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Why sell online? It’s simple: selling products to consumers online greatly increases your reach. Rather than being restricted to customers who can visit your store in person, you can now sell to people in another city or state and even internationally. More customers mean more sales and an increase in profits.
However, if you’re new to the world of ecommerce, selling your products online can seem like a confusing and daunting venture. Let’s take a look at everything you need to know to sell items online and how you can get started.
There are two basic options to consider when you want to sell things online:
When it comes to setting up an e-commerce website, you have two main options:
Creating an online storefront of your own doesn't need to be complicated or costly. You can create an online storefront almost instantly via easy-to-use platforms such as Shopify, Wix and Squarespace. These platforms allow you to pick a domain, a website theme and upload your products with photos to the site. From here, customers can click and purchase your products. The payment is processed automatically via a payment gateway and transferred to your account. They also offer various marketing opportunities to promote your website.
The intermediate option for those who are more tech savvy or have resources to help them is to have a custom site built with a CMS (Content Management System). Building your own site using a CMS allows you complete control over your online business and how your product is presented online. The most popular CMS for those in this category is WordPress, although there are other platforms that offer similar features. This option would still require the use of a payment gateway plugin – WooCommerce being the most popular – for managing the payment process.
Starting out as an online seller is easier than you might think. While the signup process and information required varies slightly depending on the marketplace you choose, you will usually need to follow a few simple steps:
Whether or not you need an ABN depends on if you’re selling items online as a hobby or as a business. If selling online is a pastime and something you’re just doing for a bit of fun, no ABN is required. If the main reason you’re selling online is to make a profit, you must have an ABN.
It’s also important to be aware of the impact of GST. If your turnover exceeds $75,000 a year, you must register for GST. To do that you’ll need an ABN, so an ABN is therefore essential if your turnover exceeds $75,000 each year.
While there are some online marketplaces that let you list and sell products for free, most will require you to pay for the privilege. There are a few separate fees you need to be aware of, and depending on the marketplace one or more might apply:
For example, every eBay seller is entitled to 40 free listings per month. Additional listings attract an insertion fee of $1.65 if priced under $100, or $3.85 if over $100. Next, you’ll need to pay a final value fee of 10.9% of the total price the buyer pays for each item sold (including postage and handling) up to a maximum of $440 in most categories.
Read the fine print to ensure you’re aware of the costs for selling products online.
If you sell to overseas customers, another obstacle you’ll need to overcome is finding a cost-effective way to bring your profits home. Foreign exchange rates can have a huge impact on your bottom line. For example, while you might get the price you want in US dollars, if the USD/AUD exchange rate is at a low point then your profits could take a hit when you try to bring the money back to Australia.
While it’s possible to repatriate funds to Australia through some ecommerce sites, those sites typically don’t offer the best exchange rates on their transactions. Instead, you will usually find much better value if you transfer your profits back to Australia using a specialist online transfer company.
These providers offer higher exchange rates than you’ll get from your bank, and many also offer accounts specifically designed for online sellers. These accounts allow you to access local bank accounts in international markets, which means you can hold funds in multiple currencies and then bring your money back to Australia when the exchange rate peaks.
There are a few other issues to be aware of when sending international money transfers:
Check out our guide to international payments for online sellers to find out how you can send cost-effective overseas transfers.
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An international online seller account might be a way you can keep more of your profits when you need to transfer them back to Australian dollars.
Working out the right prices for the products you sell is often a difficult task. If you’re new to the world of online selling, remember to consider a few factors:
You’re spoiled for choice when it comes to online marketplaces where you can sell products. Amazon and eBay are the two biggest sites and others like Etsy and Zazzle also have loyal followings.
Which marketplaces should you choose to help you sell your products? That depends on a number of factors. Amazon and eBay are the most recognised and have the widest reach, but others target specific niches. For example, Etsy specialises in selling unique, handmade items, while a site like Zazzle helps emerging designers find new customers for their products.
For help choosing the best online marketplace for your business, check out our guide to where to sell things online.
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