Want to launch an ecommerce business? Now’s the right time – the sector is absolutely booming in the UK, with over 60 million ecommerce customers. In fact, our country boasts the third-largest ecommerce market in the world. 

This popularity is a double-edged sword for aspiring entrepreneurs, as you’ll have to launch your brand in the midst of heavy competition from large, well-established ecommerce retailers. You can’t really launch a generalist eCommerce shop and expect orders to fly in – you need to do something to stand out from the crowd. 

One of the best approaches is to find niche interests, hobbies or groups and build an ecommerce brand around that. You’ll avoid direct competition with larger retailers and build a loyal following of passionate fans. 

In this guide, we’ll share some of those exciting ecommerce business ideas to help you position your brand and get off to a profitable start.

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Why start an Ecommerce business in 2024?

For people looking to build a business, ecommerce offers an accessible entry point with many benefits you can get excited about, as well as a few drawbacks to keep in mind.

First and foremost, it’s worth discussing the all-encompassing nature of running an ecommerce business. Until you recruit employees or pay contractors, you’ll be in charge of every aspect of your fledgling business – from setting up the company to building a brand, launching a website, finding suppliers and interacting with customers. If you’re unwilling to take all of these responsibilities on board, ecommerce might not be for you.

The many different roles and tasks you need to fulfil as an ecommerce owner help demonstrate just how dynamic the sector can be. With this dynamism comes some definite pros and cons, which we’ve covered below… 

Advantages

• Easy to get started: Ecommerce websites are easy to build, maintain and expand using online tools such as Shopify or Wix. Sourcing suppliers is straightforward, too, with lots of online directories and even plug-in integrations that allow you to list a supplier’s product on your site directly. 
• Scalable: Unlike a physical shop that has a fixed size and customer limit, there’s no real ‘cap’ on how big your ecommerce shop can grow. As orders increase, you can hire new employees and develop your team to support your growing revenue. 
• Data and logistics: Ecommerce owners have access to better data about customers and their orders. You can use this data to deliver personalised marketing campaigns and to better track and resolve customer order issues.
• Better profits: Compared to traditional retailers, ecommerce shops can usually sell with higher margins and at greater scale. With a wider audience, lower costs and the ability to ship around the world, you can quickly rack up profits far beyond those available to a typical shop. 

Challenges

• High competition: The low barrier to entry for an ecommerce business means there are competitors in virtually every possible niche. Whatever you sell, chances are you’ll have to keep track of competitors and adjust your pricing and approach to stay ahead of them. 
• Customer service challenges: When you’re not face-to-face with a customer, the personal touch can be lost. This makes it more difficult to build rapport and trust and also much more challenging if a dispute arises. 
• Shipping issues: The biggest issue with most ecommerce businesses is how they pack and deliver items. If you dropship, your customers may be frustrated by long waits. If you buy stock and ship it yourself, you must ensure it’s delivered safely and with appropriate tracking. 
• Tax complexities: Ecommerce goods are sold with VAT, which you need to record and reclaim with HMRC each year. You’ll also need to pay sales tax that is appropriate to each country you sell to. Compared to a standard business model, ecommerce owners must navigate far more tax issues to remain compliant.

Did you know that we provide specialist accounting for ecommerce businesses?

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Top 20 innovative Ecommerce business ideas for 2024

1. Hobby-based subscription box

Subscription boxes are big business – but the more general ideas have all been done. Shaving kits, beauty products, craft beer… you name it; they’ve done it. To create something more unique, why not take a hobby or interest you have and theme a box around it? Find items you regularly buy or use within your hobby and create a subscription model that will delight fellow fans. 

2. Personalised products

It doesn’t take much to turn everyday items into special objects with a bit of personalisation. Whether it’s engraving, 3D printing, drawing or crafts, if you can source items to customise for buyers, you’ll have a unique product offering that sets you apart. 

3. Handmade children’s toys

Though large brand names dominate the children’s toy market, there’s an entire market of young parents seeking alternative learning-based toys for their children. You can either find a supplier producing handmade children’s toys or make your own. Try to use ethically sourced materials whenever possible to appeal to a more conscientious audience. 

4. Home security

Digital technology hasn’t only made it easier for people to set up ecommerce businesses – it’s also improved lots of other aspects of life, including home security. Where traditional CCTV systems were clunky and hard to install, people can now keep watch on their homes with Wi-Fi-enabled cameras and doorbells. Become a specialist and offer cutting-edge security options delivered to homeowner’s doors. 

5. Grow a plant & wildflower business

Houseplants are decorative but also functional – they purify air and help oxygenate homes. You can combine houseplants and decorative vases into a product that will delight young buyers. Alternatively, you could start a subscription-box-style houseplant service or sell wildflower seeds specific to a customer’s local area. 

6. Eco-friendly goods

Every sector has a distinct appetite for eco-friendly, sustainable products. Suppose you can find products that use natural ingredients and come from a reliable, cruelty-free supply chain. In that case, you can launch an eco-friendly goods shop stocking a range of homeware, cleaning, beauty, and even personal hygiene products like bamboo toothbrushes. 

7. Online courses and educational content

If you’ve got pre-existing expertise in a subject, you may be able to create an online course and sell it to a vast digital audience. You can make your course using a platform like Udemy or Skillshare – or you can create it on your own and build an ecommerce site to sell it. 

8. Wellness products

The wellness industry is one of the most versatile and fast-moving environments for an ecommerce owner. If you can tap into the latest fitness or wellness trends, you’re well on your way to success. From workout equipment like resistance bands to protein-rich sports nutrition, there’s plenty of choice in what you stock.  

9. Dropshipping

Dropshipping is an alternative ecommerce model where you don’t hold stock and instead send products directly from your supplier. It means you don’t need to worry about warehouse costs and can focus on selling – but you’ll need to find products that differentiate you from other sellers using similar suppliers. 

Check out our guide on top 10 dropshipping suppliers in the UK

10. Pet Products and Accessories

The UK is a pet-obsessed country, so budding ecommerce retailers can cash in by stocking pet products. From artisanal dog treats to comfy pet beds, you can succeed whether you’re tailoring your products around cats, dogs, fish or even horses! 

11. AR/VR Equipment and Applications

Augmented and virtual reality, also known as AR and VR, are promising technologies that rely on physical devices to be experienced in the real world. AR-enabled glasses, VR headsets, and more can all form the backbone of an exciting new commerce brand and will be perfect if you’re into tech.

12. Second-hand goods

Though there’s already plenty of competition from eBay, Vinted and other second-hand marketplaces, there’s still plenty of scope for individual ecommerce brands that specialise in small-scale second-hand goods. Experiment with a niche focus, such as second-hand football shirts or golf equipment, so you’ve got a more unique approach. 

13. Wedding supplies

Weddings are enormous events that some people plan their entire lives around. They involve all manner of products, from flowers and decorations to clothing, table favours and refreshments. You can theme an entire ecommerce shop range around weddings, offering more personalised service than a generic marketplace like Amazon or eBay. 

14. Retro British sweets 

Take your customers back to a more nostalgic age with retro British sweets like Sherbert Fountains, Rhubarb and Custards and Cola Cubes. Create themed boxes based on specific eras or flavour preferences, then package them up in vintage wrapping to really sell the idea. 

15. Gardening kits

Fancy leading a regeneration effort for British greenery? Launch a gardening ecomm brand that specialises in UK-specific flora and fauna. Stock seeds and starter kits for gardeners based on local soil types and indigenous plants, flowers and trees. Focus on British nature and build an ecommerce shop that has a tangible impact on the UK’s biodiversity and wildlife.  

16. Custom clothing line

If you have your finger on the fashion pulse, you can design your clothing and launch a brand. Streetwear is big business and is beloved by the younger generation, so find your niche and give it a go! 

17. Niche food business

Food is an incredibly broad term, with lots of scope for budding entrepreneurs to pick a specific niche and create a brand around it. Look at examples such as The Mushroom Emporium, which offers exotic mushrooms to UK buyers. 

18. Baby clothing

Social media has transformed how parents treat kid’s clothing – with eye-catching outfits made from organic materials now a gold standard. Set up a baby clothing business and cash in on this trend by sourcing ethically-made baby clothing, or consider a purely second-hand baby apparel site to keep things eco-friendly. 

19. Couples night gifts

Long-term relationships tend to lead to quiet nights in, where couples are eager to explore fun distractions such as board games and themed games. Creative ecommerce stores can offer themed kits or games for couples, whether pre-packaged from suppliers or bespoke options. 

20. Physical books

It may seem a little silly in an age where Amazon and other retail giants offer cut-price books in physical and eBook formats – but there’s a willing audience out there for independent booksellers. If you’re a literary type, you can have fun selecting your own ranges and categories and tailoring the selection to suit your intended audience. 

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How to validate your Ecommerce business idea 

If you like the sound of any of the businesses we’ve just covered, it’s worth taking extra time to validate the idea before you dive in. Here’s how you should go about it…

1. Research similar businesses and assess everything from their website layout to shipping times and pricing strategy. 
2. Build a business plan that accommodates your competitor's research and sets goals and financial projections against your proposed plan. 
3. Though you can ask friends and family what they think of your idea to help you get started, you should really consider more direct user research that involves surveys or feedback forms to justify the idea.
4. Create a prototype version of your new site and have friends and family try it out. Get them to send you their thoughts and issues. 
5. Launch the initial version of your site and start small. Don’t overcommit to large stock orders until you have proven your efficacy. 
6. Always make sure to deal with specialist ecommerce accountants like Crunch. That way you can get your finances right from the beginning.

Embracing the future of Ecommerce

The ecommerce industry is in constant flux, with new technology quickly changing the way people buy online. To enter the ecommerce sector is to take a bold step into a dynamic business environment where every day is a new challenge. 

If you’ve got the passion required to thrive in the sector, there’s no time like the present. Validate your idea, build an ecommerce site and ensure you stay on track of your costs and profits with Crunch. 

Check out our ecommerce accounting page for more information