This post was last updated on May 30, 2023.

If you've spent any time watching pre-roll YouTube ads, you'll know that dropshipping is an inescapable buzzword in the world of eCommerce. Stories of overnight success, six-figure sales, and millionaire dropshippers make it seem incredibly lucrative.

In fact, you've probably wondered, "Should I buy into the hype?" "Should I start dropshipping?" "Is dropshipping still worth it?"

The truthful answer: it depends.

Whether you're looking for a new side hustle or already own an established business, dropshipping can be a worthwhile pursuit. Stratospheric success can and does happen, but, as with all business strategies, it's best to take a realistic and measured approach. There are no get-rich-quick schemes here.

In this article, we'll introduce you to the eCommerce dropshipping business model and provide a no-frills step-by-step guide on how to start dropshipping.

Table of contents

• What is a dropshipping business?
• Challenges of dropshipping
• Is starting a dropshipping business worth it?
• How to start a dropshipping business: 7 key steps
  • 01. Select the right eCommerce platform
  • 02. Choose products to sell
  • 03. Partner with the right dropshipping supplier(s)
  • 04. Build your eCommerce store
  • 05. Solidify a seamless order fulfillment process with your supplier(s)
  • 06. Market your dropshipping business
  • 07. Expand to other sales channels

Ready to launch a low-investment eCommerce business? Try Wix dropshipping today.

What is a dropshipping business?

In short, dropshipping is a popular eCommerce business model with minimal startup costs (for reference, learn how much it costs to start a business). It differs from the typical eCommerce business model in that it allows you to sell products without having to store, handle, or ship any of your own inventory.

Instead, you lean on a dropshipping supplier to handle everything from manufacturing to fulfillment. The process is simple:

1. You list a product for sale on your site. Every dropshipping supplier or marketplace offers a catalog of products that you can choose from. For example, Modalyst offers millions of ready-to-ship and print on demand products, ranging from decorative mugs to jewelry.
2. A customer completes a purchase on your site. Once you’ve listed and priced your products, customers can purchase them from your business website, just like any other online order.
3. You forward the order to your supplier. With an all-in-one platform like Wix eCommerce, you can automatically route orders to your suppliers for fulfillment.
4. Your supplier handles the rest. Your supplier preps, packages, and ships out the product directly to your customer.

Challenges of dropshipping

While dropshipping sets you free from most shipping and order fulfillment demands, dropshipping successfully and profitably takes substantial dedication. As a dropshipper, your time will be fully dedicated to marketing your products, maximizing sales, and keeping things running smoothly. More specifically, you'll face:

• Stiff competition. Given the low barrier to entry, there are tons of other dropshippers entering the arena. The same suppliers that fill your inventory could be providing inventory for other sellers.
• Reliance on marketing. To truly stand out from the crowd, you must invest in solid product marketing and branding. This means maintaining a high-quality site and investing the time, money, and effort to market your products well.
• Lower profit margins. While dropshipping cuts down your upfront costs, you'll have to be okay with using some of your hard-earned capital to pay your suppliers, plus afford advertising and marketing. This means that you'll have to sell more units than a traditional retailer to see the same level of return.
• Reliance on suppliers. You're at the mercy of your suppliers when it comes to product quality, on-time shipping, or other important responsibilities. If there are any issues with an order, you’ll be left dealing with the repercussions and the potential hassle of finding a new supplier.
• Keeping everything in order. Unlike a traditional retail setup, you cannot inspect each product before it goes out the door. Nor can you maintain full visibility over the warehouse and production floors. It's up to you to find trustworthy partners and to stay in close communication with them. It's also up to you to have a contingency plan (and/or to diversify your supplier pool) while keeping inventory levels in check.

So, is starting a dropshipping business worth it?

When it comes to learning how to start a business, this largely depends on you. Are you willing to roll up your sleeves and remain committed to this venture?

To summarize, one of dropshipping’s biggest upsides is that you can start selling quickly with minimal investment. So, it’s always possible to cut your losses before breaking the bank. And, if your products don't sell, you won’t get stuck with leftover inventory.

The downside is mainly your lack of control as a retailer. Since you don't handle the products yourself, it’s harder for you to vouch for their quality or the customer experience. You have to assume the risk of supply chain issues—many of which may be out of your control. Dropshipping is additionally growing more and more competitive, especially as tales of riches have taken hold of the field. Your expectations should therefore be tempered.

With all that said, getting started with dropshipping can be easy, especially when you've got a platform like Wix eCommerce, where you can centrally manage your end-to-end operations.

How to start a dropshipping business: 7 key steps

If you’ve decided to start dropshipping, here are a few tips to keep in mind.

“Launch fast—don’t strive for perfection. Then test how customers respond to products and iterate based on sell-through.” - Jill Sherman, Co-founder, Modalyst

01. Select the right eCommerce platform

Building a defensible dropshipping business requires having all the right tools at your fingertips. Ideally, the eCommerce platform you choose should set you up for success with easy-to-use features and integrations, backed by a secure and crash-resistant infrastructure.

For example, Wix eCommerce offers baked-in dropshipping tools. Connect your store to Modalyt’s marketplace and easily import products from Modalyst’s wide-ranging catalog. Set your prices, product descriptions, shipping policies, and payment options directly from Wix. And, trust Wix to automatically sync inventory so that you don’t accidentally oversell on any sales channel—whether you choose to sell from your online store, a marketplace (like Amazon), and/or social media.

Here’s a closer look at some of Wix’s core eCommerce features.

However, before you begin setting up your eCommerce store, there are a few things you’ll want to consider:

• Who will you sell to?
• What products will you sell and why?
• How do you plan on differentiating your online store?

The answer to these basic questions will help you to define your audience, and design the best store and catalog for your target audience.

02. Choose products to sell

As a dropshipping business, you’ve got thousands—if not millions—of products to choose from, so it can be a challenge to decide what to sell.

To find your focus, take the following steps:

• Research your target audience. Investigate their values, preferences, needs, and shopping behaviors. Pro tip: avoid using broad statements to describe your niche, such as “outdoor hobbyists,” “music fans” or “young women.” Broad niches lack focus and make it difficult to attract high-quality leads or differentiate yourself from other retailers. Instead, create buyer personas that dig under the surface and help you put yourself in your customers’ shoes. Note that dropshipping allows you to be more experimental with your catalog than traditional retail, since you don’t have to pre-order and store inventory.
• Research trending products. What categories are popular among your target buyers and what products are trending? Use resources like Google Trends, Google Keyword Search, social media, and online marketplaces (like Amazon, AliExpress, Etsy, and eBay) to see what shoppers are currently buying. For more ideas, check out our list of the best dropshipping products to sell online or this article on choosing products to dropship.

• Do some competitor analysis. Make a list of your top competitors. What’s selling well for them? What sort of content elicits the most engagement from their social media followers? Study their websites to see how they price, describe, and market their products. Sign up to their email lists to get insight into their marketing tactics. What can you learn from them, and on the flip side, what can you do differently?
• Establish your business idea. Once you’ve done your research and settled on a niche, determine the breadth of products you want to sell and how they all fit together. For example, if you start an online business in home decor selling big-ticket items like furniture, will you also stock smaller household accessories like lamps, decorative pillows, and rugs? The great thing about dropshipping is that you don’t have to worry about overstocking your inventory. If products don’t sell well or a trend passes, you can easily swap out items from your product catalog.
• Enhance your existing store. If you already have an online store and want to use dropshipping to boost your inventory, then you’ve probably got a clear idea of the products you want to sell. Make sure that your dropship items complement your existing stock and match your audience’s price range.

03. Partner with the right dropshipping supplier(s)

Finding great suppliers is key to your success. But industry research suggests that 84% of dropshipping merchants consider the process of finding a good supplier the most significant obstacle in their business journey.

You not only need a supplier who can fulfill a small scale of orders, but one that can also scale with your business as it grows.

Fortunately, there are are various sources for finding the right supplier:

• Independent suppliers. You can search for suppliers directly on Google. You’ll want to research reviews, talk to other sellers (if possible), and vet suppliers carefully. For this reason, manually finding suppliers can be time- and research-intensive.
• Dropshipping marketplaces. Alternatively, you can find suppliers through a dropshipping marketplace that can connect you with a wide range of pre-vetted partners. Make sure to choose a marketplace that integrates well with your eCommerce platform. With Wix eCommerce, you can browse and install a wide range of dropshipping platforms via the Wix App Market.
• Print on demand (POD). For a more bespoke offering, it’s best to integrate with a POD platform, like Modalyst, Printful, or Printify. Print on demand is a form of dropshipping that allows you to sell customized products with your own design or logo on them. Just like with traditional dropshipping, you can select from hundreds of products and outsource printing and fulfillment to your supplier.

As you consider which suppliers to work with, check that your suppliers provide realistic and transparent shipping estimates. Keep in mind that a supplier’s proximity to your shipping regions can impact shipping times and the overall customer experience. Make sure to order samples of your products and use reviews from other merchants to help gauge your supplier’s reliability.

04. Build your eCommerce store

Like a beautiful brick-and-mortar business that draws customers in, a thoughtfully built online store will enhance your credibility, compel shoppers to stick around, and make them feel secure when hitting “buy.”

With Wix eCommerce, you can create a professional, responsive website using an intuitive site editor. Create an account for free and then follow these steps to get started:

• Pick a template. Choose from hundreds of designer-made online store templates. Select one that fits your brand, style, and target market, then customize the content to make the site your own. Remember that your website is often the first impression your customers have of your business, so it should be clean, easy to navigate, and well-branded.
• Develop a brand identity. Create a cohesive branding strategy, starting with your core values and ending with your visual identity. Decide on a store name that reflects your brand story, mission, and/or personality (you can use Wix’s free business name generator for inspiration). Then, register a matching domain name and create a logo using the Wix logo maker or by hiring a professional designer from the Wix Marketplace. For more tips, follow this guide to branding your online store.
• Connect to a dropshipping platform. Install your chosen dropshipping or POD app by going to the Wix App Market, searching for a dropshipping platform, and clicking the “add to site” button. Create an account with your platform-of-choice and start your hunt for great products.
• Add products and descriptions. Once you’ve chosen and imported products to your store, fight the urge to simply copy and paste product descriptions from your supplier. Instead, take the time to write unique descriptions that fit your company’s tone and are optimized for SEO. Consider shooting your own product images and/or videos using a sample product. This gives you the creative freedom to show products against backdrops and settings that help your customers better visualize themselves using your product. Plus, you can use this content for marketing and advertising purposes.
• Set your pricing and shipping rules. When setting your pricing rules, take wholesale and shipping costs into account as well as any additional business expenses. Consider your competition, differentiators, and perks that you can offer (e.g., free shipping or white-glove service). Then, establish a dropshipping pricing strategy that keeps your products competitive yet affordable. As a general rule of thumb, avoid competing on price alone. This is a losing strategy for most businesses, and will inevitably throw you into many price wars.
• Be transparent. Learn about your suppliers’ shipping and return policies so that you can write clear store policies. Let customers know what to expect when purchasing from your store. Wix merchant, The Boho Birdy, sells a broad range of dropshipped goods—from clothing to home decor—with a touch of bohemian style. Within their site, the company clearly states that they source from multiple, international suppliers. They additionally anticipate customer questions about shipping and delivery with a detailed FAQ page. This strategy allows them to manage expectations and prepares customers for the trade-off that comes with making a purchase from their store.

• Optimize your storefront. View your online store from your customers’ perspective to better understand their experience. Is it easy to navigate? Make it simple for customers to find exactly what they want by creating filters, categories, and collections for your products that align with how your customers tend to shop. This can be tricky at first, but don’t be afraid to ask customers for feedback and then make additional tweaks where needed.
• Optimize the checkout flow. Keep customers happy by offering multiple payment options on your site. Connect your store Wix Payments, which allows you to accept debit/credit cards, Apple Pay, Pay Now by Klarna, and other popular payment methods.
• Go live. Click that “publish” button and make your store visible to the world. Congratulations. Your hard work has paid off and you’re now in business.

05. Solidify a seamless order fulfillment process with your supplier(s)

Once you sell a product, you need a process for forwarding those orders to your suppliers. The best processes are automated, saving you time and reducing the potential for any errors.

Having an automated fulfillment process is especially important as your business grows and your order volume multiplies. While evaluating different platforms to use, you should make note of the differences in their fulfillment solutions and ultimately select the one that best suits your business.

For example, some dropshipping and POD apps are more manual, requiring you to click a few buttons to confirm and send orders to your supplier. Others, like the Wix-Modalyst integration, are automated, routing orders to your suppliers and sending you order status changes in real time.

Whether you manually send orders to your supplier or automate the process, make sure you nail down an order fulfillment process that fits the needs of your business operations and creates a seamless experience for your customer. Doing so will increase customer satisfaction and may even minimize returns.

Pro tip: White-labeling is an increasingly popular add-on service offered by dropshipping suppliers. With white labeling, your supplier adds your branding and/or labeling to the product packaging during the fulfillment process. You pay a little bit extra to make a product look uniquely your own. Although this can cut into your profit margin, branded packaging builds trust, looks professional, and helps customers remember your business.

06. Market your dropshipping business

As a dropshipper, a bulk of your time will be spent drawing attention to your store. Your primary responsibility is to develop a strong brand that earns your customers’ trust. Start spreading the word with a well-rounded marketing plan that includes these elements:

• SEO (Search Engine Optimization). SEO is foundational for increasing your visibility online and making it easier for shoppers to find your products on search engines like Google. Boost your product pages with unique descriptions and content that take on-page SEO factors (think: short-tail and long-tail keywords, meta descriptions, and more) into consideration. You may even want to start a blog that lets you publish fresh content regularly and reach buyers at various stages of the customer journey.
• Email marketing. Keep your brand top of mind with a thoughtful business email strategy. You can incentivize site visitors to subscribe to your email list by offering a special discount or gift for their subscription. Use email to engage customers at various stages of their journey, e.g., send abandoned cart emails reminding them to complete a purchase or request feedback on a recently purchased product. Promotional emails can keep customers coming back as well, plus provide insight on the types of products and seasonal campaigns that appeal to your target audience.
• Social media. These days, one viral TikTok video or Instagram Reel could get your product in front of millions of potential customers. When building a social media strategy, be selective of the channels that you invest your time and money into. It’s better to start with one or two strategic channels than to blindly test every channel possible; each channel has its own quirks and algorithms that you’ll need to get used to. Test various types of content like videos, hashtag contests, and posts featuring user-generated content. If it’s within budget, team up with influencers who align with your brand.
• Paid ads. Reach new customers with targeted ad campaigns on Facebook, Instagram, YouTube, and search engines like Google. Experiment with various ad types—e.g., Google Search versus Display versus Shopping—until you find what works for your business. Facebook Ads by Wix uses a powerful machine-learning algorithm to optimize your ad campaign and maximize performance continually. You could even set up remarketing campaigns that only serve up ads to people who’ve already visited your site.

07. Expand to other sales channels

While you’ll want to groom a strong online store, it pays to offer your products on other channels that have large, established audiences. You may find that certain products sell better on your website, while others sell like hot cakes on Amazon.

That said, you’ll want to be strategic about the channels you pursue. Each channel comes with a strong learning curve. From learning how to price your products competitively, to learning how to remain compliant with a channel’s listing requirements, there’s a lot you’ll need to learn before you can even make a sale.

Fortunately, when using a tool like Wix’s multichannel campaigns, you can automate and better manage certain processes. For example, you can easily import your store products to Amazon or eBay, while retaining the ability to customize your offer to each channel. You can additionally avoid complexities that come with managing a multichannel strategy, such as keeping inventory synced and routing orders to the right fulfillment partner.

Whichever channels you choose to sell on, make sure you’re keeping close watch over their performance. Test various offers, messaging, and/or product assortments to find what resonates best with each unique audience.

08. Optimize your dropshipping business

When it comes to business, one thing is certain: there’s always room for improvement. That’s why from the get-go you’ll want to set clear and measurable goals that help to guide your growth as a business.

Use the performance-measuring tools like Wix Analytics, Google Analytics, and Google Search Console to gain valuable insights into what’s working and what’s not. There are a number of key performance indicators (KPIs) that you can and should measure. To name a few:

• Traffic growth - How is your website traffic growing over time? Which sources are people entering your site from, and which pages do they tend to engage with?
• Conversion rate - How many site visitors end up buying from your site?
• Monthly sales and profit margin - How much ROI are you seeing from your marketing and advertising efforts?
• Purchasing trends - What products are selling best and why? Is demand for those consistent year-round, seasonal, etc.?
• Average order value (AOV) - Do you see any opportunities to upsell and cross-sell customers, and thereby influence larger cart sizes?
• Customer retention - How many customers are new versus returning in a given period of time? Is there a way that you can encourage repeat buyers and reward their loyalty?
• Cart abandonment rate - How many people are adding items to their cart, but leaving before they complete a purchase? Is there an issue with your checkout flow or payment options?

By continually setting new goals and looking for ways to improve, you can optimize your business for sustainable growth and success.

Get started with dropshipping today

So there you have it. Dropshipping is a quick way to start selling new products online and can serve as a great revenue stream, even if you’re an established eCommerce merchant.

As a dropshipping entrepreneur, you can channel your energy into building an eye-catching brand, selling a large assortment of products, and serving a specific audience. But, like any modern business, it requires lots of hard work to get right.

We hope this article helps you to understand the dropshipping business model better and to find success worthy of a Forbes profile.

Ready to start making money dropshipping? Create your eCommerce store today.

How to start a dropshipping business FAQ

Geraldine Feehily

Marketing Writer, Wix eCommerce

Geraldine is a marketing writer for Wix eCommerce. She uses her broad experience in journalism, publishing, public relations and marketing to create compelling content and loves hearing user success stories.

Allison Lee Editor, Wix eCommerce

Allison is the editor for the Wix eCommerce blog, with several years of experience reporting on eCommerce news, strategies, and founder stories.

The saying “there’s no such thing as a free lunch” is certainly true when it comes to eCommerce shipping. Consumers expect delivery of their orders to be fast and free, but merchants still have to pay for it somehow—often taking a hit to the bottom line in the process.

Trimming eCommerce logistics costs is one way to align shipping expectations with reality. And while you’ll need to take the time to do the research, the good news is that there are plenty of ways to ship a package cheaply. With patience, ingenuity, and a granular approach to matching the right services to the right shipments, you can eke out savings on shipping that make an impact, without alienating customers in the process.

The shipping challenge: cost vs. speed

From your customer’s perspective, the faster an order can be delivered, the better. Research from Wix partner Shippo found that the preferred delivery speed for the majority of consumers (62%) is three days or less.

That’s a tight timeframe for most retailers, especially because consumers aren’t willing to pay a premium for it. When asked to name the three most important factors influencing online purchases, an equal percentage of consumers (42%) picked shipping speed and shipping cost, according to a survey from Santa Clara University’s Retail Management Institute. The study found that more than a quarter of consumers have abandoned an online shopping cart because the free shipping option wasn’t fast enough and the cost of expedited delivery was too high.

To satisfy these demands without destroying margins, you need a savvy pricing strategy, combined with shipping flexibility. Juggling multiple eCommerce fulfillment services adds complexity to your operation, but gives you more options for delivering packages cheaply.

Shipping speed options

Major and regional carriers have flexibility in mind like never before. After the supply chain challenges and seasonal spikes of recent years, carriers are working hard to optimize their services with artificial intelligence, new warehouses, and more. A range of eCommerce shipping options are now available for retailers of all sizes, with a focus on speed and efficiency. While comparisons aren’t exact from carrier to carrier, the major categories of shipping speed include:

• Media mail (two to 10 days) - The U.S. Postal Service offers a special rate for shipping books, videos, and other materials that meet specific media criteria. While inexpensive, media mail tends to travel slowly via ground transport, and tracking service isn’t available.
• Ground or standard shipping (two to eight days) - Multiple carriers offer an option for delivery via trucks and trains. While these surface methods are slower than air freight for long-haul delivery, their speed may be competitive at shorter distances. They’re also more cost-effective. Tracking is available for these shipments, though the delivery date may change depending on road conditions.
• Expedited or priority shipping (two to three days) - Expedited services rely on a combination of air and ground transport to move goods faster than standard service. Services such as tracking and insurance are often included (at least up to a certain amount). Within this speed tier, the USPS, UPS, and FedEx all offer flat-rate options using standardized packaging; these options are worth exploring, as they make your costs predictable while providing relatively rapid delivery.
• Next-day or overnight shipping (one day) - Under this option, orders that are placed before a certain cut-off time will arrive at their destination overnight via express air and ground transport. This tier of service is more costly than other carrier options, but it guarantees delivery by a certain time, plus offers up-to-the-minute tracking.
• Same-day delivery (zero delay) - While same-day delivery was once the exclusive domain of urban restaurants and specialized courier services, it is now widely available by most major carriers. These carriers offer reliable but expensive options. Alternatively, you could partner with personal delivery services (such as Instacart and DoorDash) that may also offer same-day delivery but at a better rate.

Reading the fine print: other factors affecting shipping cost

While delivery speed is the top factor affecting cost and the one that matters most to your customers, there are additional considerations to take into account. Depending on your unique business needs, you may need to forecast additional fees for these situations:

• Large items - The definitions for “oversize” and “overweight” vary among the major carriers, but they’ll all assess hefty fees for exceeding their maximums. Research specialty carriers and consider freight shipping if you offer especially bulky or heavy products.
• Signature requirements/restricted items - Major carriers will almost always require a signature for shipments of restricted products like medicines and alcohol. Expensive goods, such as jewelry or electronics, may also trigger a signature requirement. Even if the carriers don’t insist, if you sell costly items, you may opt to require a signature as a means of preventing package theft.
• Perishable goods - If you’re selling items with ingredients that are subject to melting or spoilage—such as foodstuffs, flowers, or beauty products—you may need to pay extra for expedited or climate-controlled shipments to ensure orders arrive in good condition.
• Overall volume - Shipping costs typically drop as volume grows, so be sure to compare rates as your needs change.
• Seasonal demand - If your sales peak during periods of heavy demand for major carriers, expect to pay additional shipping fees. The fall announcement of year-end holiday surcharges has now become an annual ritual; in 2022, extra fees ran as high as $6.50 per package, according to Shippo, so the costs can add up.

The cheapest way to ship packages in the U.S.

While all three major carriers advertise “flat rate” services, USPS Priority Mail is the only one that offers a single price-per-package size nationwide for a single delivery option of between one and three days. It’s also less expensive than UPS Simple Rate and FedEx’s One Rate, which offer a matrix of delivery speed options. FedEx rates also vary according to region. Both FedEx and USPS require use of their free standardized packaging, while UPS customers use their own packaging, with shipment price tier assigned by volume.

For larger items, heed weight and size restrictions that can limit your service options. For example, USPS doesn’t offer flat-rate boxes above 1,000 cubic inches in volume; additionally, USPS shipments of any type can’t exceed 70 pounds. UPS and FedEx have weight limits of 50 pounds for their flat-rate services, and the maximum volume tops out at 1,738 cubic inches for UPS and 2,200 cubic inches for FedEx. For large and heavy items that don’t qualify for flat-rate service, carriers assign costs based on dimensions and weight. In the U.S., the USPS can accommodate items of up to 70 pounds measuring up to 130 inches in combined length and girth. UPS and FedEx have a maximum weight of 150 pounds and a combined length and girth of 165 inches for domestic packages.

Small package - U.S. delivery

Winner: USPS Priority Flat Rate, up to $10.20, one-to-three-day delivery vs. FedEx One Rate, $12.40-$16.95, three-day delivery; UPS Simple Rate, $17.80, three-day delivery

For purposes of this comparison, a “small” package is one that can be shipped in a flat or padded envelope, poly mailer, or small box (100 cubic inches or less). Single books or apparel items, jewelry, and small electronics are likely to fit in this category.

Medium package - U.S. delivery

Winners: FedEx One Rate for <150 miles, $16.95, three-day delivery; USPS Priority Flat Rate for 151+ miles, $17.10, one-to-three-day delivery vs. UPS Simple Rate, $29.75, 3-day delivery

For purposes of this comparison, a “medium” package is a box with a volume of between 250 and 650 cubic inches. Shoes, multiple apparel items, and small home goods are likely to fit in this category.

Large package - U.S. delivery

Winners: FedEx One Rate for up to 600 miles, $39.10-$44.20, three-day delivery; UPS Simple Rate for 601+ miles, $51.35, three-day delivery vs. USPS Priority Mail, $89.35, one-to-three-day delivery

For purposes of this comparison, a “large” package is a box with a volume of between 1,500 and 2,200 cubic inches. Small appliances, home decor items, sports equipment, and multiple pairs of shoes are likely to fit in this category.

The cheapest way to ship packages internationally

If you ship internationally, the challenge grows steeper to find the most economical service. Not only do the size and weight of the package factor into pricing, but so does the destination country. DHL, which offers U.S. domestic service for businesses only to high-volume enterprise companies, is another option to consider for global shipments in addition to the “big three.”

As examples, consider these two comparisons both shipping a 16”x11”x3” package with a weight of five pounds.

California, USA to Ontario, Canada

Winner: UPS Standard, $34.74, seven days vs. FedEx International Ground, $35.17, seven days; USPS Priority Mail Express International, $78.50, five-to-seven days (no slower option listed); DHL, $126.74, five days (no slower option listed)

California, USA to Dublin, Ireland

Winner: USPS Priority Mail Express International, $92.45, five-to-seven days vs. DHL, $194.39, two days (no slower option listed); FedEx International Economy, $244.03, seven days; UPS Worldwide Expedited, $304.23, seven days

Tips for trimming package shipping costs

Even with a variety of potential sources to choose from for shipping services, the immediate future looks expensive for eCommerce package delivery. Trucking labor shortages, cargo delays, and fuel surcharges are all contributing to pricing pressure, making it harder than ever to solve the challenge of how to offer free shipping while remaining profitable.

To uncover more alternatives, think outside the box. Reach out to other partners and industry groups for guidance, and examine every aspect of your eCommerce warehousing and fulfillment operation for potential processes to streamline. Among the possibilities:

• Think outside the (“big three”) box - Regional and specialty carriers might be viable options depending on your needs. As an added bonus, having multiple ways to route packages can be helpful during peak seasons. Major carriers have been known to cap the number of shipments they’ll accept during these busy seasons in an attempt to protect on-time delivery performance.
• Check for discounts through partners - Reputable vendors and marketing partners may have more clout to negotiate favorable rates with carriers than you could achieve on your own. If you use a third-party logistics (3PL) provider or other fulfillment solution, those companies are obvious places to start – but marketplace providers that offer shipping support may be a resource as well. For example, Wix partner ShipStation offers savings of up to 84% on carrier fees to merchants selling through its platform.
• Optimize eCommerce product packaging - Keep an eye out for new containers or packing materials that could reduce the weight or dimensions of your shipments. In addition, review best practices with staff to ensure that items are being packaged economically and with adequate protection to prevent damage or breakage.
• Make the most of your stores - Your brick-and-mortar locations are powerful tools for lowering the costs of speedy delivery. Not only do they offer a place for shoppers to pick up items within hours of purchasing online, but they can also double-up as fulfillment centers. In other words, you could use store inventory to fulfill orders for home delivery and take advantage of cheaper shipping charges for local trips. You could even partner with delivery services such as Instacart and DoorDash to get items quickly to customers, or deploy your own staff on delivery runs.
• Be slow and collected - Entice customers to wait until all the items they purchased are ready to ship together, or to opt for “no-rush shipping.” These “green” options offer two main benefits: fewer and slower shipments are less expensive, and they also reduce carbon emissions from vehicle miles traveled. Giving carriers more time gives them leeway to manage truck space better, eliminating waste. Pass on the savings to help nudge customers to do the right thing.

Research your way to cheap shipping

When sky-high customer expectations for free and fast eCommerce delivery meet the reality of rising shipping costs and complex logistics, your profit margin could be at risk. But by researching your options in depth and adopting a diversified, flexible approach, you can locate opportunities to save at every service level, without compromising the customer experience.

Allison Lee

Editor-in-Chief, Wix

Allison is the editor-in-chief at Wix, with several years of experience reporting on eCommerce news, strategies, and founder stories.

This post was last updated on April 6, 2023.

Whether you sell online or in stores, chargebacks are an unavoidable part of accepting credit card payments. And with chargeback fees costing merchants between $20 to $100 on average, customer disputes can pose a risk to your profits if they’re not managed well.

Fortunately, there are steps that you can take to help reduce your risks and handle chargebacks with minimum hassle. For starters, you can use Wix Payments to manage payments, chargebacks, and order issues in one place. Then, follow the tips below to get a better grip on customer disputes.

Chargebacks vs. refunds

Chargebacks are, quite simply, disputes between the merchant and customer, in which the customer requests their money back through their banks. Sounds like a refund, right?

Well, not exactly. Unlike a refund, which is a direct interaction between the customer and merchant, a chargeback is a demand from a bank that the merchant return funds to the customer.

There are many different types of chargebacks, and in most cases, a chargeback is requested when the customer feels they have a right to dispute the transaction. While this goes a long way to protect the customers’ rights—for merchants, it can be quite frustrating. This is why Wix Payments allows merchants to dispute chargebacks “in-house”, which we’ll cover more in a bit.

Related reading: 17 eCommerce metrics to track

Common causes of chargebacks

Some of the most common reasons for chargebacks include:

• Fraud - In this case, a customer will claim that they were charged without their knowledge. If you have proof that they agreed to be charged, you should dispute the chargeback.
• Products or services weren’t provided – In this instance, a customer will claim that they never received your product or service. To help avoid this, make sure to keep your customers informed about when services will be provided, or when products will be shipped and delivered. This can help pinpoint where the problem lies, and how you can improve your services moving forward.
• Products are faulty or not as described - What you deliver to your customers should be exactly as described and pictured in your product pages. Whenever there’s a difference, even a small one, your customer may feel they’re not getting what they paid for.

Tips for merchants from American Express: - Clearly display your return policy and require the card holder to acknowledge your Terms and Conditions. - Send tracking information and confirmation once the order ships. Be sure to provide expected delivery date and notice of any potential delays. - If a delivery is delayed, immediately send the card holder a notification of the new expected date of delivery.

What happens if I get too many chargebacks?

The reality is that too many chargebacks can cause you to be classified as a “risky merchant” by your bank or payment provider. Becoming a high-risk merchant can also mean changes to your payout policy, additional verification steps, and even the closure of your Wix Payments account.

Whatever the reason for chargebacks, following best practices and using smart tools to handle them will help ensure that all the work you put into your online business doesn’t go to waste.

Make sure that you keep track of how many chargebacks you have, or what’s referred to as your chargeback ratio. This ratio is calculated according to the total number of chargebacks per total number of transactions. The industry standard for chargebacks is 1% (or less than one chargeback for every 100 completed transactions).

While there are several factors that could impact your business’ risk level, keeping your chargeback ratio low is one aspect you can easily manage. There are several methods you can put in place to help ensure that number stays as close to zero as possible.

How to keep chargebacks to a minimum

There are a few things you can do to help lower your risk of getting chargebacks, as well as handle any chargebacks you get more effectively.

• Make sure your product info is accurate. Your customers are less likely to dispute a purchase if they receive exactly what they order. Write product descriptions that are on point and add images that realistically depict what you’re selling.
• Add clear policies to your eCommerce website. Make it easier on customers to find shipping, refund, and cancellation policies so that so they know in advance how you handle these issues.
• Customize your statement descriptor. Your online store looks more reputable and professional when your site’s business name matches the name that appears on their bank statement (meaning, your statement descriptor).
• Carefully analyze orders that seem suspicious. Chargeback fraud is a real problem. Now that shoppers are spending more money online than ever, you want to ensure that your business doesn’t fall victim to this phenomenon.
• Respond to refunds swiftly. Offering refunds to customers is a best practice, especially since COVID-19 has created a lot of anxiety and uncertainty in the world. Wix Payments charges no additional fees when you issue a refund, and offering this to your customers lessens the chance of chargebacks.
• Let your customers easily get in touch. Chargebacks can sometimes be a result of poor communication, so make it easy to find your contact details by displaying them clearly across your website. Also, try to respond to customer concerns quickly, and keep your customers updated about shipping, delivery, and any changes to your store policies.

Tips for merchants from American Express: - Provide email notices prior to charges for recurring bills. - Advise customers of policies for returns and cancelations and any restrictions. - Use an “I agree” check box to acknowledge these policies at time of purchase.

Don’t agree? Dispute the chargeback

A chargeback isn’t always fairly filed against a merchant. If you have proof that the payment is valid, you should file a dispute directly from your Wix Payments dashboard. Note that Wix Payments doesn’t charge a fee for this—so feel free to dispute your chargeback claims whenever needed.

When challenging a chargeback, be sure to make a note of its deadline. This is the date after which your chargeback is considered final, and you won’t be able to change its outcome.

Also, get organized: prepare for a dispute by gathering all your documents. Note that they should be in English, as required by most banks that process chargebacks. They should be readable as well, so try to only include high-quality images and documents.

From your Wix Payments dashboard, you can submit all the required documents. If you’re uploading multiple files, they’ll automatically be gathered and compressed into a single file. These may include:

• Proof of delivery
• Invoices and receipts
• Customer communications
• Photos showing the customer using the product
• Your business’ Terms and Conditions
• Your rebuttal letter

Wix Payments’ integrated dispute tool lets you monitor and review your chargebacks’ status right from your Wix dashboard. Track where you stand with every transaction, dispute chargebacks, upload additional documents and more. You’ll additionally get push notifications via SMS and email any time a customer disputes a charge.

For disputes regarding American Express® Card charges, visit the American Express Disputes Learning Hub.

“We understand that businesses have different ways of processing transactions and unique needs when it comes to disputes,” says Tessa Dooley, vice president of U.S. Merchant Marketing at American Express. “To support our merchants, we created a hub at American Express that provides guides and resources to help prevent and manage potential disputes.”

According to American Express, in 2022, there was an increase in the number of transactions made by American Express® U.S. Card Members, but a decrease in the percentage of disputes that reached a merchant.

The bottom line

Whenever possible, it’s always best to try and avoid a chargeback rather than deal with it once it happens. But nearly every merchant will have to deal with chargebacks at some point (even if they followed all best practices to a tee). When this happens, the best way to address a dispute is to respond with the appropriate supporting documents and details by the due date provided.

Every chargeback is unique, and you should handle it as such. Stick to best practices to help reduce your risk ratio and use the tools at your disposal to stay ahead of any issues.

Ready to start selling online? Create your online store today.

Omer Shatzky

Head of Billing & Payments at Wix

Wix Payments Founder

Omer is a seasoned executive—leading tech, business and product groups within the payment ecosystem. As founder of Wix Payments, he’s developed an advanced solution, allowing merchants to manage their business operations and payments solely on Wix.

This post was last updated on March 31, 2023.

The cosmetics industry is globally valued at about $380.2 billion, with over $49.2 billion generated by sales in the U.S. alone. In fact, American women spent an average of $182 per month on cosmetics, perfume, and bath products in 2021.

One of the best eCommerce business ideas you can execute is starting a makeup line to capture a share of this large and dedicated market. In this post, we'll provide some detailed steps you can take to launch your own makeup line with topics that include choosing your niche, researching your competitors, finding a manufacturer, and branding your products.

Whether lipstick is your passion or glittery eyeshadow is your dream, we'll help you get started on your journey to becoming a successful makeup entrepreneur.

Why are you launching a makeup line?

When it comes to starting a business, your reasoning matters. Your reasons for starting a makeup line will inform everything from brand imagery and language to packaging and ingredients.

Frankly, if you just want to find a product that makes money, but have no interest in why people buy makeup and beauty care items, it’ll be hard to stand out. However, if you’re looking to solve a problem, fill a need, or introduce something totally unique, you’ll find it’s much easier to create a trusted line of products that truly stand out.

This was the case with cosmetic brand Tiazartzy. Its founder, Tia, is a micro-influencer and resin artist who sells her art on Instagram. She started her makeup line in 2020 after creating a viral foundation brush that received rave reviews. Tia now offers products like melanated setting powder and her famous viral makeup brush via her online store.

How to start a makeup business

1. Conduct market research
2. Create your concept
3. Develop product ideas
4. Write an eCommerce business plan
5. Design your branding and packaging
6. Formulate and produce your makeup
7. Test your formulas for safety and efficacy
8. Finalize manufacturing and sourcing
9. Choose a retail strategy
10. Think of a marketing plan

01. Conduct market research

There are three components to market research that you should focus on when developing a new cosmetics line, including:

• Your target audience - The foundation of any successful makeup business starts with having a deep understanding of your customers. The best way to achieve this is by focusing on who your products are for. What needs do your products fill? What will make them stand out above similar products? We recommend creating one or more buyer personas to clarify your target audience, outline their needs, and identify how your product can help.
• Your competition – You’ll need a good understanding of what’s already on the market before you can decide what your makeup line will include. Research what other makeup businesses are doing and selling. Analyze their pricing strategies, branding approach, and differentiators. This provides valuable insight about the competitive landscape and can help you ideate how to differentiate your products.
• Your opportunities - Having a better understanding of your audience and your competition can help to identify gaps in the market. On top of all this, you’ll want to engage in conversations and follow beauty influencers online to stay in the know. Forums like the Natural Beauty subreddit offer a wealth of information about trending ingredients, complaints, and needs.

02. Create your brand concept

The most successful beauty companies have strong branding behind them. Start by defining your brand values, vision and corporate identity.

Maybe you want a product that does two things—smells great and is good for sensitive skin. Maybe you want to create a “pro-age” cosmetic line that’s gentle and flattering for women over 50. After you’ve clearly defined the purpose of what you do, the elements that form your brand concept should come naturally.

At this stage, you’ll also want to think of a business name that’s meaningful to you, plus resonates with your target buyer. You can use Wix’s business name generator for inspiration. Your brand logo should similarly reflect your values and vision.

03. Develop product ideas

Start brainstorming product ideas that fit with your brand concept. Refer to your research during this process, but also talk to people and try to get into the mind of your target customer.

Read also: Where to find good product ideas

Remember, a makeup or beauty product is only as good as its ingredients and formulas. You may have to speak with a chemist to develop unique formulations and textures that are both high-quality and affordable (we’ll get to that soon). After you’ve identified a few ideas, narrow it down with the help of focus groups and surveys.

04. Write an eCommerce business plan

Draft an eCommerce business plan to show potential investors and lenders, plus document how you’ll grow your business. Securing funding will give you a head start—be that a loan from family, or a line of credit from your bank.

Your plan makes for a more convincing pitch and helps you clarify where your dollars will be spent. It should clearly outline the result you’re expecting from an investment. Explore some funding options for small businesses, which include options like bootstrapping to crowdfunding to business loans. Whatever your goal, there's likely a funding option that can help you get started.

Your business plan should outline how you intend to establish your legal structure. Options include Sole Proprietorship, Partnership, Limited Liability Company (LLC), Nonprofit or Corporation. You’ll need to research the legal requirements and paperwork for getting set up. Consider hiring a lawyer or an accountant to sort out these details.

Finally, you’ll need business insurance to protect your assets and reduce the potential for harm. Do your research on eCommerce business insurance to learn about the different types of insurance available, what they cover, and what works best for your business.

05. Design your branding and packaging

Your packaging and design elements represent the face of your brand. When coming up with a unique design, consider the preferences and needs of your target customer. If you’re not up for designing your own packaging, you can always hire a professional designer from the Wix Marketplace.

If you’re bootstrapping, try out tools like Adobe Express that are cost-effective and easy to use. You’ll eventually need professional product photographs, which you can take yourself or with the help of a photographer.

You should also plan for how you’ll package and protect your products. Think about what type of containers, bottles, tubes and applicators best suit your product range.

Further reading: Ecommerce product packaging

06. Formulate and produce your makeup

There are a few different approaches you can take when formulating your products:

• Produce the products yourself - You don’t need to be a chemist to formulate a makeup line, but it's helpful to have some knowledge of chemistry, biology, or cosmetology to understand how different ingredients work together and affect the skin. Knowledge of aromatherapy and essential oils is also extremely helpful for scented products. If you’re uncertain, you can hire experts in each of these areas to provide guidance and assist in product development and formulation.
• Private labeling - If formulating products from scratch isn’t your jam, you can work with a cosmetic lab or a contract manufacturer to develop your products based on your specifications. Private labeling specifically involves working with a manufacturer to create your products, but branding and selling products as your own.*
• Wholesaling - Wholesaling is when you purchase items in bulk from a supplier. Items are ready-to-sell and are often sold at a discounted price when you make a bulk purchase. In a similar vein, if you prefer to source products locally, you could reach out to local retailers or manufacturers to see if they offer wholesale pricing.
• Dropshipping - With dropshipping, you don’t have to hold onto any inventory or worry about having to create the products yourself. Instead, your dropshipper handles everything from manufacturing to shipping for you. Dropshipping offers a lower barrier to entry and is relatively cheap to start, since you don’t have to invest in inventory upfront.

* Note: The exact steps of your cosmetic development or sourcing process, from conceptualization to manufacture, will vary depending on what you're making, how complex it is, ingredient availability, and more. One cosmetic developer notes that it usually takes his team at least 12 weeks to formulate a new product. Make sure that you understand all the steps of the development process—even if you outsource—so that you can set realistic expectations for launch.

07. Test your formulas for safety and efficacy

All makeup and skincare products need to be tested so that you know that they're safe for consumers. Some common tests for makeup products include:

• Stability testing – Expose the product to different temperatures, humidity levels, light conditions, and other external factors to see how they affect things like appearance, texture, color, and odor over time.
• Microbial testing – Check if the product is free of harmful organisms like bacteria, fungi, yeast, and mold, all of which can cause infections or spoilage.
• Performance testing – Evaluate how well the product delivers its stated benefits. You’ll test factors like coverage, pigmentation, wear time, hydration, and sun protection factor (SPF).
• Safety testing – Assess if the product causes adverse reactions to skin or eyes. This includes reactions like irritation, allergy, or inflammation, and toxicity.

For certain tests, you can apply products on yourself or willing friends, family, and customers. This is known as consumer testing. Other tests may require professional services from a cosmetics lab or a third-party testing company that has specialized equipment and expertise. Most private label and contract manufacturers offer testing services.

Once testing is complete, you'll need to make any necessary changes to your formula before moving on to manufacturing your products.

08. Finalize manufacturing and sourcing

As touched on earlier, you can choose a contract or private label manufacturer like New Look Cosmetics and BPI Labs to produce your products. Companies like these will work with you to source the raw ingredients for your products, but they typically require you to commit to a minimum order amount (e.g., 1,000 lb. of dry product).

Alternatively, you can source raw materials and packaging yourself which gives you more control of where you get your materials, plus allows for smaller batches.

In general, here are some basic steps that you’ll want to take when sourcing your products:

• Identify the type and quantity of raw materials and packaging components you need.
• Look for suppliers of raw materials (substances or mixtures) and packaging components (bottles, jars, labels, etc.) that meet your criteria.
• Contact potential suppliers and request samples and pricing so you can evaluate quality, cost, and availability.
• Negotiate contracts with selected suppliers and establish delivery terms, payment methods, and quality control procedures.
• Create a plan for storing and handling raw materials and packaging components to prevent mix-up, contamination, or damage.

We recommend creating a production schedule that outlines how much of each product you need to order and when, as well as the amount of time needed for production. This keeps production on track and helps avert unexpected issues, like running out of stock or holding onto inventory too long that it puts your cosmetics in danger of expiring.

09. Choose a retail strategy

Where will you sell your first makeup product line? Big-name retailers like Sephora and Morphe are stocked with popular makeup brands, so it's not always possible to pitch your products to their buying managers and secure an order.

It's smart to build an eCommerce website and use that to generate direct-to-consumer (D2C) orders. You could fulfill them yourself, or find a distributor to fulfill and ship orders made through your online business. They’ll take a cut of your sales as their fee, but having a distributor takes the stress out of fulfilling orders alongside other plates you’re spinning (including sourcing products, marketing, and customer service). You don’t have to have all of your stock taking up a spare bedroom.

You could also use marketplaces like Etsy or Amazon to sell your cosmetic products, though you’ll want to do your due diligence and understand the quirks of each platform. This includes getting familiar with marketplace requirements, studying the competition, and analyzing the core audience. Note: Wix offers multichannel campaign tools that help you to get launched on new sales channels with minimal hassle. For example, you can edit your multichannel product listings and track inventory all from one place.

10. Think of a marketing plan

In terms of getting your brand out there, you’ll want to brush up on eCommerce SEO basics. By learning how to optimize your product listings and other pages for search engines, you can boost your chances of reaching millions across the internet with your eCommerce website.

In addition to this, create an eCommerce marketing strategy that incorporates multiple channels like social media platforms, search ads, video selling and a business email. Aim to develop relationships with local retailers and influencers, too, to pave the way for partnerships and co-branding.

Ready to launch your makeup line? Create an online store today.

How to start a makeup line FAQ

Geraldine Feehily

Marketing Writer, Wix for eCommerce

Geraldine is a marketing writer for Wix for eCommerce. She uses her broad experience in journalism, publishing, public relations and marketing to create compelling content and loves hearing user success stories.

Online store owners face a lot of competition. In fact, there are reportedly 9.1 million eCommerce websites or "etailers" in the world—and 2.5 million of them are in the U.S. Getting shoppers' attention amid so much noise is, to say the least, a challenge.

This is what makes penetration pricing so attractive. This pricing strategy offers a simple approach to drumming up interest around your brand. In this post, we'll unpack the meaning of penetration pricing, explore how it works, and evaluate whether it’s right for your business.

What is penetration pricing?

Penetration pricing is a competitive price-reduction strategy that you can leverage to attract customers and gain market share. The idea is to lower the price of a new product or service enough to catch shoppers’ attention and incentivize them to buy from you. This is a popular pricing strategy especially in saturated product categories.

How does penetration pricing work?

Creating a penetration pricing strategy is relatively simple. You start by introducing a new product or product line with a low initial cost, then keep the price low until you hit a predetermined goal. The goal could involve a certain number of customers, a revenue target, total products sold, or another key performance indicator (KPI). Once you reach your goal, you’ll begin to gradually increase your price or introduce higher-priced versions of your product.

Examples of penetration pricing in action

Netflix

When Netflix launched in 2000, the company allowed their customers to rent four DVD movies at a time without any fixed return date (meaning, no late fees). They charged $15.95 per month for this service. This meant that people could rent all the movies they wanted in a month for one low monthly fee. Customers could also hold onto their movies for as long as they wanted.

This was a real bargain compared to the biggest movie rental player at the time, Blockbuster— which charged $4.99 for a three-day rental and a $1 per day late fee. These charges added up quickly, particularly if you rented more than one movie at a time and returned them a few days late.

Ultimately, Netflix’s penetration pricing approach helped to build it into a household name. Netflix now boasts 221.6 million subscribers. (Meanwhile, by November of last year, there was only one Blockbuster store left standing.)

IKEA

Penetration pricing is a strategy for IKEA, which regularly uses this tactic to enter new markets. When the company first expanded into the U.S., it offered low prices on its products in order to gain a foothold in the market.

These days, IKEA is still known for offering low prices on popular furniture items, and has a knack for attracting budget-conscious shoppers. IKEA is able to sustain low prices through a variety of other behind-the-scene strategies:

• Designing furniture that can be packed flat and assembled by customers—which, in turn, reduces shipping and storage costs
• Opening smaller showrooms in new markets—which allows the company to keep launch costs low while still attracting customers
• Running sales and promotions that regularly drive traffic to its stores and website (e.g., its annual "Kitchen Event" and "Bedroom Event")

MeUndies

MeUndies, a subscription-based direct-to-consumer (D2C) clothing brand, took a novel approach to penetration pricing. They combined penetration pricing with a subscription box model.

MeUndies launched with just one product—a luxury men's boxer brief. That same pair costs $26 today, but if you sign up for their monthly subscription the cost drops to $18.

Note that when MeUndies launched, subscription models for things like underwear just weren't a thing. But Jonathan Shokrian, the company's founder, was inspired by a poor experience he had buying underwear. MeUndies’ subscription price model was subsequently created to appeal to men who tend to procrastinate when it comes to buying underwear.

Penetration pricing strategy still works in the company’s favor by incentivizing new buyers to sign up for a subscription, rather than buying a single pair of underwear (or other clothing) at full price. This strategy has paid off: the company's sales reached $100 million in 2020 and the company has sold more than 17 million pairs of underwear.

Advantages of penetration pricing

There are several clear advantages of employing a penetration pricing strategy. This strategy can help you:

• Build market-share – Back in 2000, Netflix was at a huge disadvantage compared to Blockbuster. Their penetration pricing approach helped them lure customers away from the dominant player in the video rental space. The monthly price was low enough to convince people to give Netflix’s unique business model a chance.
• Attract price-sensitive customers – Penetration pricing isn't necessarily about having the lowest possible price. It’s about getting customers interested in your product by offering a good deal. The promise of being able to try new high-quality products—like MeUndies’s briefs—combined with a limited-time offer (“try now before the price increases”) can often motivate shoppers to give you a try.
• Accelerate brand awareness and loyalty – If you’re a small, new, or relatively unknown brand, then penetration pricing can help to build awareness. This was the case for Netflix, IKEA, and MeUndies—alongside many other D2C brands like Allbirds and Who Gives a Crap (a toilet paper brand). The loyalty should follow shortly afterwards, once you’ve established yourself as a company that consistently produces a high-quality product and exceptional customer service.

Disadvantages of penetration pricing

As with all eCommerce discount pricing strategies, there are some downsides to penetration pricing. They include:

• Low profit margins – The biggest drawback to penetration pricing is that it can lead to thin profit margins, especially in the early stages. You must be willing to take a hit now to gain traction later. It took MeUndies five years to make a profit, but waiting it out paid off (and then some) for the company, which recently received $40 million from an investment group.
• Difficulty raising prices – Customers who are initially attracted by your low price may not stick around once you begin to raise prices. One way to mitigate this is to introduce a new, slightly more expensive product. For example, Allbirds launched with one type of wool sneaker for $95, but subsequently introduced a high-top version of the sneaker that sells for $115.
• Competition from other brands – When a product becomes popular, competitor copycats begin to flood the market. For example, Amazon offers a range of much cheaper modal-fabric underwear in styles similar to MeUndies. At one point, Amazon also sold a wool sneaker that was nearly identical to Allbirds, but sold at less than half the cost (that product appears to be gone now).
• Staying too low for too long – You can't stay in the penetration pricing zone forever. If you do, your brand could become associated with poor quality and low price (think Dollar Tree). Additionally, staying too low for too long might make it difficult to raise prices down the road when profit margins start to thin.

Best practices for implementing penetration pricing

Using newborn clothing as an example, here are some best practices to consider when implementing a penetration pricing strategy:

• Identify and define your target audience - Here's the scenario: you've established yourself as a reliable online children's clothing boutique and want to expand your market by introducing a line of eco-friendly onesies for newborns (like babywear brand Bonsie). The first step in creating your penetration pricing strategy is to identify exactly who you plan to sell the onesies to. Your target market could be your existing customers who may be planning for or expecting a baby. It could also be first-time parents who've never shopped with you before. You could additionally lean heavily into gifting which would appeal to grandparents, friends, and anyone looking for a unique baby gift.
• Create a buyer persona - Once you identify your target audience, you can begin to build a buyer persona (or multiple personas) to inform your overall launch strategy, including your penetration pricing approach. This should list demographics like age, sex, and income. It could also include interests, priorities (e.g., organic, fair trade, etc.) and favorite brands. The more you clarify the pain points and motivations of your target audience, the better you can tailor your penetration pricing strategy to them.
• Research and analyze the market - It's important to understand what other eCommerce businesses are charging for organic cotton onesies. Use tools like Google Shopping or online marketplaces like Amazon to get a high-level view of prices for different products. Then drill down to brands, boutiques, and specialty websites to see what big brands and small online sellers are charging for newborn clothing. New parents are a passionate bunch, so visit forums on social platforms like Facebook and Reddit to see what they're buying and talking about.
• Set an initial price that's lower than competitors - Once you understand the prices your competitors are offering and the product features that are most valuable to your customers, set an initial price. Your price should be lower than the average price for a similar product (but not too low). Make it clear that this is a limited-time introductory price. When setting your price, factor in things like product demand, unique product features, and how familiar consumers are with items like yours.
• Establish a penetration pricing timeline - Decide when and how you'll raise your initial price. This step should ideally be done before introducing your launch price. The timing of your next price increase will depend on your business goals. You could time it for after a certain number of customers purchase from your store, after a set period of time, or both.
• Reevaluate your strategy after the promotional period ends - After the promotional period ends, it's important to evaluate how successful your penetration pricing strategy was. Look at metrics like customer acquisition rate, sales volume, and customer retention rate. If you see a drop in customers once the promo period ends, you may need to lower the price again or make other changes to your marketing plan.

Launch your new products with confidence

Penetration pricing is a powerful tool when used strategically. By researching the market, being thoughtful about timing, and assessing results, you can reach new audiences while continuing to grow your business. When combined with other pricing strategies like discount pricing and odd-even pricing, you'll can build loyalty and keep customers excited about your products.

Allison Lee

Editor-in-Chief, Wix

Allison is the editor-in-chief at Wix, with several years of experience reporting on eCommerce news, strategies, and founder stories.

Try as you may, there’s no escaping the fact that product returns are just a part of doing business. In fact, the average return rate for most U.S. retailers is 16.5%, according to a report by National Retail Federation and Appriss Retail.

For sellers, reverse logistics can be trickier to navigate than traditional eCommerce logistics. However, with seamless execution, you not only have the chance to win back business, but also lay the groundwork for long-term customer loyalty.

What is reverse logistics?

The term “eCommerce logistics” describes the interconnected web of processes that connect buyers with their purchased goods. If those products are returned, then reverse logistics kicks into action, guiding customers through the process of either shipping or bringing back their items for exchange, refund, or replacement.

Reverse logistics is far more complex than issuing a return shipping label. It usually involves:

• Ecommerce technology - which enables customers to initiate returns through self-service links available on your online store
• Customer service - which ensures that you have the staff and system in place to handle any return shipping issues or provide self-service content
• Physical stores - i.e., your store locations could serve as facilities for accepting and handling returned items
• Ecommerce warehousing - i.e., once items are returned to your warehouse, you’ll need to have the right processes and technology in place to receive, inspect and re-shelve or dispose of returned items
• Marketing - i.e, to retain or win back customers, you’ll need to make sure that the return process is smooth and accessible, plus re-engage customers through personalized offers and other experiences

Why focus on reverse logistics?

A smooth reverse logistics operation is crucial to retaining customers. As eCommerce sales have grown, so has the number of customer returns—today’s average return rate of 16.5% is more than double the return rate prior to the pandemic: in 2019, returns averaged just 8.1% of total retail sales, Appriss found.

Given that well over one in 10 customers now return items, it’s worthwhile to invest resources into making the process run smoothly and satisfactorily.

A successful returns process can open the door to further transactions, whereas a poor experience can lead to poor reviews and a damaged reputation. Consultancy firm Accenture reported that effectively managed returns can boost profit-per-customer by 29%.

Returns aren’t the only reason to prioritize reverse logistics. Many modern business models use reverse logistics tactics—such as “try before you buy” services, recommerce operations, and rental businesses—to open up new revenue streams.

7 types of reverse logistics operations

Multiple situations can trigger the need for reverse logistics. As you analyze the performance of your existing systems and plan improvements, account for the following scenarios:

1. Customer returns - The average volume of returns can vary drastically from category to category. Apparel sellers typically struggle with the highest return rates, which can be as high as 25% online, according to consultancy McKinsey. Because size and fit are difficult to gauge when buying online, some customers resort to buying multiple sizes of the same item, then returning the ones that don’t work. This practice, called “bracketing,” inflates return rates, as does “wardrobing” (i.e., when customers return an item for a refund after a single use). A variety of categories outside of apparel are susceptible to wardrobing, ranging from home decor items (such as party centerpieces) to books, jewelry, and even appliances. As part of your reverse logistics operations, you’ll want to look for ways to detect these practices and flag potentially problematic returns.
2. Rental returns - Whereas wardrobing is a fraudulent method of borrowing new merchandise, legitimate rental-based businesses are purpose-built to handle this type of turnaround. For example, you might rent out fashion ensembles for black-tie galas, toddler bikes to new parents, or skis for the occasional hobbyist. Managing rental timeframes, inspecting items for damage, and tracking available stock require a complex back-end operation to ensure a seamless experience for customers.
3. Product recalls - If safety problems or defects crop up for existing products, you may need to issue a recall. When this happens, you’ll need to clearly inform customers on the process for returning, repairing, or exchanging recalled items. While recalls are rare, they can strain your reverse logistics operation with a wave of returns, so a contingency plan is essential.
4. Unsold merchandise - Inventory surged in 2022 when retailers over-compensated for supply-chain shortages during the peak pandemic years. As demand ebbs and flows, you may decide to return unsold merchandise back to manufacturers, allocate it to liquidators that resell at cut-rate prices, donate it, or hold it at the warehouse for the next season.
5. Repair and refurbishment - As brands launch sustainable eCommerce initiatives, you may feel the pressure of needing to extend the life of your goods for customers by offering repair, refurbishment, tailoring, upgrades, and other services. To achieve this, products need to be shipped back to store locations or service hubs, where they’re processed and then repackaged for return delivery.
6. Trade-in and resale - As recommerce surges, you not only have the opportunity to launch a secondary revenue stream. You also have the opportunity to rekindle connections with customers who are looking to turn in their used items. However, every trade-in or resale program requires a process for inspecting items and assessing their resale value.
7. End-of-life disposal - You can offer credits or rewards for customers who turn in worn out or used-up products for environmentally-responsible disposal, reuse, or repurposing. Tasks such as sorting and disassembling inbound merchandise and cleaning reusable packaging for refills add further steps to the reverse logistics process.

Best practices for optimizing reverse logistics

There’s no getting around it: reverse logistics is a complex undertaking.

While it can be daunting to identify how best to structure the layers of technology and interdependent processes involved, you can prioritize your efforts by understanding customer needs and expectations. Whether you’re launching a new business or perfecting existing workflows, follow these steps to ensure that your reverse logistics operation is the best that it can be.

01. Take stock of existing patterns

Start by analyzing existing sales and return data, if available. Scour your website logs and transaction data for clues. Consider gathering information like:

• Most frequently returned products, and whether your customers prefer to ship back or drop off returned items at stores
• Customer service questions and feedback that your team frequently receives (are there any information gaps surrounding your current returns process?)
• Second-hand sales on peer-to-peer platforms like eBay and Craigslist, which can indicate whether there’s an appetite amongst your customers for trade-in services

If you don’t have customer data to consult, study industry trends and competitor offerings. Or, gather further insights from trade publications and events.

02. Identify opportunities to reverse the returns tide

Returns are now routine, and you may even be encouraging them through trade-in and resale programs. But if new merchandise is coming back at a higher-than-average rate for your industry—or if specific products are returned more often than others—consider whether you can do more to avoid triggering reverse logistics. Possibilities include:

• Help customers find a better size - Size and fit problems are the leading cause of eCommerce returns, according to research from Narvar. To curb the trend, provide comprehensive size information, like size charts and dimensions, to help shoppers sort through their options. Showcase and encourage customer feedback that include photos, videos, and ratings specifically for size and fit. You could even experiment with augmented-reality experiences, like Warby Parker does so that customers can virtually try on glasses.
• Align expectations with reality - Offer realistic product photos and detailed product specs on every product page. Guide shoppers towards parts and accessories that are compatible with their products, in case they’re looking for something extra. Meanwhile on the back end, conduct quality checks to ensure that the products you ship out to customers exactly match their descriptions. Promptly remove any defective items from your stockpile. And consider placing test orders to evaluate whether product packaging is sturdy enough to prevent damage in transit.
• Provide shipping timeframes up front - Gifts or other time-sensitive deliveries that arrive too late are likely to be returned, so you’ll want to clearly display estimated delivery dates prior to checkout. If a busy selling season is coming up, invite your customers to place their orders early to guarantee delivery by a certain date.

03. Evaluate packaging for return journeys

You should design your product packaging with reverse logistics in mind. Consider whether the product box, jar, or bottle can be reused, refilled, or recycled. The outermost shipping box or bag should be easy for customers to reseal and send back with a fresh label, should they want to make a return.

You may even want to consider using pouches or bins made of durable materials that are intended for multiple trips. For instance, Rent the Runway’s custom-made garment bags are made of material that’s similar to what’s used for soft luggage and have a plastic insert that makes it easy to swap in a new shipping label.

04. Devise an inspection protocol for returned goods

Whether you’re delving into the resale business or simply evaluating if you can return used products to store shelves, inspection is a crucial component of the reverse logistics process. Develop standardized evaluation criteria so that merchandise is handled in a consistent manner. Then, log inspection results for future reference. You could even post the evaluation report on product pages for resold items to reassure second-hand shoppers that each item is in good condition.

05. Evaluate fulfillment partner capabilities

Customers will hold you responsible for offering a smooth reverse logistics experience. After all, your brand is the one issuing the refund, trade-in credit, or exchange.

So, even if you outsource eCommerce fulfillment services and returns, it’s your job to take the lead. Make sure you know how your logistics partners manage—and charge you for—returned merchandise. If you’re planning to offer intensive capabilities, such as resale or refurbishment services, it’s even more important that you work tightly with your partners.

Depending on your partners’ capabilities and your business’ needs, you may want to add a dedicated returns management provider to the mix. You can search Wix’s App Market to connect with providers who specialize in return services, like AfterShip and Outvio.

06. Map and integrate back-end systems

Once you’ve set your offerings and sourced the technology, integrate operations so that data handoffs are seamless and efficient. Test different scenarios to uncover and resolve potential glitches proactively. The exact steps you take will vary depending on your business. But overall, your goals should be:

• Visibility - You should be able to access information about specific products and their affiliated original orders at any stage of the returns process.
• Accuracy - Inventory counts should be updated frequently to include returned merchandise that’s been added back to stock.
• Control - Rerouting, expediting, and custom handling should all be possible.
• Transparency - Customers should be able to check the status of their refunds or repairs and receive accurate, timely information.

07. Communicate, communicate, communicate

Provide clear and comprehensive instructions for customers so they can navigate the process as smoothly as possible. In particular:

• Highlight return policies and exchange options at multiple points along the path to purchase. Evaluate whether your terms are competitive with others in the industry, and update the information whenever you add or modify procedures to ensure that your policies reflect current offerings. Don’t bury the policies in the “customer service” section of your site. Instead, link to them prominently from the shopping cart page and throughout checkout. Work with an attorney to translate dry legal jargon into language that shoppers understand.
• Once your policies are set, promote their benefits. Highlight convenience: if items ordered online can be returned in stores and vice versa—or if you offer free recycling of old electronics when replacements are purchased—be sure to say so.
• When you test reverse logistics scenarios, identify which steps are most appropriate to communicate in status updates and automate messaging via email or SMS.

Build business with reverse logistics

Navigating the complexities of reverse logistics can be a delicate dance. Investing time and resources into perfecting returns and refunds may seem like an expensive way to encourage unwanted behavior. However, well-managed reverse logistics can help your brand earn a reputation for customer-centric efficiency that will ultimately earn you sales and loyalty.

Allison Lee

Editor-in-Chief, Wix

Allison is the editor-in-chief at Wix, with several years of experience reporting on eCommerce news, strategies, and founder stories.

Let’s say you were shopping for a hair remover tool for dogs and saw two similar products priced at $29.99 and $30, respectively. Which would you buy?

Research says you’d go with the former because $29.99 looks like a great deal compared to the $30 product. But does one cent really make that much of a difference?

No. But this is why odd-even pricing is considered one of the most effective product pricing strategies. By tweaking some of your prices and leveraging odd-even pricing, you might be able to drive even more sales this year. In this blog, we’ll share what odd-even pricing is and how it works.

Understanding odd-even pricing

Odd-even pricing refers to a pricing strategy where the price either ends in an even or odd numeral. It's similar to charm pricing (a.k.a. psychological pricing), which aims to spark certain emotions to influence a purchase.

Price endings are known to affect customer behavior in different ways, and choosing the right pricing strategy for your niche has the power to improve sales by making your customers feel that they’re getting good value.

Instead of pricing your products in round numbers (e.g., $30), odd-even pricing usually involves discounting prices by a few cents to persuade customers to hit 'buy.'

How does odd-even pricing work?

Here’s a quick breakdown of the two types of pricing that we’re looking at.

Odd pricing

Under an odd pricing approach, a product’s price will end with an odd number. For example, Le Fluffy Dog sells this dog sweater for $34.99. Note: your price doesn’t always have to end in a nine—retailers often use seven or five depending on their pricing schedules and the level of discount.

Even pricing

Even pricing is the opposite of odd pricing, where the final digit ends in an even number. These prices are usually rounded up or end in a zero. For instance, HGBB Studio offers this men’s zip-up sweater for €135.00.

Hybrid approach

Although these two strategies are often associated with different types of businesses and serve different purposes, they can work together pretty well. For example, some companies use a combination of these strategies to set their high-end products apart from lower-priced or discounted items.

This approach can also be useful for brands with a broad range of products that want to appeal to customers with different interests and budgets. So, don't be afraid to get creative and mix things up as you test what works best for different audiences.

To get the most out of this pricing strategy, it's important to understand why it works so you know how to best approach implementing it.

The psychology behind odd-even pricing

Like many great things in life, this pricing strategy came about by chance. Vendors in the 1900s needed a way to record a sale, and the best way to do so was to charge less than a round number to force cashiers to open the register to retrieve change. (If vendors charged round numbers, there was a real concern that cashiers would pocket the cash because they didn’t need to open—and thereby record—the sale.)

Since then, studies revealed that odd-even pricing plays a strong role in influencing customer behavior.

According to image theory, we automatically associate prices that end in a nine with discounts or sales. So when we see an odd price like $3.99, our brain perceives it as being a better deal than something that costs exactly $4.00.

On the other hand, with even prices like $2.00 or $6.00 we're less likely to be tricked into thinking we're not getting a good deal because our brains don't have anything to round up or down to.

One theory suggests that our brains tend to ignore zeros in prices, leading us to pay less attention to products that are priced in whole numbers. Customers are therefore more likely to balk at even prices and feel that they could get a better deal somewhere else.

Research further indicates that odd pricing is often associated with low-value products, while rounded up prices are associated with high-quality products.

How to implement odd-even pricing effectively: 4 essential tips

Odd-even pricing can be a great way to increase profits and create an attractive offer for customers. To implement it responsibility, take the following tips into consideration.

01. Consider your target audience and market

Different audiences may have different levels of willingness to pay for items, so it's important to consider who your customers are and how they would react to a price decrease before implementing odd-even pricing. A couple of questions you can address to help you understand how your customers would react to price changes:

• Are your customers more likely to be bargain shoppers or, conversely, willing to pay a bit more for quality?
• Are they looking for convenience or value?

Because markets are constantly changing and evolving, you should regularly review your customer profiles and market conditions to ensure that your pricing strategy aligns with your customers’ needs.

02. Analyze your competitor pricing strategies

One of the best sources for checking the market range for product prices are your competitors. You might find that a majority of your customers choose to use odd pricing, in which case you may choose to follow suit to remain competitive in your customers’ eyes. Alternatively, you may find that a majority of your customers use even pricing, in which case going against the trend may give you a competitive edge.

Remember to consider any discount pricing strategies that competitors might be offering and how that affects the numeral at the end of the price. For example, some retailers may end final clearance items with a particular odd or even digit to signify that it won’t be discounted any further.

03. Balance odd-even pricing with product and brand image

Retail pricing can be a tough balancing act when it comes to your product and brand image. On one hand, customers may expect low prices, so odd-even pricing could help to attract new customers. On the other hand, if you’re selling premium products, you may want to convey an image of exclusivity and high quality through your pricing strategy.

It’s not uncommon for luxury retailers to charge high even number prices, like Gucci does for virtually all of the items listed on its site.

04. Test and adjust odd-even pricing strategies over time

Experiment with different price points and see how customers respond, just as you would with A/B split testing in email marketing. Track the impact on sales and customer sentiment, and adjust your pricing accordingly.

Keep in mind that testing prices might not sit well with customers who’ve bought items at a higher price previously. To avoid upsetting your customers, limit your experiments to new or out-of-season products. Or, if you’re going to mark down your prices, announce that you’re having a limited-time sale.

It goes without saying that it’s best to test the waters with a few products first before restructuring your entire pricing schedule.

Examples of odd-even pricing

Retailers in different industries leverage odd-even pricing in different ways. To help you get started, here are some examples to check out.

Samsung

The Korean mobile phone manufacturer is credited with creating one of the first high-end smartphones that offers all the desired bells and whistles. Samsung takes an interesting pricing approach with their Galaxy S23 smartphone. While the phone would normally cost $799.99, Samsung’s promotional offer changes the final price to an even number, challenging conventional thinking and showing customers that they’re getting a great deal (i.e., saving nearly $100) when the price is lowered to $700.00.

Highline Wigs

Highline Wigs sells wigs to support women who experience hair loss. Given how the company only uses human hair to make its products, the wigs are often regarded as high-quality, high-ticket items. As such, Highline Wigs uses all even pricing, conveying the premium quality of each product.

Walmart

Given that Walmart serves a wide range of customers, their pricing strategies vary depending on the type of product. For example, the below sofa features an even starting price and remains that way, even after a $135 discount is applied—maintaining the perception that it’s a relatively superior product in Walmart’s catalog.

But when it comes to everyday household items that cost less than $30, Walmart’s pricing strategy varies between odd and even pricing. That said, the majority of discounts seem to lean towards even pricing without ending in a zero. The purpose may be to price-match competitors or to undercut the market price by shaving off several cents.

Choose the right odds and ends for higher sales

Odd-even pricing can be a great way to increase profits depending on your industry. If you sell high-end products or services, this could be the chance to test higher prices or offer alternative discounts for an increased conversion rate.

But above all, remember that no matter which pricing strategy you choose, the key is to understand how your customers perceive each type of pricing—and to find the price format that best suits their needs.

Once you find the sweet spot, your business might experience a breakthrough against the odds.

Allison Lee

Editor-in-Chief, Wix

Allison is the editor-in-chief at Wix, with several years of experience reporting on eCommerce news, strategies, and founder stories.

If you’ve ever stumbled across QVC while flipping through the channels, you might feel like you’ve stumbled across a relic of the eighties. And yet, in 2022, the shopping channel raked in $9.9 billion in annual revenue.

Today, many retail giants—from Amazon to Nordstrom—are looking to replicate their success online. In the same vein, small business owners are finding it to be an effective eCommerce marketing tool for reaching new customers, even with a tight budget.

What is live commerce?

Live commerce—also known as live shopping or live stream shopping—takes the likes of QVC and HSN to a whole new level. Rather than just displaying and discussing products, the live stream host engages potential buyers in an interactive experience that solicits their feedback, opinions and reactions. Viewers can talk to each other in the live chat and even make purchases from the streaming platform.

Create a website with Wix to feature your live commerce stream and your online store in the same place.

Live commerce's rise in popularity

Live commerce has been popular in China since its emergence in 2016. Experts estimate $497 billion in 2022 live commerce sales in China, making up roughly 7.7% of all retail sales in the country.

Although this form of retail is nowhere near as popular in the U.S. as it is in China, it started gaining popularity in 2020. After the pandemic disrupted offline commerce, vendors used live streaming to tap into the aspects of in-person selling that were missing on traditional eCommerce platforms.

By the end of 2022, only 22% of U.S. adults had attended a live shopping event and only 31% of U.S. adults knew that it existed, according to a study by Morning Consult. That said, the effectiveness of it has encouraged retailers to try it, while motivating social media platforms to develop live shopping features.

“The tech is getting so much better just in the last year, where all the social platforms are enabling buying a product,” says Melinda Lee, chief content officer of a live-commerce platform called Stage TEN. “There’s still a little ways to go to make it easy for people who want to do it, but it’s there.”

Among the eCommerce tech trends spurring the adoption of live commerce:

• Social commerce - As Lee noted, the advent of social shopping features like Pinterest Shopping List and Facebook Live Shopping makes it easier than ever to get started with Live commerce. In fact, social commerce is predicted to grow three times faster than traditional eCommerce, thanks to younger consumers who grew up in digital environments.
• AR and VR - Advancements in augmented reality (AR) and virtual reality (VR) are opening up new opportunities to further bridge the gap between in-person shopping experiences and online experiences. Live streamers can create more immersive experiences using AR and VR, such as showing products in various environments or performing makeovers on the spot.

The modern-day benefits of live commerce

Despite how much room it has to grow, live commerce can be particularly useful for small business owners who don’t have the funds or experience to put together elaborate marketing campaigns. “The barrier to entry is almost nothing,” points out Lee. “Anybody can make content.”

And if that's not convincing enough, consider this: while the average eCommerce conversion rate is around 2.5%, Stage TEN customers are seeing conversion rates over 10%.

Lee thinks one of the reasons live commerce is so effective is that it’s so much easier to make data-informed decisions than it is with other marketing strategies. “The whole time [a broadcaster is streaming], they’re gathering data on what it is that people want to know about the product and what attracts them to a live stream,” she says. “It’s almost like live case studies.”

Because viewers are eager to participate, gathering data is as simple as incorporating prompts for feedback into the show. With platforms such as Instagram, you can even tack polls onto your streams. This sort of engagement is especially important now that cookie crackdowns are making data collection more difficult for marketers.

Wix’s marketing trend analyst, Shachaf Rodberg, further explains that today's shoppers (which include Gen Z consumers and the emerging Gen Alpha consumer) respond best to marketing that offers them something. “People are either looking for entertainment, education or connection,” he says. Live commerce streamers not only entertain viewers with their performance, but they also inform them about products and invite them into the conversation.

People who watch live streams aren’t just watching the streamer or engaging with the streamer; they’re engaging with each other as well. People will actually log on early and stay after in order to chat with the other viewers. “The community becomes an element of the content because it’s really based on the questions people ask and how everyone’s reacting to one another,” says Lee.

In a nutshell, live streaming is not only accessible, but also has the power to bring people together and foster a genuine connection with your brand or with fans of your brand.

How to make the most of a live commerce stream

As with any new venture, getting started with live commerce can feel daunting at first. However, the tips below can help you get started on the right foot.

Tip 1: hire a nano-infuencer

If you don’t love the spotlight, hiring an influencer to handle your live commerce campaign can still be relatively affordable. Hiring nano-influencers (those with a following of 1,000 to 10,000 followers) can be a fraction of the cost of hiring influencers with large followings, and it can even be more effective because their audiences are so much more specific. They have higher engagement rates than macro-influencers, their content tends to be more relatable and followers tend to trust their recommendations more.

“High following doesn’t automatically mean high engagement,” reminds Essence Gant, founder of Gant Media Group. “It doesn’t mean those skills are going to translate on a live stream where they’re selling a product.”

In her experience hosting and leading creative direction on multiple live commerce streams, the influencers who perform well are those who are authentic and down-to-earth rather than those who are refined and polished. Because of that authenticity, their “cult-like fans” trust their recommendations and will follow them anywhere.

Case in point: when running creative direction on a nine-part live commerce series for Target, Gant recommended pairing influencers Kirah Ominique and Allyiah’s Face for a stream. Despite the fact that the other influencers Target hired had much larger followings, Kira and Allyiah’s stream had the best engagement.

“They were just so genuinely themselves, and their followers are so loyal that they followed them right on over to Target,” she explains. The pair not only did a great job interacting with commenters, but they also knew how to demonstrate and discuss the products in an engaging way.

Tip 2: promote your live stream early and often

It’s not enough to just hire an influencer to run the live stream and call it a day. Promoting the event beforehand is vital. Post ads for the event on all your social media accounts, put a countdown clock on your website and ask the influencer you work with to do some video promotion it as well. “Make sure to work that into the talent’s contract because promotion is a separate service,” says Gant. Promising incentives such as gift cards or discount codes can be a great way to encourage people to tune in.

Tip 3: repurpose content to lengthen its shelf life

Live commerce streams can continue to pay dividends after they’re over. In addition to mining the data you collected for information on how to better sell to interested consumers, you can also repurpose the recordings to make other types of videos. You can edit and post them to YouTube, share clips on social media and take screenshots for your websites.

Tip 4: give your brand a personality

Besides the efficiency and ease of this marketing strategy, live commerce enables differentiation. The crowded nature of eCommerce means that sellers need to tap into their branding to stand out. The authentic nature of a livestream makes it a valuable tool in your brand development efforts.

“If you’re doing a live stream, you have no choice but to give your brand a personality,” says Lee. “There’s somebody up there talking about the product and showing what your brand has to offer. People can ask questions and all of a sudden, it comes alive.”

Tip 5: start live streaming with Wix Video

Wix’s built-in live streaming tool lets you ‘go live’ whenever you want. Schedule an event for later, or start streaming right away. Then, cast your video to YouTube and/or your eCommerce site. The latter can help you attract even more people to your store and keep visitors hanging around for longer.

Emily Shwake Editor, Wix Bog

This post was last updated on March 17, 2023.

Whether you’re a jewelry enthusiast looking to take your passion to the next level or a creative entrepreneur searching for a new creative outlet, starting a jewelry business can be a fulfilling and exciting journey.

Beyond being able to be your own boss and choose the direction of your company, you can start a jewelry business with minimal upfront costs. In this guide, we'll walk you through each step and answer common questions about how to get started.

Not convinced a jewelry business is right for you? We’ve built a list of other profitable eCommerce business ideas for you to explore.

Here’s a step-by-step guide to starting a jewelry business:

1. Choose a niche
2. Choose a business model
3. Get to know your potential audience
4. Brainstorm a jewelry business name and brand
5. Create your online jewelry store
6. Make your jewelry business official
7. Find suppliers for jewelry materials and products
8. Calculate the startup costs of your jewelry business
9. Determine the price for your jewelry products
10. Get a handle on production and manufacturing
11. Develop your marketing strategy
12. Launch your eCommerce jewelry store

01. Choose a niche

First things first, you need to nail down your niche. Your niche and your business model go hand-in-hand, but let’s start with determining your niche.

A niche defines who you’re going to sell to and what you’ll be selling them. It gives your business a focal point as you start to build up your brand. Here are some questions to ask yourself to help determine your niche:

• What type of jewelry do I want to specialize in? Consider whether you will offer a specific type of jewelry such as earrings, necklaces, or bracelets, or you will offer multiple types of jewelry.
• What makes my jewelry unique? Identify what quality or feature will set your products or business apart from the competition. For example, perhaps you use unique or upcycled materials. Or, maybe your jewelry incorporates specific themes, colors, or designs like those created by Buena Onda Handmade.
• Who is my target market? Think about what your ideal customer would look like including age range, interests, purchasing habits, income level, values, etc. The more you understand about your audience, the easier it will be to create or source jewelry that appeals to them.
• What problem does my jewelry solve? You might not initially think that jewelry can solve a problem. But think more deeply about the gaps in the market. Consider how you can differentiate your brand. For example, you could provide a wider selection of jewelry made from hypoallergenic or high-quality materials to shoppers with metal sensitivities.

02. Choose a business model

A business model defines how you’ll build your product selection and sell your products. There are several common business models suitable for a jewelry business, but you may find that a combination of these is more suitable for your business goals, desires, and target market. For example, you could blend a custom jewelry model with a dropship business model for added variety and additional income.

Here are some examples:

• Custom jewelry model - This business model specializes in creating custom jewelry pieces for customers. As a custom jeweler, you can typically charge higher prices due to the individualized service and those that follow you are likely to be true fans of your work since your designs can’t be found elsewhere.
• Handmade jewelry business model - Create a collection of handmade jewelry to sell online. You could make several one-of-a-kind pieces or a few designs repeatedly—or you can do a bit of both.
• Jewelry curation model - Curate styles you love from various jewelry suppliers and designers. Consider focusing on a specific quality or style of jewelry, then reselling the curated products to your customers at a profit.
• Dropshipping business model - Work with a jeweler or wholesaler who picks, packs, and ships items to your customers whenever an order is placed through your website. This model pairs well with handmade or custom jewelry business models as it allows you to offer a variety of products without spending time or money to create and store them.
• Subscription business model - Offer jewelry enthusiasts a monthly subscription box of self-pampering bling like a coordinating set of jewelry items and accessories based on a theme, style, or event. Subscription models are a good way to generate consistent cash flow for your business.

03. Get to know your potential audience

Before you start a business, learn what type of person would buy the jewelry you’re selling and the price point at which they’d pay for such items. The better you know the interests, demographics, and buying habits of your target audience, the better equipped you'll be to create or curate items that they desire.

Here are some methods you can use to get to know your audience.

• Competitor research - Search online to find jewelry retailers selling items similar to yours. Analyze their marketing strategies, target audience, and customer feedback.
• Surveys - Create an online survey to collect feedback from your target audience. Consider offering participants a token of appreciation for their time such as a coupon, a small gift, or an entry to win a piece of handmade jewelry.
• Local events - Attend local industry events like conferences and craft fairs to network with your target audience and get firsthand feedback about your products.
• Website analytics - Once your website is up and running, you can review visitor demographics to gain insights about where they come from, what pages they visit, and how long they spend on your site. Some eCommerce platforms like Wix include analytics tools, allowing you to monitor your traffic from day one.

Remember that understanding your audience is an ongoing process. You'll want to continuously collect feedback, analyze data, and adapt your strategies to meet your audience's changing needs and preferences.

Pro tip: Create buyer personas to organize the information gathered about your ideal customer types and to help maintain clarity around who your business is serving and why. Additionally, buyer personas keep your marketing strategies, business initiatives, niche, and brand-aligned. With a solid understanding of your buyer personas, you can confidently craft products and pricing that they’ll enjoy—and create a marketing plan to position your products in front of them.

04. Brainstorm a business name and brand

Picking the right business name

Your business name is integral to the branding on your site, invoices, product packaging, labels, signage, and more.

Your name could represent something meaningful or personal to your business. For instance, founders of Darby Pritchards combined their last names to form their brand name, not unlike Tiffany & co., brainchild of Charles Lewis Tiffany.

Read also: 55 best LLC names to start your eCommerce business

Alternatively, you could choose a name that highlights what makes your jewelry unique like The Antlered Doe, which crafts one-of-a-kind rings using naturally shed antlers.

In general, good business names are short, easy to remember, and easy to spell. The easier it is to remember your name, the more likely customers are to return for additional purchases.

Need help thinking of a good name? Try our free jewelry business name generator.

Choosing the right domain name

Once you’ve decided on a business name, check that the domain name and social media handles are available for your chosen business name. The Wix name generator will let you know if a matching domain name is available, including domain extensions other than the traditional “.com”.

Creating a logo

When it comes to creating a logo for your business, you have two options: design your own logo, or have one made for you.

If you prefer to let someone else handle the creative work you can hire a professional through the Wix Marketplace. If you’re the DIY type, try our Wix logo maker which can also help you choose a color scheme for your website.

Once you have your logo and colors selected, you can create other coordinated branding materials, including:

• Social media headers
• Letterhead
• Business cards
• Invoice templates
• Email signatures

Building your brand

Building brand recognition takes time, but consistency in your name, style, colors, and messaging across all your marketing channels can increase revenue by as much as 33% according to Marq. Consistency boosts brand recognition, credibility, and trust—all of which can influence larger cart sizes and repeat business.

A strong brand creates an emotional connection with your customers. Before you start a jewelry business, it’s helpful to create a brand style guide that details every aspect of your brand including proper usage for your logo, messaging, and more.

Learn more about building a brand that customers remember:

• What is brand management and why it matters
• Brand personality: How to make your brand stand out in a crowded market
• How to create effective brand messaging

05. Create your online jewelry store

Now you’re ready for one of the best parts—creating your online jewelry store. Your website is often the first impression a customer has of your business. And when it comes to your brand, you want to be in complete control starting with a robust eCommerce platform.

Choose your eCommerce platform

An all-in-one eCommerce platform like Wix eCommerce gives you maximum control and makes starting a jewelry store online easy. From marketing and sales to order fulfillment and inventory management, you can successfully run and grow your business all from one place.

Select a website theme

With Wix, getting started is simple. Create an account, enter information about your business, then select a professionally designed “jewelry and accessories” eCommerce website template that suits your business.

Each template theme is completely customizable and optimized to show your jewelry products in the best light possible. Edit pages, layouts, colors, and imagery throughout the site to make it fit your brand.

Your online jewelry store should have:

• Clean, well-organized navigation (categorize your products based on how customers are likely to look for them)
• High-quality photos, content, and imagery throughout
• Prominent call-to-action buttons (CTAs)
• Easily accessible Information pages: About section, shipping and returns policy, privacy policy, and contact info for customer support
• Easy access to customer support
• Product pages with large, high-quality product photos shot from multiple angles including stand-alone product shots, and lifestyle shots, detailed product descriptions, and product reviews

Yam, a made-to-order jewelry store, does an excellent job of including multiple, high-quality photos of every product with detailed descriptions, and jewelry care instructions. Below each item you can find a carousel of “You may like” products to encourage further browsing and shopping.

Read also: 18 high-converting product pages with examples

Accept online payments

The final step to creating your website is to add online payment solution that allows you to accept credit/debit cards, alongside other forms of online payment.

Ideally, you'll want to offer multiple payment options, including at least one well-known option like PayPal (which has been shown to convert 28% higher at checkout when compared to other payment methods).

Additional payment methods add credibility to your business, while also giving your customers more freedom in deciding how to pay.

Learn more: 3 must-have online payment solutions for your business

06. Make your jewelry business official

At this point, you have a business name and framework for an eCommerce store. But before you start selling your products online, it’s time to make things official by registering your business and acquiring the necessary licenses or permits.

• Perform a trademark search - Search the United States Patent and Trademark Office database to ensure that your business name is unique within the jewelry industry.
• Register with the IRS and state - Register your business with the Small Business Administration to take advantage of certain tax savings and protections. For example, registering as an LLC or other business entity allows you to deduct business expenses and helps to protect your personal assets from business debts. Once you’ve been assigned a federal tax ID, register with your state to acquire the necessary licenses or permits, such as a seller’s permit.
• Open a business bank account - It’s important to keep your business income and expenses separate from your personal transactions for legal and tax reasons. When choosing a bank, look for one that provides great customer support, a low minimum monthly balance, reasonable monthly transaction limits, and 24/7 mobile account access. Consider hiring an accountant to handle your bookkeeping and year-end taxes or using an accounting software that integrates well with your new business bank account.
• Understand jewelry industry rules and regulations - Depending on the business model you’re using and your business location, you may need to comply with certain jewelry rules and regulations. For example, some countries like the U.K. require customers to obtain a certificate of authenticity from the seller when buying jewelry. Others may require a hallmark for your jewelry to be sold at maximum value.

07. Find suppliers for jewelry materials and products

Whether you intend to sell handcrafted jewelry items or source premade products from a dropshipper, it’s good to identify your suppliers ahead of time. This will help you estimate startup costs and plan appropriately for ongoing expenses.

While you could shop for materials from your local craft stores or Amazon, there are some cost-effective sources that can support a budding D2C eCommerce business. Here are some of the top suppliers to consider.

Wholesalers or bulk jewelry-making suppliers

• FireMountainGems.com - You can find just about anything and everything you could possibly need for jewelry crafting at FireMountainGems with excellent customer service and a flat $5 shipping fee on all orders.
• JesseJamesBeads.com - One of the most diverse collections of jewelry-making supplies available online. Find anything from beads and pendants to chains and strings, or subscribe to their monthly Magical Mystery Box of beads.
• DollarBead.com - Find bead strings and collections of every style imaginable for just over a dollar each. All orders cost a $5 flat shipment fee and arrive quickly.
• JewelrySupply.com - They offer a wide variety of supplies and jewelry findings, and they have an extensive selection of tabletop displays and product packaging.
• eBay.com - Find reasonable deals and a variety of beads, especially when looking for a specific style or type of bead. Sellers are located all over the world so narrow your search based on seller location if you need your purchases faster.

Jewelry dropshippers

Dropshipping is a relatively risk-free method for starting a small jewelry business from home. Below are a few dropshipping companies with eCommerce integrations that make it easy to seamlessly sell dropshipped products directly from your online jewelry store.

• Modalyst - Modalyst is a great dropshipping service for beginner entrepreneurs with plenty of features to scale with you as you grow. They offer print-on-demand items as well as ready-to-sell items, with over 13,000 jewelry and accessory products to choose from. Each product includes high-quality photos, product descriptions, variants, and more. You can list up to 25 products on your eCommerce store for free or list up to 250 products for $30/month. Access to premium brands and unlimited listings starts at $67/month.
• Printful - Printful offers on-demand custom engraved jewelry items, plus seamlessly integrates with Wix and other eCommerce platforms to support your dropshipping business. Printful additionally offers fulfillment and warehousing services for a fee. A standard Printful account is free; pay only for the products ordered, plus shipping.
• Sprocket - Sprocket offers a wide selection of jewelry and accessory items, including items from Alibaba and AliExpress. Basic membership is free and allows you to browse the full catalog of products. However, to use Sprocket’s dropshipping services, you need to purchase a monthly plan starting at $30.
• Syncee - Starter plans are free and allow you to browse Syncee’s Marketplace of more than five million dropship products. Prepare your catalog by collecting the products you want to sell, then upgrade to a monthly Marketplace plan to start selling. The Basic plan includes up to 25 product listings for $29/month, and Pro includes up to 250 listings for $49/month.

Before you settle on a dropshipper, check reviews, and make sure you fully understand the company’s dropshipping processes, policies, and pricing so that you know what to anticipate.

08. Calculate the startup costs of your jewelry business

Once you have a handle on your product and material sources, you can begin calculating your startup costs.

One easy way to calculate your costs is to go on a virtual shopping spree with your supplier(s). Add everything you need to your cart and let your cart act as an itemized list of your startup material costs.

Next, jot down everything else you need to open your eCommerce store. Here are some potential added expenses to consider:

• Minimum business bank account balance - Some banks require a $1,000 minimum balance to avoid monthly fees. Starting capital is an out-of-pocket expense.
• Business registration fees - Registering your business with your state and the IRS requires you to answer a few questions and pay a couple of minimal fees. If you choose to hire an accountant or other third party to complete the registrations on your behalf, additional service fees will apply.
• Inventory and supply storage - Do you need to purchase storage containers to organize your inventory and supplies, or do you lease storage space? Include these expenses.
• Leased office space - If you don’t work out of your home, include your monthly lease and any additional utility or maintenance expenses that go with it.
• Production tools - Include the cost of any additional tools you may need to create your products.
• Packaging and shipping supplies - Consider how you will package and ship orders. The unboxing experience can be just as exciting as receiving the order if done right. Learn more about eCommerce packaging.
• Website development and hosting - An eCommerce platform like Wix includes all your essential tools, from web hosting to business management tools, for a monthly subscription fee. However, if you hire a designer or developer to build your website, you will have additional startup costs to consider.
• Accounting fees - Whether you hire an accountant or purchase a subscription to an accounting tool, managing your monthly financial transactions may cost money.
• Professional photography - If you’re a skilled photographer, you may choose to take your own product photos versus hiring a photographer. However, you’ll still need a quality camera and a tabletop lighting kit to get those clear, crisp, high-quality photos.

Pro tip: Organize your business details as you go in an eCommerce business plan. Business plans help you stay focused on your goals as your business grows and may be required by banks before opening a business line of credit.

09. Determine the price for your jewelry products

There are several variables involved when pricing your jewelry, including time spent, cost of materials, overhead expenses, your hourly rate, and the price point your target audience is willing to pay.

Furthermore, whether or not you intend to sell your products wholesale, your retail price should account for bulk pricing in case customers ask about it in the future.

To make the process as simple as possible, we’ve outlined everything in a simple-to-follow formula. First, gather the information needed for the pricing formula as follows.

Determine the variables

• Cost of materials used - This is the total cost of materials used in each piece including packaging. You may want to log materials used as you create an item. Remember that material prices fluctuate, so it’s a good idea to periodically review your pricing.
• Total time spent creating the item - Keep track of the time you spend on each item. Round to the nearest 15-minute increment for simplicity. Your time is valuable, and you should be paid for it.
• Your hourly rate - Based on our research a typical hourly rate for jewelry crafters is $20 per hour. However, whatever hourly rate you settle on should account for your experience and the quality of your craftsmanship. Never undervalue your time, effort, and experience.
• Overhead expenses - Overhead expenses include anything else required when creating jewelry, such as leased studio space, heating, cooling, lights, electricity, etc. A general rule of thumb is to add a 10% markup to cover overhead expenses.

Calculate the minimum retail price

Many jewelry business owners make the mistake of simply doubling the cost of materials to determine the minimum retail price (ignoring labor and overhead). In other words, they never turn a profit. Let’s take a closer look to understand why.

Minimum retail price = materials (incl. packaging) x 4 + labor (hourly rate x time spent) + 10%

Using the above formula, let’s pretend that you created a bracelet in 45 minutes (0.75 hours), using $6 of materials and $1 in packaging, at an hourly rate of $20. Your calculations for each step would look like this:

1. ($6 + $1) x 4 = $28
2. $20 x 0.75 hrs = $15
3. ($28 x $15) x 0.10 = $4.30
4. $28 + $15 + $4.30 = $47.30 or $48

Based on this formula, your minimum retail price for your bracelet is $48, which means your wholesale price is $24. Without the 4x multiplier, your base cost as a business to make the item is $24.20.

In order to build a sustainable business, your minimum retail price must include your materials, labor, and overhead costs.

By setting your retail price at or above the minimum retail price, you guarantee a profit on each item, even if you run a special sale.

Compare the minimum retail prices of your items with similar items sold by your competition and decide if your targeted audience would pay the price you’ve set (or more). You want to price your items competitively—not too high that you turn buyers away, but not so low that you can’t turn a profit.

Once you start making sales, you’ll gain a better sense of when to adjust your prices up or down accordingly.

10. Get a handle on production and manufacturing

You may already know where you will create your craft, but it can still be beneficial to come up with a preliminary plan for where and how you will handle production.

Here are some questions to ask yourself:

• What items do I want to create as part of my startup inventory?
• How many of each item will I have on hand?
• How often will I release new designs (i.e., once a week, monthly, biweekly)?
• How many hours do I intend to spend creating jewelry each week?
• What will my work schedule look like?
• Where will I create my jewelry pieces (i.e., a home office or craft room, rent space, etc.)?
• How many items do I want to produce each week?
• How often will I order supplies?
• Where will I store my supplies and inventory?

Using your answers to the above questions, build out a preliminary draft of your production schedule and add it to your eCommerce business plan.

11. Develop your marketing strategy

Part of building a successful jewelry business is learning how to drive traffic to your online store. A marketing strategy helps map out which marketing methods you’ll use to drive traffic and where you’ll focus most of your efforts. Keep in mind that your marketing strategy is a fluid plan that shifts to meet your business needs as you grow.

There are two primary types of inbound traffic:

• Organic traffic - Organic traffic includes any visitor that arrives at your online store through non-paid marketing avenues such as social media, email marketing, word of mouth, and search engine optimization (SEO).
• Paid traffic - Paid traffic is any inbound lead generated through paid advertising such as pay-per-click (PPC) ads, display banner ads, print ads, etc.

Paid traffic is the fastest way to drive traffic to your website. However, think of it as a supplement to the work you do to increase your organic traffic, which will set your business up for long-term success.

Here are some proven marketing methods to consider incorporating into your overall marketing strategy. Many of these methods require no upfront investment, so they’re great to use as you learn the ropes of how to start a jewelry business online.

User-generated content (UGC)

UGC is any content provided by a consumer about your products or brand that is visible to prospective buyers. This includes product reviews, testimonials, referrals, social posts, or product photos taken by the consumer.

According to a study by Power Reviews, the more reviews your product has, the better.

• Just one to ten product reviews can boost a product’s conversion rate by 52.2%
• 11 to 30 reviews on a product boosts its conversion rate by nearly 103%
• 31 to 50 reviews equals up to 133.5% improved conversion rate
• 51 to 100 reviews improve the conversion rate by up to 148.7%
• 101+ reviews can improve a product’s conversion rate by as much as 252.2%

The same study indicates that over 83% of shoppers in the health and beauty industry feel product reviews play a role in their purchase decisions. A recommendation from a friend or a previous buyer holds more sway in a buyer's mind than an advertisement alone.

Collect UGC to feature on your site by encouraging users to upload their own photos and videos of products when leaving a review. Or, have them tag you on social media and embed those posts to your site.

Social media

In addition to being a great avenue for sharing your products and information about your brand with your target audience, visual platforms like Facebook, Instagram, and Pinterest provide buyers with additional avenues for engaging with your brand and sharing feedback.

Determine which social media accounts are used most often by your target audience and create a business account on them. Then start building a following by:

• Posting regularly.
• Interacting with other jewelry-related profiles.
• Monitoring influencers working with other jewelry retailers. (You could send free products to those influencers in return for a shoutout on their page.)
• Using relevant hashtags like #jewelry or #handmadejewelry on your content to reach people who don’t follow your profile.
• Using Shop features to integrate your store with Facebook or Instagram Shop (as examples).
• Encouraging customers to share images of their jewelry on social media and tag your business—a superb way to gain free publicity and re-postable UGC content

Here, Yam uses a quick TikTok video to debunk a competitor’s video and educate its followers about brass vs. gold plating.

Every Wix account includes our full suite of eCommerce marketing tools to help make managing your social media marketing easier. With these tools, you can create consistent brand messaging, visuals, and promotions across multiple marketing channels.

Search engine optimization (SEO)

Search engine optimization (SEO) specifically refers to the work you do to get your website content noticed by search engines. And although it may take a few months to start seeing results from this marketing strategy, it’s well worth it when your business shows up on Google’s results page for search terms your audience is using, such as “women’s diamond jewelry” or “men’s wedding bands.”

Here are some ways to optimize your website content:

• Blog - Create blog posts on topics relevant to your target audience, such as “How to pick a jewelry gift for your mom,” tutorials on “How to measure ring sizes” or guides on hot seasonal fashion trends.
• Keyword research - Find keywords that attract visitors with an intent to buy products like yours. Identify keywords that would be good target with your product pages, as well as your blogs.
• Prioritize your readers - Write for your readers, not simply search engines. Aim to add value through your content. Your content should read normally without excessive use of a keyword or key phrase—known as keyword stuffing, a practice that will only hurt your search engine rankings.

Email marketing

Start building an email list by asking visitors to provide their email addresses using a pop-up form or by adding the form to your site’s footer. To encourage signups, consider giving something of value in exchange for their email address, like a discount code or access to exclusive content.

Then, once you’ve got a mailing list, use email marketing to promote holiday sales, new products, and business updates.

Paid advertising

While you’re waiting for organic traffic to ramp up, you might want to consider investing in PPC advertising. Services like Google Ads or Facebook Ads can be used to drive targeted traffic to your eCommerce store. You can select viewer demographics to limit the audience of your ads to those likely to purchase from you. For example, you could select, women aged 30 to 50, interested in jewelry, with an upcoming birthday.

When you’re getting started, remember to keep an eye on your advertising budget. Ad spend can add up quickly if you forget to stay on top of it.

Starting with a small advertising budget helps get your first few customers through the door so they can begin creating product reviews, feedback, and word of mouth referrals.

12. Launch your eCommerce jewelry store

Launching a new business is a big deal. Celebrate your win and let others celebrate it with you. Ask friends and family to help spread the word about the launch of your new jewelry business. You can even provide them with an image and templated text to post and share with friends.

Consider creating a special launch promotion to incentivize shoppers to check out your new store. If your budget allows, you can use PPC ads to promote your launch special as well.

Ready to start your own jewelry business? Create your online store and start selling today.

Brielle Gordon

Marketing Writer, Wix eCommerce

Brielle is a Colorado native with a passion for innovation and helping to mobilize entrepreneurs. Brielle is a marketing writer for Wix eCommerce, which powers over 700k online stores worldwide.

In 2022, eCommerce revenue topped $1 trillion for the first time—and experts predict that sales will only continue to increase in the upcoming year. This means that if you've been thinking about how to start an eCommerce business, you've picked a great time.

One of the easiest ways to get started is to register your business as an LLC (Limited Liability Company). Step one is picking a business name. However, choosing a great LLC name can be overwhelming. With so many naming options and companies offering advice, it’s normal if you’re at a loss of where to start.

In this guide, we’ll cover the top factors to take into consideration when picking an LLC name, as well as examples of clever (and thoughtful) names.

4 characteristics of a good LLC name

A catchy name will only get you so far. On the contrary, your LLC name should reflect your brand's core values, offerings, and vision.

You’ll want to think about these four aspects while brainstorming your LLC name:

1. Memorability
2. Uniqueness
3. Relevance
4. Brandability

01. Memorability

The best eCommerce brands have easy-to-recall names. A memorable LLC brand name is generally short and improves the chance of people associating your brand with your best products.

This is why big tech brands like Hewlett-Packard and International Business Machines shortened their names to abbreviations (HP and IBM, respectively).

While there's no exact science to it, try to keep your brand name to three syllables or less.

02. Uniqueness

To stand out from a crowded marketplace, your LLC name needs to be distinct. Not only will customers recall your brand easier, but your brand may potentially rank better in search engines by avoiding competition with similar-sounding brands.

Moreover, you’ll want to check that your LLC is available and avoids trademark infringement. Check with the U.S. Patent and Trademark Office to ensure that your LLC name is free to use.

03. Relevance

For starters, your LLC name (aka your “business name” or “legal name”) needs to contain the word “LLC” in it.

Special note: Your LLC name can be different from your trade name. Your trade name is customer-facing and used for advertising or marketing purposes. It could be the same as your LLC, just without the “LLC.” Or, it could look very different. In either case, you’ll most likely need to file for a DBA and register your trade name. The rules around DBAs vary from state to state and county to county, so make sure you study how DBAs work.

Your LLC name should ideally relate to what your company does or reflect the types of products you sell. In fact, this is how some of the biggest tech names got their start.

Google initially conducted business under the name “Backrub”, a term that related to the search engine’s original purpose of analyzing backlinks. Meanwhile, Apple was known as “Apple Computer Company” because Steve Jobs was on a fruitarian diet at the time, and “Computer Company” helped to convey the general nature of their LLC.

Including a relevant descriptor in your LLC name, especially when you’re just starting out, helps customers understand what types of services you offer right off the bat. Then, when you become much bigger and more renowned, you can consider changing the name to something quirkier or more creative.

04. Brandability

While relevance makes your brand name easy to identify, brandability refers to the practice of ensuring that your name is meaningful to your brand. LLC names that have strong brandability usually relate to something personal to the founder.

Read also: The ultimate guide to eCommerce branding

Take BAXTER & Bella as an example. This company is named after the founder’s two dogs. As a professional dog trainer, Amy Jensen uses her platform to share dog training techniques and sell products that assist with at-home training.

In the same vein, you’ll want to try incorporating something that is close to your heart and/or your product into your LLC name. Include a reference to the inspiration behind your brand (like BAXTER & Bella) or describe the feelings you want to evoke with your products (such as Something Good Studios), as examples.

Creative ideas for LLC names

We've gone over some key things to keep in mind when coming up with the best LLC name for your store, but you might still be left with a blank canvas at this point.

To help you arrive at an LLC name, try these approaches.

Experiment with wordplay

Some of the best brand names are a simple play on words. For example, Handy Industries is an Iowa-based company that sells motorcycle lifts. It’s a simple play on words on their products being “handy” to have, and also communicates that they’re always willing to lend a hand.

Puns work well because they put a smile on people's faces when done well. They don’t have to be overelaborate or deep, either. Kandy Cocktail, a bartending service, is a simple play on Candy, and describes how fun it is to create your own cocktails.

While puns and wordplay makes it much easier to remember, don’t feel like you have to force it.

Incorporate industry-specific terminology

If your eCommerce store or online business idea is in a specific niche, including specific terms that your target audience understands or resonates with can be a smart idea.

Apply alliterations

Alliteration works just as well and is equally sticky. Take The Crafty Couple and Chip City Cookies as examples. Since alliteration relies on pairs or trios, you've got more wiggle room to experiment with them by using descriptors.

Use geographical names

If available, including geographical names can be really powerful for local SEO. Customers will associate your store with selling products in their area. But keep in mind that this could also limit your sales if your LLC name is too localized to a single area.

Best LLC name ideas by industry

Sometimes, showing is better than telling. We’ve compiled a list of LLC names for you to draw inspiration from that were generated with Wix's Store Name Generator.

Pet supply

• Enchanted Pet Supply LLC
• Joyful Treats LLC
• Pet Supplyist LLC
• Happily Ever Pet Supply LLC
• Pet Supply Capital LLC

Electronics

• Speakerful LLC
• Sound in Color LLC
• Either Side Electronics LLC
• Dreams N’ More LLC
• Electronics Station LLC

Beauty and skincare

• Limitless Beauty LLC
• Clean Beauty LLC
• Beauty Dish LLC
• Sunrise Skincare LLC
• Surefire Skin LLC

Home decor and furniture

• Wall Artful LLC
• Home Decor Warrior LLC
• Drawing House LLC
• Art Dessert LLC
• Mystical Home Decor LLC

Cleaning products

• The Purge LLC
• Wisecleaning LLC
• Clutch Cleaning LLC
• Mother Earth Cleaning LLC
• Kenning Cleans LLC

Fashion

• Shape Fashion LLC
• Fashion in Color LLC
• Clothing Registry LLC
• Bubbly Cloth LLC
• Custom Sew LLC

Vintage clothing

• The Brace LLC
• Vintage Capital LLC
• Simply Vintage LLC
• Eastside Vintage Clothes LLC
• New Wine Clothing LLC

Fitness

• Interfitness LLC
• Paleo Fitness LLC
• Bands and Withstands LLC
• Bandzone LLC
• Simply Fitness LLC

Toys

• Toys Side LLC
• Puzzles Corner LLC
• Toys Nook LLC
• Jigsaw Joints LLC
• Toys & I LLC

Food

• Food Talent LLC
• Food Cycle LLC
• Food Library LLC
• Food Fire LLC
• Spice Capital LLC

Halloween decorations

• Party Store N More LLC
• Festoons Party LLC
• Hallo’ DeCo LLC
• Soulful Decor LLC
• Frights R Us LLC

4 naming tips for your LLC

As you add more ideas to the drawing board, you should also be aware of the following factors before you register your LLC name. Keeping these in mind to land on a name you’re happy with form the start:

1. Research your competition - This is not just limited to researching business name ideas. In all things entrepreneurship, you should check out the landscape of what your current competition looks like and how they've positioned themselves through their LLC name. If they've got some solid picks, you could consider thinking out of the box to carve your own niche in the space.
2. Consider your target audience - To know what your customers are looking for, you need to spend time with them. Hang out on the social media platforms that your customers often use to talk about your industry, whether that’s in Facebook groups or on specific subreddits. Once you gather enough information, you can create buyer personas; a core part of any eCommerce marketing strategy.
3. Avoid names that are too similar to existing brands - When customers look for a solution to their problems, they usually turn to search engines. You want your brand to appear in the first few search results so that customers will consider buying your products over your competitors. Having a distinct name from other brands will make it easier in terms of SEO to rank higher in search engines.
4. Check domain availability and trademarks - Before filing your LLC name as a legal entity, you should research if another company is using the same or similar name. Run a state business check to see if your LLC name is available. You can also run a check with the U.S. Patent and Trademark Office. Make sure you check that your store name is available to register as a domain, as well as social media accounts. If the domain isn't available, you can get creative or use abbreviations.

There’s power in a name

Starting your entrepreneurial journey on the right foot begins with picking the best name for your store. With the tips we outlined, we hope you have the tools to choose the most meaningful and unique LLC name for your brand.

Make sure you do your due diligence on existing trademarks so you don't have to deal with legal action or potential conflicts over the name. With enough research, you’ll find a future-proof LLC name that customers will remember for the right reasons.

Allison Lee

Editor-in-Chief, Wix

Allison is the editor-in-chief at Wix, with several years of experience reporting on eCommerce news, strategies, and founder stories.

Anna and Joey Turcottes’ story started the day they gave birth to their first child. What happened in that delivery room became the catalyst for an eCommerce brand whose mission would be to facilitate and promote the practice of skin-to-skin bonding.

Immediately after giving birth, “the doctors, the nurses and lactation consultants were really pushing both of us to hold the baby bare chest to bare chest,” recalls Anna. This was her first introduction to skin-to-skin bonding, also known as (more adorably) kangaroo care.

Prior to co-founding babywear brand Bonsie, Anna was a clinical social worker in Maine specializing in the area of attachment. Her experience and training highlighted the impact that a close parental figure has on a child’s early years and on subsequent emotional development. This perspective, in combination with her postpartum experience, would evolve into the goal behind the product: “to make skin-to-skin practice more well known and easier for moms and dads and anybody who’s taking care of a baby.”

While experiencing a new form of attachment to their newborn, they discovered a greater purpose

In between endless feedings, diaper changes and naps, Anna and Joey’s imagination and entrepreneurial spirit stirred. What if there was babywear that would allow easier access to skin-to-skin bonding? Something that was functional enough to encourage frequent bonding and cute enough to wear to the grocery store.

A brand strategy that coincides with a greater mission

Combining experience from prior entrepreneurship and now parenthood, the Turcottes knew that if this business were to succeed, it would need to accomplish three things:

1. Offer a well-made, uniquely designed, and recognizable product
2. Invest in consumer education and be a champion for skin-to-skin bonding
3. Continuously connect with new parents

After two years of prototyping and sourcing, the Turcottes had a garment that "if someone saw a baby wearing...they'd immediately know it was a Bonsie.” Now, they were ready to present Bonsie to the world. Using Wix for eCommerce, the couple built their first website and set up the eCommerce business—all while having two kids under the age of five running around the house.

A few months later, the pandemic skidded their original launch plans to a halt and the duo shifted their attention to online and social media marketing. They leaned on Wix’s built-in Facebook Ads manager to launch targeted ad campaigns, while minimizing the amount of manual setup required.

The true root of their success, however, lies in having a deep understanding of their target audience: new parents.

When it comes to content strategy for ads, Anna explains, “Because we focus on infancy and early motherhood, we generally don’t keep a customer for more than six months. We’re always having to find new customers but luckily they’re always out there because people are always having babies. But we have to keep educating and keep exposing them to our brand.”

The power of expert content and data-driven marketing

To further their mission, Anna and Joey have invested heavily in creating quality content for their blog on Wix. Bonsie’s Bonding Blog features content created in collaboration with medical professionals, experts in childcare, and influencers.

“The blog is designed to cover the umbrella of early motherhood and attachment,” Anna explains.

On the business side, Joey says, “this also adds validity and expert opinions to our website… and that helps with Google Search rankings.”

By working with an expert alongside Wix’s SEO tools, Bonsie was able to land the top search position for “skin-to-skin babywear.”

Beyond promoting the benefits of skin-to-skin and providing information on postpartum and early infancy, the blog is also a space where personal stories are shared. In a dedicated section called ‘Real Moms. Real Interviews.’ Anna invites moms to share their story so that other women reading the blog don’t have to feel so alone as they adapt to motherhood.

At the end of the day, “we’re just finding ways we can all fit together”—and that in a nutshell, is the secret behind Bonsie's success.

It all started with a feeling

When the nurse first laid the newborn child on Anna’s bare chest, Anna was overcome with a feeling of calm and elation. After what felt like an eternity, mother and child finally were able to touch, skin-to-skin. The small family shared the first magical hours of the newborn's life holding each other in the delivery room.

Five years later, the Turcottes have created an eCommerce business that is powered by the love they felt that day in the delivery room. Bonsie’s onesies can now be found in Nordstrom and high-end internet boutiques such as the Maisonette.

As the business continues to grow, Anna and Joey remain at the helm, overseeing day-to-day operations and expanding their team to meet production demands. They have turned away outside investors so that they can maintain control over their mission—that is, to make Bonsie synonymous with skin-to-skin bonding.

Anna and Joey’s advice for other merchants

• Find your niche - Stay in your lane and invest in carving out an area of specialty in an otherwise saturated marketplace.
• Educate and stick to your mission - Consider investing in a blog and creating content that demonstrates your expertise in a given field. This helps to promote your brand, spread your mission, and increase your site’s visibility in search results.
• Use tools and resources to make data-driven decisions - Don’t simply rely on gut feelings. Experiment with different types of ads, product variations, and content and pivot based on the results. You might be surprised by what works and what doesn’t. Don’t let your personal biases and assumptions blind you.
• Scale strategically (know when to invest and pull back) - Know the purpose and value of every channel you sell or advertise on. “The amount we spent on online ads is baffling, but in the end it definitely paid off,” says Joey. “In terms of moving to retail, we are selective about who and where we partner with, but the idea is that the website will always be number one.”
• Keep up with trends and adjust to the media atmosphere - Be present on the channels that are most relevant to your target buyers without biting off more than you can chew. Find creative ways to broaden your reach. For example, Bonsie is working with influencers across mediums to make its mission and products known.

Learn more about Bonsie and their mission on their website and Instagram.

Stefani Kung

Content Writer, Wix

Stefani is a tech marketing writer who draws on her extensive background in the restaurant industry to offer a fresh perspective on technology and cybersecurity. With a deep understanding of consumer behavior and psychology, she approaches her writing with a focus on the human side of these topics and is committed to making complex ideas accessible and engaging to a wide audience.

With Tap to Pay on iPhone, sellers who are constantly on the go now have an even easier way to accept in-person payments. It offers convenience and security at any point of sale, whether in-store, at a pop-up, or even at a client’s home.

Wix Payments, in partnership with Stripe, now lets you do business even more flexibly with only an iPhone.

What is Tap to Pay on iPhone, exactly?

Tap to Pay on iPhone allows you to accept contactless payments with only an iPhone. Just download the Wix Owner app on your compatible iPhone and start accepting in-person payments. No additional hardware or payment terminal is required.

Meanwhile, your customers can pay via contactless credit and debit cards, Apple Pay, and other digital wallets. They can tap their cards to your iPhone—or simply hold their phone or Apple Watch to your screen—to complete their transaction.

Source: Apple

What’s so revolutionary about Tap to Pay on iPhone?

Tap to Pay on iPhone offers substantial benefits to both merchants and their customers. These include:

• It’s easy to get started. Tap to Pay on iPhone removes the need to buy, set up, train staff, or manage card readers. All you need is to download the app on your iPhone. Tap to Pay on iPhone is also ideal if you’re just starting up your in-person business activities, or if you only sell sporadically on the go and can’t justify the cost of a POS system.
• Engage your customers in person. Tap to Pay on iPhone opens up another in-person touchpoint if you’re managing an omnichannel business. You can easily take your business offline to pop-ups, farmers markets, and events. Or, when lines get long in store, you can shorten queues by accepting payments via an iPhone.
• Offer flexible payment options. Just like online customers expect multiple ways to pay, the same holds true for in-person customers. With Tap to Pay on iPhone, your customers can pay with ease through any method—be it a contactless debit and credit cards, Apple Pay, and other digital wallets.
• A secure way to pay. Tap to Pay on iPhone uses the built-in security features of iPhone to keep your business and your customer data private and secure. When a payment is processed, Apple does not store card numbers on the device or on Apple servers, so you can rest assured knowing your business stays yours.

Considerations in adopting Tap to Pay on iPhone vs. a card reader

If you’re debating which in-person payments option is right for you, here are some factors you’ll want to consider:

• Redundancy in payment stack. Offering multiple payment options to your customers is key to positioning yourself as a trustworthy and forward-thinking business. Even the most reliable payment methods may have technical issues at times. So, it’s good to be prepared with backup options (like a card reader), so that your business can continue to accept payments at all times.
• Transaction limits. Contactless payments may be limited to a maximum amount per transaction. While some of these limits have been substantially increased due to COVID-19, if you normally process payments of a high value, we recommend you keep a traditional card reader as backup to complete your transactions.
• Not all cards are contactless-enabled. Over 20% of debit or credit card transactions are estimated to be contactless. However, there are still some (often older) cards that use EMV or chip technology, which don’t work with Tap to Pay on iPhone and require a card reader to accept payments.

Enabling Tap to Pay on iPhone for your business

Once you have considered everything, it only takes a few steps to activate Tap to Pay on iPhone. To enable this payment method, simply follow these steps:

1. Connect Wix Payments as a provider in your payment settings
2. Connect point of sale as a payment method under your Wix Payments settings
3. Complete verification for Wix Payments by following the account setup process as instructed
4. Log into the Wix Owner app, select ‘built-in card reader’ from the list of available readers presented to you, and connect your Apple ID as prompted

After you complete these steps, you’ll be able to sell on the go with ease directly from your iPhone.

Accepting in-person payments with Wix: the total package

Wix Payments offers a number of in-person payment methods through the Wix Owner app.

• Tap to Pay on iPhone – Accept contactless payments with just an iPhone by connecting to your Apple ID through the Wix Owner app.
• Card reader – A compact card reader that connects to your mobile phone via bluetooth, enabling chip, magstripe, and contactless payment acceptance.
• Manual card entry – Manually enter user card details for purchases made over the phone, via email, by written request, or by users who don’t have their card on hand.

Whether you’d like to take your business on the road to a fair or simply wish to reduce checkout lines in your retail store—let your customers choose how they pay with Wix Payments.

*Tap to Pay on iPhone is available to U.S. based Wix Payments merchants using Wix for eCommerce, Wix for bookings, or Wix for events. It requires iPhone XS or later with iOS 15.5 or later. The Contactless Symbol is a trademark owned by and used with permission of EMVCo, LLC.

Kanchi Kaushik Marketing Writer, Wix

Sarit Steinfeld Marketing Writer, Wix

So you’ve got a rock-solid business idea. But how much is it going to cost you to take what’s inside your head and turn it into a beautiful, fully-functioning online store?

The short answer: it depends.

Because every eCommerce website is unique, it’s difficult to pinpoint exact costs from the get-go. But once you know the factors behind website development costs overall, you can get a clearer idea of the budget you’ll need to start an online store,

In this blog, we’ll break down all the major aspects of eCommerce website costs and explore strategies to keep your costs to a minimum when launching your online business idea.

5 top factors that impact eCommerce website costs

01. Number of pages

One of the biggest defining variables is the size of your store. Most eCommerce websites will grow to have hundreds of pages, spanning category pages, product detail pages, and other purposeful landing pages.

In general, the more pages you have, the most costs you may incur in terms of website storage, bandwidth, and design. While you may not know the exact number of page you’ll need, start by asking yourself these key questions:

• How many categories and products do you plan on launching with?
• How many product variations do you anticipate having?
• What content does your site need to include?
• How do competitors lay out their site?

02. Design and user experience (UX)

A whopping 94% of shoppers’ first impressions specifically relate to your website’s design, according to WebFX. That means that nearly every customer expects to see a beautiful, well-branded site—which may, in turn, require the touch of a highly skilled web designer.

But rather than just creating an eye-catching website, you’ll want to build an eCommerce store that’s also user-friendly. That’s where your site’s UX comes in. The ultimate goal of your site’s UX design is to reduce the number of clicks (or taps) it takes for a shopper to find a product and complete a purchase.

In eCommerce, successful UX involves a number of things: easy-to-navigate menus, detailed product images, mobile-friendly pages, smooth checkout, and more. Depending on the complexity of your site, your design and development costs may vary.

Quick tip: If you’re not sure where to start with UX, check out other retailer’s sites and study how they use navigation menus, breadcrumbs, search bars, filters, buttons, and other elements to remove friction from the buying experience.

03. Web hosting

There are two basic options for web hosting: self-hosting or hosting via a software as a service (SaaS) platform.

• If you choose to self-host, you’ll need to pay for a domain name, hosting fees, and an SSL certificate. A domain name can cost between $10 to $20 annually. Dedicated third-party hosting can run you $85 to $750 per month. And an SSL certificate runs an average of $60 per year. In addition, you’ll need to add a content management system (CMS) like WordPress or Drupal to design your site, add your products, and maintain your site. In general, self-hosted costs are far less predictable than SaaS costs, which are more structured and all-inclusive.
• If you choose a SaaS model, you’ll pay a monthly subscription fee—typically between $20 to $200/month. In most cases, that fee will include free hosting. Wix for eCommerce, for example, starts its pricing with a Business Basic tier at $27/month. This tier includes web hosting, a free custom domain name for one year, and a free SSL certificate. You also get a drag-and-drop website editor that lets you handle content management without needing to know how to code.

04. Custom features and eCommerce functionality

A self-hosted or SaaS platform will give you the basics you need to create a website. However, an eCommerce site requires much more. You’ll need to connect your site to payment gateways, fulfillment options, promotion tools, and other functionality that transforms your site into a store.

Some eCommerce platforms like Wix include many built-in features. Others require many plug-ins and integrations to work.

Plugins range from free to anywhere between $40 and $500 on average. A few popular plug-in examples:

• QuickBooks Connector - The app lets you automate your accounting by syncing site sales to an existing QuickBooks account. It’s free to install and comes with a 30-day free trial. After the trial period, you’ll need to pay subscription fees that range between $30 to $200 a month.
• Price Table - This plug-in lets you create side-by-side price tables on your website. It’s free to install and runs between $3.19 and $12/69 a month.
• Modalyst - A popular dropshipping and print-on-demand platform, Modalyst is free to download but charges between $30 and $67 per month, depending on your subscription plan. (However, with a Wix Business Unlimited or Business VIP plan, you can gain access to Modalyst at no extra charge.)

Payment gateways also bring some downstream costs. Most of the top payment apps charge you 2.9% plus $0.30 per transaction. Make sure to factor these ongoing expenses into your overall eCommerce website budget.

05. Maintenance and support

In addition to calculating how much it costs to build and launch an eCommerce website, you must set aside money for regular maintenance and support.

You can either handle maintenance in-house or hire a web developer to do it. Maintenance will include items like site improvements, updates, bug fixes, and new pages.

Your maintenance plan should further embrace these crucial considerations:

• Website speed - As you add products to your site, you run the risk of slowing down your site, which is one major reason why eCommerce sites fail. Proper maintenance will help you launch new content without crippling your website’s performance. Considering how an improvement of just one-tenth of a second in mobile load times can produce 8.4% more conversions—site speed matters.
• Website security - Almost 75% of the data breach cases investigated by Visa in early 2022 involved eCommerce companies. That’s why routine updates, security checks, and patches are a must-have for your online store. Staunch security will help keep your data—and your customer’s data—safe from hackers and ensure your website stays up and running.

So, how much does an eCommerce site really cost?

Your total costs will depend on all the factors listed above, plus other considerations like your website copy (who will write all the copy for your pages?), product photography, SEO strategy, and more. It will also depend on whether you plan on building your eCommerce site on your own, engaging web developers (among other professionals), or hiring an agency to do the work for you.

These variables mean that there are no hard-and-fast numbers, but these ranges can help you start budgeting more wisely:

Small store (1 to 99 products)

• Cost to start on average: $1,000 - $5,000
• Maintenance costs: $500 - $1000

Medium-sized store (100 to 499 products)

• Cost to start on average: $5,000 - $10,000
• Maintenance costs: $1,000 - $2000

Large store (500+ products)

• Cost to start on average: $10,000 - $50,000+
• Maintenance costs: $2,000 - $10,000+

3 smart strategies to control eCommerce website building costs

How can you stay at the lower end of cost ranges—or even come in under the averages—when you build an eCommerce site? These four strategies can help you save some money without impacting quality or design.

01. Use pre-made templates

When it comes to creating the perfect look for your eCommerce website, you have two options: You can pay a web designer to create a custom design for you. Or, you can use a pre-made template built specifically for eCommerce.

Paying a designer will run you about $75/hour on average. (You can find talented and ready-to-hire web designers on the Wix Marketplace.)

Alternatively, you can purchase pre-designed templates, which are usually free or, at most, a couple hundred bucks.

Considering how website developers may charge as much as $3,000 for a mobile-optimized website, templates tend to be more affordable and easier, especially if you’re starting with a smaller site.

Wix offers hundreds of designer-made online store templates for various types of business. Check out 27 of the best eCommerce website templates.

02. Choose the right platform

Using a SaaS-hosted platform will save you money on hosting, domain registration, and an SSL certificate. However, not all platforms are created equal.

Some require many more plugins than others to create a fully functioning store. Others are simply clunkier, and more difficult to use. So, as you shop for the right eCommerce platform, make sure to ask the right questions:

• Does the platform allow me to customize the look and feel of my site according to my brand’s specific needs?
• Does the platform support my desired payment solution(s)? Do I need to be able to connect it to a POS or enable other special features, like recurring payments?
• Will the platform give me the storage space I need to get started and the additional capacity I’ll need to scale my business appropriately?
• Does it integrate with my preferred sales channels and apps (e.g., the marketplaces I sell on, or my inventory software)?
• Can it help me win back customers with abandoned cart recovery features and other marketing tools?
• Does the platform include easy-to-reach customer support in case of emergency?

Shameless plug: If you’re wondering “is Wix good for eCommerce?” the answer is yes. When you choose to build your eCommerce website with Wix, you get access to secure online payments, a minimum of 50GB of storage space, and unlimited products. Then, as your business grows, you can scale up your subscription plan and get added services, such as dropshipping, product reviews, and automations.

03. Prioritize necessary features

Consider how when you buy a new car, you can save money by being selective of the features or option packages that you actually need.

The same principle applies to building an online store. You’ll want to spend most of your budget on the need-to-have features. When you’re first starting out, focus on pages and features that are most likely to drive sales:

• Product category pages
• Individual product pages
• Multiple payment gateways
• Simplified checkout
• Integrated site search tools
• “Related products” widgets that drive cross-sells and upsells
• Technical SEO to help people find your site

Once the basics are in place, you can start budgeting for add-ons. Most eCommerce platforms will offer you hundreds of apps that you can integrate into your online store whenever you’d like. These apps make it easy and cost-effective for you to scale your store as customer demand increases.

Inside the Wix App Market, you’ll find 500+ powerful solutions for coupons, accounting, fulfillment, warehousing, print on demand, and more.

Are you ready to build your online store the smart way?

Before you start to write a single product description for your online store, do your homework. Compare your options. Ask for quotes. Test out several eCommerce platforms for size.

Don’t rush the process or simply jump on the cheapest quote. Rather, understand how far your money will get you and make a well-informed decision.

If you decide Wix for eCommerce is your best option, sign up today.

Allison Lee

Editor-in-Chief, Wix

Allison is the editor-in-chief at Wix, with several years of experience reporting on eCommerce news, strategies, and founder stories.

This post was last updated on March 3, 2023.

It’s no secret that poor customer service can tank sales. This is true whether you're running an established business or just learning how to start an online store.

But understanding what contributes to good (or bad) customer experience is sometimes less obvious.

The top culprits of a poor eCommerce customer experience include lack of free shipping, a high number of out-of-stock items, and slower deliveries, according to a survey by Bizrate Insights and Digital Commerce 360. There’s also the matter of slow-loading pages, complex checkout processes, and poor access to onsite customer support.

What is eCommerce customer service?

eCommerce customer service is how online businesses support and provide assistance to their customers. Shoppers want to be able to reach customer service agents through the channels they prefer - whether that is by phone, email, live chat, or social media. Retailers who invest in improving their eCommerce customer service can expect to see increased customer loyalty, better conversion rates, and a competitive advantage.

So, how do you go about auditing the quality of your own customer service? How do you ensure that your customer support translates to happy customers and boosted sales? Let’s dive in.

5 aspects of eCommerce customer service

Great eCommerce customer service is a blend of the right content, technology, and people at the helm. Ultimately, a strong strategy takes into consideration the following factors and responsibilities.

01. Answering product and brand questions

As a general rule of thumb, you’ll need to provide as much information as possible about your policies, products, and ordering process. Make sure this information is available throughout your product pages, dedicated FAQ pages, and any other informational pages across your site.

You’ll additionally want to give customers multiple options to reach out to you. Respondents in the aforementioned Bizrate survey noted that email, live (human) chat, phone calls, and text were top drivers of conversion when it came to customer service interactions.

As an example, clothing label Ashco makes it easy for customers to reach out by providing dedicated email addresses for different issues including returns, local pickup inquiries, and wholesale requests.

02. Resolving order issues

Order fulfillment issues like backorders, delayed delivery, and wrong items happen. You can't prevent them—however, you can create a game plan for quickly validating and addressing problems, and turning negative experiences into positive ones.

One way to achieve the latter is by sufficiently compensating customers that experience order-related issues. For example, you could provide free (and easy) returns, free replacements, refunds, and/or store credit in exchange for faulty or late items. The key here is to make the process simple, and to let customers know that they have options.

Meanwhile, you’ll need to consider the inventory systems and any precautionary steps that can help you reduce recurring issues like overselling or miscalculating delivery times. Order issues aren’t entirely preventable, but they can be minimized.

03. Monitoring all customer channels

Eighty-two percent of global shoppers use more than one digital touchpoint when making a purchase. These touchpoints typically include marketplaces like Amazon, social platforms, and branded websites.

With this in mind, you’ll need to build a customer support strategy that supports an omnichannel retail approach. You’ll need to account for customer complaints, orders, and questions that crop up across channels—and will benefit from having a central command where you can monitor all these interactions from one place.

Did you know: Wix’s multichannel campaign tools include the ability to list, advertise, and track your products across a variety of channels.

No matter your approach, it's important to be consistent when offering support, regardless of where a sale comes from. Customers will expect the same great experience no matter how they reach out.

04. Collecting customer feedback

It’s always a good idea to proactively reach out to customers by asking for—and responding to—feedback. Otherwise, customers may silently churn without giving you any insight into what went wrong. And others may beat you to the punch and leave a public, less-than-desirable review.

Get ahead by asking shoppers for their feedback after receiving an order. Offer incentives, like discounts or coupons, to motivate customers to complete surveys about their experience with your business. Let customers know that you want to hear from them; don’t simply ask for positive reviews, but rather ask for honest, constructive feedback.

While there’s plenty of data providing that customer reviews and star ratings directly contribute to sales, asking for reviews has another benefit that goes beyond increasing conversions. It allows you to assess what's not working for your customers so you can improve your support approach and work on delivering a better customer experience.

05. Maintaining a conversation

Conversational commerce is a customer service approach that involves interacting with customers in real time via direct, one-to-one exchanges. Popular formats include live chat, social messaging (via apps like Facebook Messenger and WhatsApp), and AI-powered chatbots.

The purpose of conversational commerce is to offer advice as shoppers are actively buying or considering their options on your online store. This mimics real-world customer service interactions whereby you can resolve issues in the moment. A thoughtful conversational commerce approach can reduce cart abandonment rate, while providing an opportunity to upsell and cross-sell relevant items.

Online vintage and antique clothing store I Can Tell By The Moon uses a chatbot (powered by Wix Chat) to invite conversation with visitors as they browse the store. Through an integration with Wisernotify, the team further creates a friendly atmosphere by greeting visitors with an unobtrusive, slide-in message saying, “Hey, welcome to the shop! So happy you're here!”

Tips for delivering great eCommerce customer service

When it comes to providing great support, good intentions aren't enough. Here are some tips that can help you deliver on the customer support goals you set when you were starting your business.

Listen and empathize

Pay attention to what customers are saying and try to understand their needs. A little empathy goes a long way here. Rather than simply providing a solution, put yourself in the customer's shoes when dealing with issues and stressful situations. Express that you care, ensuring that customers feel that they're being seen and heard throughout the interaction.

Be prompt

The average company response time to email is 12 hours. Meanwhile, 46% of customers expect companies to respond in under four hours, according to a survey by SuperOffice. Needless to say, you can differentiate your brand by providing faster-than-average response time. This is where live chat, chatbots, and SMS support can level up your support game by offering real-time solutions.

Be professional and consistent

With every support ticket, get context before giving advice. This allows you to accurately and fully address a customer's issue or question. Make sure to also be clear as possible when responding to customer questions. Preparing a knowledge base addressing common concerns—complete with links to helpful resources like videos and FAQs—can help you manage your time as well, while equipping customer-facing employees with consistent information.

Be proactive

Follow up with customers to make sure that their issue or problem was resolved to their satisfaction. Ask them if they have any further questions and thank them for their business. A customer support experience that's friendly, productive, and helpful can turn a one-time buyer into a loyal customer.

Eliminate friction

You're never done building your eCommerce website. There's always room to optimize the buying experience. To this end, audit your site experience by recreating a customer’s everyday shopping experience or asking friends and relatives to do the same. Keep your eyes peeled for any roadblocks within your product pages, checkout process, or delivery experience—seeking to address any inefficiencies before they become major hurdles.

Measure results

Set clear goals and key performance indicators (KPIs) when creating an eCommerce customer support strategy. Measuring things like customer retention rate, sales, and positive review count can help you see the fruits of your labor. Not to mention that you can use Wix Analytics to track your eCommerce website activity and shopping metrics, like shopping cart activity and purchases, over time.

Types of eCommerce customer support channels

A comprehensive eCommerce customer support approach uses multiple channels to expand its coverage and serve customers in the most convenient way possible. Top channels include:

• Phone - This may seem old-school, but phone support remains a favorite channel for many, with 76% of consumers preferring it over digital means.
• Live chat - Let shoppers reach out to a live agent from your website or app.
• Chatbots - Quickly address commonly asked questions, or direct more complex issues to a human agent, with the help of AI.
• Social media - Provide support on social channels by receiving direct messages, responding to posts tagging your brand, and monitoring for brand-related questions.
• Email - Engage customers via email to establish an easily traceable line of communication. Set up an autoresponder to give your brand time to respond to customer inquiries, while informing customers about what to expect (e.g., “we'll get back to you within 24 hours”).
• SMS - Use texts to provide support, send order reminders, and broadcast sales or promotions. (Though be careful not to overdo it.)

Related reading: SMS marketing is killing our souls

• Self-service options - Publish help articles, FAQs, videos, and tutorials that empower customers to resolve issues on their own. As another idea: nurture a community that helps each other out.
• Videos - Create videos that demonstrate how to use your products or keep them in mint condition (as ideas). Product videos give shoppers a tangible sense of your business and your products, particularly if you don't have a physical storefront.

Good service equals happy customers

Ecommerce customer service is part art, part science. As an online store owner, you have many channels and tools at your disposal. But while it’s crucial to build good systems and processes for managing customers requests, don’t forget one essential truth: a key ingredient to good service is real human connection.

eCommerce customer service FAQ

Allison Lee

Editor-in-Chief, Wix

Allison is the editor-in-chief at Wix, with several years of experience reporting on eCommerce news, strategies, and founder stories.

Admit it: when it comes to joining a brand’s text subscriber list, you take the discount and run.

You sign up for the price break. But when the text messages start flooding in, you quickly unsubscribe.

Most of us have been there. And most of us aren’t at fault.

The reality is that texting with a brand is nowhere near as fun as texting with a buddy. Branded texts are often cold, transactional, and downright annoying.

In this first installment of Wix’s “Unpopular Opinions” blog series, Product Manager at inkFrog Josh Greenway explains why current SMS practices are bad for business. Keep reading for tips on how to turn text text messaging into a more effective eCommerce marketing tool that doesn’t just yield sales, but fosters positive sentiment towards your brand.

Josh’s take

Just because everyone texts doesn’t mean retailers should too

The attractions of mobile marketing are obvious. A third of U.S. consumers buy on their phones at least weekly—that’s more than on any other type of device, according to research from Pew.

In addition, text messaging is by far the most popular cell phone activity. In 2021, Americans exchanged 2 trillion messages, according to CTIA, a wireless industry consortium. And because people have text conversations with friends and family, colleagues and PTA committee members, they tend to prioritize reading incoming messages.

Hence why you’ve probably seen the statistics that SMS messages have an open rate of 98%, and most messages are read within five minutes. But these are numbers that erroneously lead marketers to believe they can open the promotional floodgates, according to Greenway.

In reality, just 29% of shoppers say that SMS is their preferred mode of communication with brands, compared with 56% who prefer talking to brands over email, according to consumer research by Klaviyo.

The misconception stems from the fact that like email, sending an SMS message is so cheap that marketing initiatives can seem wildly effective, even if most customers ultimately unsubscribe in irritation, Greenway says.

“If you’re OK with churning and burning leads, then why fix what isn’t broken?” jokes Greenway.

There’s a fine line between too generic and too personal

For many, promotions feel out of place in a text message queue, Greenway says. Consumers use texting to maintain their most intimate relationships, get work done, and coordinate the logistics of their daily lives; generic invitations to check out a sale or to do some holiday shopping are a jarring contrast.

“Getting marketing text messages where I keep asynchronous contact with people who are close to me is not convenient at all,” says Greenway. “It interferes with my intended use of that space on my phone.”

But retailers can also stumble if they try too hard to get personal. AI-generated recommendations disguised as one-to-one picks from a human expert can miss the mark, and the experience can quickly deteriorate if recipients respond with questions too complex for an auto-responder to handle.

Greenway recalls experimenting with an AI-powered customer service chatbot that was disguised as a human being.

“People hated it so much,” he says. “They preferred to know they were just speaking with a bot.”

When it comes to SMS, Greenway says it’s better to be upfront and label communications as being from a robot assistant avatar, while including customer service links that make it easy to connect to live humans.

“The veneer of ‘human’ is very thin on these robots. You can break it instantly,” Greenway says. “You might punch in a typo or an accidental word and confuse the living daylights out of it, and then it immediately feels like a robot experience. You may have had a different intention or mindset a fraction of a second ago—versus landing in an experience that begins with ‘Hey, I’m not a person, but I can get you to a person’ where you know that you’re engaging with a text-based robot.”

Email + SMS + apps = marketing echo chamber

Another reason SMS messages often miss the mark: they simply mirror email campaigns, Greenway says.

If recipients have downloaded a store’s mobile app, they may even receive the same message three times across email, text, and app notifications (although the advantage of apps is that they tend to give users a greater degree of control over the type and frequency of notifications they receive, Greenway noted).

Customers who start to find messages irritating may not stop at unsubscribing from a brand’s list. If they’re exhausted from being bombarded by the same marketing offers, they may reconsider returning to an eCommerce site at all. Instead, they may seek out a brand’s products on third-party channels, which serve as a buffer and limit a seller’s interaction with them. They may even end up turning to a competitor, Greenway warns.

“SMS Is the first thing I unsubscribe from and it arguably desensitizes me to other messaging I get,” said Greenway. “If you’re not doing anything to throttle [messaging], and people still want your product, they will go to a competitor or to a less annoying source.”

Intentional SMS marketing can save the day

A better path forward is to integrate SMS holistically into your marketing strategy.

As you plan your communications, Greenway advises taking into account all the ways that you currently message shoppers directly. That way, you can track total overall message volume and ensure that each service is adequately differentiated.

“Some level of consumer control and the ability to opt in to certain types of messaging is a crucial thing to offer,” says Greenway. “Let them say, ‘I do want order updates, and I want SMS for that, but don’t send me email for that.’”

Key interview takeaways

01. Put SMS subscribers in control

To ensure SMS subscribers stay engaged, consider creating multiple subscription options centered on timely, focused events or situations. The content should justify priority status in the text message queue. Among the scenarios to consider:

• Shipping and status updates - Transactional messages with information about order fulfillment are timely and ultra-relevant.
• Inventory alerts - If shoppers are tracking a particular item, letting them know it’s back in stock or almost gone can be helpful to act on immediately.
• New product signups - If customers eagerly anticipate your next release, sending SMS alerts once the latest version drops can be a compelling use of SMS.
• Limited-time offers - If you run flash sales, daily deals, or even “12 Days of Christmas” style holiday promotions, an SMS service can help shoppers stay on top of the latest offer.
• Store specials - Use phone GPS capabilities to locate store shoppers and alert them to deals as they browse the aisles.
• Feedback and surveys - Collect valuable customer information by inviting SMS subscribers to give input.
• Insider offers - VIP experiences, limited-edition items, or other offerings to reward customer loyalty are more exclusive if they’re not broadcast on the public eCommerce site.

For example, Wix merchant Kandy Cocktail offers live and virtual mixology classes and specialty events in Southern California, in addition to selling garnishes and toppers directly online. The company’s text-message service alerts subscribers to upcoming events in the area, adding value versus pushing a promotion.

02. Heed SMS-specific privacy rules

SMS marketing comes with its own set of regulations and best practices intended to prevent spam and fraud; the latest messaging interfaces feature easily-accessible buttons and tools for blocking senders and reporting spam. Consult expert sources to ensure your program is in compliance. (Wix merchants can access a network of expert development partners.)

Beyond satisfying legal requirements, consider offering customer-facing controls that allow recipients to sign up for—and to switch off—SMS services to suit their changing needs, preferences, and online behaviors. That way, they can finetune how and what they want to receive.

03. SMS marketing doesn’t have to be terrible

Despite its reputation as a moneymaker, eCommerce SMS marketing as it currently exists leaves much to be desired, thanks to content that’s repetitive, impersonal, and off-putting. But with a deliberate and thoughtful approach, you can leverage SMS’ unique strengths to enhance your overall messaging and earn customer trust.

Allison Lee

Editor-in-Chief, Wix

Allison is the editor-in-chief at Wix, with several years of experience reporting on eCommerce news, strategies, and founder stories.

Global warming. Sustainability. Plastic pollution.

Environmentally conscious consumers are starting to voice their opinions on these important topics and taking action toward a healthier planet by way of their wallets. In fact, as many as two-thirds of U.S. consumers are willing to pay more for sustainable and organic products, according to PDI Technologies.

By selling eco-friendly products, your eCommerce business can also demonstrate its commitment to sustainable practices while empowering consumers to help the earth in ways they may not have realized were possible.

All in all, selling eco-friendly products can:

• Help attract new, environmentally conscious customers
• Improve brand recognition and customer loyalty by positioning your business as socially responsible
• Reduce your environmental impact and costs through waste reduction and using sustainable materials
• Open the door to new service offerings (e.g. resale, repair, refurbishment, etc.), which can lead to additional revenue streams

In this article, we’ll explore some of the top eco-friendly products to sell, plus highlight examples of businesses that are already making a difference.

What does eco-friendly mean?

Eco-friendly refers to products that are designed and produced with the goal of having a minimal impact on the environment when used or manufactured. These products are also referred to as green, earth-friendly, or bio-friendly.

Eco-friendly products are often:

• Made from sustainable, organic, renewable, and/or recyclable materials
• Designed to conserve resources like energy and water
• Packaged in a way that reduces waste
• Free of harmful chemicals or pollutants
• Designed to be reusable, reducing the carbon footprint for manufacturers and consumers

As a business, you may not be able to offer products that fit all of the above criteria, but you can choose to focus on certain factors as part of your niche or a unique selling point. For example, you could focus on products made of sustainable materials, or you could focus on curating products that are free from chemicals and pollutants.

The top eco-friendly products to sell online

Think of a product. Any product. Chances are, no matter what product you thought of, there is an eco-friendly version available—somewhere.

According to a study by Genomatica, many consumers are interested in buying sustainable products. However, nearly half of them say that they don’t know where to find sustainable brands.

Needless to say, there’s a big opportunity for your brand to make eco-friendly alternatives more accessible to consumers. Below are some high-demand, eco-friendly product and potential online business ideas to get your creative juices flowing.

1. Earth-friendly or ethically made household goods
2. Sustainable or ethical fashion
3. Recycled or upcycled products
4. Natural and ethical personal care products
5. Sustainably packaged consumer goods
6. Renewable energy tech accessories and gear
7. Reusable storage solutions
8. Earth-friendly pet products
9. Eco-friendly gardening products
10. Sustainable and renewable fitness gear
11. Eco-friendly toys and games

01. Earth-friendly or ethically made household goods

When it comes to selling earth-friendly and ethical household items, the possibilities are endless. You could sell reusable kitchen items—such as water bottles, coffee cups, silicone straws, food wraps, napkins, and paper towels—that use all-natural or biodegradable materials like bamboo or hemp.

Or, offer household supplies like soaps, detergents, and surface cleaners that are made from non-toxic, earthy-friendly materials. Even utilitarian and decorative household goods—like furniture, rugs, linens, and throws—can be sourced more sustainably.

As an example, textile shop Kaekoo sells beautiful, handcrafted throw pillows and home goods from around the globe. Each item is ethically created and has a story of its own.

02. Sustainable or ethical fashion

The fashion industry has long been scrutinized for its carbon footprint and has responded with a slew of innovative products (swimsuits made of recycled materials, vegan yoga mats, etc.). Unfortunately, the results of these innovations are decidedly uneven—with the overall impact being almost negligible.

However, this provides a unique opportunity for your business to set itself apart from the competition by being selective of the suppliers and manufacturers you partner with. Find partners who use sustainable materials like organic cotton, industrial hemp, bamboo, or wool from humanely-treated animals.

Another idea: tap a print-on-demand (POD) service like Modalyst, which offers a large selection of customizable eco-friendly products and only prints items when an order comes in.

Alternatively, you could consider reselling gently used, quality, or vintage clothing like Henny Penny Vintage does. By pledging to only sell pre-loved items, Henny Penny aims to “[give] fast fashion the middle finger.”

03. Recycled or upcycled products

Clever artisans around the world are finding ways to reuse and upcycle discarded items, turning them into something beautiful.

For example, Handlebend’s founders started its business by making hand-crafted mugs for friends and family out of copper scraps. The mugs were such a hit that Handlebend soon blossomed into a successful D2C eCommerce brand.

As another example, Alyssa, the self-taught jewelry crafter behind The Antlered Doe, now runs a sustainable eCommerce business making jewelry from naturally shed antlers.

One-of-a-kind treasures like these can help separate your business from the competition. With the right product positioning, you can build customer loyalty and drive consumer demand for unconventionally produced products.

04. Natural, organic, and ethical personal care products

Consumers are more conscious of what they put on their skin and in their bodies these days, and many are looking for products made from natural ingredients that are safe and effective. Selling personal care products that are both natural and ethically made can align your business with the socially responsible movement.

You could sell a variety of natural, organic, and ethical personal care products like soaps, shampoos, conditioners, deodorants, and toothpaste. As shown in the example below, make sure to align your branding with your efforts, using bold copy (“just like nature intended”) and easy-to-find filters so that visitors don’t have to look far for relevant results.

05. Sustainably packaged consumer goods

With increased awareness of the impact that waste and resource depletion can have on our planet, consumers seek eco-friendly packaging alternatives. These include materials that are recycled, biodegradable, or reusable instead of traditional packaging, such as plastic or single-use paper.

For example, Mananalu, founded by actor Jason Momoa, presents purified water packaged in a recyclable and reusable aluminum bottle. For every bottle consumed, Mananalu promises to remove one plastic bottle from ocean-bound waste.

06. Renewable energy tech accessories and gear

Today’s devices are largely powered by electricity generated from finite and non-renewable fossil fuels, contributing to global warming and climate change.

As a small business, you could offer renewable energy products like personal water filters, solar radios, geothermal cookers, rechargeable batteries, and even portable solar chargers. Or, sell smart energy monitors that allow consumers to monitor their energy consumption and reduce their carbon footprint.

Flower Turbines is a great example of a company that brings together renewable energy technology and sustainability in an artistic way. The business has scaled down the concept of wind turbines for individual use in an eye-catching and colorful tulip-shaped design, which looks more like art than an alternative energy source.

07. Reusable storage solutions

Reusable storage options, such as glass containers with bamboo lids, food-grade silicone containers, and organic cotton or hemp shopping bags, provide sustainable alternatives to single-use, disposable packaging.

By using chemical-free materials, reusable storage options promote a healthier lifestyle. Plus, they’re often more durable.

In addition, reusable storage solutions deliver a more environmentally responsible option for organizing personal items, as opposed to traditional storage products that ultimately contribute to landfills, take centuries to decompose, and harm marine life if they wind up in oceans.

08. Earth-friendly pet products

It’s no secret that many pet lovers view their pets as part of the family, and it’s easy to understand why pet owners only want the best for their furry house members.

In this vein, you could sell earth-friendly pet products that are non-toxic and use sustainable packaging made from biodegradable or recycled materials.

Earth-friendly alternatives to popular pet toys, bedding, litter, flea protection, and food could be another great addition, given that they’re frequently replenished (and can thereby generate consistent revenue). Diamond Dogs strives to reduce the impact plastic has on the environment by sourcing pet supplies that are eco-friendly, non-toxic, and sustainable from like-minded suppliers.

09. Eco-friendly gardening products

More than half of U.S. households participate in gardening activities, according to research by RubyHome, increasing the demand for eco-friendly gardening supplies. After all, natural, sustainable, and nontoxic materials are safer for both the gardener and the garden. Think: organic fertilizers, natural pesticides, compost bins, and rain barrels.

Garden tools made from recycled or biodegradable materials (like bamboo or wooden garden stakes, coconut coir pots, and cloth garden bags) could further enhance your catalog.

10. Sustainable and renewable fitness gear

Fitness gear—like yoga mats, gym bags, water bottles, resistance bands, and athletic clothing—made from eco-friendly materials—like recycled plastic, Lyocell/TENCEL (made from eucalyptus trees), organic cotton, and bamboo—can lower your carbon footprint. Not to mention that they can satiate expectations around both style and environmental responsibility.

For inspiration: Wholesaler Preloved Kilo sells gently used, vintage sportswear (alongside other types of clothing) in an effort to keep items out of landfills. It also aims to save consumers money with its unique pay-by-weight pricing model.

11. Eco-friendly toys and games

The demand for sustainable toys and games is rising across the globe and is predicted to increase 12.5% annually through 2030, according to Allied Market Research. This is thanks, in part, to social media influencers who are helping to drive interest in eco-friendly products.

Eco-friendly toys and games are available in materials like recycled plastic, sustainable wood (like bamboo), and organic cotton. Eco-friendly toys and games can include anything from dolls, action figures, construction sets, games, puzzles, sports toys, and more.

How to select the right products to sell

Choosing the right eco-friendly products to sell requires more than simply picking your favorite products from the list. Rather, consider how your product decisions will impact your branding and eCommerce business plan. Determine which eco-friendly products are best aligned with your business’s overall brand, goals, and target market.

Things to consider:

• Environmental impact - Eco-friendly products can vary greatly in how they impact sustainability, energy efficiency, and carbon footprint. Consider which aspects are most important to your business and its initiatives, then hone in on products that meet your selected standards.
• Business alignment - Consider whether the product aligns with your business’s mission, values, branding, target audience, and marketing strategy. The more aligned the product is, the greater the potential for generating a positive return on your investment.
• Ethics - Sustainable or natural materials don’t guarantee ethical production practices (e.g. fair wages and working conditions, responsible materials sourcing, ethical treatment of animals, etc.). For example, you may decide to focus on offering cruelty-free cosmetics and household cleaners, while prioritizing sustainable materials for clothing.
• Sourcing - Eco-friendly products can be sourced directly from manufacturers, dropshippers, and local suppliers, or made in-house to reduce your carbon footprint.
• Market trends - Use consumer reports, trade publications, and tools like Google Trends to determine which eco-friendly products are in high demand within your industry.
• Packaging - Be mindful of packaging. Consumers may prefer products with eco-friendly packaging like paper, cardboard, plant materials, or biodegradable polymers. But as a business, you need to weigh the benefits versus the costs and choose the products and packaging options that are most feasible.
• Manufacturing and distribution costs - Consider the production and distribution costs of eco-friendly products compared to that of traditional products to determine feasibility, marketplace viability, and potential cost savings. Furthermore, avoid surprises by taking a proactive approach to understanding any logistical challenges you may need to anticipate or accommodate.
• Product certifications - When sourcing items, consider a product’s certifications (i.e. organic, sustainably sourced, chemical-free). Certifications can assist you in selecting products that meet a certain standard. Additionally, because they are often verified by a third-party authority, certifications can add credibility and an additional selling point for your business.
• Government incentives and regulations - As a seller or user of sustainable products and materials, you may qualify for government incentives including tax credits, rebates, and even marketing support through government-sponsored websites.

Endless potential to make a difference

Selling products online that are eco-friendly is not only a responsible choice for your business. It can also be profitable and help to build brand loyalty. To achieve the best results, take time to plan your product strategy carefully, complete with market analysis and product research.

Allison Lee

Editor-in-Chief, Wix

Allison is the editor-in-chief at Wix, with several years of experience reporting on eCommerce news, strategies, and founder stories.

This post was last updated on February 24, 2023.

Recent years have seen a lot of new eCommerce activity. Many businesses—from brick-and-mortar shops to online stores—have found themselves selling to a new audience online, with some reaching customers in states that they’ve never sold in before.

At times like this, understanding and maintaining tax compliance is essential. Because when you expand your footprint across new channels and geographies, you may find that you’re subject to new sales tax obligations.

Why you need to think about eCommerce sales tax

It’s easy to be snared by the complicated web of online sales tax rules. Sales tax regulations vary widely by state—and individual counties and cities may levy local rates on top of what the state charges.

Learn more: The tricky 10—states with the most complex sales tax filing rules

The tax rate isn’t the only thing that can change from area to area. You may need to charge tax on an item when it is sold in one state, but not in another. Or, you may not be responsible for collecting tax at all for a state until you reach a certain threshold of sales (however, that threshold is different in every state). And after you figure out where you need to register and collect sales tax, you’ll have to file and send the collected taxes to all of those places.

It can be overwhelming, especially if you’re new to this or if your business has grown to the point where you have to start thinking about your sales tax strategy. Plus, if you fail to comply with sales tax laws, you’ll be subject to fines and other penalties.

Below, we’ve identified six steps that can help you remain compliant at every stage of the sales tax cycle. We also review how these six steps relate to specific business challenges retailers face today.

The 6 dos and don’ts of sales tax compliance

1. Do your research
2. Don’t ignore it
3. Don’t forget about exemptions
4. Do collect the right amount
5. Don’t flake when it comes to filing
6. Do use technology to your advantage

01. DO your research

Depending on your line of business, it might be easier than you think to figure out your nexus (where you’re required to collect tax).

Nexus is the connection between you (the seller) and a state that requires you to collect and remit sales tax. It’s based on your unique business activity in a given jurisdiction. For example, if you sell mainly to people in your state and have a small operation, determining nexus can be relatively simple. But if you make significant sales for delivery into multiple states, it can quickly become complex.

You can create nexus in various ways, most of which fall under either physical nexus or economic nexus.

• Physical nexus - Established by having a physical presence in a state. In addition to a store or office, physical nexus may be triggered by off-site employees, warehouse locations, affiliations, and even trade show attendance.
• Economic nexus - Determined based solely on sales volume in a state. If you reach a specific sales volume or number of transactions with residents of a jurisdiction, you can trigger nexus.

It’s important to note that you’ll need to register and remit sales tax if you have physical nexus or economic nexus.

02. DON’T ignore it

The head-in-the-sand approach usually doesn’t end well, so don’t just ignore dealing with tax. Don’t assume anything, either.

Thinking “I’m too small” or “I don’t sell in that state” or “They probably won’t notice” can all be recipes for disaster (especially that last one). If you aren’t collecting sales tax, the state is going to want a good reason.

COVID-19 has increased the likelihood that states will be more stringent when it comes to collecting sales taxes from sellers. According to The Pew Charitable Trusts, which analyzes trends and issues that impact public policy, sales taxes typically are relatively stable sources of revenue even during downturns, like the one resulting from this pandemic. And those taxes comprise about 33% of total state tax revenue, Pew notes. That means that states now need every last dollar. It’s therefore reasonable to expect more vigorous enforcement of sales tax laws from this point forward.

It’s important to stay current on the variety of sales tax laws and what activities trigger each state’s nexus. Here are just a few of the things you need to know.

• Do you sell something you can physically touch? If so, it’s called “tangible personal property,” and it’s generally taxable. However, exceptions vary from state to state.
• If you sell items through a marketplace, there’s a high likelihood it’s taxable. More than 43 states now require out-of-state sellers to register then collect and remit sales tax under economic nexus laws. Businesses that sell on eBay or other marketplaces also need to be aware of marketplace facilitator laws.
• Services, SaaS, installation, clothing and apparel, and labor are taxed differently in each state.

As your business expands, it’s critical to understand how revenue growth may change your tax compliance obligations. Tax compliance automation solutions can save you time and help you mitigate risk.

03. DON’T forget about exemptions

As small businesses grow and sell in more states, learning the process of collecting and filing sales tax can be a significant challenge. Interestingly, it can be challenging to learn the process of not collecting sales tax—because every state has its own rules (and certificates!) for tax exemptions.

Exemptions can be based on the product, the intended use of the product, or the buyer’s status.

Here are the three main types of sales tax exemptions:

• Product-based exemptions - In some states, for example, grocery items are exempt from sales tax. It gets tricky because these exemptions can then have rules within rules: Prepared foods, such as a ready-to-eat rotisserie chicken purchased from the deli, may be taxable while a package of chicken breasts the buyer will cook at home might be exempt.
• Use-based exemptions - Products that are intended to be resold are frequently exempted from sales tax. Typically, this is because the reseller will charge sales tax when the end-user purchases these items.
• Buyer-based exemptions - Nonprofit organizations or government agencies are often not required to pay sales tax (states cannot charge sales tax on items purchased by the federal government, and this exemption is often extended to state agencies as well). Also, buyers from states without a sales tax can sometimes be exempted from paying tax when purchasing products in other states.

Unfortunately, properly documenting exemption and resale certificates can become incredibly complex when numerous states, entities, and variables like nexus and drop shipments come into play. You must properly store certificates if your business still relies on paper-based filing systems. Thorough and accurate exemption certificate management requires input from various departments; tax analysts, credit managers, and IT departments all play essential roles.

04. DO collect the right amount

Once you’re registered in the tax jurisdictions where you have a nexus obligation, you’re ready to start calculating sales tax.

Collecting the right amount of sales tax is critical. You must understand the variables that go into determining a tax rate, such as tax jurisdiction rules, product taxability, and sales tax holidays, for what you’re selling. Moreover, you’ll need to have a plan in place to efficiently and appropriately apply the tax rates on your transactions.

Here are three key considerations to make sure you’re collecting the right amount of sales tax:

• Geolocation and its impact on tax calculations - ZIP code-based calculations don’t go the distance when determining appropriate tax rates across tax jurisdictions. Watch this video to learn how geolocation technology helps ensure the most accurate rate possible.
• The taxability of the products you sell - Not all products are taxed the same across tax jurisdictions, so it's essential to understand how the taxability of products can impact various tax rates.
• Sales tax holidays - Learn which states offer a temporary holiday from paying sales tax. These can change from year to year, so make sure you have the most current data.

05. DON’T flake when it comes to filing

With registration complete and sales tax collected, it’s time to remit those funds to the appropriate tax authorities. Each taxing authority has unique regulations around sales tax remittance, including when sales tax returns are due, how they should be remitted (either via paper returns or electronic returns), and frequency of remittance.

Some states, like Illinois and Oklahoma, also have outlet reporting requirements, which means businesses with multiple locations must break out their sales by location and file separate sales tax returns. It's important to pay attention to outlet reporting requirements because they can significantly impact your filing and remittance burden in states with these rules.

Ensure that you understand the filing requirements for each jurisdiction where you collect tax and have a plan or solution to file those returns when they’re due. Determining your sales tax liability, what tax forms are required, and how to remit it can be incredibly time-consuming for retailers. Make sure you have dedicated resources for this every filing period.

It’s also critical to have a strong understanding of the state-by-state guide for sales tax returns filing and remittance. When you register to do business in a state, you essentially become a sales tax collector for the state. Your company is expected to collect sales tax on taxable transactions and remit the appropriate amount to the jurisdiction. While this may not be the most exciting part of doing business, it's critical to maintaining compliance.

06. DO use technology to your advantage

There are solutions designed to help businesses like yours, whether you’re selling in all 50 states or just one, or whether you have millions of dollars in revenue or hope to have that one day.

Outsourcing to an automated tax compliance solution is a viable, cost-effective method of enabling your company to improve audit response, strengthen customer relationships, and reduce overhead costs of the non-revenue building activities of sales tax management.

Automation is the number one tax compliance strategy employed by leading companies compared with their trailing peers. Aberdeen Research found that these market leaders are three times more likely to automate sales tax.

The payoff of sales tax automation is compelling. Research shows that Avalara AvaTax customers:

• Reduce the time spent managing sales tax by 58%
• Avoid overpaying sales tax by 90%
• Pass audits without penalty by 50%

The best part? You won’t have to worry about keeping up with new laws, rate changes, and other shifts, because you’ll have someone staying on top of it all for you.

There’s no way to sugar-coat it: Managing sales tax can be tricky to do manually. And every business selling online today needs to be mindful of understanding and meeting their obligations. The right tax approach can help ensure you’re positioned to grow and thrive.

Looking to automate your sales tax? Integrate your online store with Avalara and become compliant today.

Leila Goldberg

Senior Partner Marketing Manager, Avalara

Leila is a senior partner marketing manager at Avalara. She has spent the last 18 years helping brands and retailers build brand advocacy and drive revenue.

This post was last updated on February 23, 2023.

The best products aren’t always ones that you can hold in your hands. Some exist purely online.

These digital products can make up a store’s entire catalog or complement an existing catalog of physical goods. Whatever the case, it’s worth noting the different types of digital products that are sold successfully today.

And if you’re on the hunt for fresh eCommerce business ideas, digital products may be a great starting point. Read on to discover the benefits of selling digital products, how and where to sell them, and which types can deliver the best results for your brand.

What is a digital product?

As the name suggests, digital products are intangible products that are bought and sold online.

While physical products require you to create multiple units and ship an item with every order, digital products only need to be produced once. The same product can be sold repeatedly without any additional manufacturing, shipping, or inventory costs.

Digital products are typically delivered via download or streaming. Common digital product formats include videos, audio files, image files, and document files like PDFs.

8 digital product ideas to consider for your online store

With all that said, selling digital products can be a lucrative endeavor. Here are several digital product examples worth considering for your store.

1. Digital courses
2. Digital music and artwork
3. Digital craft patterns
4. Digital templates
5. Ebooks and audiobooks
6. Membership sites and communities
7. Digital services
8. Podcasts

01. Digital courses

These days, online learning has permeated nearly every life stage—with everyone from elementary school students to working adults benefiting from online courses. And in eCommerce, digital courses are cropping up as supplements to standard product offerings.

Think: beauty brands that offer makeup tutorials. Or, organic food stores offering cooking classes.

As another example, Chiro21 started its online store with a clear goal: to create entertaining and convenient continuing education (CE) courses for chiropractors. Today, they offer a variety of digital courses covering topics such as personal injury, total rehab, and joint health. Each expert-led course includes 16 hours of CE credits and costs $350.

In a similar vein, you could offer courses as ongoing subscriptions or bundle multiple sessions into a masterclass that’s available for one flat fee. Remember to speak on topics that are relevant to your brand and within your wheelhouse. If there’s a knowledge gap, consider partnering with external experts who can enrich your course material, plus attract attention to your program.

02. Digital music and artwork

Digital products grant artists and musicians tons of creative freedom.

Artists can create landscapes and nature paintings that consumers can print themselves to hang inside their homes. Musicians, on the other hand, can turn their coolest guitar riff into a ringtone. Meanwhile, a graphic designer can create and sell corporate logos or brand kits for others to enjoy.

As a more specific example, artist Chelsea McShane specializes in contemporary abstraction, animals, and spiritual artwork. She uses her online store to promote both her physical artwork and digital art, including a line of downloadable wallpapers for Samsung TVs.

Needless to say there are plenty of ways to sell art online, but digital downloads offer the advantage of being able to replicate and resell your work over and over again.

03. Digital craft patterns

Colorful tote bags, intricate macrame wall hangings, and other handcrafted items are already sold (and adored) all across the world. Now, you can invite customers to make their own creations via digital patterns.

Read also: How to sell crafts online

These printable products most often take the form of a PDF. You can make downloadable sewing patterns that help people create a one-of-a-kind shopping bag. Or, you can make knitting patterns, coloring pages, and even e-workbooks filled with interactive activities for children.

Sewn Ideas offers a complete line of PDF patterns designed for everyone from beginners to advanced sewers. More advanced patterns (such as an on-the-go makeup bag) are sold at a price between $6 and $10, while simple patterns (such as a pencil case) are offered for free. The company complements its patterns with online tutorials that show you how to sew a clips bag, pincushion, or book sleeve.

Note: When offering digital patterns, make sure that your product pages clearly state that the customer is paying for a template, not the finished product. It’s also worth stating what supplies the customer will have to purchase separately to avoid any confusion or false expectations.

04. Digital templates

Outside of crafts, digital templates can serve to help other professionals work faster, smarter, or more efficiently.

For example, you could offer a downloadable content plan template for marketers. Alternatively, you could create a vision board for people looking to better track progress towards their personal or professional goals. Or, you could create templates for various needs: slide decks, business cards, resumes, or even Notion boards.

One of the more popular types of templates are downloadable planners. Clarke Peoples, a content creator based in New York City, sells a printable personal planner that’s chock-full of resources, from monthly reflections and budgeting pages to weekly meal planners and grocery lists.

The best place to start is by thinking about your strengths and experiences. Is there a process, approach, or habit that has worked well for you in the past? Are there any tips that you could impart to other professionals in the form of a customizable template?

05. Ebooks and audiobooks

In 2021, ebook sales topped $17.5 billion in the U.S. alone—and Statista now projects that the e-reader market will reach roughly $23.12 billion by 2026.

Thankfully, ebooks are versatile and can fit into the product assortment of nearly any type of eCommerce business.

Selling sporting goods? Offer a how-to ebook that explains the basics of riding and maintaining a bicycle. Selling CBD products? Publish an audiobook that educates consumers about the health benefits of CBD oil. Ready to start a food business? You can bundle your most unique recipes into an ebook.

A busy mother of three, Desiree Baird launched Pediatric Sleep Coach to help families around the world get the physical rest that they need. Her online store includes downloadable ebooks that offer sleep schedules for children, alongside tips for creating an ideal sleep environment.

06. Membership sites and communities

Membership sites allow you to bundle multiple products together while creating a sense of community among your customers. Buyers can pay to gain access to exclusive content and/or to connect with people who share the same interests as them.

You can create a members area directly within Wix. Or, if you want to take it a step further: consider hiring a developer to turn your idea into an app (though keep in mind that a relatively basic app can cost between $16,000 to $32,000 to develop).

Ashley Antoinette, a New York Times bestselling author, created The Book Lovers app as a way to share her passion for reading with others worldwide. The app lets members discuss top-selling novels, take a writer’s workshop, and get exclusive early access to book releases. It’s free to download, but users can upgrade their experience with paid memberships.

07. Digital services

The best business ideas often stem from a personal passion. Similarly, you can package your skillset—be it in graphic design, search engine optimization, video editing, or other areas—as a “product” to be sold online.

An inspiring example is Moonstrive Media. The platform was started by artists who shared a common concern: that the music they worked so hard to create was getting lost in all the noise. So, they started their own digital music promotion company, inspired by their efforts studying Spotify’s search algorithm. Today, Moonstrive Media offers pre-packaged promotion services to help other artists get their music in front of millions.

08. Podcasts

About 43% of Americans between the ages 35 and 54 are now monthly podcasts listeners, with many tuning in from their cars. By creating your own podcast, you can humanize your brand and build your team up into thought leaders within your industry.

You can further monetize your podcast by attracting sponsors. Or, you can use your podcast as a platform for promoting your own products to a relevant (and highly engaged) audience.

For example, Make Pop Music hosts a biweekly podcast, The Sound Table, featuring candid discussions around music and business. The Sound Table aims to bring value to its target listeners—music producers, songwriters, and artists who want to hone their craft and may even be interested in their online courses later down the line.

You can launch a podcast with relatively little capital; podcast startup costs generally run between $350 to $400, according to Podcastle, and there are plenty of ways to shave costs. However, podcasts are a long-term commitment. You’ll need to consistently create fresh, thoughtfully planned out content and invest some time and dollars into promoting your podcast.

Where to sell digital products online

How and where should you sell your digital products? There are a plethora of channels to consider. The specific channels you choose will depend on the type of products you offer, as well as the audience you wish to target. Here are a few good options.

Your online store

An online store gives you complete control over pricing, branding, and the overall customer experience. You have total freedom over how you market your digital products, plus how they appear next to any physical products that you offer on your site.

From the get-go, it’s important to find an eCommerce platform that meets all of your current and future needs. What customization options are you seeking as it relates to your store design and backend? What integrations (e.g., external sales channels, marketing apps, or seller tools) do you need? How do you plan on managing subscriptions or different product tiers?

Wix for eCommerce offers built-in features to help you sell subscriptions or create members-only store pages. It offers an extensive App market to help you build out your ideal workspace. You can also access the Wix Help Center to learn more about how to specifically create a digital product and deliver digital files.

Third-party marketplaces

Diversifying your eCommerce strategy with a multichannel selling approach will help you raise your brand’s overall visibility, boost your profit potential, and avoid over-reliance on a single sales channel.

In addition, third-party marketplaces can connect you with established audiences with a clear interest in purchasing products like the ones you sell. That said, you’ll want to make sure that the channels you sell on support digital products. Some, such as Instagram and Facebook, expressly forbid you from selling digital products on their platforms.

By contrast, the below channels are a good fit for certain types of products:

• Amazon, which started as an online bookstore, is an ideal place to sell ebooks and audiobooks. In fact, Amazon’s Kindle Direct Publishing platform makes it very easy to self-publish.
• Etsy is a natural fit for merchants who want to sell digital art or downloadable craft-related products, such as sewing patterns or wedding invitation templates.
• Creative Market, a fast-growing marketplace for pre-made digital assets, is ideal for artists and designers who sell digital items like fonts, business templates, or photos.

For best results, you should integrate your third-party marketplaces with your online store. Wix for eCommerce offers you this functionality for select channels, so you can easily sync your product descriptions, images, and pricing across channels.

Social media

eMarketer reports that about half of both U.S. Gen Z and millennial shoppers currently make purchases directly on social media, making it another great channel for selling or promoting digital products.

Again, the social channel you choose should complement the type of digital products you’re selling. Digital art and other highly visual items will likely generate buzz on a platform like Pinterest, whereas YouTube is an ideal platform to promote online courses or original music (86% of U.S. viewers say they use YouTube to learn new things).

Each channel also offers unique selling options, ranging from shoppable ads on TikTok to product pins on Pinterest. So, take the time to explore. Research the channels and formats that you believe will resonate best with your audience. Then, take the time to learn each platform—first as a user, then as a seller.

Is it time for you to ‘go digital?’

From digital art to membership sites, the number of profitable digital products that you can sell seems to grow by the minute. When it comes to starting a business, the trick is to think from your customers’ shoes. What type of content do they normally engage with? What knowledge gaps or cravings can you help to fill? Think creatively, as well as realistically, as you weigh all of your options.

Pros and cons of selling digital products

As with any product, no two digital products are the same. The level of maintenance, marketing, and other strategies involved may vary from product to product. That said, digital products, as online business ideas to consider. generally offer the below benefits, as well as the below challenges.

Pros

• Higher profit margins - Because digital products aren’t tangible, you don’t need to purchase warehouse space or spend money on physical shipping and packaging. As a result, you get to keep more of your profits from each sale.
• No inventory hassles - When you sell physical products, you typically have to buy inventory in advance and consistently replenish your stock (the exception being print-on-demand items). By contrast, digital products are sold on demand and can be easily replicated or shared among multiple customers.
• Greater diversity of products - Adding digital goods to your physical product line not only gives your consumers more buying options, but also gives you the freedom to experiment with different product types and selling techniques. For example, you might choose to bundle certain products together and offer subscriptions. Or, you might choose to offer some products for free. You don’t have to worry as much about overhead costs or turnaround times when testing various ideas.
• Opportunity to reach younger consumers - There’s evidence to suggest that Gen Z and even Gen Alpha are attracted to (and familiar with) digital products. In fact, one study of Gen Alphas showed that 55% would rather buy or download something digitally than own a physical product.

Cons

• Stiff competition - Because of the ease and flexibility of creating digital products, you may find that it’s a crowded marketplace. Moreover, many products may be offered at a low price—if not completely free of charge—making it especially important for you to establish a strong brand and foothold within a particular niche(s).
• Ongoing maintenance - Although most digital products can be produced and replicated quickly, many may require routine updates to meet changing consumer tastes. Some (like apps) are far more complicated to manage all around, while others (like video courses) tend to require expansion in order to retain customers.
• Piracy - You’ll need to take some extra steps to ensure that the digital products you sell can’t be shared and replicated by others for free. If you create written or artistic products like digital art, stock photos, or ebooks, make sure you have copyright protection as a safeguard.

Digital products to sell FAQ

Allison Lee

Editor-in-Chief, Wix

Allison is the editor-in-chief at Wix, with several years of experience reporting on eCommerce news, strategies, and founder stories.

This post was last updated on February 20, 2023.

So, you want to start an eCommerce business? You’ve picked a good time to start.

These days, eCommerce is permeating nearly every industry, from furniture to groceries, and cars to CBD. Opportunities abound for every type of seller—whether you’re building a business from the ground up or taking an existing store online.

But no matter what you plan to sell online, there are several steps you’ll want to take to set yourself up for success. Keep reading for expert tips on how to get your online store set up and start accepting your first online orders.

How to sell online in six steps:

1. Create your online store
2. Decide what to sell
3. Choose how to source your products
4. Build your eCommerce brand
5. Choose where to sell
6. Market your store and products

01. Create your online store

At the heart of any successful eCommerce business is its online store. While you can sell on third-party marketplaces like Amazon, it pays to create an online store that serves as a flagship destination for your brand. An online store grants you total control over the user experience, as well as the branding and customer data.

Start off on the right foot by picking a suitable eCommerce platform for you. Consider a platform that grants enough flexibility, alongside features to scale and manage your business.

Wix eCommerce, for example, offers a code-free website builder that lets you:

• Build a site from scratch - You can choose from a variety of professionally designed online store templates. Easily create everything from your category pages to your product pages, and spruce up your site with animations and multimedia—all without coding.
• Create a mobile-friendly experience - Mobile sales typically make up about 73% of eCommerce sales, according to Statista, so it’s essential that your site is mobile-friendly. Wix sites are mobile responsive by default and can be customized however you'd like.
• Import and organize your product data - Wix serves as the single source of truth for all of your product data. Manage your pricing strategies, product listings, and shipping policies from one place—and ensure consistency throughout your store and other third-party channels.
• Accept and manage secure payments - Wix’s native payment solution, Wix Payments, allows you to accept all major credit/debit cards, Apple Pay, PayPal, and more. For U.S. and Canadian users, there's a snazzy mobile POS that even lets you take payments on the go. Then, control all your transactions, payouts, and chargebacks, right from your dashboard.
• Track and manage your business seamlessly - Track and process all store orders from purchase to delivery. Wix includes features to simplify inventory management, multichannel expansion, analytics, dropshipping, and taxes (among other things). You can additionally run your business from anywhere with the Wix Owner app.

Tip: Just starting your new venture? Before you jump online, use our store name generator to craft the perfect title for your brand.

02. Decide what to sell

It goes without saying that you need a well-designed product catalog in order to develop a strong brand. If you’re starting an online store from scratch, do your research and factor in profit-potential, sourcing methods, and your personal passions when evaluating product ideas. More specifically, follow the steps below.

Related: A list of the most profitable eCommerce business ideas

Start with something you need yourself

When it comes to starting a business, oftentimes the best place to start is starting with what you know. For instance, are you a young parent looking for a toy that will ease your child’s anxiety at night? Or, are you an avid cook looking for one place to find moderately priced, yet high-quality kitchenware?

Whatever the case may be, think of the problem that you face and any existing solutions. Where do those solutions fall short? What can you provide in convenience, price, or quality (as examples) that others can’t?

Determine your audience

Next, put your personal biases outside and look to outside sources to learn more about the consumers you plan to target with your products. What do those consumers look like? Where do they live? What do they care about most when researching products or brands like yours?

Utilize social media, forums, surveys, and everyday conversations to get insights into your target audience’s preference. Go through the process of developing buyer personas, which will force you to think about primary plus secondary users of your products and their unique needs.

Personas will also come in handy as you make decisions regarding messaging, website design, and marketing strategies in the future.

Research your competition

Competition is inevitable. Even if you have yet to sell a single product, you’ll want to know who your potential competitors are and what they’re doing to get ahead.

Search for your product ideas on marketplaces like Amazon and Etsy, and view the top sellers in your category. Follow relevant hashtags on Instagram, TikTok, and other channels. You could even leverage keyword tools like Semrush or JungleScout to understand what products are being searched on Google, Amazon, and other popular sales channels.

Pay attention to your competitors’ pricing, messaging, and customer reviews. Not only will this give you a better idea of how you need to position your products, but will also help you identify gaps in the market.

Pro tip: If possible, talk to the people in your competition’s supply chain—the ones who actually manufacture, store, and ship these products. They could provide interesting insights on production costs, customer behaviors, return rates, and other considerations.

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Track trending products

Trends come and go like the wind, so it’s important to avoid depending entirely on viral products that don’t have long-term earning or staying power (Do you remember the waffle maker that went viral on TikTok? The one that supposedly yielded the best cheesy waffles? Nope? Exactly).

So, while it’s always good to keep up-to-date with trends, make sure to anchor trending products with more “evergreen” items. That said, you can use social media and free tools like Google Trends to see what products are gaining momentum online. Keep an eye out for trending brands, product types, and collaborations that might be useful for your catalog planning.

03. Decide how to source your products

As you consider which products are worth selling, you’ll want to think about the costs and steps involved in sourcing them. There are various product sourcing strategies that you can choose from, including:

• Manufacture or hand-make products on your own
• Work with a third-party manufacturer
• Purchase from a wholesaler
• Dropship

Among these, dropshipping is one of the fastest and easiest to leverage. Dropshipping is a method in which you sell products from a third-party supplier, who then ships items directly to your customer once an order comes in.

This process is popular because of the perks that it offers, like minimal upfront costs or storage costs. This approach makes it easier for new merchants to break into eCommerce without the overwhelming task of manufacturing, warehousing, and shipping products. Wix’s dropshipping solution allows you to instantly access millions of high-quality products from trusted, highly vetted suppliers.

04. Build your eCommerce plan and brand

Now that you’re ready to bring your product to market, it is time to create your eCommerce business plan. A solid business plan is foundational for any online brand, helping you document how you plan to structure, operate, and manage your business.

Within here, you’ll also start to piece together the different components of your branding. This includes:

• Picking a strong business name. Naming your business wisely is an absolute must. Think of something easy to read, say and spell, as your brand name will appear everywhere. Get your ideal name with Wix's Business Name Generator.
• Choosing the right domain name. Try to match your store name exactly. This will help your customers find and remember your brand online. Note: your domain name affects your store’s ranking on search results.
• Creating a memorable logo. Your logo is at the heart of your branding efforts and will represent the essence of your store’s personality. Follow this guide on how to create a logo or start with the Wix Logo Maker.
• Setting up a business email. Feature your website’s domain name in your email address (e.g. [email protected]) rather than the one that’s generated from the platform (e.g. [email protected]). This makes it easier for customers to identify where the emails are coming from.

05. Choose where to sell

Your customers are a moving target. Apart from visiting your online store, many of them will be hopping between channels like Amazon, eBay, and social media to research, compare, and purchase products.

You’d therefore benefit from establishing a strong multichannel selling strategy. Online marketplaces not only allow you to reach larger, established audiences, but to also access customers all around the world.

That said, every business has different needs and thus requires a unique strategy. Identify sales channels that best suit your target audience. Take the time to understand what makes each channel so popular, and study the type of products and content that perform well on them.

You’ll additionally want to understand what it means to participate as a seller. Every sales channel has a unique algorithm and rules of engagement. Plus, operations can get messy if you’re not prepared. (Shameless plug: Wix eCommerce allows you to easily add or remove integrated sales channels, so you can experiment with what's right for your business. And enjoy a single dashboard for managing your multichannel inventory, orders, and product listings to avoid costly mistakes.)

Learn more about how to manage multichannel sales with Wix eCommerce.

06. Market your store and products

Once you’ve got your sales channels sorted, it’s time to market your products. The last thing you’ll want to do is be a sitting duck, waiting for customers to notice you. Rather, lean into clever eCommerce marketing strategies, along with marketing tools, to proactively drive more traffic and sales for your business.

Consider these eCommerce marketing tactics:

• Master Search Engine Optimization (SEO) - When shoppers use search engines such as Google to look for products like yours, ranking high on the results pages is the ultimate goal. Build a solid eCommerce SEO plan that factors in your meta tags, URLs, structured data markup, and more. (Stay at the forefront of SEO by exploring Wix's SEO Learning Hub.)
• Launch ad campaigns - There are a number of ad platforms worth experimenting with. Google, for one, offers SEM and Shopping ads that help you reach the 40% of consumers who start their product searches on search engines. Meanwhile, Facebook focuses on triggering interest through strong visual ads. See what channels are offered natively through your eCommerce platform, and expand your reach with the help of paid campaigns.
• Chat with customers - In our experience, sending products to customers via live chat has helped to generate up to 71% more sales. Sellers who’ve answered chat messages from users have also seen conversion rise by 65%.
• Offer coupons - Coupons are a very common way to offer discounts to your audience that are redeemable at checkout. Most stores use them regularly, but especially to get shoppers to buy for the very first time.
• Run flash sales - Flash sales, or limited-time discounts, have proven to be incredibly effective. It can help you unload old inventory and, according to Wix data, has helped online stores increase monthly gross merchandise value (GMV) by a whopping 64,000%.
• Recover abandoned carts - Nearly 70% of your shoppers will abandon their cart at checkout, according to Baymard Institute. One of the most popular (and effective) ways to recover an abandoned cart is through a triggered email. These small reminders can convince customers who are on the fence to complete a sale.
• Engage customers via email marketing - Email remains a concrete way to build lasting relationships with your shoppers. The best eCommerce platforms offer built-in email solutions, including pre-made templates and editors so your newsletters will look on-point right from the start.
• Retarget customers - Retargeting (aka remarketing) is when you remind your audience about your products via ads that follow them across the web. These ads are typically managed on channels like Facebook or Google; they require adding a pixel to your site—that is, a specific code snippet that allows you to track your audience once they leave your store.

Get selling today

So, are you feeling excited to start selling online? Excellent. You’re well on your way now and you can always refer back to this blog as you go. Make sure to follow our guide on how to grow your eCommerce business. Enjoy the wonderful experience of transforming your ideas into a business, and even better—a profit.

Ready to start selling online? Create your eCommerce website today.

Watch our video courses to learn more about eCommerce today!

How to sell online FAQ

Aisling Arundel

Marketing Writer, Wix eCommerce

Aisling is a marketing writer for Wix eCommerce, based in Dublin. She enjoys writing content that simplifies the eCommerce world to help Wix Merchants grow their businesses.

This post was last updated on February 18, 2023.

Good eCommerce website design is the marriage of form and function that serves the ultimate goal of any online store: to sell.

While good eCommerce websites come in many different forms, what they all have in common is visual design that creates a strong brand experience, content that builds trust, and a user experience that aids the customer in their buying journey.

In this blog we’ll take a look at the specific eCommerce website design elements and features that can help you up your design game, as well as 14 of the best eCommerce website examples for inspiration.

Looking to get started on your online store right away? Get started with one of these eCommerce website templates.

1. Copper & Brass
2. Sticky Lemon
3. Vivi et Margot
4. Izzy Wheels
5. Celebs on Sandwiches
6. Gay’s The Word
7. Indian Summer
8. Melissa Mitchell
9. Coal and Canary
10. Ultasmile
11. Evolve Clothing Gallery
12. The Spice Suite
13. Kaekoo
14. CeliaB

What makes good eCommerce website design?

It’s visually appealing

Just as lighting, music, and decorations create ambiance in a brick-and-mortar store, every design element of your website influences how your brand is perceived. Shoppers will evaluate your store in seconds—making it especially important for your branding to be polished, professional, and consistent.

Photography

Quality product photography is essential in helping shoppers understand and trust your products. Make sure that each product is accompanied by at least one minimalist photo that shows your item against a white or plain background. Include additional photos that show your product at various angles and/or close up so that shoppers can see the finer details. Aside from your product photos, remember that imagery plays a big role throughout your site. Weave lifestyle photographs throughout your pages and focus on creating a visual story about your brand.

Multimedia

Between video and 360° images, user-generated content and size charts—adding a variety of media can elevate the shopping experience on your site. Aside from offering an engaging experience, each of these elements can help your shoppers to visualize various things about your product: size, use, texture, color, and more.

Strong copy

Incorporating strong copy and engaging content into your eCommerce design helps to build your brand voice, create trust, and increase the professionalism of your brand. Every piece of text your shoppers encounter in their buying journey is an opportunity for creating a personal connection, so you’ll want to be thoughtful with your copywriting.

It fosters trust and loyalty

Even for the savviest of online shoppers, purchasing goods online requires a leap of faith. Design elements can be instrumental in building trust and influencing a sale.

Product reviews

We don’t need to reiterate the importance of social proof in creating a high-converting product page. But note that it’s your responsibility to make sure that customer reviews are easy to find. Additionally, keep in mind that customer reviews can help with SEO by adding depth to your product pages and touching on long-tail keywords.

About Us page

Invest in creating an About Us page where customers can connect with the human side of your brand. A good About Us page outlines your company values, communicates your commitment to your brand, and spotlights the people behind your products.

Return policy

Creating and posting clear policies regarding returns and exchanges helps create transparency. Customers want to know what to expect from you before they make a purchase. Moreover, most expect returns to be easy; in fact, a whopping 92% of consumers say they would buy from a company again if it offers an easy return process.

It offers a clear path to purchase

Site design should never be the reason customers get frustrated and avoid making a purchase. Consider these several features that can help inspire, incentivize, and increase sales.

Navigation

It’s hard to overstate the importance of a good user interface (UX) when it comes to eCommerce website design. Put simply, it should be easy for shoppers to browse and filter through all of their options. Features like your header, navigation menu, breadcrumbs, filters, on-site search, and footer can contribute to a good UI. As a general rule of thumb, all of your products should be accessible within three or less clicks.

Related products

Suggesting products that your customers might be interested in is a great way to enhance the shopping experience, increase AOV, and combat choice paralysis. Pro-tip: use product galleries to suggest related products instead of similar products so that your shoppers don’t second guess their choices.

Multiple payment options

Offering multiple payment options creates a customer-centric checkout process, which in turn maximizes sales. By allowing customers to pay with their preferred method (whether they prefer Apple Pay, BNPL, or traditional credit card), you eliminate friction during the final, most important step of the buying process.

01. Copper & Brass

Copper & Brass Paper Goods launched in October 2018 with an important purpose: representation. Copper & Brass sells paper goods featuring beautiful illustrations of Black people and characters, such as their famous Black Santa wrapping paper. The designs on their products shine through to their eCommerce store. This site serves as an example of how strong branding as part of your eCommerce website design can help relay a company’s values and create a compelling reason to buy.

02. Sticky Lemon

Sticky Lemon sells adorable accessories “for little and bigger kids with an outspoken taste in the way they look.” Their motto—“quirky, colourful, bold and sunny”—is reflected in their site’s design, which artfully uses color blocking, patterns, and illustrations. Sticky Lemon’s site design is curated, high-quality, and cute—paying tribute to the charming children’s products in their catalog.

03. Vivi et Margot

French homeware brand Vivi et Margot’s aesthetic is a shining example of the power of photography. The site is rich with lifestyle photos set in the French countryside depicting “la vie en rose.” Their impressive following on social media (more than 20,000 followers to date) speaks to the persuasive power of photography in creating a strong brand experience as well.

04. Izzy Wheels

Izzy Wheels’ emphasis on inclusivity and bold self-expression is at the heart of their colorful online store. Irish sisters Ailbhe and Izzy Keane have collaborated with some of the world's biggest brands—including Barbie, Disney, and Hello Kitty—in creating bright, beautiful wheel covers for wheelchairs. By highlighting these brand names and press mentions on their homepage, Izzy Wheels creates buzz and increases trust among potential shoppers.

We love how Izzy Wheels' store name stands out, while clearly indicating what their brand offers. If you're just starting a business of your own, use our store name generator to craft an equally catchy title for your brand.

05. Celebs on Sandwiches

Have you ever wondered what your favorite celebrity would look like on a sandwich? Take a peek at Celebs on Sandwiches, which sells hilarious and tasteful (tasty?) prints that are certain to please both celebrity and sandwich enthusiasts alike. The key behind the success of its eCommerce design: simplicity and ease of navigation. Note the handy search function and the simple, scrolling homepage that puts the product front and center of this niche online store.

06. Gay’s The Word

Gay’s The Word has done an admirable job designing an online extension of their iconic London-based LGBTQ+ bookstore. Photos of its brick-and-mortar shop, coupled with vibrant pictures of its books, give shoppers the cozy feeling of being in a bookstore. The site includes Community and Events pages that keep online shoppers connected to the community that has surrounded this business since its inception.

07. Indian Summer

Sustainability is central to Indian Summer’s mission. The dedication to upcycling swimwear and accessories is made evident to shoppers throughout its online store. Indian Summer’s About Us page details their business mission. An “Eco Alliance” badge on the Home, Store, and About Us pages indicates that even their product packaging is certified eco-friendly and biodegradable. For the eco-conscious shopper, outlining the brand mission and values helps to create compelling reasons to buy from this beautiful, earth-friendly brand.

08. Melissa Mitchell

Artist Melissa Mitchell began her booming online business by making and selling prints of her bold, colorful art. Mitchell has since expanded her offerings to include clothing, head wraps, and swimwear, collaborating with global brands such as Spanx. While Melissa’s art is awash with bold colors and patterns, her eCommerce site stands out because of its simplicity. The white background of her homepage is a perfect contrast to her wild prints, playful fonts and creative copy.

09. Coal and Canary

Coal and Canary’s juicy color scheme, coupled with their use of bright imagery, make their site fun and evocative of their motto: “Cheeky Candles for Playful Personalities.” And while fun is central to the Coal and Canary brand, they’re not playing around with one thing: building a loyal customer base. Coal and Canary’s site features several entry points to sign up for their loyalty program and VIP email list, as well as a page dedicated to outlining their “Burn + Return” program. Their efforts to nurture loyalty have paid off—founder Amanda Buhse estimates that an impressive 50% of their sales come from return customers.

10. Ultasmile

Ultasmile, the brand behind the three-sided toothbrush, faces a unique challenge in building trust: their product is new to many users. Ultasmile has done a great job incorporating trust-building elements into their eCommerce design. For example, by showing customer reviews on their product page and testimonials on their homepage, they’re able to highlight authentic user experiences. The site also features videos that showcase the merits of their one-of-a-kind product. Ultasmile’s success in building trust with its customers is evident in the company’s growth—this quirky three-sided toothbrush has grown into a business with six-figure revenue.

11. Evolve Clothing Gallery

Like the clothes that founder RanD carefully curates for his collection, Evolve’s online storefront stands out. Its product images and galleries pop against a black background. The site has a slick, sophisticated experience that feels as stylish as the Evolve brick-and-mortar store in New Jersey. Visitors can use detailed dropdown menus to choose their own adventure in terms of what product categories they’d like to browse. Evolve’s sleek design, combined with the easy navigation and smooth checkout process, creates an experience that is both fluid and fashion-forward.

12. The Spice Suite

Looking at The Spice Suite, one thing is immediately apparent: both the site and the store’s founder, Angel Gregorio, have flavor. The Spice Suite’s ‘About Us’ page outlines Angel's story, explaining her journey from vice principal to “SpiceGirl” and curator of the DC-based store which has sold over $2 million. The SpiceSuite’s site showcases Angel’s extraordinary commitment to her community, shouting out the 450+ black-owned pop-up shops she has hosted in her store.

13. Kaekoo

Site visitors get the feel of Kaekoo’s unique, cozy style immediately. The hand-lettered logo, the tasteful photography, and the consistent color palette deliver the clear message that this business understands branding. Having an attractive and consistent brand is especially important for a store of handcrafted items. Home decor shoppers want to understand and trust the creator’s vision and aesthetic. Kaekoo’s site is packed with images of their products in different settings to help customers choose the product that matches their own style.

14. CeliaB

Celia Bernardo, founder of the Spanish fashion brand CeliaB, creates clothing designs inspired by her travels across the globe, and her website encapsulates the unique patterns, textures, and bright colors of her couture clothing. Beyond being beautiful to behold, the CeliaB site does an excellent job of engaging visitors. CeliaB invites visitors to join its mailing list by offering 10% off their first order. CeliaB is then able to stay in touch with their customers through a newsletter and marketing emails.

Ready to get started designing your store?

As you begin the design process for your online store, consider the look and feel of your products, as well as your target audience. As part of your research, consider the eCommerce design trends that can help you create a high-converting online store.

Wix provides designer-made templates for all kinds of online stores. Each Wix store additionally comes with business management tools for building, managing, and scaling your business. Build your own Wix eCommerce website today.

Watch our video courses to learn more about eCommerce today!

eCommerce website examples FAQ

Brielle Gordon

Marketing Writer, Wix eCommerce

Brielle is a Colorado native with a passion for innovation and helping to mobilize entrepreneurs. Brielle is a marketing writer for Wix eCommerce, which powers over 700k online stores worldwide.