When establishing and developing an online store, it is advisable to break the process into stages. Managing the effects of change is easier when technology choices, logistics, and warehousing are considered separately from issues related to people and the execution of work.

Setting up a new online store or developing an existing one is not a simple task, but the process can be managed by breaking it down into parts. One way to think about the development of an online store is to divide it into 'hard' and 'soft' factors. 

The 'hard' aspects of online store development pertain to areas such as technology choices, warehousing, and logistics. 

The soft elements involve people, that is, the development of skills, recruitment, and change management in general. Particularly when the online store is being established as part of an existing business, it is advisable to map out its impacts meticulously in advance. 

Hard factors, i.e., aspects related to technology and goods

Before you set out to implement a new online store or develop an existing one, set clear business objectives. 

Set business objectives. Is the aim to target new markets, increase sales in existing markets, or perhaps expand the customer base? Determine who the potential online store customers are, what they want, and what their purchasing behaviour is like. Assess your company's strengths and areas for improvement in initiating e-commerce business.

Consider warehouse solutions and logistics. Plan what kind of warehouse solution you need for your online store. When planning warehousing operations, consider not only the spaces to be used but also how the reception, shelving, packing, and shipping of goods will be organized. Choose transport partners and delivery methods based on the goods being sold, customer expectations, and of course, costs.

Carry out technical specifications at the right time. Business and user needs guide the technical specifications. The e-commerce platform is often chosen too early. An online store can consist of a single system, but more often it’s a combination of several different systems. It should work well together with existing enterprise resource planning and accounting systems, for instance.

Utilize experts for assistance. If necessary, use external consultants in the design of e-commerce architecture and technology choices. This ensures the broadest possible expertise forms the basis of your plan while eliminating potential blind spots and pitfalls.

Softer aspects, i.e., change management and its impact on people

In addition to technology and other more technical areas of e-commerce, establishing an online store impacts the organization, people, company culture, and other softer factors. It is important to prepare for these impacts and be capable of leading the change.

Recruit employees and alter roles. Depending on the size of the e-commerce operation, almost immediate recruitments or expansion of employee roles may be required, such as appointing someone responsible for the online store. The need for customer service is likely to increase, and in some cases, a separate new customer service function due to the online store may need to be initiated. 

Enhance employees' skills. New competencies are needed within the organization, as an ever-broader part of the workforce needs to understand, among other things, technology, supply chains, product information, and online store marketing.

Communicate changes in advance. The changes brought about by the online store and its impact on people's job roles must be communicated clearly and in advance. For example, in a sales organization, the online store may significantly free up sellers’ time for providing more personalized service, which has a concrete impact on the day-to-day routine.

Focus everyone's attention on the benefits of change. In the short term, an online store can be a heavy change, but it can be alleviated with clear and timely communication. In the long run, establishing an online store can modernize the business, increase sales, improve relationships with key customers, and bring new skills into the organization.

Hopefully, this blog post clarified some of the key considerations in the development of an online store. We are continuously producing more content on the subject and delving into its various dimensions. Do get in touch if you have any specific concerns!