Starting an online store has advantages over a regular physical store, there is no rental fee, and you can reach many consumers from your home. For success, it is a good idea to think deeply about opening an online store. You need a good product, an easy-to-use site, and a solid marketing plan. Read on to learn it.
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Part 1 of 4: Developing Products and Business Plans
Step 1. Decide what you are going to sell
If you want to start an online store, you probably already have an idea of what items to sell. Remember that there are very good items to sell online where others are hard to sell. In any case, you have to trust your product, otherwise it is very difficult to connect with customers. Here are some questions to consider:
- Is this a product that needs to be shipped a package? Or digital goods that can be sent via the internet?
- Will you have stock (more than one) for each product, or will there be only one?
- Are you going to sell a variety of products? Or only specialize in certain products?
- Are you going to produce it yourself? If so, make sure you can match the request. Build relationships with reliable suppliers.
- If you don't plan on producing your own, you need a good factory. Look for different companies to find one that fits your business idea.
- Decide how your product will be shipped. Find the most efficient way. You can even use a dropshipping system if the product is manufactured by a third party.
Step 2. Find a niche market
Knowing the products you want to sell is only a small part of creating a successful online store. You need to find out what sets your store apart from others. Why consumers should buy in your store?
- Get to know the competition. Do not immediately sell goods until you see your rival's site. Consider the online marketplace where you plan to advertise and also look at your competitors there.
- Offer something original. If you sell your own handmade crafts, this can certainly set it apart from other products. Try to strike a balance between originality and general appearance.
- Offer expertise. Maybe it's the distinguishing qualities or more knowledge of the product you're selling. Maybe you are a former baseball player who sells baseball equipment. Make your skills and experience part of the sales package.
- Offer an easy buying process. Even if your products are the same as others, you can make your store look different by making the buying process fun and enjoyable. Make your site easy to use and fun to share. Be responsive and provide customer service that no other place has.
Step 3. Test first by selling your items in small quantities
Like an offline store, it's a good idea to test your product in small quantities before being marketed in large quantities. Try selling your items on eBay, Craigslist, and Half.com. This you can notice:
- Who buys your product? Offer discount coupons or free gifts if they answer surveys. Find out other places where they shop online.
- How much did they pay? Experiment with different prices.
- How is customer satisfaction? This is a good time to test how good the product is in the eyes of consumers. Are you wearing a good look? Do they like your product? Did you describe it well?
Step 4. Create a business plan
Before you start the process of opening an online store, take some time to plan, whether you will seek outside capital. This will help you plan the steps you need to take to make your business a success. Find out the operating costs and create a marketing plan. You may have to consider these factors:
- Production costs, whether you produce it yourself or contract with the manufacturer.
- Shipping costs.
- Tax.
- Employee salaries, if any.
- The cost of maintaining the domain name and web hosting services.
Step 5. Register your business legally
When you are ready to make it official, you will need to have a business name and fill in the legal and tax requirements to register your business.
Part 2 of 4: Build your own online store
Step 1. Register a domain name
Choose a name that is short, catchy, and easy to remember. It must be unique because the market name has already been taken. Look at domain registration companies and try a lot of names until you find one that's satisfactory and hasn't been used by anyone else.
- If the name you want is already taken, get creative. Add extra numbers or letters.
- The domain registration service will have suggestions for the closest alternative once the name has been taken.
Step 2. Choose a web hosting service
It's worth looking for a good service for your site, as this is the foundation of your online store. Free services are often available. However, because you will be selling products online, you usually have to pay to get the service you need.
- You need room to grow if your business is doing well.
- Choose a hosting service for customization if you plan to do the programming yourself.
Step 3. Design your site
Either you design it yourself or the site designer builds it for you. The emphasis should be on your product and making it easy for consumers to buy. Don't get caught up in making the site complex, the more explicit the site, the better for an online store.
- Enter a way to collect email addresses so you can send ads and special offers.
- Consumers should not click more than 2 times to check the product.
- Choose several colors and fonts to use.
Step 4. Choose an e-commerce software
This allows consumers to view your products and make purchases safely. In some cases, this software is also useful for marketing. Take some time to search for companies before making a choice, because the one you choose will play a huge role in your customer experience and your company's success.
Step 5. Create a merchant account
You need to create an account with a bank institution so that your customers can pay by credit card. It is a bit expensive, so some small online shops prefer to use PayPal.
Part 3 of 4: Using All-Inclusive E-Commerce Services
Step 1. Find out about all-inclusive e-commerce services
If you can't build your own site from scratch, there are many services available to help you create one in a few hours at a low price. This way you don't have to learn a programming language or hire a professional designer, and you already have all the tools to start selling your product.
- All-inclusive services usually take a small cut from the sale you get.
- This service has advantages, but also disadvantages, because you have to operate it with their system. Be familiar with the different services before choosing one. If you can't find a match, consider starting your own online store.
Step 2. Consider general e-commerce services
Companies like Flying Car and Yahoo! Stores allows you to create a professional looking online store when you submit your own inventory. They even offer more designs, secure payments, hosting, email lists, sales statistics, and customer support. This is especially interesting for those who don't want to do their own programming.
Step 3. Look for reselling products for profit
Affiliate stores like Amazon eStore LLC allow you to resell products from Buy.com and other sellers by writing product reviews and focusing on themes that make consumers' lives easier. Amazon eStores allows you to move quickly, but cannot own your own inventory.
Step 4. Take eBay to the next level
If you've already sold multiple products on eBay, and you believe that most consumers will find you there, then you've “graduated” from the eBay store to start saving money on listing fees.
- If you've never used eBay before, this method isn't for you, as it's best to start with an existing customer base. Your customers need to be familiar with the internet to be comfortable using eBay.
- You need to know that eBay tends to attract people who are looking for an item that there is only one.
Step 5. Consider Tips for General Selling
Tips is an online marketplace where you can announce a single product or an entire catalog for free. You upload some photos, describe them and put a selling price. It's free to post stuff for months without updating it. If your item sells for less than $35, there is a 5% fee. If it sells for $35 or more, the fee is 3%. In addition, you can also display videos, blogs about your products and services and connect them directly to your Twitter account for free.
Step 6. Try Cafepress if you sell customized items
Cafepress can be considered if you sell T-shirts or other products that can be pasted with your own design such as mugs, stickers. Consumers can browse your store, order goods, and Cafepress will process orders and goods for you. You can start a simple store for free and a monthly fee for more features.
Step 7. Sell the craft on Etsy
Etsy is a popular choice for people selling things they make themselves. There is a 20cent charge for each item listed, and Etsy will take 3.5% of the sale price when the item is sold. You are paid directly and are responsible for shipping the goods. You will be billed (depending on what you are selling) on a monthly basis.
Step 8. Try selling on Instagram
Instagram is the most thriving social network with bonded visitors making it great for selling fashion, handmade and home products. Upload pictures of the items you sell to Instagram and synergize your account with inSelly.com to create a personal online store from Instagram pictures. Payment will be using PayPal, the service will not take membership fees or sales commissions.
Part 4 of 4: Attracting and retaining Consumers
Step 1. Promote your store on Facebook and Twitter
Social media is very important for businesses, especially online businesses, to promote. Start an account and invite people to “like” and “share” your shop page to the world.
- Offer incentives for consumers to promote your store. You can give discounts or gifts.
- Make sure your account is updated with information about promotions and new items.
Step 2. Start a blog
Pairing your product with more knowledge is a great way to attract people to your site. If your products are related to fashion, start a fashion blog and feature your products occasionally. Find ways to participate in online talks related to the items you sell.
- Some all-inclusive services offer a blog feature.
- Show other company's products on your blog and ask them to do the same. This is common among small online vendors.
- Send a sample of your product to a well-known blogger so he can review your product on his blog.
- Make a post on other people's blogs. For example, if you sell cookies, introduce your product on a well-known cake baking blog.
Step 3. Email the consumer about the promotion
Use an email program like MailChimp to organize consumer email and send well-formatted emails. Don't abuse this method to maintain contact with consumers because they can get annoyed if you send too often.
