While it may appear that starting an e-commerce business in Australia is pretty simple, the truth is that you will need to consider a number of factors in order to achieve early success. The process consists of a series of large and small phases that pave the way for the establishment of an e-commerce business in this country. You can also hire an SEO Sydney company to help you with the process. In this post, you will learn all you need to know to begin selling in the Australian market. Some of the formalities that you must remember while starting your business are:
- Choosing a business name, legal structure, and terms & conditions
- registering your company and obtaining the necessary permits
- Understanding your company’s costs and the Australian market
- Developing business strategies that maximize profits
Establishing an E-commerce Business
A number of stages and processes are required to start an e-commerce business. One of the first steps is to select a name and a legal structure. This legal framework would serve as the foundation for your whole e-commerce company. When selecting a business name, use one that is unique while still clearly expressing what your brand is all about. Because your brand name will be one of the first things customers notice about you, you should take this step seriously.
Once you’ve decided on a name, make sure it hasn’t already been used by another company. The legal structure of your company follows next. Because business structures are unique and cannot be applied to all organizations, you must carefully consider your company’s budget, size, and goals before making a selection. In general, most firms choose to register as a Proprietary Limited Company, which gives the company a separate legal personality. One of the primary benefits of this legal structure is that the owners are not personally accountable for things like debt.
Creating E-commerce Terms and Conditions
Terms and conditions are a type of legally enforceable agreement that is entered into between a buyer and a seller. This contract restricts the seller’s responsibility and lays out the ground rules for their operation in writing. Sale terms and conditions and website terms and conditions are the two sorts of terms and conditions. While the former details the agreements that must be followed before, during, and after a transaction, the latter concentrates on the conditions that must be followed when using your e-commerce site. Sales terms and conditions safeguard your business by informing you and your customers about:
- Each other’s rights
- Responsibilities and roles
The following are some clauses you can include in your terms and conditions:
Payment terms- Because each company has different needs for payment processing, it is important to include a payment ‘terms and conditions’ clause.
Liability limitation- With this clause, you can effectively limit liability in the event of any accidents or incidents, so avoiding litigation.
Issue resolution- Another important addition to the terms and conditions section is a clause addressing how any dispute will be managed and resolved.
Delivery services- Each e-commerce website has its own set of delivery policies and timetables. As a result, it is important to include the features of your delivery services in your terms and conditions section.
Getting Your Company Registered
Needless to say, registering your business is critical if you want formal recognition from the Australian government and the trust of the local community. You can do so by going to the Australian government’s Business Registration Website. Your company will need two primary registrations:
Australian Business Number- An ABN, or Australian Business Number, is a unique number identity granted to businesses by the Australian government. Some advantages of having an ABN include being able to collect GST credits, readily communicating with other businesses, offering fringe benefits to staff, and so on.
Goods and Services Tax (GST)- If your business earns more than AUD 75,000 per year, you must register for GST.
Recognizing the Market and Competitors
With the legalities out of the way, it’s time to assess how strong and risk-free your company is. The easiest way to do this is to completely study the market you serve as well as the rivals in your industry. As a result, you must invest sufficient time to market research. Some simple methods for conducting market research include:
Focus groups- Focus groups are made up of a certain set of people who are the target audience for a brand or business. These individuals participate in debates about any product, which assists the trained moderator in gaining knowledge about that item.
Surveys- Because they are so simple to perform, surveys remain one of the most popular kinds of market research. You can send a list of questions to buyers online, and based on their responses, sellers can have a better understanding of the market in which they operate.
Interviews- For a deeper understanding of market trends, nothing beats a good old-fashioned face-to-face interview. While this approach is quite informative, it may also be time and resource intensive.