What Is an Online Store?

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class="post-categories u-mb-lg" itemprop="itemListElement" itemscope itemtype="http://schema.org/ListItem"> <h1 itemprop="name" class="post-title">What Is an Online Store? Everything You Need to Know</h1> <meta itemprop="position" content="3" /> </div> </div> <div class="u-flex u-flex-wrap u-Mt-sm md:u-Mt-md u-mb-md u-text-p8 u-text-gray-700"><div class="u-flex u-items-center u-basis-12 md:u-basis-auto md:u-mr-lg u-mb-lg md:u-mb-0"> <div class="success-authors-info u-flex u-items-center"><div class="u-flex success-authors-info__avatars "> <a href="/success/authors/aleksandra-tadrzak/" class="success-authors-info__avatars__a"><img src="https://res.cloudinary.com/dn1j6dpd7/image/fetch/f_auto,q_auto,w_96,h_96,c_fill/https://success-cms.labs.livechatinc.com/app/uploads/2024/05/Aleskandra-Tadrzak-avatar-yellow.png" class="u-w-fit u-ml-0 u-round success-authors-info__avatars__img u-mr-sm" style="width: 48px;" width="48"></a href="/success/authors/aleksandra-tadrzak/" class="success-authors-info__avatars__a"></div><a href="/success/authors/aleksandra-tadrzak/" class="u-text-p8 success-authors-info__a">Aleksandra Tadrzak</a href="/success/authors/aleksandra-tadrzak/" class="u-text-p8 success-authors-info__a"></div> </div><div class="u-flex u-items-center u-mr-lg sm:u-mr-xl"> <img src="/success/icons/time-to-read.svg" class="u-w-fit u-mr-xs u-ml-0 u--mt-3xs" alt="" width="20"> <span>11 min read</span> </div> <div class="u-flex u-items-center"> <img src="/success/icons/calendar.svg" class="u-w-fit u-mr-xs u-ml-0 u--mt-3xs" alt="" width="20"> <span>Aug 5, 2024</span> </div> </div> </div> <img src="https://res.cloudinary.com/dn1j6dpd7/image/fetch/f_auto,q_auto,w_1300,h_500,c_fill/https://success-cms.labs.livechatinc.com/app/uploads/2024/07/2651.jpg" srcset="https://res.cloudinary.com/dn1j6dpd7/image/fetch/c_fill,f_auto,g_auto,q_auto,w_320/https://success-cms.labs.livechatinc.com/app/uploads/2024/07/2651.jpg 320w,https://res.cloudinary.com/dn1j6dpd7/image/fetch/c_fill,f_auto,g_auto,q_auto,w_776/https://success-cms.labs.livechatinc.com/app/uploads/2024/07/2651.jpg 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0-1.5-.5-.4-.5-.5-1-.5-1.3 0-.6.3-1.2.7-1.7l3.6-3.5c.8-1 2.2-1 3-.2.4.4 1.1.4 1.6 0 .4-.4.4-1.2 0-1.6a4.1 4.1 0 00-3-1.2z" fill="#000" fill-rule="evenodd"/> </svg> </a> <div class="float-share__tooltip">Copy link to clipboard</div> <span class="float-share__copy__success u-text-p8" data-target="copy-button.success">Link copied to clipboard</span> <textarea data-target="copy-button.text" readonly class="c-copy-button__textarea u-maxw-1">https://www.livechat.com/success/online-store/</textarea> </li> </ul> </div> <p class="u-text-p5">The future of retail is online, and sellers need to embrace ecommerce if they wish to thrive. In the digital age, an online store is now essential for business owners.</p> <p>Global<a rel="noreferrer noopener nofollow" aria-label=" (opens in a new tab)" href="https://www.statista.com/statistics/379046/worldwide-retail-e-commerce-sales/" target="_blank"> ecommerce sales are expected to cross $6.3 trillion</a> this year, and as an entrepreneur, you will want a slice of that massive revenue pie.</p> <p>This is why you must learn what an online store is and what it takes to launch your own.</p> <div class="block-product-banner v--livechat b--u-py-1.5 b--u-px-4 b--lg:u-px-8 b--xl:u-px-4"> <div class="md:u-flex u-items-center u-justify-between"> <div class="u-text-center md:u-text-left u-basis-7 b--u-py-1.5 b--md:u-pr-2"> <h2 class="b--u-text-xl b--u-mb-1.5">Connect with customers</h2> <p class="b--u-text-sm b--u-mb-1.5">LiveChat is a complete customer service platform that delights your customers and fuels your sales.</p> <div class="sm:u-flex u-items-center sm:u-text-left"> <p class="b--u-text-2xs b--u-text-black-600 u-basis-5 b--u-my-1.5">Trusted by <strong>36,000+</strong> companies</p> <div class="b--sm:u-pl-3 u-basis-12"><img src="/success/images/product-marketing/logos-livechat.261f4bb94a9e81009c6ce846545af4c831a04529d36034354d3fa458b23eb8cd.png" alt=""> </div> </div> </div> <div class="u-text-center u-basis-3 u-relative b--u-py-1.5"> <a href="https://accounts.livechat.com/signup&source_id=header_cta&source_type=website&source_url=https://www.livechat.com/success/" class="c-btn v--signup b--u-mb-1.5" data-controller="track" data-track-category="Interactions" data-track-action="Link click" data-track-label="Product marketing banner (article)" data-action="track#send" >Signup for free</a> <div> <span class="u-mr-md u-inline-block b--u-text-sm"> <svg xmlns="http://www.w3.org/2000/svg" width="11" height="8" class="u-mr-xs"> <path d="M9.1.3L4 5.4l-2-2c-.3-.3-.7-.4-1-.3S0 3.5 0 4c0 .4 0 .8.3 1l2.8 2.8c.2.2.5.3.8.3s.6-.1.8-.3l6-5.9c.3-.2.4-.6.3-1a1 1 0 0 0-.8-.8c-.4 0-.8 0-1 .3z" fill="currentColor"> </path> </svg> Free 14-day trial </span> </div> <svg class="block-product-banner__hand" fill="none" xmlns="http://www.w3.org/2000/svg" viewBox="0 0 93 81"><path d="M36.4 36.8c1.2.4 6 1.2 8.4 1.5 5-.6 15.4-2 16.7-2.7 1.6-1 11-4.7 11.9-5.4.7-.6 1.1-1.2 1.8-.6.7.5 7.2 11.9 7.4 13.5.2 1.6-10.5 6.3-11.2 6.5-1 .3-14.3 5-15.1 5l-10.7-.4a479 479 0 0 1-14-2.5c-1.6-.4-5.1-2.5-6.5-2.8-1.3-.3-7.2-1.3-8-2-.7-.7-.3-2.5-1.1-3.5-1.2-1.4.3-2.2-.5-3.4-1-1.5.6-2.4-.3-3.7-.6-1 0-2 .5-2.3-.6 0-2.3-.6-3.7-2.4-1.8-2.3-.8-1.8 0-2.5.8-.6 6.4 2.3 9.1 3.5.6-.5 1.5-2.3 2.2-2.8 1-.6 3.5-.6 5 .2 1.3.6 2.3 3.1 2.6 4.5l5.5 2.3Z" fill="#FFD000"/><path d="M82.1 43.3s-6 4.5-13.4 7.9c0 0-7.2 2.8-11.5 3.7-4.3 1-11 1-20.3-.7-9.2-1.8-10.3-3.6-11.4-3.9l-8.3-1.7c-.8-.3-2.3-1.5-2.2-2.5l.2-1m7.4 2.3s-7.2-2.2-7.8-2.7c-.6-.5-1.6-2-.3-2.7m8.7 2.7s-7.4-2.5-8-2.9c-.7-.4-2.7-1.9-1-3.3m9.5 3.3L16.3 39c-1.2-.4-3.5-2-3-3.2.7-1.2 1.2-1 1.2-1m10 4.1s-8.8-3.8-10.2-4.2c-1.4-.4-4.6-2.3-4.5-3.2 0-1 .3-1.5 2.2-1.2 1.9.3 13.3 5.7 13.3 5.7m-5.5-2.8s1.5-2 1.8-2.2c.3-.2 2.8-2 4.7-.6 1.8 1.4 2.4 2.2 2.9 3.5l.5 1.6s3.6 1.8 5.5 2.3c1.8.5 7.1 1.4 10.6 1 3.5-.3 11.8-1.2 14.2-2.4 2.4-1.3 9.9-4.3 11.7-5.6 1.8-1.3 2.8-1.5 2.8-1.5m-49.2 4.1-1-.4" stroke="#1B1B20" stroke-width="2" stroke-linecap="round"/><path d="M84.4 48.9c-1.7 1.4-4.3-1.2-5.3-2.7l4.2-2.5c-2.3-5-6.7-12.4-8.6-15.2l-4 2c-.2-.3-1-1-.9-3.3.1-2.8 2.5-2 4 .1l.9 1.2c1.9 2.8 6.3 10.1 8.6 15.2 1 2.6 1.7 4.6 1 5.2Z" fill="#1B1B20"/><path d="m74.7 28.5-.8-1.2c-1.6-2-4-3-4-.1-.2 2.2.6 3 .8 3.2l4-2Zm0 0c1.9 2.8 6.3 10.1 8.6 15.2m0 0c1 2.6 1.7 4.6 1 5.2-1.6 1.4-4.2-1.2-5.2-2.7l4.2-2.5Z" stroke="#1B1B20" stroke-width="1.4"/></svg> </div> </div> </div> <h2 class="block-heading u-text-p4" ><strong>Online stores: Your entry to ecommerce</strong></h2> <p>To successfully run a business in 2024, you simply must operate an online store. Customers are increasingly embracing internet shopping, and companies have to follow them online. Internet sales account for<a href="https://www.statista.com/statistics/534123/e-commerce-share-of-retail-sales-worldwide/" target="_blank" rel="noreferrer noopener nofollow" aria-label=" (opens in a new tab)"> one out of every five (20.1%)</a> of all retail sales. This is set to rise further, going by current trends and projected growth rates. </p> <p>If you want your business to remain relevant and competitive, you have to offer your customers the option of shopping from an online store. There are already over<a href="https://trends.builtwith.com/shop/traffic/Entire-Internet" target="_blank" rel="noreferrer noopener nofollow" aria-label=" (opens in a new tab)"> 28 million ecommerce websites</a> serving as online stores globally. Nearly half of those online stores are run by US-based companies, though markets like the UK, India, and China are also expanding. </p> <p>So, to ride the ecommerce wave, you should learn all there is to know about online stores and how to run them.</p> <h2 class="block-heading u-text-p4" ><strong>Two main types of online stores</strong></h2> <p>It doesn’t matter what industry you are in—if you are in the business of selling to customers, you will benefit from having an online store. Online stores can help you scale up your business, reach new customers, and increase sales. This applies to business-to-business (B2B) and business-to-consumer (B2C) sellers, wholesalers and retailers, generalists and specialists, and large and small stores. </p> <div class="block-callout u-py-lg u-px-3xl"> <p class="u-text-p6 u-mb-0">In essence, there are only two types of stores: product-based and service-based. Product-based stores allow customers to buy a tangible product they will own going forward, like clothing from Amazon. Service-based stores sell services that customers can use after payment, like booking an engine tune-up on the Ford customer service website.</p> </div> <p>Having an efficient online store will boost your business, whether your store is product-based or service-based. Adopting ecommerce solutions can benefit both equally.</p> <h2 class="block-heading u-text-p4" ><strong>Why you need an online store: Four key benefits</strong></h2> <p>Once you learn how online stores surpass brick-and-mortar stores in several key areas, you will see how ecommerce can transform your operations and business outlook. The four main benefits of having an online store are as follows:</p> <h3 class="block-heading u-text-p5-bold" ><strong>1. Global reach</strong></h3> <p>An online store is accessible to anyone with an internet connection. This means your business is not bound by geographical limitations. You can target consumers regardless of their location, vastly increasing the amount of potential customers in your sales pipeline. </p> <p>According to an Emarketer report,<a rel="noreferrer noopener nofollow" aria-label=" (opens in a new tab)" href="https://www.emarketer.com/content/global-ecommerce-forecast-2022" target="_blank"> 2.71 billion people</a> were shopping online in 2024, and that number is set to hit 2.77 billion in 2025.</p> <aside class="post-aside" data-target="article-aside.section"> <div class="post-aside__block block-side-comment"> <p class="u-text-p8-bold u-text-gray-700 u-text-upper u-mb-md">What we think:</p> <p class="u-text-p6 u-mb-0">This lucrative market is yours to take as long as you have an accessible online store and the right unique sales proposition (USP).</p> </div> </aside> <h3 class="block-heading u-text-p5-bold" ><strong>2. Lower overheads</strong></h3> <p>One of the main reasons ecommerce has become so popular is that it offers unprecedented convenience. Customers have an easy shopping experience, and online stores are simply more streamlined to operate than brick-and-mortar ones.</p> <p>Online stores help owners save money on many operational expenses. There’s no need to rent real estate, hire employees to staff an outlet, or pay for electricity and storage. <mark>Software and automation for ecommerce significantly reduce running costs and lead to lower overheads than operating a brick-and-mortar store.</mark></p> <h3 class="block-heading u-text-p5-bold" ><strong>3. 24/7 availability</strong></h3> <p>The internet never sleeps, and online retailers can use this to their advantage. While a physical store must adhere to business hours, you won’t have to hang a “closed” sign outside your ecommerce site as long your backend is online. This means customers can shop and purchase items at their convenience, and your site can process orders 24/7. </p> <p>Because customers can visit your store whenever they want, there are more opportunities for customer engagement. You can use tools like automated chatbots or live chat windows to connect with visitors, qualify leads, and convert more of them into paying customers. You can also respond to customer queries and complaints around the clock.</p> <h3 class="block-heading u-text-p5-bold" ><strong>4. Customer insights</strong></h3> <p>To create the best customer experience in your online store, you must first understand their wants and preferences. Thankfully, online stores provide the perfect opportunity to gather customer data.</p> <p>Ecommerce platforms can capture vast amounts of customer data with minimal effort. Every customer’s past purchases, search history, shopping behavior, and demographic details can be used to create a detailed database that is invaluable for analytics and insights. </p> <aside class="post-aside" data-target="article-aside.section"> <div class="post-aside__block block-side-comment"> <p class="u-text-p8-bold u-text-gray-700 u-text-upper u-mb-md">What we think:</p> <p class="u-text-p6 u-mb-0">These insights will help you deliver personalized recommendations and create unique customer journeys for everyone who visits your customer store, increasing the odds of them having a positive experience.</p> </div> </aside> <h2 class="block-heading u-text-p4" ><strong>Four popular ecommerce platforms for your online store</strong></h2> <p>When setting up an online store, choosing the best platform is one of your most important decisions. Ecommerce platforms are the key ingredient: the software applications that allow you to run your online store. Using an ecommerce platform enables you to perform essential tasks like listing products for sale, accepting payments, and fulfilling orders. </p> <p>There are many ecommerce platforms to choose from. Here’s a short list of four of the most popular platforms for online stores, along with their strengths and weaknesses:</p> <h3 class="block-heading u-text-p5-bold" ><strong>1. Shopify</strong></h3> <p>Shopify is one of the most well-established ecommerce platforms. It’s been active for over 15 years, and millions of online retailers use Shopify. Its strengths include:</p> <ul> <li>Beginner-friendly and easy to set up.</li> <li>Extensive app store.</li> </ul> <p><mark>One of Shopify's main drawbacks is that the subscription can be expensive, especially if you add many paid apps.</mark> That said, Shopify is an excellent platform for a small business with a modest list of features. </p> <p>Shopify offers multiple payment plans ranging from $79 to $299 per month, not including additional transaction fees.</p> <h3 class="block-heading u-text-p5-bold" ><strong>2. WooCommerce</strong></h3> <p>If your business already has an existing WordPress website, WooCommerce is your best option. This WordPress plugin adds ecommerce functionality to your site. Its benefits include:</p> <ul> <li>One of the most cost-effective ecommerce solutions.</li> <li>A wide selection of third-party extensions.</li> </ul> <p>One of the <mark>only complications with using WooCommerce for your online store is that it requires advanced knowledge of WordPress. </mark></p> <p>WooCommerce is free on a self-hosted WordPress site. A paid, web-hosted version costs $30 to $70 a month.</p> <h3 class="block-heading u-text-p5-bold" ><strong>3. Adobe Magento</strong></h3> <p>Another big name among ecommerce platforms is Magento. This ecommerce platform has a free, open-source version and a managed, cloud-based version available on a subscription model. The main advantages of Magento include:</p> <ul> <li>Highly customizable.</li> <li>Fast load times and smooth user experience.</li> </ul> <p>The chief drawback is that the paid version of <mark>Magento can be expensive due to cloud hosting costs.</mark> However, it is a powerful solution for larger online stores.</p> <h3 class="block-heading u-text-p5-bold" ><strong>4. BigCommerce</strong></h3> <p>BigCommerce is a bit more complicated to use than Shopify, which is why it is better suited for bigger stores with more resources. The chief benefits of using BigCommerce as your ecommerce platform are:</p> <ul> <li>Access to an extensive collection of built-in tools.</li> <li>In-depth analytics and reporting.</li> </ul> <p>BigCommerce offers limited customization options. The platform has three pricing plans: BigCommerce Standard ($29.95 per month), BigCommerce Plus ($79.95 per month), and BigCommerce Pro ($299.95 per month).</p> <h2 class="block-heading u-text-p4" ><strong>Four essential elements of every online store</strong></h2> <p>Choosing an ecommerce platform is an important decision, but it is far from the last one you will need to make. When building an online store, there are multiple vital considerations: from customer experience to operational processes, there are many essential elements you need to include:</p> <h3 class="block-heading u-text-p5-bold" ><strong>1. User-friendly design</strong></h3> <p>When creating your online store, it’s important to prioritize making it as user-friendly as possible. This means designing a clean, clutter-free user interface (UI) that is easy to navigate. A streamlined user experience encourages customers to make repeat purchases from your store. </p> <p>It’s also important to remember to cater to users on all devices by building mobile- and desktop-friendly versions of your website.</p> <h3 class="block-heading u-text-p5-bold" ><strong>2. Detailed product pages</strong></h3> <p>Customers may not be able to physically inspect products in your online store, but you can do your best to provide all the details they need. Highly detailed product listings and clear, prominent images and videos will inspire confidence and trust in shoppers. Confident customers are more likely to buy from your store.</p> <h3 class="block-heading u-text-p5-bold" ><strong>3. Secure payment processing options</strong></h3> <p>The payment processing methods in your online store are another critical decision to make. Protecting customers’ payment information when they shop at your store is essential, which means relying exclusively on secure payment processing options. </p> <p>We’ll cover some ways to protect customer data later in this article. For now, it’s enough to establish that all online retailers must have a reliable and secure method of accepting payments from customers.</p> <h3 class="block-heading u-text-p5-bold" ><strong>4. Reliable order fulfillment and shipping</strong></h3> <p>Every online store needs a foolproof logistics and delivery process to succeed in the long run. Your customers will expect you to match your competition’s shipping schedules and rates. </p> <p>Delayed or unreliable deliveries contribute to negative customer experiences, turning away shoppers and dragging down sales. Unless you want your customer service department to be drowning in complaints, you will ensure that your online store’s order fulfillment strategy is working efficiently at all times.</p> <p>One way to streamline your logistics is by <a rel="dofollow" href="https://rushorder.com/" target="_blank">partnering with a 3PL service provider</a>, which can help you manage inventory, handle shipping, and improve delivery times. This partnership can reduce operational costs and allow you to focus on scaling your business.</p> <h2 class="block-heading u-text-p4" ><strong>Four ways to promote online stores</strong></h2> <p>Once you have all the essential elements of your online store, like an ecommerce platform and a payment portal, you’re ready to go to market. When launching an online store, your main objective should be to raise awareness among your target audience. </p> <p>Since your customers are all online, you must employ a mix of digital and traditional advertising methods to get the best results. Here are four ways to promote your online store:</p> <div class="block-callout u-py-lg u-px-3xl"> <p class="u-text-p6 u-mb-0"><ul class="rich-text editor-rich-text__editable block-editor-rich-text__editable is-selected" role="textbox" contenteditable="true" aria-multiline="true" aria-label="Write list…"> <li><strong data-rich-text-format-boundary="true">Search engine optimization (SEO):</strong> Many ecommerce customers begin their buying journeys with an online search. That’s why it’s so important to focus on SEO when building your online store. This means conducting keyword research to improve your store’s discoverability for your target audience. Use those keywords prominently in product listings and blog posts.</li> <li><strong>Social media promotion: </strong>Along with specific targeting based on details like age, location, gender, and interests, social media promotion also lets you conduct A/B testing to refine your ad performance. This allows ecommerce stores to use dynamic advertising by serving likely prospects with high-performing and engaging ads. The rise of social commerce also means that social media promotions will take on even more importance in the coming years.</li> <li><strong>Emails: </strong>You can leverage your store’s customer database by sending marketing campaigns to customers’ registered email IDs. This is a great tool to spike customer interest in your offerings, especially time-bound promotional events.</li> <li><strong>Paid advertising: </strong>Traditional media like print and TV can also help promote your online store. These advertising campaigns create awareness and reach broad audiences.</li> </ul></p> </div> <h2 class="block-heading u-text-p4" ><strong>How to improve customer service for online stores</strong></h2> <p>The appropriate customer support channels can help shoppers enjoy continued access to quality service while helping new customers navigate your store’s post-sales service.</p> <p>Some essential functions of customer support channels include:</p> <ul> <li>Soliciting and cataloging customer feedback.</li> <li>Explaining store policies and offers.</li> <li>Handling returns and refunds.</li> </ul> <p>Online retailers draw more traffic than physical stores, so you need customer support solutions that can scale up as your audience grows. Opt for enterprise software products to boost the efficiency of your customer service team. These can automate simple customer interactions, eliminate repetitive tasks, and enable your team to serve more customers in a shorter amount of time. </p> <div class="block-callout u-py-lg u-px-3xl"> <p class="u-text-p6 u-mb-0"> Some examples of such software products are:   <ul> <li><strong>Chatbots: </strong>The new generation of chatbots is powered by artificial intelligence (AI). Software like<a href="https://www.chatbot.com/" target="_blank" rel="noreferrer noopener" aria-label=" (opens in a new tab)"> ChatBot</a> uses generative AI to send messages to store visitors and can deliver smart product recommendations based on conversations with customers. These tools help sales and customer service teams improve engagement rates.</li> <li><strong>Live chat plugins: </strong>Installing plugins like<a href="https://www.livechat.com/" target="_blank" rel="noreferrer noopener" aria-label=" (opens in a new tab)"> LiveChat</a> enables customers to quickly get in touch with a store representative. This helps speed up resolution rates compared to older methods like email.</li> </ul> </p> </div> <h2 class="block-heading u-text-p4" ><strong>Five steps for online stores to protect data and prevent fraud</strong></h2> <p>As mentioned earlier, security has to be a top priority for any online store. The risk of a data breach compromising confidential customer information can be disastrous for your business. Discerning customers will also check to see if your online store meets certain required standards before shopping. </p> <div class="block-callout u-py-lg u-px-3xl"> <p class="u-text-p6 u-mb-0"> To make sure your online store is equipped to safely conduct business over the internet, take the following steps:   <ul> <li>Ensure your website has a Secure Sockets Layer (SSL) certificate.</li> <li>Comply with the Payment Card Industry Data Security Standard (PCI DSS) for payment protocols.</li> <li>Regularly update security protocols.</li> <li>Use multi-factor authentication (MFA) for user accounts.</li> <li>Ask for Card Verification Value (CVV) for online transactions.</li> </ul> </p> </div> <h2 class="block-heading u-text-p4" ><strong>Get your online store started today!</strong></h2> <p>Is your business ready to take the next step? Building an online store can be the step to take you there. 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