How to Start an eCommerce Business in Australia: Step-by-Step Guide

What is an ecommerce business?

Choosing Your Product and Business Model

Before you dive into setting up your store, take the time to choose the right product and business model — this step will shape everything from your branding and marketing to how you handle storage, shipping, and customer service.

Identifying a Profitable Niche

Start by thinking about what kind of product you want to sell. Successful eCommerce businesses tend to fall into three categories:

• Solve a Problem: Products that meet a specific need or fix a common frustration tend to perform well. Think of items that improve daily routines, save time, or reduce hassle — practical solutions often win loyalty.
• Passion Projects: Selling products, you personally care about makes running your business more enjoyable and sustainable. Your enthusiasm will show through your marketing and customer interactions.
• Trend Analysis: Use tools like Google Trends, TikTok hashtags, and marketplace data (like Etsy or Amazon) to spot rising interest in certain categories. But don’t just chase fads — look for trends with lasting potential.

Choosing a Business Model

Once you’ve picked a product direction, decide how you’ll sell it:

• Inventory-Based: You purchase and store stock, then pack and ship orders yourself or through a 3PL. This gives you full control over quality and branding but requires upfront investment and storage.
• Drop shipping: Your supplier ships directly to your customer. It’s lower risk, but harder to control delivery times and customer experience.
• Print-on-Demand: Ideal for creatives — you design products, and third-party services handle the printing and fulfilment. Great for apparel, mugs, stationery, and custom gifts.

Each model has trade-offs — choose based on your resources, goals, and how involved you want to be in operations.

Legal Requirements and Business Registration

Registering Your Business

• Australian Business Number (ABN): Essential for tax purposes and business identification.
• Business Name: Register through the Australian Securities and Investments Commission (ASIC).

Tax Obligations

• Goods and Services Tax (GST): Mandatory registration if annual turnover exceeds $75,000.
• Business Activity Statement (BAS): Regular reporting of GST and other tax obligations.

Building Your Online Store

Once you’ve nailed down your product and business model, it’s time to build your online storefront — the face of your brand. Your website isn’t just a place to take orders; it’s where customers judge your legitimacy, experience your brand, and decide whether to trust you with their money.

Choosing the Right eCommerce Platform

There are several trusted platforms in Australia. Here’s a quick comparison:

• Shopify: Ideal for beginners and growing brands. It’s easy to use, with drag-and-drop tools, professional templates, and access to the Shopify App Store. It also supports Australian payment gateways and shipping integrations, making setup smooth.
• WooCommerce: Best if you’re comfortable with WordPress. It offers full control, deep customisation, and is great for content-driven sites. You’ll need to manage hosting and security yourself, but it’s cost-effective and scalable.
• BigCommerce: Built for fast-growing businesses. It includes more features out-of-the-box than Shopify, such as advanced SEO tools and multi-channel selling, and suits brands with larger product ranges.

Other options include Squarespace (for visually led businesses) and Wix (for small catalogues or service-based eCommerce).

Domain and Hosting

Your domain is your brand’s online address — keep it simple, relevant, and memorable (e.g., mybrand.com.au). Use a com.au to signal trust to local shoppers. Hosting is only required if you’re using WooCommerce; for Shopify or BigCommerce, hosting is included.

Choose a hosting provider with fast servers, SSL certificates (for security), daily backups, and solid uptime — Site Ground and Ventra IP are popular in Australia.

Website Must-Haves

Your site should be:

• Mobile-Optimised – over 60% of Aussie online traffic comes from phones.
• Secure – integrate SSL and trusted payment options like PayPal, Stripe, or Afterpay.
• Easy to Navigate – clear menus, product filters, and intuitive layouts build trust.

Invest in quality product images and write clear, benefits-driven descriptions — they can make or break your conversions.

Managing Inventory and Fulfilment

After setting up your online store, managing your inventory and getting orders to customers efficiently becomes your next major challenge — and often, the make-or-break stage for Australian eCommerce businesses. Whether you’re packing orders from your spare bedroom or exploring outsourced solutions, it’s critical to set up a process that’s accurate, scalable, and aligned with your customer expectations.

Inventory Management: Accuracy Is Everything

Inventory management refers to how you track, store, restock, and account for your products. Poor inventory control leads to overselling, stockouts, shipping delays, and frustrated customers — all of which can damage your brand.

For Australian eCommerce sellers, reliable inventory tracking is essential, especially if you’re selling across multiple channels like Shopify, eBay, or Amazon AU.

Here’s what to prioritise:

• Inventory Management Software (IMS): Use systems like Cin7, DEAR Systems, or Trade Gecko (now QuickBooks Commerce) to track stock levels, sync across platforms, and automate reorder alerts.
• Barcode Scanning: Even in smaller operations, barcode scanning reduces manual errors during pick and pack.
• Forecasting & Reordering: Use sales data to predict when to restock. Many IMS tools offer predictive analytics based on seasonal trends or historical data.
• SKU Organisation: Keep your stock clearly labelled with unique SKUs and stored logically — these speeds up order fulfilment and helps prevent errors.