Growing an online business: A checklist from the experts

If you’re a business owner, there has never been a better time to sell your product or service online. But learning how to start an online business can feel overwhelming — customer expectations are high, competition is fierce, and the landscape is constantly evolving.

So, how do you break through the noise so customers can find you? And how do you get them to come back? Here are our top tips for growing an online business, from picking the right tools to scaling your social media efforts.

Tips for growing an online business

While there are countless ways to grow your business online, many of them typically share a common playbook: find your target audience, meet them where they are, and make it easy for them to buy.

But here’s where the questions mount: Are they avid TikTok users who look to influencers for product recommendations, or do they love scouring for hidden gems on Etsy themselves? Will organic SEO, free online business tools, or social media engagement be enough to drive shoppers to your digital storefront, or will you invest in paid advertising? How much will marketing and ads cost for your online business, and is the potential ROI worth it?

Having these answers can allow you to explore different ways to grab their attention, engage them, encourage them to check out, and hopefully, return for more.

Identify where your audience is

Knowing how to identify your target audience is the first step to zeroing in on the right online marketplace or social media channel for your business. After all, choosing the wrong methods can mean talking to an empty room — or worse, wasting time, money, and effort trying to reach people who were never interested in the first place.

To pinpoint the best place to sell and engage, ask yourself these questions:

• Where does my target audience shop online? Are they browsing Etsy for handmade goods, scrolling Instagram for the latest trends, or heading straight to Amazon for quick purchases?

• Do they typically begin their search for new products on this channel or somewhere else? Some consumers start with Google, while others jump directly to TikTok or Pinterest for inspiration.

• Are similar products being sold on this platform? If yes, great. This means there's existing demand. If not, is it because you're offering something truly unique or because the platform isn’t a good fit?

• Are my competitors on this platform? If they are, it's worth analyzing how they’re engaging with customers. If they aren't, it might be an untapped opportunity — or a sign to look elsewhere.

We’ve created a checklist to help you stay organized as you evaluate different online marketplaces and social media channels against your business needs – download it here.

Conduct market research

Conducting market research into where your audience is spending their time and money might sound overwhelming, but it doesn’t have to be a complex, drawn-out process.

Not sure how to do market research? Try these simple strategies:

• Social media listening: Scroll through platforms like Instagram, Facebook, and Reddit to see what people are saying about your industry. What are their biggest frustrations? What kind of products or solutions are they excited about?

• Surveys and polls: A quick online questionnaire can provide direct feedback. Ask about buying habits, preferred shopping platforms, and what influences their purchasing decisions.

• Competitor analysis: Who are your competitors targeting? What platforms are they prioritizing? A quick look at their ads, social media engagement, and product listings can offer clues.

• Focus groups: This is a more involved approach, but if you can gather a small group of your ideal customers, you can get deep insights into their needs, preferences, and pain points.

Segment your potential customers

Once you’ve gathered the data, the next step is customer segmentation, which involves grouping your audience based on shared characteristics.

Some common customer segmentation categories include:

• Demographics: Age, gender, location, income level.

• Psychographics: Interests, values, lifestyle, personality traits.

• Buying behavior: Are they impulse buyers? Deal hunters? Brand loyalists?

Audience segmentation and targeting are important because not every customer behaves the same way online. Some might respond well to short-form video content on TikTok, while others prefer in-depth product descriptions on Amazon.

Understanding who your audience is and where they are allows you to tailor your messaging and marketing efforts — so you're not just throwing something at the wall and hoping something sticks.

Choose online marketplaces and platforms

From Amazon to eBay to Instagram, there are dozens of channels for selling products online and growing an online business — and more likely than not, your target customers are browsing, clicking, and purchasing on multiple marketplaces or social media platforms.

While not impossible, it can be challenging for businesses to maintain an active presence on all these channels while providing stellar customer service and fulfilling orders quickly.

So, how do you decide the right platform for online businesses? One approach is to review all the features and tools provided by different online marketplaces or social media channels and evaluating which one can best help you meet your goals.

Here are some questions to keep in mind:

• Does the platform offer features that matter to your customers? Shoppers love perks like free shipping, buyer protection, easy returns, and multiple payment options. If a platform doesn’t offer these, you might lose sales before they even start browsing.

• Does it have the features you need? Some platforms let you start selling in minutes, while others require tech skills, setup time, or additional integrations. If the backend feels like a maze, it might not be worth the headache.

• Can it integrate with other sales channels? If you're selling on multiple platforms, you don’t want to juggle inventory manually. Look for inventory syncing features to keep things running smoothly.

• What payment methods does it support? Customers want options, so check whether the platform supports PayPal, credit/debit cards, digital wallets, and buy-now-pay-later services. A clunky checkout can lead to lost sales.

• Does it offer built-in digital marketing for small businesses? Some platforms make promotion easier by including features like sponsored posts, social media sharing, product tagging, or email marketing integrations. Others leave marketing entirely up to you, which could mean more work (or more ad spend) when you’re deep in the weeds of growing an online business.

Have a shortlist of potential channels in mind? Great! Feeling stuck? Don’t worry — consider some of the online marketplaces popular in your region, such as:

• United States: Amazon, eBay, Instagram, Etsy, Wish, Facebook Marketplace
• Canada: Amazon, Kijiji, eBay, Newegg
• France: Leboncoin, Rakuten, eBay, La Redoute
• Germany: OTTO, Check24, Amazon, Zalando, Idealo
• United Kingdom: Not on The High Street, Depop, Gumtree, Instagram

Use online software to your advantage

Growing an online business is already a juggling act — why make it harder? Whether you're managing inventory, creating social media content, or handling payments, software for small businesses can take a lot off your plate.

Here are a few ways online business software can support growing an online business:

• Designing engaging content: Tools like Canva make it easy to create professional-looking graphics, social media posts, and marketing materials without a design degree. Eye-catching visuals can boost engagement, making your brand more memorable.

• Automating social media and marketing: Platforms like Hootsuite or Postpone help schedule posts, while email marketing tools like Mailchimp allow you to nurture customer relationships on autopilot.

• Managing finances and payments: Having a seamless checkout experience can make or break a sale. With PayPal’s business tools, you can offer secure, flexible payment options, including PayPal checkout and invoicing solutions. This makes it easy for shoppers to buy from you, whether they're on your website, social media, or an online marketplace.

• Tracking inventory and sales: From Shopify to QuickBooks, online business software can help track stock levels, analyze sales trends, and prevent costly inventory mistakes.

Choosing the right payment processor for your small business

The right online payment processor can do more than just handle transactions — it can influence customer trust, streamline checkout, and even impact your bottom line.

Keep these considerations in mind when making payment processor comparisons:

• Customer convenience: The best payment method for small businesses is one that aligns with how customers prefer to pay. Whether it’s credit cards, PayPal, Apple Pay, or buy-now-pay-later options, offering multiple payment methods can help reduce the likelihood that someone abandons their cart.

• Processing fees: Every online payment processor charges a fee per transaction, but these can vary. Some charge a flat rate, while others take a percentage of each sale. These fees can add up, so take the time to compare rates and look for options that fit your business model.

• Security and fraud protection: Customers need to trust that their payment information is safe. Processors with built-in security features, such as encryption and fraud detection, help protect both you and your buyers.

• Integration and ease of use: Some online payment processors integrate seamlessly with e-commerce platforms, invoicing software, and accounting tools, making growing an online business easier than ever.

Cost and benefits to consider

Beyond features, you’ll also want to ensure that your chosen online marketplace or social media platform can help you meet your business’s financial goals. After all, everyone wants to have a presence on popular shopping destinations, but nobody wants to go in the red.

So, take a moment to research the benefits and costs associated with different channels:

• Ease of setup and time investment: Some platforms let you list products and start selling online in minutes, while others require extensive verification, setup fees, or ongoing maintenance. If it takes weeks just to get started, will it be worth it?

• Short-term vs. long-term goals: Are you looking for a quick sales boost, or do you want to build a steady revenue stream? Marketplaces like Etsy and Amazon can get products in front of customers fast — but they take a cut of your sales. Growing an audience on Instagram or TikTok takes more time, but engagement there can turn into free, organic exposure.

• Available resources: Listing products is one thing, but growing an online business means creating content, responding to customers, and keeping up with platform trends. If you’re stretched too thin, consider using online business software to automate marketing, customer service, or inventory management.

• Marketing costs and ROI: Costs can vary wildly when it comes to marketing for small businesses — Facebook and Pinterest ads, for example, are typically more budget-friendly than LinkedIn or Instagram.¹ Try to conduct a cost analysis of marketing your business on social media for your chosen channels and your expected ROI.

• Fees and commissions: Many online marketplaces charge listing fees, transaction fees, or commissions per sale. Shopify, for example, gives you more control (but comes with a monthly cost), while platforms like eBay or Etsy take a percentage of each sale. The last thing you want is to price your products competitively, only to realize fees are slashing your margins.

Final thoughts on growing an online business

Successfully growing an online business isn’t just about choosing the right platform — it’s about making smart, strategic decisions that help you scale efficiently. From picking the best online marketplace to investing in the right business tools, every choice you make should align with your goals, resources, and target audience.

The key? Work smarter, not harder. Use online business software to automate time-consuming tasks, optimize your payment process with trusted solutions like PayPal, and focus on creating a seamless experience for your customers. Learn more about PayPal Business today.