How To Start an Online Business in 2025

Starting an online business is easier than ever before. In 2025, countless people are joining the online marketplace to sell products, artwork, and even knowledge.

If you’re wondering how to start an e-commerce business, then you’ve come to the right place. We’ll be going over the benefits of starting an online business, what your expectations should be, and what to do if you want to expand your startup company.

Basic Tips For Starting an Online Business

Before you start any kind of business, you’ll need an idea. Of course, it’s not good enough to just have an idea, you’ll need to make sure it’s sound.

Is there any audience for what you’re selling? Do you have the skills and resources to market to that audience and distribute your product?

Don’t panic if you can’t answer these questions right away. Whether you’re selling vintage clothing or starting the next Uber, it can take time to iterate on ideas until you find the one that really lands.

One of the core principles of starting any business is to make sure you’re solving a problem/filling a need that really exists. Where many startups go wrong is that they try to make people want something rather than giving people something they already want.

In some regards this distinction is one of framing. For example, imagine trying to sell the first ever car. If you say “I’ve invented a box with wheels that goes really fast”, you’re probably not going to get much traction – except from excited children perhaps. If you tell them that you’ve found a way to traverse large distances very quickly, you’ll have a lot more luck.

Instead of taking three days to get to the nearest town, it’ll only take two hours. That’s a real problem and you’ve just found the solution.

With that said, it’s also easy to get this wrong. This usually happens either because the problem isn’t one that meaningfully bothers people or because the solution simply isn’t a good fit for the problem. A bus might be able to carry more people than a car, but good luck getting it into your garage.

How to Set Your E-commerce Business Up

Once you’ve worked your business plan, you’ll then need to start setting things into motion. You’ll want to register your company and set up a business account. This can be a daunting process but if you intend to hire people, then it’s ultimately a necessary one.

Of course, it is entirely possible to run a business as a self-employed sole trader, but you may find this is a limiting factor if you plan to expand down the line. 

Next, you’ll want to set up your online store and start marketing. If you’re planning to sell a product, then you’ll likely want to work with either an existing ecommerce platform such as Etsy or Gumroad. If you’re looking at selling a service – hand crafted art, tutoring, etc – then you’re usually best off setting up a personal website along with a payment service such as PayPal or Stripe.

Of course, having payment options is only half the battle. Now you need some method of discovery. Platforms can be great for this, so long as you’re in the right niche. For example, Career Navig8r is a great place to find a mentor. It serves a specific purpose and that’s why people come to us.

Etsy and Gumroad are similar in this regard. On Etsy you’d expect to find physical products, textiles, and handmade items. On Gumroad, you’ll be looking to sell digital products but the same basic principle applies.

Of course it’s also important to do your own advertising and social media is the place to do it. Find online groups, get involved in communities and, whenever possible, find excuses to shout about what you do.

Be careful not to self-promote in inappropriate places. Whenever posting in a group, for example, always check their rules. Try to produce content that relates to your business but isn’t directly promoting it, allowing people to discover you through natural channels.

Should You Seek Funding?

If your business has the potential to grow, then you may even want to see investment. Getting funding does mean selling a part of your company to investors and certainly isn’t a step to take lightly but if you think you have the potential to expand as a business and take on employees then it’s the next step on that journey. If you’re of the entrepreneurial mindset then funding could make all the difference in achieving your dreams.