E-Commerce is booming, a physical store is no longer possible without a online store. In this e-commerce knowledge base you will find practical information about starting an online store, using webshop software, purchasing stock and extending your e-commerce logistics.
Starting a online store? Start with e-commerce!
Want to start an online store? Good idea! More and more entrepreneurs are planning to start an online store. With a good e-commerce strategy you can reach more people and generate more sales. The challenge is to build a successful profitable webshop. Starting an online store is like building a second store. It’s not as easy as installing the software and go. You need to know everything about branding, online marketing, social media marketing, logistics and more.
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E-commerce software
Creating a simple online store is quite easy. There are numerous e-commerce software packages that allow you to get started easily. Examples include Magento, Woocommerce, Lightspeed and Shopify. The most easy part is installing the software. The most difficult part is getting a consistent flow of sales, by doing online marketing, social media, search engine optimization and many more ways. There are many option on picking the right e-commerce software, so lets dive into this!
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Webshop marketing for successful e-commerce
Building a webshop is one thing, but selling products profitably is another. A successful e-commerce strategy is recognized by profitable marketing. However, if you don’t make a profit, you are just pushing boxes. The main challenge of webshop marketing is running campaigns successfully without eating all the profit margins. Lets explore the ways of running marketing campaigns for a profitable online store.
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Purchase webshop stock
Running an online store involves more than just setting up a nice-looking website. One of the most critical aspects of e-commerce i personally experienced is stock management, deciding how and where to purchase your products, how much to order, and how to manage the flow of goods from suppliers to customers. Your choice in stock strategy can significantly affect your profitability, customer satisfaction, and scalability.
When i started my online store LifeDeals.com, i had two main options: buying and holding stock yourself or using a dropshipping model. Each approach has its advantages and challenges.
Purchasing and holding Inventory
Buying stock in advance and storing it yourself gives you more control over your products. You can check quality, bundle items, and ship orders faster, especially if you have everything on hand. This model is often used by businesses that want to offer a unique customer experience, customized packaging, or fast delivery times. You also get more discount from your manufacturer with higher volumes.
However, holding inventory also comes with risks and responsibilities. You’ll need storage space—either at home, in a warehouse, or through a third-party fulfillment provider. There’s also a financial commitment involved, since you’ll be investing upfront in products that may not sell immediately. Additionally, you’ll have to handle returns and restocking yourself.
If you choose this route, it’s important to build good relationships with reliable suppliers. Ordering the right quantities at the right time is key to avoiding overstocking or running out of popular items. Tools like inventory management software can help automate this process and keep things running smoothly.
Dropshipping: A Flexible Alternative
Alternatively, you can opt for a dropshipping model. With dropshipping, you don’t keep any stock yourself. Instead, when a customer places an order, the supplier ships the product directly to the end customer. This means you don’t need to invest in inventory upfront or worry about warehousing and shipping logistics.
Dropshipping is ideal for starting a webshop with minimal risk and investment. With LifeDeals.com i could grow faster to other countries using other domain names like LifeDeals.de, etc. You can test new products easily and scale quickly without handling physical goods. Some dropshipping suppliers even handle returns and exchanges, simplifying the customer service process.
However, dropshipping also comes with its own set of challenges. You have less control over product quality, packaging, and shipping times. If a supplier runs out of stock or ships late, it can reflect poorly on your brand. Therefore, it’s crucial to work with reputable suppliers and set clear expectations with customers.
Choosing what works for you
Ultimately, the decision between purchasing stock or using dropshipping depends on your business goals, budget, and desired level of control. Some successful online stores even combine both models, holding stock of bestsellers and dropshipping additional items.
Whichever route you choose, effective stock management is essential for delivering a smooth and satisfying shopping experience.
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Online store logistics and fulfillment
Running an online store involves more than just having great products and a visually appealing website. One of the most important aspects behind the scenes is logistics and fulfillment. This includes everything from storing inventory and packing orders to shipping packages and handling returns.
If you manage your own stock, you’ll need to organize a system for order processing and delivery. This could mean setting up a home-based fulfillment area or working with a fulfillment center that stores your products and handles shipping on your behalf. Efficient order processing is crucial to meet customer expectations for fast and reliable delivery.
Returns are another key part of the logistics process. Not every product will meet the customer’s expectations, and a clear, hassle-free return policy can improve customer satisfaction and boost your store’s reputation. You’ll need to process returns quickly, inspect the returned goods, and issue refunds or exchanges, depending on your policy.
Own logistics vs dropshipping
Alternatively, you can choose a dropshipping model. With dropshipping, you don’t hold any inventory yourself. When someone places an order in your webshop, the product is sent directly from your supplier to the customer. In many cases, suppliers can also handle returns, depending on the agreements you have with them.
Dropshipping reduces overhead costs and removes the need for physical storage and shipping operations. It’s ideal for entrepreneurs who want to start small or test new products without large upfront investments. However, you also give up some control over the customer experience, including packaging and delivery times.
Regardless of which fulfillment model you choose, clear communication and transparency with your customers are essential. Make sure your delivery times, shipping options, and return policies are clearly stated on your website.
Whether you handle everything in-house or rely on external partners, logistics and fulfillment are the backbone of your online store. A well-organized fulfillment process not only keeps your operations running smoothly but also builds trust with your customers—helping you turn one-time buyers into loyal fans.
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Webshop payments for profitable e-commerce
Receiving payments in my webshop LifeDeals.com is one of the most important parts of running my online business. It’s essential that this process is both safe and secure for your customers, and that the money ends up in your business account without delays or hidden fees. A smooth and trustworthy checkout experience can increase conversions and reduce cart abandonment. It’s also important to have a good cashflow in your business, else your bank account gets empty :).
There are many payment providers to choose from, each offering different features, transaction fees, and payout terms. Popular options include Stripe, Mollie, PayPal, Klarna, and traditional banks offering online payment solutions. Depending on your target market, you might also want to offer local payment methods like iDEAL (Netherlands), Bancontact (Belgium), or Sofort (Germany).
E-commerce becomes truly enjoyable when it’s not just a passion but also profitable. That’s why choosing the right payment solution is not only a technical decision, it’s a strategic one. In the next article, I’ll guide you through the different webshop payment methods and providers, so you can choose the one that fits your business best.
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Webshop hosting
Hosting is one of the most important, yet often overlooked, parts of running a successful online store. Without reliable hosting, my webshop LifeDeals wouldn’t have a “home” on the internet. It’s the foundation that allows your site to be visible online, load quickly, and process orders securely.
A fast and stable hosting provider plays a crucial role in your customer experience. If your webshop is slow or frequently offline, potential customers may leave before even seeing your products. Search engines like Google also take site speed into account, so good hosting can improve both your conversions and your SEO rankings.
For example, take a look at my own webshop, LifeDeals.com. The site loads quickly and smoothly, even when there’s a lot of traffic. That’s because it’s hosted on a fast and optimized server designed for e-commerce performance.
Whether you’re using WooCommerce, Shopify, or another platform, investing in quality hosting is a smart move. Look for features like SSD storage, built-in caching, daily backups, and solid customer support.
Learn more about webshop hosting and discover what kind of hosting suits your online store best—because a faster shop often means more sales.