How to Start an Online Business in Australia 2025
It’s been almost 4 years since the pandemic started spreading in 2019. As a silver lining to this challenging period, we witnessed a notable surge in the proliferation of online businesses. People started ditching the old-fashioned offline ways and jumped on the online shopping bandwagon. It's like, way more convenient for customers and super awesome for sellers too!
Is this the reason why you’re looking for how to start an online business in Australia? No worries, we got you covered! We know the whole idea of venturing into something totally new can be scary as heck. As Abel Morales said; “When it feels scary to jump, that is exactly when you jump. Otherwise, you end up staying in the same place your whole life.”
Starting a business in Australia can be a lucrative venture for entrepreneurs. And in this blog, we will provide you with a comprehensive guide to opening an online business.
3 Main Reasons to Start an Online Business in Australia
Extensive Market Reach
With the increasing number of online users, the potential to reach a wider audience through an online business is ever-expanding. Whether you are launching a clothing store or a bakery, you can increase your monthly sales by taking it online. You are no longer confined by the walls of your physical store.
Lower Startup Costs
Compared to a traditional business, an online business is way more affordable to start up. Traditionally, you have to spend on renting store location, maintenance, decorations, etc. But with an online store, you do not have to spend any money on these. With reduced overheads, you can launch your business with greater flexibility and financial feasibility.
Access to Cutting-Edge Technology
Tech only continues to evolve. And, it provides entrepreneurs with advanced tools and software to streamline business operations. From robust e-commerce platforms to efficient online ordering systems, technology has it all. Staying updated with the latest tech trends can give your business a competitive edge over your competitors. Moreover, having an online business makes it easier for you to shift from one technology to another.
How to Start an Online Business in Australia: A Step-by-Step Guide
Here is a complete checklist to open an online business:
- Identify Your Niche
- Craft a Business Plan
- Choose a Suitable Brand Name
- Register Your Business
- Set Up Your Online Store
- Create Engaging Content
- Implement Effective Marketing Strategies
- Analyse Customer Feedback
Step 1: Identify Your Niche
Selecting the right niche is crucial for your online business's success. Conduct market research to identify your target audience, assess competitors, and find a unique selling proposition that differentiates your products or services.
Step 2: Craft a Business Plan
Create a comprehensive business plan outlining your objectives, marketing strategies, financial projections, and growth plans. Additionally, choose the appropriate legal structure for your business, such as sole proprietorship, partnership, or company, and register it with the Australian Securities and Investments Commission (ASIC).
Step 3: Choose a Suitable Brand Name
Select a catchy and memorable brand name that reflects your business and resonates with your target audience. Ensure the chosen name is not already trademarked and register it as your domain name. You also want to design a suitable logo to represent your brand. Make sure that you don’t go overboard with this step because it doesn’t have to be perfect for your online business to succeed.
Step 4: Register Your Business
To start an online business in Australia, you need to register it first. Apply for Australian Business Number (ABN) and register for required licences and permits. Moreover, you might also need to register for taxes including GST, Pay As You Go (PAYG), Fringe Benefits Tax (FBT), etc.
Step 4: Set Up Your Online Store
A website is the face of your store just as the storefront of a physical store. Invest in a professional and user-friendly website that showcases your products or services attractively. Since you’re an online business, you need to incorporate an online order management system on your website. This allows your customers to order or purchase directly from your website. Make sure that the online ordering system you choose facilitates seamless online transactions and has all the features you need.
If you do not want a website for your business, you can just open accounts on social media platforms. Create a business page on Facebook and list your product in the Facebook marketplace. Also, you can do the same for other social media like Instagram and Tiktok. TikTok is the best platform to promote your product through engaging content.
Moreover, create a Google My Business (GMB) profile for your business. This will help you target a local audience who searches for related products on Google. Continuously update your GMB profile for the best results.
Step 5: Create Engaging Content
Develop compelling and informative content to engage your audience and establish your business as an authority in your industry. Utilise blogs, videos, and social media platforms to connect with potential customers. As discussed above, make engaging content for TikTok, it is best for local businesses.
Step 6: Implement Effective Marketing Strategies
Implementing effective marketing strategies is key to success. Besides organic sales, sometimes you may have to run paid advertisements to drive paid traffic to your online store. Run paid ads on platforms like Facebook and Instagram to reach your target audience. Moreover, you can target an audience based on Google search using Google Ads. This will drive more traffic to your online store and boost your daily sales.
Step 7: Analyse Customer Feedback
Your relationship with customers shouldn’t end when they make a purchase. Positively respond to customer reviews and feedback on their shopping experience. This not only shows credibility to other ‘potential’ customers but also gives you valuable points to improve your business. So, regularly monitor user reviews and feedback to gain insight into your business's performance.
How Much Does it Cost to Start an Online Business?
It can cost around $2,000 to $10,000 to start an online business in Australia. Here's a complete breakdown of these numbers:
| Description | Cost Range |
| Website Development | $500 - $5,000 |
| Domain Name and Hosting | $50 - $100 per year |
| E-commerce Platform | $29 - $299 per month |
| Marketing and Advertising | $300 - $1,000 per month |
| Product Inventory (if applicable) | Depends on the type of products |
| Legal and Registration | $200 - $1,000 (One-time setup) |
| Total Cost of Starting an Online Business | $2,000 - $10,000 (on average) |
While these are general estimates, the actual cost can vary based on individual business choices and preferences. In the above calculation, we have not included the cost to implement a POS system. let's say you want an online bakery store, then you can purchase a custom bakery POS system to streamline your business processes. Which will cost you around $60 - $300 per month for the software. And for the hardware part, it will cost you anywhere between $2000 to $5000. It's essential to create a detailed budget and explore cost-effective options while maintaining quality and reliability.
Start Your Online Business Today
Whether you want to sell coffee online or branded clothes, there is immense opportunity for success and growth. Hopefully, this guide gives you the roadmap you require to get your online business rolling. Leverage the power of the Internet and start selling anything you want to.
Embrace innovation, dedication, and perseverance as you embark on your entrepreneurial journey. Remember that continuous adaptation and customer-centric strategies are the keys to thriving in the dynamic online marketplace.
Related Blog: Advantages of Online Ordering System
FAQs
What is the best online business to start in 2025?
The best online business to start in 2025 include
- E-commerce ventures
- Online Retails
- Digital marketing agencies
- Online education platforms
- subscription-based services
Moreover, check out our blog on the most profitable businesses to start in Australia to grab more insights.
What do you need to Start an online business in Australia?
Here is a list of things that you need to start an online business in Australia:
- Business plan
- Business Name
- An ABN Number
- Licenses and Permits
- A Professional Website
- An Online Ordering System
Is an online business profitable?
Yes, an online business can be highly profitable if executed effectively. By reaching a broader customer base, reducing operational costs, and implementing efficient marketing strategies, entrepreneurs can achieve significant profits. However, success requires consistent effort, adaptation to market trends, and a customer-centric approach to ensure sustained profitability.
Online Retail Owners make over $10,000 per month only through their online store. With over 40% profit margin, online retail businesses are highly profitable ventures.
*DISCLAIMER: This article is for general information only. POSApt does not guarantee accuracy, completeness, or specific results from following this advice. Consider consulting business professionals for tailored guidance.