How to Start an Online Shop in the UK

In the last few years, in the United Kingdom the figures of the sale of products and services on the internet have increased exponentially. Additionally, it is one of the most affordable and accessible ways that anyone has to form a company today. In this article, I explain how to start an online shop in the UK.

Why Should You Start an Online Shop in the UK?

More and more businesses are deciding to create digital shops in the UK. This decision is given by the paradigm shift in commerce in recent years. Previously, people preferred to make the purchases in physical stores. However, in the present day, it is estimated that more than 80% of British citizens will shop online in 2025.

On the other hand, the UK offers advantageous conditions for the formation of businesses, both in terms of taxation and in terms of little paperwork. Moreove, thanks to the many tools available at a low cost and business models such as dropshipping (it consists of selling a series of items and send them directly from the manufacturer to the customer), any individual can set up an online store with little investment.

Steps to Start an Online Shop in the UK

1. Defining What You Will Sell and the Business Model

The first step when creating an online store in the UK should be to conduct market research. In this way, you will discover the characteristics and expectations of the target audience. In addition, it can also serve to uncover market niches, the products for which there is a greater demand in the British market and possible business rivals.

Depending on the results that you have obtained, you will choose to market one or more products and a business model for the company. Some of the most popular types of business models in the British country are franchises, subscriptions or direct sales of items.

2. Choosing a Business Structure for the Enterprise

The next step in the process of creating an online store will be to select its legal structure. The most common ones in the United Kingdom are private or public limited companies, partnerships and limited liability partnerships. Each one has a number of characteristics, advantages and disadvantages of its own. Selecting one or another will depend on the business activity that will perform or the number of employees.

Likewise, directors should bear in mind that some types of corporations should be registered with the Companies House. This is the case of companies with public or private limited company or limited liability partnership legal structures. On the contrary, sole traders and partnerships, which lack legal personality, do not have the legal obligation to register with the Companies House.

3. Choosing the Right Tools

In the first place, it will be necessary to have tools necessary to build the website of the commerce. The most popular ones in the UK are Shopify and WooCommerce. Each has a number of advantages and disadvantages, which are listed in this article.

In addition, to publicise the enterprise and the products and services it offers, it will be necessary to carry out marketing campaigns. In this case, the choice of tools will depend on the type of advertising plan that the business will perform. For example, for email marketing campaigns, you may use programs such as Mailchimp or Brevo. However, if you choose to apply SEM (Search Engine Marketing) strategies, you will employ software such as SEMRush.

Finally, it is also useful to have accounting tools available for administrators. These programs record the daily financial movements of a business. Therefore, the administrators will control the assets and liabilities, income and expenses of a company.

4. Customers’ Feedback

To build a relationship of trust between a customer and the company, it is essential to have customer service channels. In this way, you should have contact channels that are easy to access, such as forums, email addresses or social media profiles.

In ukstartcompany, you will find information about how to establish, register and operate companies with different legal structures and business activities in the UK.