How to Open an Online Store
< View All PostsAs more shoppers turn to the internet to purchase items ranging from groceries to furniture, there’s no better time to get in the game by setting up an online store. However, most business owners—especially those of us who aren’t comfortable with technology—look at the blank canvas before us and begin to panic. Fortunately, if you take it step-by-step, you’ll have your own website before you know it. Here are some instructions on how to open an online store.
1. Choose a Platform
If you’re one of the few people how knows how to code, then launching your own website may seem like the easiest step in this process. For the rest of us, there are several ecommerce platforms like Shopify and BigCommerce to help you set up your shop without worrying about the backend of a website.
These platforms allow you to integrate ecommerce into an existing website or build one from scratch. You can choose from pre-existing features to create a web domain, design product pages, and add other pages like an “About Us” page or a “Shipping and Exchanges” policy page.
Before choosing a platform, be sure to check out the fees involved. Although some are free to start, they may be more difficult to navigate or take a higher percentage of each transaction.
2. Selling Your Products
Although you have an idea about what you want to sell, the key to having people buy your products is figuring out your niche and how to cleverly market your products. For example, Braveen Kumar wanted to sell hot sauce but noticed the market was saturated with hot sauce brands bragging about being “the hottest hot sauce ever” so she decided to do something a little different. She found her niche selling great-tasting mild hot sauces and cleverly marketed her product using the business name “Kinda Hot Sauce.”
After you choose what you want to sell and how to make that product stand out in a competitive market, you’ll need to make your products shine. This means brushing up on those photography skills and staging your product just right to show it in a way that’s appealing. Try out different backgrounds, lightings, or even how the product is modeled.
Next, describe the product in a way that’s enticing, but also helpful. Explain the key features of your product as well as any dimensions, care instructions, etc. Finally, take advantage of platform features such as grouping similar products, including product reviews, or featuring other complementary products alongside it.
3. Shipping
Before you sell your first product online, you’ll need to figure out how to ship your products and what it’s going to cost. Finding the most cost-effective shipping method may help you stay competitive with other online businesses by providing consumers with special offers like free shipping or flat-rate shipping.
When deciding on shipping, you should also consider the nature of your product. For example, if you’re selling clothes, you may consider offering free returns to enable shoppers to try on items.
4. Setting Expectations
If you’ve followed the steps and are finally launching your online store, there are a few more things you need to know to help you set expectations.
Abandoned Shopping Carts: Over 69% of shopping carts are abandoned on e-commerce sites. This means that most shoppers will not purchase anything the first time they visit your site.
Visitors v. Purchasers: If you thought the rate of abandoned shopping carts was bad, we must warn you that on average only 2.68% of e-commerce visits purchase something from your site. Thus, it’s important to get as many people visiting your site as possible to ensure a successful online store that is profitable after the costs of opening and managing your online shop.
E-Commerce Trends: The good news is that after a global pandemic that closed down brick and mortar stores, digital sales continue to grow. The volume of purchases from inexperienced or infrequent ecommerce users is expected to increase by 160% in the future.
5. Managing Your Sales & Income
Taxes: Before you begin selling products on your new e-commerce sites, you’ll need to think about collecting taxes on the products you sell. Depending on which state you conduct your business in, whether your state has a sales tax, and the amount of sales you make in other states, you may be required to obtain a seller’s permit and collect sales tax on the products you sell. However, since these regulations vary by state and industry, it’s necessary to check applicable laws to determine what you need to do.
Merchant Accounts: Depending on your e-commerce platform, you may need to set up a merchant account. A merchant account is a business bank account that allows you to securely accept and process electronic payments at the point of sale without worrying about compromising any sensitive financial information.
Bookkeeping: After your online shop is live and you begin making sales, you’ll also need to track and manage your income and expenses to ensure the success of your business. A good bookkeeper will not only help you reconcile your monthly financial accounts but will also help you prepare your taxes and maintain compliance with all state and federal laws and regulations.
If thinking about seller’s permits, collecting taxes, keeping books, and complying with tax laws, makes your head spin, you’re not alone. Eco-fyle’s small business advisors can help you by applying for a seller’s permit for you, figuring out your tax liabilities, and managing your books. Request a free consultation to learn more.
