The coronavirus has completely changed the way that businesses are operating. While there has been a lot of turmoil. Many businesses are turning to e-commerce in order to propel them through this change in consumer spending.
Ecommerce as a sector is certainly becoming more and more valuable despite the dramatic shift that occurred during the pandemic, though. So, no matter the reason, it may be time to get familiar with eCommerce and find out whether it may be time to invest in a business in this sector.
This is a great time to buy an online business in the UK. However, there’s also plenty of competition: with minimal barriers to entry, a large and growing number of websites are chasing a slice of the market.
Rarely including premises or staff, websites are among the cheapest businesses to buy – costing as little as a few thousand or even hundreds of pounds. That said, older
However, you don’t necessarily need space to store stock. When a customer buys an item you can instead order stock from a third party. Called
Yet there’s more to online commerce than selling physical products. Affiliate marketing websites, for instance, generate revenue through
You can also make money through content-driven websites. While content is unlikely to make you a millionaire, many shrewd entrepreneurs have set up blogs or online newspapers in underserved niches and generated strong revenues through website monetisation platforms like AdSense, Chitika or Total Media Group.
Websites can also be a vehicle for providing Software as a Service (SaaS). No longer running applications on their own computers and servers, businesses can, through SaaS, slash IT costs.
It can also be useful to add eCommerce capabilities to an already existing business by acquiring an online business that can add to your business. You will need to do your research carefully in order to find the right business but this is a way to get your business ready for the changes in consumer habits so that you can weather any storm.
Buying a UK website: who owns what?
When you buy a website, ownership rights – encompassing visual design, images and text content – will transfer to you.
A website created on an open-source platform like WordPress can be saved to your computer and uploaded to any web host company’s server to be visible on the internet.
Sites like Weebly or Wix, which offer ready-made website templates and solid backend support, are increasingly popular alternatives. However, they tie-in customers to monthly or annual subscriptions and users are committed to using their systems and hosting the website on their servers.
Ownership of the site’s domain name will also transfer to you. A contract with the domain registrar grants you ownership, much like a contract with a telephone company for a phone number.
- Much lower upfront and running costs than a brick-and-mortar business
- Flexible hours means you can supplement your income from existing job or business and fit around childcare commitments
- A niche website can be shaped around personal interests or hobbies
- Online tools make it easy to automate workflows
Overcoming industry challenges
UK online sales have continued, however, the future is undoubtedly now less certain. If online retailers are able to keep going through the uncertainty that is being experienced with the dramatic drop in the markets due to the pandemic, then they will, most likely, see long term growth.
There is a shift in consumer lifestyle habits that will tend to see people stay at home more and more. eCommerce will be able to capitalise on this by offering consumers a way to spend money without leaving their home.
Consumers are also spending more time online and this will perfectly place an online business to find customers where they are rather than trying to bring them to you.
The government’s ‘Do More Online’ campaign was set up to help micro-businesses and sole traders sell their goods and services online.
Elsewhere, self-styled online business development consultants offer free preliminary advice on web-based commerce in the hope of enticing you to pay for their expertise.
Find a niche
If ready access to a national or global market offers rapid scalability, it also makes some retail categories extremely competitive. From books to jewellery, Amazon and other
Picking a less competitive niche is an easier way to gain a foothold in a given market. SEO-wise, targeting long-tail terms like ‘buy 1950s retro furniture’ rather than ‘buy furniture’ is a more productive seam to mine for the smaller player.
What it takes to develop a successful online business
Running a website also arguably requires fewer sacrifices in terms of leisure time and family life. You can work from home and cut out the commute and work flexible hours to fit around childcare and other commitments.
Thanks to off-the-shelf website builders like Wix or WordPress, coding skills are not necessarily essential either.
However, some knowledge around SEO, social media and basic digital skills certainly will come in useful.
What really matters is a commitment to ongoing self-education and improvement. From mobile optimisation to marketing automation, new trends and innovations emerge with dizzying speed.
Your position on Google search results will make or break you and the rankings are in a perpetual state of flux. Sometimes you have to make progress just to stand still.
If that sounds overwhelming then help is available and it needn’t be expensive. Websites such as PeoplePerHour give you access to freelancers who can help with everything from SEO to web design, either for a fixed fee or an hourly rate.
- Basic proficiency in IT/digital
- Hunger to improve and stay up to date with fast-changing market
- Comfortable with multitasking – you need to wear a lot of hats
- Knowledge of online marketing and using social media (if only to verify the quality of outsourced work by freelancers)
- Being happy to spend most of your time
sittingin front of a computer
What to look for when buying a website
Conducting due diligence on a website is arguably much easier than on bricks-and-mortar premises. You needn’t travel anywhere to assess the business, there are few, if any, employees to consider and probably no physical property to inspect.
And you can gauge a website’s traffic, SEO rankings, usability and reputation using only Google and a plethora of (usually) free online tools and platforms.
Among other things you should look for:
Healthy traffic from a mix of sources
Look at the website’s historic traffic, in terms of volume and source (direct or via search, paid, referral or social), and its SEO status using platforms like Moz, Google Keyword Planner SimilarWeb, SEMRush,
Google’s frequent algorithmic changes are notorious for causing havoc with search rankings. While Google’s plans can only ever be guessed at, broadly speaking the search engine is becoming ever-more effective in rewarding sites that look good, are easy to navigate and give users what they want.
The best way to assess a website’s reputation among customers is via social media monitoring and sentiment analysis tools. There are too many useful tools to list here but here are 10 recommended by iProspect.com.
How long has the website been in existence?
As with any other business, you will want to see financial accounts to ascertain revenues and costs over the past 3-5 years.
Revenue trends . Is the business seasonal? If revenue is declining, what might it take to revive it?
Look for where you can add value to increase traffic and revenue with