What you need to open an online store: a step-by-step guide for beginners

It seems that more recently, the opportunity to buy something on the Internet has brought people more questions than convenience. But the more users became customers of online-shops, the more clearly outlined the benefits and benefits. Entrepreneurs also appreciated this.

After all, all that is needed to open an online store is a simple registration, activity planning and relatively modest starting capital. The accessibility to the niche led to the fact that virtual points began to appear like mushrooms after rain. However, a convenient start does not guarantee further successful development. Beginning entrepreneurs will find it difficult to choose products for sales, search for competitive advantages, personnel selection and other important issues. Depending on how prepared the beginner is at the beginning of this journey, a business can become a source of high income or bring only disappointment.

If the latter option is not for you, then you have come to the right place. After all, the reader will find all the basic information about the competent organization of opening their own online store.

Stages of opening an online store from scratch

Not a single business can do without planning. The online store is no exception. Therefore, it’s worth starting to move towards the realization of the idea by drawing up a step-by-step algorithm.

1. Choose which product you will be trading.
2. Analyze the demand and competition of the selected niche.
3. Make a portrait of your customer. Based on it, highlight USP (unique selling proposition).
4. Make a business plan with all the calculations for how to open an online store from scratch.
5. Find a supplier and determine the product range.
6. Order the creation of an online store or buy ready-made.
7. Go through the registration procedure of IP or LLC.
8. Conclude contracts with the right employees or enroll them in the state.
9. Take high-quality photos of products and order compilation of descriptions for them.
10. Fill the site with goods. Test the convenience of navigating a resource.
11. Launch an advertising campaign that includes SEO optimization, contextual promotion and the use of social networks.
12. Grow your business. The first profits inspire, but it is better to spend them on scaling up activities, rather than their own whims.

All you need to open an online store is to faithfully follow the instructions given. More details on the main points below.

How to choose a niche for online trading?

The first item that is included in the plan for opening an online store is the selection of a product niche for sales. Use the following criteria:

• Personal preferences. The experience of many entrepreneurs has proven: the better you understand your products, the easier it is to develop a business.
• Product specifications. It is worth evaluating the ease of package delivery in advance. When you sell large or fragile things, you will have to pay extra attention and funds to create the right conditions.
• Competitors. Entering a niche filled with competitors is not easy for a beginner. To do this, you must either have special advantages, or a unique product.
• Demand. Some interesting ideas from European experience, implemented in Russia, were burned out due to low demand. The mentality of people makes them suspicious of something new. But there are a number of areas where sales are always high.

What documents are required for the store?

In fact, the only documents for opening an online store are the registration of an entrepreneur and a business plan drawn up. Since your activity will be profitable, you can’t do without registration of an IP or LLC. Otherwise, you can get impressive fines for concealing income. In addition, most customers and suppliers will not want to work with you.

To refuse registration is also not worth it because the savings from this solution will be negligible. And the process itself is simple and fast. At least, if you settled on the option of IP, like the vast majority of owners of online stores.

This format has significant advantages. But you can not close your eyes to some of the minuses:

So the choice between an individual entrepreneur and an LLC should be made based on the specific situation and personal preferences.

But it is recommended that every business businessman draw up a business plan. Even if an online store doesn’t seem like a big deal, paper planning is a big help. You will be able to record analytical information, perform calculations, draw up a schedule for the implementation of the idea. Often, a business plan helped identify errors and pitfalls that were previously invisible.

How to choose the best suppliers of products?

For those who are not the first year to establish a business, an online store can be an addition to a stationary point. In this case, the question of finding a reliable supplier is not worth it. But where to find partnership for those who are taking the first steps in the world of entrepreneurship?

If you discard highly specialized products, there are several basic formats of supplies:

• Purchase of goods on Chinese and American sites “on order”. This option is chosen by those who do not have start-up capital. When using this scheme, the buyer pays for the goods, the store owner buys it in China, only after that the supplier sends the parcel. One of the varieties is dropshipping.
• Entrepreneur purchase of wholesale batches of products on American and Chinese platforms. This option requires a solid investment.
• Wholesale purchases from domestic manufacturers. Not all products are more profitable to buy in Russia. In addition, most of the major suppliers cooperate only with large market participants.
• Shopping from Russian intermediaries. The positive aspects of this option are lower risks compared to direct orders from China, small batches and fast delivery times. The minus is obvious - the dealer adds his percentage to the cost.

If you have decided on a specific supplier, you can evaluate the prospects for cooperation by the following indicators:

1. Actual data on commodity balances. Information must be constantly updated. Your reputation with customers may depend on this item.
2. In addition to the previous paragraph, it is worth noting the reservation function. Good suppliers mark products intended for customers. This minimizes the chance that the right product is suddenly out of stock.
3. The ability to return. It is good if the supplier agrees to process the return of the goods that the online store did not sell. Otherwise, it will have to be sold at the purchase price and even lower in order to “recapture” at least something.
4. Providing the necessary product information. Get ready for customers to ask a lot of questions. In order for the online store to "keep the bar", managers must have all the possible data about what is being sold. In addition, the lack of photos and text descriptions will have to make up on their own. And it takes time and money.

How to choose staff for an online store?

Opening your own online store often takes place on your own, and family members are also involved in the work. The first time such a team is really enough to keep up with the content, answer customer questions, and control the procurement and dispatch of goods. However, a developing business will require more attention and participation. Because you have to think about increasing the staff.

The requirements for online store employees are not strict; you can even hire people without experience. It is enough that they are polite and patient with customers, be on the “you” with a computer and diligently fulfill their duties.

The ideal staff for an online store might look like this:

What advertising will help to promote the store?

A competent advertising campaign is what you need to open an online store if you want to achieve success quickly. Entrepreneurs who come from stationary trading sometimes do not understand what methods are worth using in the virtual space. Consider the most effective:

• Website optimization. This work should be delegated to specialists. The cost of the service is rather big, but you will immediately notice the result of work to improve the resource.
• Internet advertising (banner and contextual). The main ways to promote. “Bring” your target audience and significantly increase store awareness.
• Catalogs. There are many company directories on the Internet, the placement of which is often free. Do not ignore this opportunity to advertise online-shop.
• Business cards. Order a designer to create beautiful business cards. You can place them in stationary crowded places of potential customers. Or just invest in parcels with goods. This step will increase the chance of re-sales.
• Newsletter. Create a form to collect customer email addresses. For example, you can offer membership in the "Club of a regular customer", for which you need to go through a short registration. Use the data to send special offers, personal discounts and sales. You can also congratulate customers on the holidays. But do not be particularly annoying.
• Bonuses. Additional benefits can make the customer choose you, not competitors. It can be free shipping or a small gift for purchase.

How much does it cost to open an online store?

It’s worth starting with the fact that the cost of opening an online store in any case will be less than if you organize a regular outlet. If we consider the costs of a stationary store, the lion's share will be the rent and maintenance of the territory. The online version is free of this expense item. Even if you need to rent a warehouse, the price will still be more affordable.

Further figures depend only on your ambitions and expected volumes of the business. Some manage to open an online shop at all for free! But for the quick and active development of the business, some capital will have to be invested.

Consider expense items, for example, on the opening of a children's online store:

As you can see, creating a large virtual store of children's goods will cost 620,000 rubles. If you were counting on a smaller amount, you should not worry. That is why the Internet is good, which makes it possible to reduce costs based on their capabilities and diligence.

How much do you need to invest in a business regularly?

For those who are not afraid of the numbers, it’s worth clarifying. In addition to what you need to open an online store, you will need to regularly invest some amounts to maintain and develop your business. For a period until the profit of the point does not cover expenses, it is necessary to have a monetary “airbag” for financing.

The list of regular expenses may include:

What income does the online store bring to the owner?

Along with what are the costs of opening an online store, users are interested in the profitability of this venture. Some argue that the virtual point is a gold mine. Others advise not to take the idea seriously, but to consider it as a side job.

Consider the estimated level of profitability of a children's goods store:

• business profitability - 20-50%;
• approximate margin on products - 30-40%;
• average check - 2,000 rubles;
• payback period - 1-2 years.

With such indicators, the owner can count on a turnover of 100,000 - 140,000 rubles. Gradually, this indicator is growing and in a year it can make up from 350 000 rubles.

The profit level is affected by:

1. The golden mean in assortment. The buyer should have a choice, but attention should not be scattered.
2. Attendance rate. Everything is obvious here: the more visitors from the target audience you manage to attract, the higher the profit.
3. Decor. The better and more comfortable the resource design, the more users will spend time on it.
4. Reviews Word of mouth is the best method of advertising. But not when you made a mistake. One miss can greatly spoil the image.
5. Costs. The better you optimize the costs, the less money will be spent on unnecessary things. Maximalism is not always good, especially for a novice businessman.

The main mistakes that can "sink" your store

Errors when opening an online store directly affect its success. To identify the main problems that can harm the point, it is worth contacting the main experts - buyers.

1. Customers are scared away by high prices. For the store to exist, you need to make an extra charge of at least 20%. But if you step over the mark of 40%, some buyers will go to competitors.
2. About 5% of orders are returned due to size mismatch. It is worthwhile to carefully approach the informing of clients, as well as lay out conformity tables of dimensional grids.
3. The lack of a mobile version of the site will scare away some potential buyers. The same can be said about the functional "assembled on the knee."
4. One of the problems of online stores, customers call an ill-conceived search engine. Engage specialists in debugging the process and focus more on sorting.
5. Those who were looking for how to open an online store from scratch often seek to save on the creation of inventory. As a result, until the entrepreneur determines the most popular positions, some products can quickly end. Believe me, little depresses the customer more than a message that the product from his order is not in stock. Keep track of ending products and report it on the site!

Behind any success is always hard work. Even with minimal initial investment, you can create a profitable business if you invest in it your diligence and time.