Starting Archives | JD Scott and Co

So, you’ve got an idea that you’ve always wanted to start an ecommerce business. There’s a lot of information targeted at online startups out there, but where in the world are you supposed to start?

Starting a business is often non-linear, it’s a continued experiment- keeping what works and tossing what doesn’t. It’s hard to know what to what you need to do and your next steps. It’s helpful to have an ecommerce accounting expert in your corner to get set up correctly.

That’s why our JD Scott + Co team have created a guide- with helpful hints as you get your business up and running.

Who Are You Selling To?

Every successful ecommerce business starts with a compelling “why.” What problem are you solving? What excites you about this industry? Maybe you’ve spotted a gap in the market or have a passion for a particular product category?

Defining your motivation is crucial because it will guide your decisions and keep you going through challenges.

You can start with a simple idea of how your business will look. Once you have your idea, don’t rush into formalities just yet. Start small and test your concept.

Testing Your Idea

Think of your business as an evolving experiment. Before investing too much time or money, test your idea:

Create a basic version of your product or service – This could be a prototype, sample, or even a pre-order campaign.
Set up a simple test website – Platforms like Shopify offer free trials, allowing you to showcase your product and see if people are interested.
Engage potential customers – Use social media, run small test ads, or start conversations in relevant communities.
Refine based on feedback – If people show interest, ask them what they like or what could be improved.

If you’re gaining traction, it’s time to get your business set up properly.

Setting Up Your Business Structure

Once you’ve tested and validated your idea, you need to register your business to begin operating. In Australia, here’s what you need to do:

Choose Your Business Structure – Decide between a sole trader, partnership, or private company. Each have different tax and liability implications
Register for an ABN and TFN (if separate entity)– Required for businesses operating in Australia, essential for tax, invoicing and working with suppliers.
Register Your Business Name – If trading under a name other than your own, register with ASIC and the ABR.
GST Registration – Required if turnover exceeds $75,000 per year, optional below that.
Secure a Domain Name – Choose and register an available domain name for your ecommerce website.
Social Media Handles – Reserve all relevant social media handles to build brand presence and avoid copycats.

Building Your Platform

Your website is your storefront. Choosing the right platform depends on your technical skills, budget, and business needs. Popular options include:

Shopify – User-friendly with built-in features.
WooCommerce – Or a similar WordPress plugin.
BigCommerce – Scalable with advanced functionality.
Squarespace – Great for design-focused businesses.

Payment and Shipping Setup

You’ll then need to select a payment provider to start with. To enable smooth transactions, integrate secure payment gateways like PayPal, Stripe, or Afterpay.
For shipping, define your logistics strategy—use Australia Post, DHL, or other reliable carriers, and consider offering free shipping for orders over a certain value.

Setting Up Your Systems

A well-structured business relies on efficient systems. Setting up the right tools from the start will save time and effort as you grow. You need a few to get started.

Use cloud-based accounting software – We recommend Xero for managing finances and automating invoicing. We can help set this up for you, contact us. We compare Xero vs QuickBooks here.
Automate order fulfilment – Connect your ecommerce store to your warehouse or drop-shipping suppliers, such as using the Shopify Fulfillment Network.
Use a CRM system – such as HubSpot, Salesforce, this will help track customer information and automate your follow-up and marketing.
Ensure integration between systems – Your ecommerce platform, payment gateways, and accounting software should communicate seamlessly.

As your business grows, your software needs will grow with it.

Sourcing and Inventory Management

If you’re selling physical products, securing a reliable supplier is crucial. Whether independently manufacturing, wholesaling, or dropshipping, ensure:

Quality control management – Order samples and make improvements before committing to large orders.
Clear contracts – Define pricing, minimum order quantities, delivery timelines, and refund policies with your business.
Efficient inventory management – Use tools like Xero integrations to track stock levels.

Marketing and Customer Aquisition

Having a great product isn’t enough—you need people to find it. Here’s how to attract customers:

SEO (Search Engine Optimisation) – Optimise product pages for Google rankings.
Social Media Marketing – Build a presence on Facebook, Instagram, and TikTok.
Email Marketing – Capture leads and nurture relationships with your customers for repeat purchase.
Paid Advertising – Run targeted Google and social media ads with creatives showcasing your product,
Influencer Collaborations – Partner with influencers or affiliates in your niche.

Driving Sales

To convert visitors into customers, consider:

Introductory discounts – Attract first-time buyers.
Loyalty programs – Encourage repeat purchases.
Subscription models – Provide recurring revenue streams.
Follow-up email campaigns – Retarget potential buyers with personalised offers.

Understand Legal and Tax Obligations

Once you’re up and running, it’s important you have a good understanding of your obligations. Running an ecommerce business in Australia requires compliance with the following:

Australian Consumer Law – Ensure product descriptions, returns, and warranties comply with regulations.
Privacy Policy – Clearly state how customer data is collected and used.
Tax Lodgements – Maintain proper records for Business Activity Statement (BAS) lodgements and income tax lodgements.

Check Your GST Obligations

When selling online, you must understand your GST obligations:

Domestic sales (within Australia) – GST must be charged and included in the sale price.
International sales (exports) – Goods shipped overseas are GST-free.
Digital products and services – May require GST registration depending on your sales volume.

Ensure your pricing and invoices correctly reflect GST requirements. Speaking to an accountant (like us) can help you if you get stuck.

Launch and Optimise Your Store

Once your store is live, track performance using analytics tools like Google Analytics and built-in platform insights.

Monitor sales, customer feedback, and marketing results. Regularly update your website, improve product listings, and test different marketing strategies to maximise growth within your business.

Work With Us

Navigating ATO deadlines can be overwhelming, but you don’t have to do it alone. At JD Scott + Co, we specialise in helping SME businesses manage their tax compliance obligations. From tracking lodgements to managing superannuation deadlines, our team ensures you stay compliant.

Let us handle the complexities so you can avoid penalties and streamline your financial processes. Contact JD Scott + Co today to learn how our accounting services can keep you on track for success.