Questions to Ask Before Starting an eCommerce Business

Starting an eCommerce business can create access to new customers, new markets, and new ways to sell. For an existing business, online sales may become an additional revenue channel. For a new business, eCommerce may form the centre of the business model.

But launching an online store is not the same as building a viable eCommerce business.

The website is only one part of a larger commercial and operational system. Products must be sourced or produced. Customers must be acquired. Payments must work. Inventory must be managed. Orders must be fulfilled. Returns and customer service must be handled. Technology systems may need to communicate with one another. And after all of those costs are considered, the business still needs to generate an acceptable return.

That is why the most important questions should be answered before selecting a platform or designing the storefront.

A useful starting point is:

Can this business acquire customers, fulfil their orders, deliver a good experience, and still generate enough contribution to make eCommerce commercially worthwhile?

The following questions can help small businesses evaluate that decision more systematically.

Is eCommerce Actually the Right Growth Channel for Your Business?

eCommerce should not automatically be treated as a requirement simply because customers increasingly buy online.

The better question is whether online selling is an attractive channel for your particular business.

For some companies, eCommerce can expand geographic reach, make purchasing more convenient, support repeat orders, reduce reliance on a physical location, or create new customer relationships.

For others, the economics may be difficult.

A product may be expensive to ship, frequently returned, difficult to explain without consultation, highly regulated, low-margin, or dependent on local installation or service. In those situations, a conventional online checkout may not be the best model.

The strategic decision is therefore not:

“Should we have an online store?”

It is:

“What role should eCommerce play in our business model?”

That could mean a full transactional store, a limited product catalogue, online ordering for existing customers, subscriptions, click-and-collect, marketplace selling, B2B ordering, or another hybrid model.

1. What Will You Sell Online — and Why Would Customers Buy It?

The first question is not simply what products are available.

It is whether those products are suitable for online selling and whether customers have a reason to choose them.

Consider:

• What customer problem does the product solve?

• How differentiated is it?

• Can customers understand the value without speaking to a salesperson?

• Is the product already widely available elsewhere?

• Can it be shipped efficiently?

• Is it fragile, oversized, perishable, regulated, or difficult to return?

• Does it have enough margin to absorb eCommerce costs?

• Is repeat purchasing likely?

• Can the product be bundled or subscribed to?

• Does the business have some defensible advantage in price, product, convenience, specialization, availability, service, or brand?

If an existing retailer is moving online, it may also be a mistake to place the entire offline catalogue online immediately.

Some products may be excellent eCommerce candidates while others may produce weak margins, expensive returns, difficult fulfilment, or limited online demand.

A smaller, strategically selected launch assortment can often provide better information than putting hundreds of products online at once.

2. Is There Enough Demand?

A good product idea is not enough.

The business needs evidence that a sufficiently attractive group of customers wants the product and can realistically be reached.

Research may include:

• search demand;

• industry data;

• customer interviews;

• competitor activity;

• marketplace demand;

• customer reviews;

• existing sales records;

• geographic demand;

• pricing;

• purchase frequency;

• substitutes;

• trends affecting the category.

This is where market research becomes important.

The objective is not to prove that “people buy this type of product online.”

It is to determine whether there is enough realistic demand for this offer, from this business, at the required economics.

For an existing business, internal information may be especially valuable. Customers may already be asking for online ordering, delivery, subscription options, or easier repeat purchasing.

3. Who Is the Online Customer — and How Do They Buy?

A business should understand both who the customer is and how that customer prefers to purchase.

The answer can affect everything from platform selection to payment methods and marketing strategy.

Questions may include:

• Are customers primarily consumers or businesses?

• Do they research before buying or purchase impulsively?

• Are purchases frequent or occasional?

• Do they buy primarily from brand websites, marketplaces, apps, or social platforms?

• Do they expect local pickup?

• Which payment methods matter?

• How important are reviews?

• Is free shipping expected?

• Do customers compare prices aggressively?

• Are purchases typically made on mobile devices?

• Does the product require education or consultation?

The 2026 DHL E-Commerce Trends Report illustrates why channel assumptions should be tested rather than taken for granted. Globally, 63% of surveyed eCommerce businesses said they sell through social media, while 45% of surveyed shoppers reported purchasing through social platforms. Businesses in the study sold across an average of three platforms. DHL’s published report highlights the same business-shopper gap.

The lesson is not that social commerce is ineffective.

It is that a business should not invest in a channel simply because competitors or other retailers are using it.

Channel strategy should follow customer behaviour.

4. Can the Product Economics Support eCommerce?

This is one of the most important questions and one of the easiest to underestimate.

Suppose a product sells online for $75 and costs $30 to purchase from the supplier.

It may appear to generate $45 of margin.

But that is not the complete eCommerce economics.

The business may also have to absorb:

• inbound freight;

• packaging;

• payment processing;

• marketplace or platform transaction fees;

• fulfilment labour;

• warehouse costs;

• outbound shipping;

• shipping subsidies;

• discounts;

• returns;

• damaged goods;

• customer service;

• customer acquisition.

What remains after these costs is more useful for decision-making than the difference between selling price and product cost alone.

eCommerce Unit Economics Checklist

Economics Component	Questions to Ask
Selling Price	What price will customers realistically pay, and how does it compare with available alternatives?
Product Cost	What is the landed cost of the product, including manufacturing, wholesale cost, or materials?
Packaging & Fulfilment	What does it cost to pick, pack, prepare, and process each order?
Payment & Platform Fees	Which transaction, payment-processing, marketplace, app, or platform fees apply?
Shipping	What will delivery actually cost, and how much of that cost will the business absorb?
Returns & Refunds	What percentage of orders may be returned, and what are the handling, shipping, damage, and restocking costs?
Customer Acquisition	How much can the business afford to spend to acquire an order or customer?
Contribution Remaining	After variable eCommerce costs are deducted, is enough value left to support overhead, growth, and profit?

This does not replace proper accounting or financial analysis.

Its purpose is to make the commercial logic visible before the business commits substantial money to building or marketing the store.

A product that looks attractive at the gross-margin level can become unattractive once fulfilment, returns, shipping, and acquisition costs are included.

5. How Will You Source or Produce the Product?

If the business sells physical goods, sourcing decisions affect margin, quality, working capital, inventory risk, and customer experience.

Common models include:

Make the Product Internally

This can provide greater control over quality and differentiation but may limit production capacity.

Contract Manufacturing

A manufacturer produces the product according to the company's requirements.

This may support scale but can introduce minimum order quantities, longer lead times, quality-control requirements, and supplier dependency.

Wholesale and Resale

The company buys existing products and resells them.

This is relatively straightforward operationally, but competitors may have access to the same products and suppliers.

Dropshipping

A third party holds and ships inventory directly to the customer.

This can reduce inventory investment, but the retailer still owns the customer relationship. Weak supplier performance, stock problems, poor packaging, delayed delivery, or difficult returns can therefore become the retailer's problem.

The correct sourcing model depends on more than initial cost.

Management should compare:

margin, control, working capital, minimum order quantities, lead times, quality, differentiation, supplier risk, and scalability.

6. How Will Inventory Be Managed?

Inventory can become one of the largest uses of cash in an eCommerce business.

Too little inventory can create stockouts and lost sales.

Too much can create:

• trapped working capital;

• obsolete products;

• markdowns;

• storage costs;

• spoilage;

• cash-flow pressure.

Before launch, the business should understand:

• how much inventory is required;

• supplier lead times;

• reorder points;

• expected seasonality;

• minimum order quantities;

• safety stock;

• how returns return to inventory;

• how stock will be synchronized across online and offline channels.

If products are sold simultaneously through a physical location, an eCommerce website, and marketplaces, inventory accuracy becomes particularly important.

Selling the same last unit through two channels at the same time creates a customer-service problem very quickly.

7. How Will Orders Be Fulfilled and Delivered?

Delivery is not simply a logistics decision.

It is part of the product proposition and the customer experience.

The DHL 2026 study found that 67% of surveyed shoppers had abandoned an online purchase because of the delivery offering. It also found that seven in ten shoppers would abandon a cart if the delivery or return options they wanted were not available at checkout. DHL’s public report similarly identifies delivery as one of the major final-stage conversion barriers.

The business therefore needs to determine:

• where orders will be packed;

• whether fulfilment is internal or outsourced;

• which carriers will be used;

• expected delivery times;

• tracking capabilities;

• packaging requirements;

• delivery areas;

• free-shipping thresholds;

• customer shipping charges;

• lost or damaged parcel procedures;

• peak-period capacity.

The goal is not always the fastest possible delivery.

It is a delivery promise the business can reliably and profitably keep.

8. What Will Returns and Customer Service Cost?

Returns are often discussed as a customer policy.

They should also be treated as an operational and financial model.

The DHL study found that shoppers most commonly attributed returns to products being faulty, poor quality, or not meeting expectations (60%), followed by sizing issues (46%) and products being lost or damaged in transit (39%).

This has several implications.

Returns may originate from:

• product quality;

• inaccurate descriptions;

• poor photography;

• sizing;

• packaging;

• shipping damage;

• unrealistic customer expectations;

• customer preference.

A good returns process therefore begins before the return happens.

Clear product information, accurate images, dimensions, fit guidance, delivery expectations, quality control, and appropriate packaging can all affect return economics.

Management should decide:

• who pays return shipping;

• how long customers have to return;

• what condition is required;

• how refunds are processed;

• whether items can be resold;

• how damaged goods are handled;

• how return reasons are tracked.

Return information should then become business intelligence.

If one product is returned much more frequently than others, the solution may not be a better return workflow. It may be a product, supplier, description, quality, or positioning issue.

9. Where Should You Sell: Your Own Store, a Marketplace, or Both?

Businesses increasingly have several routes to online customers.

The most common strategic choice is between building a customer relationship through an owned eCommerce store and accessing existing demand through marketplaces.

Your Own eCommerce Store

Potential advantages include:

• greater control over brand and experience;

• more direct customer relationships;

• greater ownership of customer data, subject to applicable privacy rules;

• more control over pricing and merchandising;

• less dependence on a marketplace.

The trade-off is that the company has to create much more of its own traffic and demand.

Marketplaces

Marketplaces can provide:

• access to existing shoppers;

• built-in search and discovery;

• existing trust;

• relatively fast market access.

But the trade-offs may include:

• marketplace fees;

• competitive price pressure;

• marketplace rules;

• limited customer ownership;

• platform dependency.

The DHL report found that marketplaces remain central to online shopping; 82% of surveyed shoppers expected their marketplace usage to stay the same or increase over the following five years.

Hybrid Approach

Many businesses use both.

The marketplace can support discovery while the owned store develops the direct customer relationship.

But a multi-channel model also creates more operational complexity around inventory, pricing, orders, fulfilment, customer service, and product information.

The strategic trade-off is essentially:

borrowed demand versus owned customer relationship.

For many small businesses, both can be useful — but for different reasons.

10. Which eCommerce Platform Fits the Business?

Platform selection should happen after the business requirements are understood.

A platform that is excellent for a small catalogue may be inappropriate for a complex B2B distributor.

A platform suitable for a content-led retail brand may not suit a company with thousands of SKUs, sophisticated inventory requirements, or extensive integrations.

The question should therefore not be:

“What is the best eCommerce platform?”

It should be:

“Which platform best supports this operating model with acceptable cost and complexity?”

eCommerce Platform Decision Criteria

Decision Area	Questions to Evaluate
Product Catalogue	How many products, categories, variants, bundles, subscriptions, or custom options are required?
B2C / B2B Requirements	Are customer-specific pricing, wholesale accounts, purchase orders, quotes, or approval workflows required?
Inventory & POS	Does online inventory need to synchronize with stores, warehouses, marketplaces, or an existing POS?
Payments & Checkout	Which payment methods, currencies, checkout functions, subscriptions, or payment providers are needed?
Shipping & Fulfilment	Which carriers, rates, fulfilment providers, local pickup, tracking, and delivery rules need to be supported?
Integrations	Does the store need to connect with accounting, CRM, ERP, email marketing, marketplaces, shipping, or other systems?
Content & SEO	How important are editorial content, landing pages, technical SEO control, structured product information, and organic search?
International Selling	Will the business require multiple currencies, languages, markets, tax rules, or localized storefronts?
Total Cost	What are the subscription, transaction, app, integration, development, maintenance, and support costs?
Scalability & Portability	Can the platform support future growth, and how difficult would it be to migrate if business requirements change?

This is also why selecting a platform purely on monthly subscription price can be misleading.

A cheaper platform may become expensive if it requires many paid extensions, custom development, manual processes, or workarounds.

A more expensive platform may also be unnecessary if the business does not need its additional capabilities.

The correct objective is fit, not maximum functionality.

11. Which Systems Need to Integrate With the Store?

An eCommerce store rarely operates alone.

Depending on the business, it may need to exchange information with:

• accounting software;

• POS;

• inventory systems;

• CRM;

• shipping providers;

• fulfilment systems;

• email marketing;

• customer support;

• payment gateways;

• marketplaces;

• analytics;

• ERP systems.

Integration decisions affect efficiency and scalability.

For example, manually entering every online order into the accounting system may work at 10 orders per week.

At 500 orders per week, the same workflow becomes an operational bottleneck.

Businesses should therefore consider not only what they need at launch but what processes would become difficult if sales grow.

12. How Will Customers Find You?

Building an online store does not automatically create traffic.

The business needs a customer acquisition strategy.

Potential channels include:

• organic search;

• paid search;

• social media;

• paid social;

• marketplaces;

• email;

• partnerships;

• referrals;

• content;

• affiliates;

• existing customers;

• offline channels.

The mistake is assuming the company needs to use all of them.

Each channel has different:

• economics;

• audience;

• competition;

• content requirements;

• time horizon;

• management requirements.

A small business with limited resources may produce better results by becoming effective in a small number of acquisition channels rather than spreading effort across every available platform.

Where organic search is strategically relevant, SEO and content marketing can support product discovery, commercial pages, category visibility, and longer-term customer acquisition.

13. What Will Customer Acquisition Cost?

Revenue alone does not tell management whether online growth is healthy.

Suppose an eCommerce store generates $100,000 in sales.

That sounds positive.

But if it required $45,000 in advertising to generate those sales and the products have limited contribution margin, the channel may not be creating enough value.

Businesses should therefore track the relationship between:

• customer acquisition cost;

• average order value;

• contribution margin;

• repeat purchase rate;

• customer lifetime value where useful;

• refunds and returns.

This matters particularly when businesses rely heavily on paid acquisition.

An eCommerce model that works only when advertising is unusually cheap may not be resilient.

One strategic objective should be to determine whether the business can eventually develop sources of demand that are less dependent on continuously buying each transaction.

That may include:

• repeat customers;

• email lists;

• organic search;

• referrals;

• direct traffic;

• brand recognition;

• subscriptions.

14. Which Payment and Checkout Options Matter?

Checkout should be designed around the customer rather than around every feature available from the platform.

According to DHL’s 2026 study, shoppers reported using an average of four payment methods while businesses offered an average of seven. More importantly, 62% of surveyed shoppers said they would abandon a purchase if their preferred payment method was unavailable.

The implication is not that every possible payment option must be added.

It is that the business should understand which methods matter to its customers.

Checkout planning should consider:

• credit and debit cards;

• digital wallets;

• relevant local payment methods;

• guest checkout;

• checkout speed;

• mobile usability;

• security and trust;

• shipping visibility;

• total price clarity.

The Competition Bureau also warns Canadian businesses against misleading pricing practices, including situations where consumers cannot obtain the advertised price because mandatory charges appear later in the transaction.

Pricing transparency is therefore both a customer-experience issue and a compliance consideration.

15. What Legal, Tax, Privacy, and Regulatory Requirements Apply?

An online business is still a business.

Selling through the internet does not remove normal tax, regulatory, consumer-protection, privacy, product, licensing, or other obligations.

The Canada Revenue Agency states that existing tax laws applying to businesses also apply to business conducted over the Internet. CRA guidance also identifies income-generating websites and marketplace pages among the online properties businesses may need to report.

Depending on the company, product, location, and sales activity, requirements may involve:

• business registration;

• permits or licences;

• GST/HST and other tax obligations;

• product regulations;

• packaging and labelling;

• privacy;

• marketing;

• consumer-protection requirements;

• industry-specific regulation.

Canada.ca provides a central permits and licences resource, including BizPaL, which helps businesses identify potentially applicable federal, provincial, territorial, and municipal permits and licences.

Businesses also need to think about customer data.

The Office of the Privacy Commissioner of Canada provides guidance for businesses on PIPEDA and responsibilities involving collection, use, disclosure, consent, safeguards, and privacy management practices.

Marketing practices are another consideration. The Competition Bureau states that businesses may not advertise or market products and services to Canadians in a false or misleading way.

The exact requirements vary by business and jurisdiction.

Where legal, tax, accounting, privacy, customs, or other regulated advice is needed, businesses should consult the appropriate qualified professional.

16. Will You Sell Internationally?

An online store can technically make a product visible worldwide.

That does not mean the company is ready for international eCommerce.

Cross-border selling can introduce:

• shipping costs;

• longer delivery times;

• tariffs and duties;

• customs;

• tax considerations;

• returns complexity;

• foreign currency;

• payment methods;

• language;

• customer service;

• fraud risk;

• product restrictions.

DHL's 2026 research found that 70% of surveyed shoppers had purchased internationally and 61% of surveyed eCommerce businesses sold cross-border. But the same report found major barriers: 45% of shoppers cited delivery cost or delivery time as a reason not to buy internationally, another 45% cited fraud or lack of trust, 41% cited customs, duties or taxes, and 36% cited difficult or expensive returns.

This illustrates an important point:

Turning on international shipping is not the same as having a cross-border strategy.

Businesses considering a broader market entry should assess the opportunity separately through an international expansion plan.

17. How Will You Measure Whether eCommerce Is Working?

Sales are important, but they are not enough.

A useful eCommerce scorecard may include:

• traffic;

• conversion rate;

• average order value;

• gross margin;

• contribution margin;

• customer acquisition cost;

• repeat purchase rate;

• cart abandonment;

• fulfilment cost;

• shipping cost;

• return rate;

• refund rate;

• inventory turnover;

• stockouts;

• customer service volume;

• delivery performance.

The purpose is not to create dozens of dashboards.

It is to determine whether the economics and customer experience are moving in the right direction.

A business with rapid revenue growth but deteriorating contribution margin may be scaling an unattractive model.

A business with moderate growth, healthy repeat purchases, strong margin, and manageable fulfilment may have a much stronger foundation.

Start Small, Validate, Then Scale

A new eCommerce business does not always need a large catalogue, complicated technology stack, multiple warehouses, and a major advertising budget on day one.

A phased launch can reduce risk.

A practical sequence might be:

Validate demand → Launch a focused offer → Measure economics → Fix operational problems → Expand

This allows the business to learn:

• which products actually sell;

• which channels produce customers;

• how much fulfilment costs;

• whether shipping assumptions were accurate;

• what customers return;

• which questions customer service receives;

• whether systems work together;

• whether margins are sufficient.

The objective is to earn the right to scale rather than committing large fixed costs before the business model has been tested.

For larger or financing-dependent initiatives, a structured business plan can help connect market assumptions, operating requirements, financial projections, implementation steps, and funding needs.

Common eCommerce Planning Mistakes

Choosing the Platform Before Defining Requirements

Technology should support the business model, not determine it.

Assuming Website Traffic Will Appear Automatically

A storefront without an acquisition strategy is not a sales strategy.

Looking at Product Margin but Ignoring Unit Economics

Shipping, fulfilment, returns, payments, marketplaces, and acquisition can materially change profitability.

Offering Free Shipping Without Understanding the Cost

“Free” shipping still has a cost. The question is where that cost is absorbed.

Treating Returns as an Administrative Problem

Returns can reveal product, quality, sizing, supplier, positioning, packaging, or fulfilment problems.

Launching Too Many Products

A focused assortment can make testing easier and reduce inventory exposure.

Using Too Many Marketing Channels Too Early

Breadth can dilute budget and management attention before the business knows what works.

Ignoring Integration Requirements

Manual processes that appear harmless at low volume can become serious bottlenecks as sales increase.

Scaling Revenue Before Validating Profitability

More orders are not automatically better if each additional order creates inadequate contribution.

How Acumen Supports eCommerce Planning and Implementation

Acumen Business Consulting Inc. supports small and mid-sized businesses with the business, operational, digital, and implementation decisions surrounding eCommerce initiatives.

Depending on the engagement, support may include:

• evaluating eCommerce requirements;

• reviewing business and operating models;

• researching platforms and technology options;

• planning website and storefront requirements;

• mapping customer and order workflows;

• identifying system and integration requirements;

• coordinating platform migration or implementation;

• structuring product, content, and SEO requirements;

• assessing implementation priorities;

• developing business plans and project roadmaps;

• coordinating external vendors where required.

Acumen's role is not simply to put products onto a website.

The objective is to help ensure the eCommerce system fits the way the business needs to sell, fulfil, support, and grow.

Need Help Planning or Implementing Your eCommerce Project?

Acumen can help businesses evaluate eCommerce requirements, compare platform and system options, plan storefront and workflow requirements, coordinate implementation, and connect the eCommerce initiative with the broader business strategy.

Frequently Asked Questions

• What should I consider before starting an eCommerce business?

  Before launching, evaluate customer demand, product suitability, margins, sourcing, inventory, fulfilment, shipping, returns, customer acquisition, platform requirements, integrations, payment options, compliance requirements, and how performance will be measured.

• Is starting an online store the same as starting an eCommerce business?

  No. The storefront is only one part of the eCommerce model. The business also needs products, sourcing, payments, customer acquisition, inventory management, fulfilment, shipping, returns, customer service, technology, and viable economics.

• How do I know whether my product is suitable for eCommerce?

  Consider demand, differentiation, margin, shipping characteristics, return risk, customer buying behaviour, product complexity, regulatory requirements, and whether customers can understand and purchase the product effectively online.

• Should I use my own eCommerce website or sell on a marketplace?

  An owned store provides greater control over the brand and customer relationship, while marketplaces can provide access to existing demand. Many businesses use both, but each channel has different fees, customer ownership, competitive conditions, and operational requirements.

• Which eCommerce platform should I choose?

  The right platform depends on the business requirements. Evaluate catalogue complexity, B2B or B2C requirements, payments, inventory, shipping, POS, integrations, content, SEO, international selling, cost, scalability, and future migration requirements before selecting a platform.

• Do I need to offer free shipping?

  Not necessarily. Customers may value free shipping, but the cost still needs to be absorbed somewhere in the business model. Businesses should evaluate customer expectations, order values, margins, shipping costs, and whether thresholds or alternative delivery options make commercial sense.

• How much does it cost to start an eCommerce business?

  There is no standard amount. Costs may include inventory, website development, platform subscriptions, apps, payments, photography, packaging, shipping setup, integrations, marketing, professional services, and working capital. The appropriate investment depends on the business model and scope.

• How can I tell whether my eCommerce store is profitable?

  Revenue alone is insufficient. Businesses should consider product costs, fulfilment, shipping, payment fees, platform fees, returns, refunds, customer acquisition, and other variable costs to understand how much contribution remains from each order.

• Can I sell internationally through my eCommerce store?

  Technically, many platforms allow international selling, but businesses should first assess shipping, customs, duties, taxes, returns, payment methods, currency, local regulations, customer service, and market demand.

• Can Acumen help select or implement an eCommerce platform?

  Acumen can support business and technical requirement definition, platform evaluation, website planning, workflow and systems planning, migration or implementation coordination, vendor management, and related business-side planning depending on the project.

Sources

DHL eCommerce — 2026 E-Commerce Trends Report
Global research comparing online shopper expectations with eCommerce business practices across channels, payments, cart abandonment, cross-border shopping, AI, delivery, and returns. The study surveyed 29,000 online shoppers across 29 countries and 5,800 eCommerce businesses across 28 countries.

Canada Revenue Agency — E-commerce
CRA guidance explaining how existing Canadian business tax laws apply to online business activity and identifying income-generating websites and marketplace pages relevant to business reporting.

Government of Canada — Permits, Licences and Regulations
Government resource covering business permits, licences, regulatory requirements, and access to the BizPaL permit and licence search.

Office of the Privacy Commissioner of Canada — Privacy Guide for Businesses
Guidance for businesses on PIPEDA responsibilities, meaningful consent, safeguards, privacy practices, and personal-information management.

Competition Bureau Canada — Misleading Representations and Deceptive Marketing Practices
Guidance explaining Canadian Competition Act requirements relating to false or misleading advertising and marketing practices.