Beginner’s guide to starting an online store in 2025

The rise of eCommerce has made it easier than ever to jumpstart your first business. According to recent statistics, the global eCommerce market is projected to reach a staggering US$4.32 trillion by 2025. However, from navigating the complexities of product sourcing and platform selection to managing logistics and controlling costs, the journey can be daunting for beginners.

This article is your comprehensive guide to launching and thriving in the competitive world of online retail. We'll delve into the essential steps for setting up an online store – from identifying your target market, choosing the right eCommerce platform, to managing inventory and logistics. We'll also explore key strategies for reducing costs and boosting sales with a trusted partner like Airwallex.

What is the process of opening an online store?

1. Identify the target market and product positioning: Analyse the demand and consumer habits of your target market to determine a suitable product category. Generally, beginners should avoid highly competitive fields as much as possible.

2. Choose an eCommerce platform: Selecting the right platform is the foundation of opening an online store. Most mainstream platforms provide easy-to-use templates for store owners.

3. Set up payment and logistics systems: Make sure the payment methods cover a wide range of currencies to attract international customers. Choose suitable logistics services to guarantee timely order deliveries.

4. Procurement and inventory management: When stocking products, store owners should ensure a stable supply and control inventory costs effectively.

What costs should be considered when running an online store?

While opening an online store has simpler requirements than physical stores, various costs are involved in actual operations.

1. Platform fees: Some platforms charge monthly fees, transaction commissions, or take a percentage of sales revenue.

2. Product costs: This includes procurement, taxes, and shipping costs, all of which directly impact profitability.

3. Logistics expenses: Both inbound and outbound shipments incur logistics costs. International shipping can be particularly expensive, so beginners should carefully choose a reliable and cost-effective logistics service.

4. Hidden costs: These include exchange rate fluctuations in cross-border transactions, fees for cross-border payments, and potential costs from customer returns.

Strategies of opening an online store

Choosing a product category

When selecting product category, consider the following aspects:

• Best-selling products: These are items with strong market demand, such as electronics, fashion apparel, beauty and skincare products, and health supplements. Many of these products have consistent demand, increasing the likelihood of repeat purchases.

• High-profit products: Unique products, such as handmade crafts and customised items, often have a higher profit margin.

• Products familiar to the store owner: Having expertise in the products being sold is crucial, especially for items related to personal interests or hobbies. For example, cameras, sports equipment, and other specialised products require in-depth knowledge. A store owner who can effectively answer customer inquiries not only builds trust but also enhances customer satisfaction. Also, these products are often high-value items, which can yield a higher profit margin.

Choosing suppliers

Selecting the right supply channels is crucial for online stores. Common sourcing options include wholesale markets, well-known eCommerce platforms, and online wholesale platforms. Depending on the desired products, sellers may source from Japan, Korea, mainland China, and other regions. Below is a summary of some popular procurement methods:

• Wholesale markets: There are various wholesale markets worldwide, with some well-known ones among Hong Kong merchants:

  • Guangzhou Baima Clothing Market: specialises in clothing wholesale and offers a wide range of fashion and home products.

  • Dongdaemun/Namdaemun Markets in Korea: These markets provide everything from clothing and accessories to kitchenware, handicrafts, and toys.

• Well-known eCommerce platforms: There are many different online shopping platforms available for sourcing products, such as Taobao (China), Rakuten (Japan), Amazon, and eBay.

• Online wholesale platforms: Online wholesale platforms are another viable option for bulk purchasing. Some widely used platforms include Alibaba (1688), Hong Kong Trade Development Council Trade Platform, and SUPER DELIVERY (Japan).

What are the channels for procurement?

• Wholesale purchasing: Store owners buy products in bulk from suppliers at lower wholesale prices, then manage inventory and shipping themselves. This model requires additional storage space and logistics arrangements, placing inventory pressure on the seller.

• Direct importing: Store owners purchase products directly from overseas markets and handle customs clearance, logistics, and delivery on their own. This method is common for high-end or unique products. However, it involves international shipping, customs procedures, and import duties, increasing operational complexity.

• Pre-order system: This model allows store owners to place orders with suppliers based on customer pre-orders. Customers usually pay in full or provide a deposit when placing an order. This strategy is especially useful for limited-edition or custom-made products, helping to manage cash flow and minimise inventory risks.

Strategies for identifying and evaluating reliable suppliers

Finding high-quality supply channels

• Attend trade shows: Participate in industry exhibitions to communicate directly with suppliers and find reliable business partners.

• Check the reviews: Ensure that suppliers have a good market reputation and a stable delivery track record.

Evaluating the quality and reliability of online store suppliers

• Check the quality certifications: Ensure that the supplier’s products meet relevant quality standards and safety regulations.

• Cross-check samples: Evaluate product samples from multiple suppliers to select the best option.

• Establish long-term partnerships: Maintain stable relationships with reliable suppliers to reduce the risk of stock shortages.

Effectively managing the supply chain

• Forecast market demand: Analyse sales data to predict customer demand and avoid overstocking.

• Diversify supply sources: Expand procurement channels to minimise risks associated with relying on a single supplier.

• Use automation tools: Implement supply chain management (SCM) software to optimise logistics and procurement processes, reducing errors.

Choosing the right eCommerce and payment platform

*The information above was retrieved from various eCommerce platforms in January 2025. The data is for reference only. For detailed information, please visit the official websites for the latest updates.

Managing online store inventory and logistics

A well-developed inventory, logistics, and return management system not only improves operational efficiency but also enhances customer satisfaction, helping to build brand credibility.

• Inventory management: Utilise software systems to track stock levels and order statuses. Setting up low-stock alerts can prevent stock outs or overstocking, optimising operational efficiency.

• Logistics options: Consider using reliable services like DHL or UPS for international shipping, and reputable providers such as SF Express for domestic deliveries. Providing multiple delivery options ensures fast and efficient order fulfilment.

• Return management: Implementing clear and flexible return policies helps reduce disputes and improve customer satisfaction.

Designing a seamless shopping experience for your online store

An online store should not only offer attractive products but also ensure a smooth, convenient, and transparent shopping process from browsing to checkout. Here are some key considerations:

• Multilingual support: If your store targets an international market, offering multiple language options can significantly enhance the customer experience. Implementing automatic language detection based on the customer’s location can help reduce bounce rates.

• Diverse payment methods: Use payment platforms that support multiple mainstream payment options, such as credit cards, Apple Pay, and Google Pay, to accommodate different regional preferences.

• Currency display and conversion: Allow customers to view product prices in their local currency instead of only in HKD. Using real-time currency conversion tools ensures accurate pricing based on current exchange rates. Also, clearly indicate the final checkout currency to prevent dissatisfaction due to unexpected conversion fees.

• Transparent transaction fees: Clearly display shipping costs, taxes, and service fees at checkout to ensure customers know the total amount before making a payment. Avoid hidden charges to build consumer trust.

Save on platform fees and cross-border transactions fees

When running an online store, platform fees and cross-border transaction costs are often major expenses for merchants. Without proper management, these costs can eat into profits and hinder long-term growth. Here are some strategies to significantly reduce expenses:

• Choose cost-effective payment platforms to lower cross-border transaction fees: Many traditional payment platforms charge high foreign exchange fees, cross-border payment fees, and transaction fees. Airwallex offers highly competitive exchange rates and 0% foreign transaction fees, allowing you to process international payments at a lower cost.

• Avoid unnecessary fees and ensure transparent transactions: Some payment platforms impose hidden fees in their contract terms, such as fixed transaction fees, account maintenance fees, and withdrawal fees. Airwallex provides transparent pricing with no account setup fees or monthly charges, helping online stores reduce long-term financial burdens.

• Reduce currency exchange costs: Merchants operating across multiple countries and currencies may face high exchange rate losses due to frequent currency conversions. Airwallex’s multi-currency Business Accounts allow businesses to receive and make payments directly in local currencies, eliminating unnecessary conversion costs.

Airwallex: All-in-one platform built for global commerce

Navigating the complexities of setting up and managing an online store can be challenging, but with the right tools and partners, you can streamline your operations and boost your sales. Airwallex seamlessly integrates with major eCommerce platforms like Shopify and WooCommerce, making it easier to manage payment collections and transactions. You can focus on growing your business while enjoying the benefits of a robust, cost-effective, and user-friendly payment solution.

How Airwallex boosts online store sales

Airwallex provides diverse payment options and global collection services, helping merchants increase sales and expand their market reach. 

• Accept payments from global customers: By offering locally preferred payment options, Airwallex Checkout helps reduce cart abandonment caused by limited payment choices. Airwallex supports customer payment collection from 180+ countries in 160+ payment methods, including the following:

  • Major credit cards (Visa, Mastercard, American Express, etc.)

  • Digital wallets (Apple Pay, Google Pay, etc.)

  • Local payment methods (FPS, WeChat Pay, AliPayHK, etc.)

  • Buy Now, Pay Later (BNPL) services (Klarna, Afterpay, etc.)

• Instant Payment Links for faster transactions: Beyond traditional checkout methods, Airwallex enables merchants to generate one-click Payment Links. These links can be sent via SMS, email, or social media, simplifying the payment process and increasing conversion rates.

• Automated currency conversion for increased global sales: Airwallex supports automatically converting payments into the local currency based on the customer’s location. This eliminates extra exchange rate costs for customers, enhancing their willingness to buy.

How Airwallex helps online stores save costs

Running an online store involves various expenses, including procurement and logistics. Traditional credit cards often charge high foreign transaction fees, adding unnecessary financial burden. Airwallex Borderless Card offers businesses a flexible, low-cost payment solution to maximise savings.

• 0% foreign transaction fees: With no overseas transaction fees, the Airwallex Borderless Card allows businesses to directly use funds from their multi-currency accounts for global payments, reducing exchange rate costs.

• Payment in multi-currency: Airwallex Borderless Card supports multiple currencies transactions worldwide, enabling businesses to track all expenses in one place, manage budgets efficiently, and maintain full control over costs.

Managing an online store is no easy task – from selecting the right products and suppliers to handling logistics and controlling expenses, every detail impacts profitability and success. Airwallex provides a low-cost, highly flexible payment solution that streamlines payment processes, reduces transaction fees, and offers diverse payment methods, ultimately enhancing your store’s competitiveness.