E-commerce Basics: Selling Online for Australian Small Business
The shift to online shopping has accelerated dramatically. Australians spent over $50 billion online in 2020, and that trajectory is continuing in 2021. Whether you run a retail shop, make handmade products, or sell specialty goods, there has never been a better time to start selling online.
But getting started can feel overwhelming. Which platform should you use? How do you handle payments? What about shipping? Do you need an ABN?
This guide breaks down the essentials of setting up an online store for your Australian small business.
Do You Need an Online Store?
Before investing in e-commerce, consider whether it is right for your business:
An online store makes sense if:
- You sell physical products that can be shipped
- You sell digital products or downloads
- You want to reach customers beyond your local area
- You want to sell outside business hours
- Your competitors are selling online
- Customers have asked if they can buy from you online
It might not be the right time if:
- You only sell highly customised services
- Your products require in-person consultation before purchase
- You do not have the capacity to handle online orders and shipping
For many Western Sydney businesses, adding an online store complements their existing physical presence and opens up new revenue streams.
Choosing an E-commerce Platform
Your platform is the foundation of your online store. Here are the main options for Australian businesses in 2021.
Shopify
Best for: Most small to medium businesses Price: From $29 USD per month
Shopify is the most popular dedicated e-commerce platform. It handles everything from product listings to payments to shipping.
Strengths: Easy to use, professionally designed themes, excellent payment processing (Shopify Payments), strong app ecosystem, reliable hosting and security.
Considerations: Monthly fees add up, and transaction fees apply unless you use Shopify Payments. Customisation beyond templates requires some technical skill.
WooCommerce (WordPress)
Best for: Businesses already using WordPress Price: Free plugin, but hosting and extensions cost money
WooCommerce is a free WordPress plugin that turns your WordPress site into an online store.
Strengths: Free to start, highly customisable, integrates with your existing WordPress site, large community and extension library, no transaction fees beyond your payment gateway.
Considerations: Requires WordPress hosting and management, more technical setup, you are responsible for security and updates, can be slower than dedicated platforms.
BigCommerce
Best for: Businesses expecting significant growth Price: From $29.95 USD per month
BigCommerce is a robust platform with more built-in features than Shopify.
Strengths: Strong built-in features (fewer paid apps needed), no transaction fees, excellent for businesses with large product catalogues, good SEO features.
Considerations: Steeper learning curve, fewer themes than Shopify, less intuitive for beginners.
Square Online
Best for: Businesses already using Square for in-person sales Price: Free plan available, paid plans from $12 USD per month
Square Online integrates seamlessly with Square’s point-of-sale system.
Strengths: Free plan available, integrates with Square payments and POS, simple setup, good for businesses that also sell in person.
Considerations: Limited customisation, fewer features than Shopify or WooCommerce, the free plan includes Square branding.
Etsy and eBay
Best for: Testing the waters or selling alongside your own store Price: Listing and transaction fees apply
These marketplaces let you sell without building your own store. They bring their own traffic, which can be valuable when you are starting out.
Strengths: Built-in audience, easy to start, no website needed.
Considerations: Fees per transaction, limited branding, you are competing directly with other sellers, you do not own the customer relationship.
Setting Up Your Online Store
Step 1: Product Listings
Create compelling product listings for each item you sell.
Product title: Clear and descriptive. Include key details customers search for.
Product description: Write detailed, benefit-focused descriptions. Include dimensions, materials, care instructions, and anything else a buyer needs to know. Remember that online shoppers cannot touch or examine your product.
Photos: High-quality product photos are essential. Show your product from multiple angles, in context, and with a sense of scale. Natural lighting works well for most products.
Pricing: Research competitor pricing. Include or clearly state GST. Consider whether you will offer free shipping or charge separately.
Variations: If your product comes in different sizes, colours, or options, set these up as product variants.
Step 2: Payment Processing
You need a way to accept online payments. Common options for Australian businesses:
Shopify Payments: If you are on Shopify, this is the simplest option. Accepts credit cards and supports Afterpay.
Stripe: A popular payment processor that integrates with most platforms. Competitive rates for Australian businesses.
PayPal: Widely trusted by consumers. Good to offer alongside card payments.
Square: If you use Square in-store, their online payment processing integrates seamlessly.
Afterpay / Zip Pay: Buy-now-pay-later options are very popular with Australian shoppers. Consider offering at least one.
Typical processing fees: Expect to pay roughly 1.75 to 2.9 percent plus a small fixed fee per transaction, depending on your provider and volume.
Step 3: Shipping Setup
Shipping is one of the most important (and complex) parts of e-commerce.
Australia Post: The most common option for Australian e-commerce. They offer flat-rate satchels, regular parcels, and express options. Integration with most e-commerce platforms is straightforward.
Sendle: An Australian courier service popular with small businesses. Carbon-neutral shipping with competitive rates, especially for larger parcels.
Aramex (formerly Fastway): Another option with good coverage across Australia and competitive pricing.
Shipping strategy options:
- Flat rate: Charge a fixed shipping fee regardless of order size. Simple for customers to understand.
- Calculated rates: Charge actual shipping costs based on weight, dimensions, and destination.
- Free shipping: Absorb shipping costs into your product prices. Very attractive to customers. Consider offering free shipping above a certain order value.
- Local pickup: If you have a physical location, offer free local pickup.
Step 4: Legal and Tax Requirements
ABN: You need an Australian Business Number to sell goods and services.
GST: If your annual turnover exceeds $75,000, you must register for GST and include it in your prices. Even below this threshold, you can voluntarily register.
Consumer guarantees: Under Australian Consumer Law, your products must be of acceptable quality, match their description, and be fit for purpose. You must accept returns for products with major faults.
Refund policy: You need a clear refund and returns policy displayed on your website. Under Australian law, you cannot refuse refunds for faulty products.
Privacy policy: If you collect personal information (which you will), you need a privacy policy that complies with the Australian Privacy Principles.
Terms and conditions: Outline the terms of sale, including delivery times, payment terms, and dispute resolution.
Step 5: Website Essentials
Beyond your product pages, your online store needs:
- A clear homepage with featured products and navigation
- An about page that builds trust
- A contact page with multiple ways to reach you
- A FAQ page addressing common questions
- Shipping information page
- Returns and refund policy
- Privacy policy
- Terms and conditions
Marketing Your Online Store
Having an online store is just the beginning. You need to drive traffic to it.
SEO
Optimise your product pages for search. Include relevant keywords in your product titles, descriptions, and URLs. Write unique descriptions (do not just copy manufacturer text).
Social Media
Share your products on Instagram and Facebook. Use high-quality images, engage with your audience, and consider running paid ads.
Google Shopping
List your products on Google Shopping so they appear in product search results. This can drive significant traffic for product-based businesses.
Email Marketing
Build an email list and send regular updates about new products, promotions, and restocks. Email is one of the highest-converting marketing channels for e-commerce.
Local Marketing
If you also have a physical presence, promote your online store to existing customers. Many will appreciate being able to order from you online.
Common E-commerce Mistakes
- Poor product photos: Online shoppers buy with their eyes. Invest time in good photography.
- Thin product descriptions: Customers cannot touch or examine your products. Your descriptions need to fill that gap.
- Complicated checkout: Every extra step in checkout increases cart abandonment. Keep it simple.
- Hidden shipping costs: Customers dislike surprises at checkout. Be upfront about shipping costs.
- No mobile optimisation: A significant portion of online shopping happens on phones. Your store must work perfectly on mobile.
- Ignoring customer service: Online customers expect prompt responses to questions and issues.
- Not tracking results: Use analytics to understand what is working and what is not.
Start Small, Scale Smart
You do not need to launch with 500 products and a warehouse. Many successful Australian online stores started small:
- Start with your best-selling or most popular products
- Use your existing space for inventory
- Ship orders yourself until volume justifies outsourcing
- Reinvest profits into expanding your range and marketing
The most important step is the first one. Get your store online, start selling, learn from your customers, and improve as you go.
If you need help setting up your online store, our team builds e-commerce websites for businesses across Western Sydney and beyond. We can help you choose the right platform and get your products in front of customers.
E-commerce sites need infrastructure that scales with traffic. Cloud Geeks provides cloud hosting designed to handle peak periods without breaking a sweat.
This article is brought to you by Ganda Tech Services — Sydney’s complete digital solutions provider covering cloud, web, and mobile.