Not Sure what happened to Ben However I can tell you that I run a Web Hosting company which is possibly the most competitive business available online. However if you can offer something unique or niche in a competitive market that in some way sets your business apart. You can certainly succeed. I won't tell you it's not hard work because in reality it is.
I would support both methods of marketing you mentioned if possible. If you need help advertising online. Then excuse the shameless plug. But we at Hosting Habitat offer an
Adwords Campaign Management service. This is one of the most cost effective methods of advertising online. Which helps target users at the point where they are actually are looking for your services.
What could beat that? Sign up with us and point me back to this thread and I'll provide you with a voucher to the value of $100 US to test out the program with your new e-commerce store. That should get you going Julie. At least in your national market.