How to grow an e-commerce business

Today's consumers expect convenience, speed, and variety, which makes growing an e-commerce business more important than ever. Shifting some or even all your sales to online and digital channels often makes sense for many businesses.

But what is e-commerce? At its core, e-commerce is buying and selling goods or services online, which allows businesses to connect with shoppers anytime, anywhere. For retailers, especially small and medium-sized businesses (SMBs), it can be an opportunity to boost revenue.

And that opportunity is growing. In 2024, e-commerce sales in the U.S. accounted for 16.1% of total retail sales – up from 15.3% in 2023. This growth is driven by shoppers who are turning to digital platforms for everything from food to furniture. From mom-and-pop shops to large enterprises, businesses that leverage the right e-commerce tools and strategies can thrive in this space.

Looking to build or boost your e-commerce presence? You’re in the right place. Let's talk about how to grow your online business.

1. Choose what to sell online and your e-commerce strategy

The first step in building a successful e-commerce business is deciding what products to offer online, which should reflect both your brand identity and customer demand. Are you known for premium electronics? Discount appliances? Brand-name tires? Focus on your niche and what makes your brand and your store stand out.

Building a clear e-commerce strategy includes figuring out how to expand your reach and connect with more potential customers. Consider exploring new sales channels, such as Amazon, Etsy, or Google Shopping to target a broader audience.

And make sure you’re targeting the right market for your business. Who are your customers? From generational cohorts to income levels, every demographic has different online habits. Understanding your audience will help you create better offers and tailor strategies to your customers’ needs.

Remember, your e-commerce site isn’t just a place to sell products. It’s an extension of your brand. From your logo and color scheme to your messaging, everything should align with your brand and personality.

2. Select the right e-commerce platform for you

An e-commerce platform is the foundation of your e-commerce business. Choosing the right platform for your business can make or break your e-commerce experience. Look for a platform that is a good fit for your team’s tech expertise and the goals of your business.

What are the best choices for e-commerce platforms for SMBs? It varies depending on budgets, tech skills, and growth plans. Here’s an overview of three popular choices:

Shopify is known for its user-friendly interface, which makes it a popular option. Whether you’re setting up a small online shop or managing a larger e-commerce business, Shopify’s range of features can scale as you grow.

WooCommerce is powered by WordPress and designed with SEO in mind. It offers flexibility for businesses that want to customize their online store. Tech-savvy retailers who prefer full control over their website’s design and functionality may prefer WooCommerce.

BigCommerce is designed for growing businesses and tailored for scalability. It’s a good choice for those expecting to handle a large product catalog or high transaction volume.

When comparing Shopify vs. WooCommerce vs. BigCommerce, think about what suits your specific needs. Shopify is simple for beginners, WooCommerce offers customization, and BigCommerce is great for scalability. And of course, there may be other platforms that work better for your business.

3. Don't forget about marketing and SEO

Even if your online store looks amazing, you need visitors to make a sale. Well-planned marketing campaigns and search engine optimization (SEO) help customers find your online store, increasing the chance for sales while building long-term customer relationships.

For best results, focus on a few marketing and SEO best practices.

• Product descriptions matter. Your descriptions should be clear, compelling, and SEO-friendly. Highlight unique features, benefits, and customer value.
• Use high-quality images. Customers are more likely to trust and buy a product if you showcase it with professional, detailed visuals taken from different angles.
• SEO for online stores. Optimize your website’s content for search engines. This includes using keywords to drive traffic and structuring pages for easy navigation. Results-driven SEO improves your rankings on search engines such as Google to bring in more organic traffic.
• Promote with digital marketing. Harness the power of social media, email campaigns, and paid ads. Social media platforms such as Instagram and Facebook are perfect for showcasing products and email marketing can help you retarget loyal customers with tailored offers.

4. Streamline operations and payments

Online shoppers expect convenience. To meet their expectations, streamline every aspect of your operations.

Use trusted payment providers such as PayPal, Stripe, or Shopify Payments to help give customers peace of mind. And for customers who may need more time to pay, make inclusive financing options available at checkout.

Customer support is key. Use live chat, FAQs, or email support to resolve customer issues quickly. Happy customers are more likely to return and recommend your store to others. Providing fast and affordable shipping options is part of customer service. Allow customers to choose their preferred delivery method, such as standard or expedited.

Automate your processes wherever possible. Tools like chatbots, automated order updates, and pop-ups can improve efficiency. For example, automated abandoned cart emails gently remind customers to complete their purchase.

And don’t forget. Most of your customers will be shopping your site from their smartphones. Mobile-friendly designs help your website look good and function well on mobile devices and can significantly boost conversions.

5. Measure your success

Once your e-commerce store is live, your job isn’t done. Regularly evaluate your site’s performance to help you stay on the right track, gather insights into what’s working, and help you see what could be improved. Several key metrics can measure your success.

• Revenue and sales. Are your profits increasing over time? Your total sales numbers are the clearest indicator of growth.
• Customer acquisition. How many new customers are you gaining? Compare these figures month-over-month to evaluate marketing success.
• Conversion rate. This is the percentage of website visitors that make a purchase. An optimized website and checkout process can improve this number.
• Average order value (AOV). A high AOV suggests customers are adding more items to their cart or opting for higher-value products.
• Website traffic. If traffic is growing, your marketing efforts and SEO strategies are working. If it’s stagnant, you may need to rethink your approach.
• Customer reviews. Positive feedback builds online trust. Encourage happy customers to leave reviews and address any negative feedback immediately.
• Return on investment (ROI). Evaluate how much value your marketing campaigns are generating compared to their cost.

Growing your e-commerce business

For many businesses, jumping into the e-commerce world can feel overwhelming. But the potential rewards are often worth it. Whether you’re starting from scratch or improving your online store, you can grow your e-commerce business. The future of retail is online – and your business deserves to be part of it.