplified the buying experience for customers.

With the introduction of Shopify, WordPress, and comparable platforms in the 2000s, businesses were able to create ecommerce stores with minimal development knowledge. Consequently, the barrier to entrance was lowered. Now, anyone with a computer connected to the internet and a little amount of funds could set up an ecommerce website with no effort.

In 2008, internet sales accounted for 3.4% of all sales, indicating industry expansion. It was predicted in 2014 that there were between 12 and 24 million online stores worldwide.

In 2021, the knowledge gap between novice ecommerce experts and those with more experience is rapidly decreasing. Thanks to the proliferation of blogs and internet resources, industry tips, methods, and strategies may be accessed with a single click.

In less than six months, anyone can now create an ecommerce website and begin to see tangible results.

How to start an ecommerce business

1. Choose a product

Finding a product to sell

Knowing what products you want to sell directly to consumers is the first step in creating an e-commerce store. Usually, this is the most difficult aspect of launching a new online business. In this section, we’ll discuss product discovery tactics, the best sites to hunt for product ideas, and e-commerce products that are currently popular.

Evaluating your idea

Once you have an idea for a product, how do you determine whether or not it will sell? In this section, we will discuss some strategies that active entrepreneurs have used to validate their product concepts and possible markets.

Obtaining your product

After identifying a viable product concept, the following stage is to determine where and how you will get your products. The following four pages discuss the numerous strategies for purchasing your items, as well as the advantages and disadvantages of each model.

Sell your retail products online

Numerous independent retailers face a difficult path ahead. Moving your brick-and-mortar business online can help you weather the storm, increase cash flow, and establish a more resilient company. You’ll need a solid ecommerce platform, such as Shopify, upon which to develop your store.

What is an Ecommerce Storefront?

2. Research and prepare

Research your competition

You have discovered your product, assessed its viability, and identified a supplier. But before you do so, you’ll need to conduct extensive research on your competitors so you know what you’re up against and how you can distinguish your firm from theirs.

Writing a business plan

It is now time to draft your company strategy after completing your competition analysis. A business plan is a road map that assists in the organization of your ideas and thoughts.

It is crucial for selecting what to prioritize and how to effectively approach potential clients. Additionally, a business plan displays your company’s goal statement to demonstrate to investors and employees the brand’s underlying values.

3. Setup your business

Choose a business name

In addition to locating a product to sell online, deciding your business or brand name and selecting a suitable, available domain name are also difficult decisions. These blog postings will assist you in completing these essential responsibilities.

Creating a logo

After choosing a distinctive name and registering the associated domain, it’s necessary to design a straightforward logo. In these resources, we will present you with a variety of possibilities for designing a fantastic logo for your new firm.

Understanding search engine optimization (SEO)

Your internet store is nearly ready to be constructed. However, before you begin, you need familiarize yourself with the fundamentals of search engine optimization so that you can arrange your website and pages appropriately for Google and other search engines.

Building your store

Now that you have a better understanding of search engines, it’s time to use a website builder to construct your online store. There are several important factors to consider. Below, we’ve collected our must-reads to help you create high-converting product pages, write appealing product descriptions, take gorgeous product photography, and choose your ecommerce color palette, among other things.

Choosing your sales channels

Choosing sales channels where they already purchase is one of the finest strategies to attract new customers. The optimal combination of sales channels depends depend on your products and your target market, but there are a number of excellent alternatives that can complement and support your self-hosted business.

4. Prepare to launch

As the launch of your new firm nears, there are various shipping and fulfillment aspects for which you must plan. In this part, we have compiled several in-depth instructions on determining your shipping plan.

It’s also a good idea to define your key performance indicators in advance, so you know what success metrics to track once you launch.

5. Post launch

Acquiring your first customer

Now that you’ve launched, the difficult task of selling your products commences. While many new store owners should consider selling their real things in person, the remainder of digital marketing hinges on executing one thing exceptionally well: attracting targeted visitors. In the following section, we will discuss a number of marketing strategies that will aid you during your initial few months in business.

Marketing your store

Now that you’re well on your way, you’ve probably already made a few sales. It is time to get serious and invest in your store’s promotion. The following topics will assist you in honing in on your most effective ecommerce marketing strategies or expanding into new strategies for increasing traffic and converting that traffic into purchases.

What is an Ecommerce Storefront?

How much does it cost to start an ecommerce business?

An ecommerce business can be launched for as low as $100, which includes a membership and the purchase of a shop theme. Ecommerce businesses are less expensive than brick-and-mortar stores since they do not require the same number of licenses and permissions, and you do not have to pay rent for a retail space.

If you operate a dropshipping firm, for instance, your startup costs will likely be lower because you won’t have to pay for raw materials, inventory, or manual labor. You pay for things only once a buyer makes a purchase.

Whether you are manufacturing things by hand or working with manufacturers, you must pay for equipment, materials, and labor in advance.

Numerous ecommerce entrepreneurs launch their companies on a low budget. We questioned 150 entrepreneurs and 300 small company owners in the United States to determine upfront costs.

According to our research, new ecommerce store owners can anticipate business expenses of up to $40,000 in the first year, which are recouped by profit margins.

The following expense categories were included:

  • Product: raw materials, inventory, supplier, manufacturing, patents, etc.
  • Operating: incorporation/legal fees, additional software, business insurance, accounting, etc.
  • Online store: website/platform subscription, hosting/domain, contract developer/designer, etc.
  • Shipping: packaging, labels, etc.
  • Offline: stall/table fees, rent, gas, etc.
  • Team/staff: salaries, benefits, perks, etc.
  • Marketing: logo, branding, ads, printed materials, business cards, etc.

In the first year of operation, business owners invested:

  • 11 percent on operating expenditures
  • 10.3% for marketing expenses
  • 9 percent on online expenditures
  • 31,6% on product expenses
  • 8.7 percent on freight charges
  • 18.8 percent on team expenditures
  • 10.5% for offline expenses

This does not necessarily imply that you will spend $40,000 to launch an ecommerce store. The amount invested in the first year varies greatly based on the industry, ecommerce business model, number of employees, and full-time status of the business.

Also, you do not need $40,000 in liquid assets to launch an ecommerce firm. While many (66%) entrepreneurs use their personal funds to fund their business (respondents could select more than one funding source), they also rely on financial support from family and friends (23%) and personal loans (5%). (21 percent ).

Tips for starting an ecommerce store

Starting an ecommerce business is thrilling. Whether you’re starting your first or fifth one, keep the following tips in mind:

  • Forget about year one profitability
  • Know your target audience
  • Sell an in-demand product
  • Experiment with marketing and advertising
  • Invest in outreach and link building

Forget about year one profitability

Successfully launching an ecommerce business is a marathon, not a sprint. Don’t judge your first year of business success by profitability.

Give yourself between 18 and 24 months to get your business off the ground. Using the aforementioned financial recommendations, spend your first year experimenting, iterating, and reinvesting your sales back into your firm.

Know your target audience

Outside of product development and procurement, the majority of your time will be spent attracting customers.

The problem? You want to place your products in front of the clients who are most likely to purchase from your website. Understanding these individuals, often known as your target audience, can help you reach them more quickly and generate more revenue.

Sell an in-demand product

Create or sell an exceptional product that has demonstrated market demand. Take a look at the leading merchants of today, such as Allbirds, Tushy, and Bombas, and you will see that they all sell premium products.

Eric Even Haim, the chief executive officer of upsell, states, “Product quality is crucial because a good product sells itself.” When you combine a fantastic product with a hungry audience, marketing becomes ten times easier.

New products do not need to be the “next big thing,” as Eric argues. You need only “search for expanding trends and untapped markets.” Then enter with a superior product and give them what they desire!”

There are two sources of market demand: Trends.co, which utilizes data to identify trends and business prospects before they become popular, may be accessed through Google Trends, where you can investigate topics people look for.

What is an Ecommerce Storefront?

When you combine a terrific product with a hungry audience, marketing becomes 10 times simpler.

Experiment with marketing and advertising

It is essential to spread the word about your new firm after its launch. You will need to test a variety of marketing methods to determine where your audience congregates and how they respond best to your content.

Test several online marketing strategies, including:

  • Affiliate promotion
  • Instagram adverts
  • Site-wide pop-ups
  • Examine the upsells and cross-sells.
  • Natural search
  • Content marketing
  • Loyalty applications

“Your capacity to experiment, test, and analyze your advertising and marketing methods will determine your success,” says Stephen Light, CMO and co-owner of the mattress firm Nolah. “Experimentation is the best method to avoid making assumptions about your audience that could hurt you instead of benefiting you.”

Stephen advocates being willing to make egregious errors, “particularly when you’re just beginning.” Use the data you acquire to design campaigns that generate more visitors and revenue. “In addition, refining your ad campaigns and collecting data on how your customer base responds to them will help you shape your website’s features.”

Experimentation is the most effective strategy to avoid making harmful assumptions about your audience.

Invest in outreach and link building

New ecommerce stores should also have a plan for outreach and link-building in place. These strategies can assist improve your Google SEO rankings.

“The sooner you implement a strategy for link building and driving authority into your site, the sooner search engines will recognize your website as an authority in its sector,” explains SEO consultant James Taylor of the United Kingdom.

“Search engines view a link from an authority source as a vote of confidence in your website; hence, the more connections you have from reputable websites, the more search engines will view you as an authority.”

James advises new ecommerce store owners and marketers to immediately invest in digital PR and link-building activities. This lays the groundwork for long-term SEO success, allowing you to rank higher on Google, get more organic traffic, and increase revenues.

The sooner you implement a strategy for link building and driving authority to your site, the sooner search engines will perceive your website as a leader in its industry.

Ecommerce Statistics

  • By 2021, it is anticipated that worldwide ecommerce sales will exceed $4.8 trillion, making ecommerce a lucrative and expanding business.
  • In 2018, it was shown that over half of consumers prefer mobile shopping over in-store shopping. Consequently, store owners must guarantee that their websites and advertisements are mobile-optimized in order to reach their intended audience.
  • Women are more likely to shop online than males. Women spend $6 for every $10 spent online, while males spend $4.
  • Millennials, aged 18 to 34, are more likely to shop online than previous generations. In addition, they constitute the largest category of digital buyers, accounting for 38.4 percent of internet consumers.

What Is Ecommerce Business?

A business engaged in ecommerce is a company or individual that sells goods or services over the internet for profit. It helps users to perform e-commerce transactions swiftly and with a variety of payment options. Depending on the model you select, there are a variety of ecommerce business kinds.

What Is an Ecommerce Platform?

An ecommerce platform is a software system that enables companies to build online stores. In these online stores, businesses are able to sell products and services to customers across the globe by leveraging delivery services. The ecommerce platforms Shopify, BigCommerce, and Magento are examples.

In 2004, Tobias Lutke, Daniel Weinand, and Scott Lake started Shopify. In 2019, over one million businesses utilized Shopify’s platform and contributed $183 billion to the global economy. Their platform allows store owners to install apps such as the dropshipping app by DSer and the countdown timer app by Hurrify. With a rating of 10 out of 10, Shopify’s platform is regarded the greatest ecommerce platform.

What Is Ecommerce Marketing?

Ecommerce marketing is a strategy that helps generate sales for online retailers by utilizing primarily online channels. This may consist of brand awareness campaigns, display advertising, QR codes for discounts, etc. The majority of online marketing approaches are derived from traditional marketing strategies.

What Is an Ecommerce Website?

Any website that sells a good or service is an ecommerce website. This type of website may adhere to any of the ecommerce business strategies described previously. To illustrate how diverse ecommerce online stores may be, we list the most frequent sorts of ecommerce websites you may see online.

Common Types of Ecommerce Websites

  • Physical Goods Ecommerce Website: To sell to a larger audience, brick-and-mortar retailers might host their storefronts online. This option is ideal for retailers without physical stores that wish to improve sales.
  • Service-based Ecommerce Website: Freelancing and online-only services have become an enormous trend in recent years, with websites functioning as a conduit between service providers and prospective clients.
  • Digital Products Ecommerce Website: Companies that sell digital products, such as software or video games, do not require physical locations to sell their wares because customers may just download the product.
  • Dropshipping Ecommerce Website: Dropshipping is a form of e-commerce in which merchants offer products to clients through their web store without holding inventory. Instead, they choose a source to sell things from, wait for buyers to purchase the goods, and the supplier fulfills the order on their behalf.

Future of Ecommerce

The ecommerce business will expand in the future. In 2021, it is anticipated that global ecommerce sales would account for 18.1% of all retail sales. Ecommerce will continue to erode the market share of brick-and-mortar stores over time, as it has for the previous several years. This is excellent news for entrepreneurs interested in launching online stores, as sales will continue to rise, albeit against a backdrop of increased competition.

The beauty of ecommerce marketing is that webinars, blogs, and ebooks make it possible to study nearly anything online. This means that everyone, regardless of budget, has the potential to achieve success with this sort of marketing.

You can advertise your products, for instance, using Google Ads and social media websites. In addition, you can create promotional emails to expose your products to more audiences. Affiliate marketing, social media marketing, video marketing, and influencer marketing are other types of ecommerce marketing.

The evolution of e-commerce over time will certainly result in a more virtual or augmented reality shopping experience for consumers. The incorporation of ‘virtual’ try-on capabilities in retail stores is possible in the future.

This will ensure that items suit the customer’s body while letting them to preview how it will look prior to purchase. Customers may be able to “try on” cosmetics using the camera on their computer or mobile device. It is an exciting time to be a part of the evolution of e-commerce.

Starting an ecommerce business FAQ

How do I start an ecommerce business?

Research what things you wish to sell or can source to sell, establish a business name, register your business with the government, secure permits and licenses, select an ecommerce software and design your website, upload your products to the website, launch your business, and begin marketing it.

What is an Ecommerce Storefront?

What are the 4 types of ecommerce businesses?

  • Business to consumer (B2C): When you sell a good or service to an individual consumer (e.g., you buy a jacket from an online retailer).
  • Business to business (B2B): When you sell a good or service to another business (e.g., a business sells wholesale products for another business to use).
  • Consumer to consumer (C2C): When you sell a good or service to another consumer (e.g., you sell vintage clothes on Facebook Marketplace to another consumer).
  • Consumer to business (C2B): When you sell products or services to a business (e.g., an influencer or affiliate offers exposure to their audience in exchange for a fee).

Is ecommerce a profitable business?

The ecommerce market is lucrative. Starting a successful ecommerce business is a marathon, not a sprint. It might take between 18 and 24 months for a business to launch. It is imperative that you do not judge the success of your firm based on its first profitability.

Is it hard to start your own ecommerce business?

No, launching an ecommerce business is straightforward, as systems such as Shopify allow firms to go online in a matter of days. Initiating a brand entails arduous effort and ongoing market study to enhance the firm. Before establishing a store, you are urged to study all of our tips on how to launch a business.


Creating a successful online business is both exhilarating and difficult. You’ll quickly learn a great deal about selecting a product, assessing its viability, determining how to get it manufactured, constructing an ecommerce website, and marketing and selling to new clients.

The procedure can feel like solving a difficult puzzle, but it is nonetheless satisfying. We hope that utilizing these resources will offer you with a clearer path map. As always, the best advise anyone can provide is to simply get started and enjoy the process.

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Pat Moriarty
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