When establishing and developing an online store, it is advisable to break the process into distinct parts. Managing the impact of changes becomes easier when technology choices, logistics, and warehousing are considered separately from matters related to people and work processes.

Starting a new online store or developing an existing one is not a straightforward task, but the process can be managed by segmenting it into parts. One way to consider developing an online store is to divide it into hard and soft factors. 

The 'hard' aspects of online store development relate to technology choices, warehousing, and logistics. 

The soft factors pertain to people, i.e., developing skills, recruitment, and change management in general. Especially when the online store is established as part of an existing business, it is worthwhile to carefully assess its impacts in advance. 

Hard Factors: Technology and Goods-related Aspects

Before embarking on creating a new online store or developing an old one, set clear business objectives. 

Set Business Objectives. Is the goal to enter new markets, increase sales in current markets, or perhaps expand the customer base? Identify who the potential customers for the online store are, what they want, and their buying behaviours. Evaluate your company’s strengths and areas for improvement in starting an online store business.

Consider Warehousing Solutions and Logistics. Plan what kind of warehousing solution your online store requires. In planning warehouse operations, consider not only the available spaces but also how goods will be received, shelved, packed, and shipped. Choose transport partners and delivery methods based on the goods sold, customer expectations, and of course, costs.

Perform Technical Specification at the Right Time. Business and user needs guide the technical specification. The online platform is often chosen too early. An online store can consist of a single system, but more commonly, a combination of multiple different systems. It should work well in conjunction with existing enterprise resource planning and accounting systems, for example.

Consult Experts for Assistance. Use external consultants as needed in designing the architecture and making technology choices for the online store. This ensures the broadest possible foundation of expertise for your plan, and eliminates potential blind spots and pitfalls.

Softer Aspects: Managing Change and Impact on People

In addition to technology and other more technical aspects of the online store, its establishment impacts the organisation, people, company culture, and other softer matters. It is important to be prepared for these impacts and capable of leading change.

Recruit Employees and Modify Roles. Depending on the scale of online business operations, immediate recruitment may be necessary or an expansion of employee roles, such as assigning specific responsibility for the online store. The need for customer service is likely to increase, and in some cases, a new, separate customer service function may need to be initiated because of the online store. 

Enhance Employee Skills. New skills are required within the organisation as an increasingly larger segment of the staff must understand technology, supply chains, product information, and online store marketing.

Communicate Changes in Advance. It is vital to communicate in advance the changes and impacts on people's job roles due to the online store. For example, within the sales organisation, the online store may significantly free up sellers' time for more personalised service, which concretely impacts daily work.

Direct Everyone's Attention to the Benefits of Change. In the short term, establishing an online store can be a heavy change, but it can be alleviated with clear and timely communication. In the long term, establishing an online store can modernise business operations, increase sales, strengthen relationships with key customers, and bring new skills to the organisation.

Hopefully, this blog post has clarified some of the key considerations in developing an online store. We continuously produce more content on the subject and delve into its various dimensions. Feel free to contact us if anything specific concerns you!