How to Start Your Own Online Store
Nowadays, more consumers are turning to the Internet for their shopping needs. With the right preparation and products, an online store could prove to be an exciting and rewarding venture. Because there is much competition, you'll have to thoroughly research the market before starting your business.
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Instructions
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Identify a niche. Start by researching the market. EBay is an excellent place to conduct market research for your online store. Simply create an account if you do not already have one and use the completed listings function to search for specific products and what they sold for. For example, if you are considering selling baby shoes, search for different baby shoe brands, sizes and colors on eBay to get an idea of what brands or styles of baby shoes are most popular and what they sell for. Start with products that you would be interested in selling or are particularly knowledgeable about. Then peruse forums related to your subject matter for ideas on products that people are interested in (see Resources below). If you are considering selling handbags, visit handbag or shopping blogs and forums to get a feel for what women want. If you are considering selling handmade items, visit Etsy (see Resources), which is a marketplace for sellers of homemade goods.
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Obtain a sales tax permit. At this point in your business, you may not need to register your business. You should be able to operate as a sole proprietor. Check with your county clerk's office. Purchase liability insurance for your products. If your home is robbed and your inventory stolen, homeowner's or renter's insurance typically won't cover it. You need a separate policy for your business. Visit netquote.com.
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Select a website to host your online store. Things to consider when selecting an e-commerce site are the email addresses included, the bandwidth, storage space, a shopping cart application, website templates or design, options for search engine optimization (SEO) and a domain. Websites such as corecommerce.com and volusion.com offer complete packages, along with helpful tutorials to get you started, that start at about $25 per month. Inquire about any marketing tools, such as Google Analytics and product feeds. There are free marketplaces such as Ecrater (see Resources), but your store may not get as much visibility and you will be limited in building your store design. Consider using PayPal and Google Checkout for your checkout methods.
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Create an About Us page, a Terms of Use page detailing how you intend to secure your customer's information, and a Shipping and Returns page detailing your policies.
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Prep your home for your business. You'll need room for your inventory, a well-lit area where you can photograph your products, and room for your computer, fax machine and phone.
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Purchase or make your products. Look for suppliers online. Visit eBay.com for closeouts. Peruse discount stores and malls in your area for clearance sales. Shop conservatively until you know your products will sell.
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Take high-quality images of your products and import them into your store. Include complete descriptions.
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Advertise your online store. Submit your products to Google Product feeds. Look for this application from your Web host. Otherwise, visit Google to submit your feed. Register your store with Shopzilla or Bizrate, which are comparison-shopping and review websites. Take advantage of Google Analytics if your web host offers it and consider starting a Google Adwords campaign. Both of these applications will help you identify which products and key words receive the most hits. Consider selling on eBay or Etsy to get some visibility. Send repeat customers to your online store. Ask customers to write online reviews at Shopzilla. Start an online blog that discusses issues relevant to the products you will sell. Post regularly on your blog and link to your online store.
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Tips & Warnings
Consider using a 24-hour answering service for your business. Check your business email at least once a day. As a sole proprietor, you will be required to submit self-employment tax each quarter. Contact the IRS for details. Always print postage online for discounted rates.
Don't forget to include the cost of shipping when determining what to charge so you can make a profit.
References
Resources
- Photo Credit Rahims/Flickr.com
