How to Start an Online Business and Find Success

What you’ll learn:

• How to choose a profitable niche and turn it into a sustainable business idea

• Which ecommerce models, from dropshipping to affiliate marketing, fit your goals

• How to source products, set up your store, and launch with confidence

• Step-by-step strategies for driving traffic through SEO, paid ads, and social media

• What tools, documents, and metrics you need to build and grow your online business

With billions of potential customers online, starting a digital business today opens the door to global opportunity.

Ecommerce is no longer just a trend. It’s a primary way people shop. In the US, revenue will surpass $1.17 trillion in 2025. And globally, the number of online shoppers is projected to reach 4 billion by 2030.

Whether you're turning a passion into a business or scaling an established brand, the path to online success starts with the right foundation. This guide breaks down every step: how to identify your niche, validate your product ideas, build your store, and grow a business that lasts.

Reasons you should start an online business

You may be wondering, why start an online business in the first place? Why not go with a brick-and-mortar one instead? 

The answer? Starting an online business has several advantages, including: 

It is fairly inexpensive to start.

Many want to start a business but are deterred by the investment required to get it off the ground. 

You must pay for a lease, purchase inventory, and budget for employee salaries. If the business fails, it could ruin you financially.

However, with an online business, all you need is:

• Computer

• Domain name

• Website builder

In other words, launching an online business with $100 as a starting capital is feasible, and you don’t need to risk your life’s savings to become a successful online entrepreneur.

Major potential and growth.

Ecommerce is showing no signs of slowing down.

By 2030, global online sales are projected to reach nearly $5 trillion. As more consumers shift to digital shopping experiences, user penetration is expected to climb to 56.4%.

This growth opens the door for both new and established businesses to expand their reach, test new markets, and build long-term revenue streams. With the right platform and strategy in place, your online store can scale alongside this rising demand.

Always on.

Another advantage online businesses have over brick-and-mortar businesses is that they can stay open 24/7, even through lockdowns and other disruptions. 

Once your business website is online, you are always available to make a sale. Shoppers can order from you at any time. 

Since you don’t need to be physically present to make a sale, your business can generate revenue with less day-to-day involvement.

Determine your niche and business idea

A business niche is your focus area — a market segment and target audience you primarily cater to. This can be anyone from sports enthusiasts to hobbyists to professionals. 

You need to pick a niche for your new business. To find the right target audience, ensure they have: 

• A problem no one else is solving

• Willingness to pay for a solution to that problem

• Sufficient discretionary income to afford the solution

Start an ecommerce store.

Once you’ve identified your niche, launching an ecommerce store is a powerful way to bring your idea to life.

Online shopping is deeply ingrained in daily life. Around 25% of Americans make purchases on Amazon more than once a week. This proves that the demand for convenient, online buying experiences is strong and growing.

Creating your own store gives you complete ownership of your brand, pricing, and customer relationships. With a flexible ecommerce platform, you can easily test new products, manage operations, and scale your business on your own terms.

Get into dropshipping.

Dropshipping is a low-risk way to start selling physical products online, without the need to purchase or store inventory upfront.

Here’s how it works:

• A customer places an order on your ecommerce store

• You send that order to a third-party supplier

• The supplier ships the product directly to the customer

It’s a streamlined model that reduces overhead and simplifies logistics, making it ideal for new entrepreneurs or anyone testing a niche.

And the opportunity is growing fast. The global dropshipping market was worth over $365 billion in 2024 and will surpass $1.2 trillion by 2030, with a compound annual growth rate of 22% starting in 2025.

Become an affiliate.

Affiliate marketing is a great option if you want to run an online business without creating or managing your own products.

Here’s how it works:

• You join an affiliate program

• Choose products to promote — either digital or physical

• Share your unique referral link with your audience

• Earn a commission for every sale made through your link

You can promote affiliate products through blog posts optimized for SEO, social media content, or email marketing campaigns. Some affiliates also host webinars with their partners to boost conversions.

The global affiliate marketing industry is valued at $18.5 billion and will grow to $31.7 billion by 2031, as more businesses and creators embrace the model for its scalability and low startup costs.

All you need to get started is a domain, web hosting, and email marketing software, making it one of the most accessible paths to earning online.

Offer web design services.

Create a portfolio website to start attracting clients. You can learn the basics of web development and design via eLearning platforms and experimentation.

Alternatively, you can register with a freelance marketplace such as Upwork or 99Designs. Freelancing can be challenging at times. While you benefit from location independence and a flexible schedule, you also have less predictable income and financial stability at first. 

Regardless of which option you select, once you have web design skills, you can expand into creating and selling your own products, helping mitigate financial instability and bringing greater autonomy.

Create a note-worthy blog.

If you enjoy writing and have expertise to share, blogging can be a smart way to build a business online.

While a blog isn’t a business model on its own, it helps you grow an audience, and with the right content strategy, that audience becomes a valuable revenue channel. You can monetize through affiliate partnerships, sell your own products or services, or run sponsored brand campaigns.

Search engine optimization (SEO) plays a key role here. By targeting relevant keywords and writing content that ranks in search results, you can attract consistent, organic traffic to your site.

Blogging offers long-term potential for passive income, especially when paired with a clear niche, strong SEO strategy, and content that solves real problems for your readers.

Conduct product research

When conducting product research, you’ll want to review the following primary product types:

Physical goods.

As the name implies, physical goods are material objects that must be manufactured, stored in a warehouse, and shipped to customers. 

Selling physical goods can be lucrative, but the profit margins can be low if you don’t manage your operational costs well. 

Digital downloads.

You can also sell digital products, a category of products that includes anything a customer can download to their device, such as eBooks, audio courses, podcasts, online courses, etc. 

Digital products have higher profit margins compared to physical goods. However, pricing them can be tricky because they are often perceived as having a lower value than physical products.

Services.

Almost any service available remotely can be sold online. Selling services is one of the fastest ways to start an online business and turn a profit. 

However, it’s important to remember that it’s a business model where you are selling your time. This means that your earning potential is limited since you have a finite amount of hours each day.

Conduct market research

Market research is an essential step in starting your own online business. It helps determine any selected business vertical’s depth, competitiveness and profitability. 

The last thing you want to do is launch an offer no one’s keen on buying. By conducting online market research, you can learn what your target audience wants, needs, or lacks. 

Here’s how you can get started with market research:

Check the SERPs.

Look up the variations of your product/service keywords and analyze search engine result pages (SERPs). 

What type of content is currently ranking on the first page? What businesses are paying to advertise on top of organic search results? 

Doing so will help you pre-assess your competition and gain information for a preliminary SEO and digital marketing strategy based on the content your target audience prefers. 

Research competitors.

You will want to look closely at your main competitors beyond SERPs. 

What are the biggest business ventures in your niche? How much money are they making? What are their strengths and weaknesses? 

By putting a microscope over the other players in the market, you can figure out what could give you a competitive edge over them.

Track high-performing keywords.

Analyze how the demand for different products changes in your niche and what content ranks best by monitoring niche-relevant keywords. 

Quality tools to use include:

• Google Trends

• Google Keyword Planner

• Ahrefs

• Semrush

Define your target audience

By understanding who your target audience is and what they desire, you can begin the process of soliciting sales and scaling your business. 

When combined, these insights help develop a thorough understanding of your ideal buyer needs, preferences, and purchase triggers.

To learn about their needs and preferences, make sure to research the following: 

Demographics.

Demographic data includes basic socioeconomic characteristics and templates such as: 

• Age

• Gender

• Ethnicity

• Income

• Job title

Psychographics.

Psychographic data includes various psychological characteristics such as:

• Values

• Beliefs

• Interests

• Opinions

Source products to sell online

It will be challenging to run a successful online business if your products are mediocre. Even if your industry or products do eventually trend, it’ll likely be for all of the wrong reasons. 

When sourcing products to sell online, consider your sourcing strategy by:

Making your own products.

This option is relatively easy if you plan to sell digital products. 

On the other hand, physical product manufacturing involves hard work in terms of design, interactions, material selection, etc. The financial costs are higher, too. 

However, manufacturing will always give you an advantage over the competition in regards to quality, product range and branding capability. 

Finding a dropshipper.

Finding a manufacturer that allows you to dropship their products is potentially lucrative. 

This is especially true since many small business owners negotiate dropshipping deals with overseas manufacturers to offset the business costs. 

Working with a wholesaler.

A wholesaler can provide your business with a range of products to purchase and curate in your online store. Some even offer a plan to distribute your products for you as well.

Evaluate product viability

You want to evaluate your product’s viability holistically before purchasing or manufacturing a big order. To do that, ask these questions: 

• Is there a successful online business already selling products like that?

• Is the demand for this product sustainable? Or is it temporary?

• Does the math behind this product make sense? Can you sell it at a profit?

Remember, it doesn’t matter how cool or exciting a product may seem. What’s important is that it’s viable from a business perspective.

Define your brand and image

A brand is the overall essence of your business. 

You want everything from your business name to your web design and copy to convey a consistent visual image and ideas. The same applies to your off-site presence, from social media and email newsletters to packaging. 

As you work on your brand identity, pay attention to your:

• Logo

• Color scheme

• Landing pages

• Page layouts

• Typography

• Graphics and photos

Your brand image should be a result of all these elements working together.

Learn about online business laws

Business owners may assume that because they are running an online business, traditional business laws don’t apply. 

That’s not the case.

While an online business requires fewer licenses and permits than a brick-and-mortar operation, you still need to sort out several critical legal details. Specifically: 

• What kind of business license do you need to start operations?

• What legal structure makes the most sense — a sole proprietorship, limited liability company or corporation?

• Are there any permits that you need to obtain?

• Are there any inspections that you need to pass?

• Do you need a sales tax license?

• Are there any specific regulations applicable to online businesses only?

• What are the laws regarding hiring contractors and hiring employees?

Each state and country has its own laws. Make sure to always verify information with local authorities. 

Learn more about online business laws and regulations for ecommerce companies. 

Launch your online store

After a significant amount of setup, you should be ready to prepare for the launch of your website. 

To ensure that your website grows into success and viability, consider the following steps:

Choose your ecommerce platform.

An ecommerce platform is a technical backbone for selling online. Such software provides you with all the necessary features, from a product catalog to payment processing. 

Here are a few of the most popular options:

• BigCommerce

• WooCommerce

• Shopify

• Adobe Commerce (Magento)

• Salesforce Commerce Cloud (Demandware)

Make sure to select a platform that provides all the features you need at a price you can afford.

Add your products.

Once you have chosen a platform and a store theme, add products to your catalog. As you, do pay special attention to:

• Product images: Provide high-def visuals featuring the product from different angles.

• Product descriptions: Don’t line up features. Focus on benefits the customer will get.

Product images and product descriptions significantly impact the conversion rates of your product pages. Make sure to take the time to get them right.

Choose how you will do your shipping.

Fast and free shipping is the number one driver for making an online purchase and can significantly affect the quality and quantity of your sales.

Ensure that all the products will get to your customers without any delays. You will want to have several shipping strategies, including: 

• In-store pickup

• LTL freight carriers

• Same-day or next-day delivery

• Free shipping

Make sure everything works.

Finally, once your ecommerce store is live, triple-test all the facets. Verify that:

• All pages look good across devices, including desktop, tablet and mobile

• The website functions well in multiple browsers, from Chrome and Firefox to Safari and Microsoft Edge

• All buttons are clickable/connected to the correct apps

If you have a budget, it may be helpful to hire a QA specialist to run site tests for you and report on the findings.

Grow your business

Once everything is set up, it’s time to start driving traffic to your ecommerce store. Prioritize the following channels:

Paid ads.

Paid advertising is one of the fastest ways to drive targeted traffic to your online store.

Platforms like Google Ads, Facebook, Instagram, and TikTok let you reach specific audiences based on interests, behaviors, location, and more. Whether you're running search ads, social ads, or product listings, the goal is the same: get in front of the right people at the right time.

To get the most out of your budget:

• Start small and test different creatives, headlines, and offers

• Use retargeting ads to re-engage visitors who didn’t convert

• Focus on high-intent keywords and geo-targeting to attract shoppers ready to buy

As your business grows, paid ads can help you scale, but success depends on a clear strategy, compelling creative, and consistent optimization.

Influencer marketing.

Influencer marketing can help you build trust and reach new audiences — fast.

By partnering with content creators who already have loyal followings, you can promote your products in a more authentic and engaging way. Whether it's a product review, unboxing video, or a short-form post, influencers can introduce your brand to potential customers in a context that feels personal and relatable.

To get started:

• Choose influencers whose audience aligns with your niche

• Prioritize creators with high engagement over large follower counts

• Set clear goals for the campaign — awareness, traffic, or conversions

You can also track performance using custom links, promo codes, or affiliate programs. With the right partnerships, influencer marketing becomes a scalable channel for both brand building and revenue growth.

Social media marketing.

Social media is more than just a branding tool. It’s a direct channel to connect with your customers and drive sales.

Platforms like Instagram, TikTok, Facebook, LinkedIn, and Pinterest give you space to share your story, showcase products, and engage with your community in real time. Whether you're launching a new collection or sharing behind-the-scenes content, consistent posting helps keep your brand top of mind.

To build momentum:

• Tailor content to each platform’s format and audience

• Use visuals and short videos to grab attention quickly

• Encourage user-generated content and customer reviews

You can also integrate social commerce features, like shoppable posts or in-app checkouts, to streamline the buying experience. Done right, social media becomes a powerful driver of traffic, loyalty, and conversions.

Search engine optimization (SEO).

SEO helps your online business get discovered by the right people at the right time.

By optimizing your website and content for search engines, you can attract consistent, high-intent traffic without relying solely on paid ads. This includes using keyword-rich product descriptions, writing helpful blog content, improving site speed, and earning backlinks from reputable sources.

To build an effective SEO strategy:

• Research and target keywords your audience is actively searching for

• Optimize each page’s title, meta description, and content

• Focus on mobile performance and fast load times

• Use structured data to help search engines better understand your content

SEO takes time, but the long-term payoff is sustainable growth, better visibility, and lower customer acquisition costs.

Email marketing.

Email marketing is one of the most effective tools for nurturing customer relationships and driving repeat sales.

From welcome sequences to product announcements and abandoned cart reminders, email allows you to deliver targeted messages based on where someone is in their buying journey.

To get started:

• Build a quality subscriber list with opt-in forms on your site

• Segment your audience based on behavior, preferences, or purchase history

• Send timely, relevant emails with clear calls to action

You can also use automation to stay consistent without constant effort. When done right, email marketing keeps your brand top of mind and turns one-time buyers into loyal customers.

The final word

Starting an online business is no longer a distant goal. It’s an accessible path to building something real, scalable, and future ready.

From identifying your niche and sourcing products to launching your store and growing your audience, each step builds a stronger foundation for long-term success. The opportunity is massive. With ecommerce revenue climbing year over year and billions of shoppers online, your potential reach has never been greater.

But the tools you choose matter. A flexible ecommerce platform like BigCommerce empowers you to adapt quickly, expand into new markets, and grow without limits, all while keeping your business truly your own.

The best time to start is now. Your audience is already online. It’s time your business was too.

FAQS about how to start an online business

What is the best type of online business to start?

It depends on your professional background and personal preferences. 

The popular options include online service-based businesses, as an evolutionary step from a freelance side hustle, and product-based online businesses such as online stores. These two typically require the least starting capital for beginners and can be effectively scaled over time.

What kind of online business is most profitable?

Ecommerce is one of the most profitable online business types since you have limitless potential for scaling.

You can start a small niche store and grow it into a cross-country or even cross-border operation, servicing customers worldwide.

What can you sell online?

Today, you can sell virtually any type of product online as long as there’s a demand for it on the market. 

To determine product viability, analyze the target market size, the estimated number of people who may want to buy from you, and possible profit margins — the amount of money you can earn from selling a product for a price that the target market is ready to pay.

Can you start an online business with no money?

Technically, you can start an online business without any capital investment. 

However, there still will be a few minor startup costs such as domain name, website builder/platform and website content creation. If you DIY your business website creation and setup, you can start an online business at a low cost.

Do you need marketing to help your business launch?

You don’t necessarily need marketing as a business function to launch an online business, but you’ll have to invest in some promotional activities during launch. 

Unless you are launching to a pre-warmed audience acquired earlier — e.g., your existing fans on social media or blog readers. A strategic marketing campaign for the launch will pay itself off in hours.

Do you need a business plan for your online business?

Absolutely. Starting an online business without a business plan is like driving without a rearview mirror, you can get where you need to be but may miss obstacles headed your way. 

While you don’t need a formal, business school-style plan for a small ecommerce business, it’s best to prepare at least a short roadmap document, charting your main steps before the launch.

What legal documents or terms of service should be prepared for an online store?

When launching your own business online, legal compliance is critical. At minimum, your store should include:

• Terms and conditions: outlining customer responsibilities and your store policies

• Privacy policy: disclosing how customer data is collected, stored, and used

• Returns and refunds policy: clearly defining eligibility, timelines, and processes

These legal documents are especially important for any type of business operating across state or national borders, including dropshipping businesses and sellers on online marketplaces like Etsy or WordPress-powered stores. Depending on your business structure, you may also need liability disclaimers and terms related to recurring payments or subscriptions.

How do I choose the right pricing model for my products or services?

Your pricing strategy depends on your type of business, market demand, costs, and customer expectations. Here’s a step-by-step approach:

• Calculate your costs (product, shipping, overhead)

• Analyze competitor pricing (both direct and on online marketplaces like Etsy)

• Factor in perceived value and desired profit margin

• Consider dynamic pricing or tiered models if you’re offering services

Testing and refining your pricing is an ongoing process. Track performance over time and adjust as you grow your online presence and better understand your audience.

What should I include in my online terms and conditions, privacy policy, and returns policy?

These documents set expectations and protect your business. Here’s what each should include:

• Terms and conditions: order process, user conduct, disclaimers, and limitations of liability

• Privacy policy: cookie use, third-party tracking, and customer data rights — especially important for content marketing or when building an email list

• Returns policy: timelines, accepted conditions, and refund/exchange instructions

Even if you're running a small WordPress store or testing online business ideas part-time, having clear policies improves trust and user experience.

How do I handle taxes and sales tax collection for online sales?

Tax requirements vary based on your location, business structure, and where your customers are located. Here’s a general breakdown:

• Register for a sales tax ID if required in your state or region

• Use tax automation tools within your ecommerce platform to calculate and collect the right rates

• Track your income and expenses through a dedicated business bank account for easier reporting

If you’re selling through online marketplaces, some platforms handle tax collection for you. But if you run your own business, especially a dropshipping business, it’s your responsibility to remain compliant.

What payment methods should I offer to maximize conversions?

To boost conversions and offer a smooth user experience, give customers multiple ways to pay:

• Credit/debit cards

• Digital wallets (Apple Pay, Google Pay)

• Buy now, pay later services (e.g., Afterpay, Klarna)

• PayPal or other third-party processors

The right mix can vary depending on your market, but offering flexibility is key, especially if you’re running a full-time operation or expanding to global audiences.

How do I measure success in the first 3 to 6 months (KPIs to track)?

Success isn’t just about revenue early on. Focus on KPIs that reflect progress and customer engagement:

• Website traffic and traffic sources

• Conversion rate

• Cart abandonment rate

• Growth of your email list

• Return customer rate

• Content engagement if you’re using content marketing

You should also evaluate how your marketing plan is performing, especially if you're testing different online business ideas or launching your store as a full-time venture. Tracking these metrics helps you optimize and adjust your strategy for long-term growth.