How to Start an Online Store in 8 Steps in 2023: A Beginner’s Guide

It’s easier to target customers with a specific interest and sell products that directly appeal to them rather than offering a wide array of general merchandise.

当开始一个在线业务,它是至关重要的know your ideal customer. Do not miss this step, as this helps find new customers more easily. Consider demographics (age, gender, income status, etc.), location, and interests when identifying your target audience.

Choosing a nichewill also give you a specific direction and make it easier to develop a strong brand. For example, a dog enthusiast might want to open an online store with dog products. However, a better business concept is to fill a market void or need, such as organic dog food specifically for pit bulls.

Pop Your Pup is a niche ecommerce brand that creates custom products with customers’ pet photos.

Once you have an idea of what you want to sell, you need to decide how you want to sell it. When opening an online store, here are some business models you can try:

• Start adropshipping business(instead of stocking inventory)
• Use a third-partyfulfillment companyto store inventory and fulfill orders
• Develop andmanufacture your own custom products
• Start aprivate label brand
• Pack and ship orders yourself

Start by thinking about the amount of time you want to invest in your ecommerce venture. How much space do you have available or willing to obtain for storing inventory? If your online store is a side project, it may be realistic to sell and stock only a few products. Or, you can only sell products that are available for dropshipping, so you don’t have to fulfill orders or pay for a third-party service.

However, if you are looking to start an online retail business or grow your online store, you will likely want to develop custom or private label products and stock many of them yourself. This plan means having a dedicated garage, room, or storage space for managing inventory and packing orders—and, when your business takes off, and you can no longer fulfill orders yourself, moving over to a fulfillment company (read our guide to the best fulfillment services).

Once you have an idea of what and how you want to sell, you’ll need to develop a brand. Branding is an important part of establishing an online store because a strong brand helps you attract and retain customers, stand out from the competition, and build trust and credibility with your audience. This process includes picking a company name,website, andlogo.

Do branding early in the process of building an online store because you will need to purchase adomain name, which should either be your brand name or at least contain your brand name. For example, luggage brand Away’s website is awaytravel.com (away.com is already taken).

Whenchoosing a domain namefor your online store, be sure to:

• Choose an extension (e.g., .biz, .us, and .net) that best reflects your store; .com is most common
• Make it easy to spell
• Keep it as short as possible

Try ourbusiness name generatorif you feel stuck on deciding a name for your business. We also came up with a list ofdomain name ideasto help you get started.

接下来的step is to estimate costs and look for financing. While building an online store generally costs around $300, starting a business and securing products will be another matter.

Business startup costs during the first year of operations vary significantly depending on your inventory, staff, facilities, marketing, and fulfillment strategy.

Shopify research shows thatnew online store business owners can expect expenses toreach up to $40,000 in the first year, recoverable through profit margins (with a timeframe set up to 18 to 24 months).

Shopify found that general expense categories during the first year would look something like:

• Product sourcing and procurement (31.6%):Raw materials, manufacturing, patents, etc.
• Operating costs (11%):Legal and accounting fees, business insurance
• Online store costs (9%):Ecommerce platform subscription, web developer, etc.
• Shipping costs (8.7%):Packaging and labels
• Offline/Overhead costs (10.5%):Rent, equipment, etc.
• Employees/hiring costs (18.8%):Salaries, benefits, compensation
• Marketing costs (10.3%):Logo, branding, printed materials, business cards, etc.

To research how the competition sources their goods, purchase a few of their products or look at their product labels. Many of them will have the manufacturer’s name, location of origin, or other details that you can search for online.

If you plan onselling on Amazonexclusively, there arepopular Amazon products(and evenstrange productsshoppers love) that can help you get started. Do a Google search or scan their product barcodes to pull up details on their manufacturer.

Alibaba is a top name in product sourcing and makes it easy to search for specific products and filter results by price, minimum order, or top-ranking suppliers. Through Alibaba, you can find suppliers to manufacture products, build private labels, or purchaseready-made products to resell.

Related:

• Alibaba vs AliExpress: Which Is Best for Importing & Dropshipping?
• How to Import From China in 6 Steps

There are several other directory sites offering mostly ready-made products. Some directory sites link to outside suppliers, while others have a built-in interface for placing orders.

We have an in-depth guide aboutonline resources for finding the best wholesale suppliers, but a few popular directories include:

• Faire:Unique items from smaller apparel, gift, beauty, and home product makers
• The Grommet Wholesale:Unusual gift items from independent makers and manufacturers
• Worldwide Brands:A directory site with thousands of wholesale suppliers
• Wholesale Central:A free directory site with thousands of wholesale suppliers

Attending trade shows is the most efficient way to test a lot of products firsthand and a great way to find suppliers you might not otherwise encounter, especially if you are only searching online.

We list thebest retail trade shows for product sourcing; some of the most popular include:

• AmericasMart Atlanta:Gift and home items
• NY NOW:Gift, lifestyle, handmade, and home items
• Toy Fair:Toy, collectible, and children’s products
• Cosmoprof North America:Skincare and beauty products, including private label
• ASD Market Week:General merchandise, apparel, accessories, and suppliers offering custom and private label
• MAGIC:One of the largest apparel and accessory shows

Private label brands are goods manufactured by one company but then sold under the retailer’s brand name. Private label products help businesses build a strong identity and prevent customers from trying to find your products for lower prices on other online stores. To start a private label brand, design a logo and packaging to place on a standard or slightly customized product from a manufacturer or wholesaler.

Part of efficient order fulfillment is having an effective inventory system.Inventory managementis the process of ordering, tracking, and storing your products to meet demand efficiently. It’s a crucial part of any retail or ecommerce business.

Tracking inventory stock effectively helps businesses preventstockouts(minimizecarrying costsandshrinkage), manage multiple locations, and ensure accurate recordkeeping. An inventory solution makes these processes easier than trying to do them all manually.

There arepaid inventory solutionsand specialized systems, such asPOS inventory softwarefor those managing a storefront or doing in-person sales. However, there are alsofree inventory management toolsandinventory templatesto help you get started.

If you need more help establishing a full process, read our guides toretail inventory management,stock-keeping unit (SKU) vs universal product codes (UPC) numbers, andSKU generationfor products.

Processing, picking, and packing customer orders are part of the fulfillment process. There are four different ways to do this: in-house fulfillment, outsourced third-party fulfillment, dropshipping, or a hybrid approach.

In-house Order Fulfillment

In-house order fulfillment is literallyin-house—all of your customer orders are processed, picked, packed, and shipped under your roof. Your business handles all phases of the order fulfillment process, including receiving and storing inventory. This type of order fulfillment works best for businesses with full-time store owners or those that process fewer than 10 orders daily (usually startups or young businesses).

If you are fulfilling customer orders yourself, you have full control overchoosing retail packaging materialsand packing them incustom boxes. We also have a guide that features someeye-catching business packaging ideasthat can help.

Third-party Order Fulfillment

If you want to outsource order fulfillment,order fulfillment companiesandthird-party logistics providers (3PLs)will store your products and then pack and send orders as they come in. With this fulfillment method, ecommerce businesses still purchase inventory upfront and send it to the order fulfillment company to store. This method is often ideal for ecommerce businesses that have outgrown their at-home fulfillment space and do not want to start their own warehouse and large-scale fulfillment operation.

Dropshipping

Dropshipping companiesserve as the product supplier and fulfill customer orders, so ecommerce businesses don’t have to purchase upfront inventory. When working with dropshipping companies, ecommerce sellers are limited in that they can only sell products the dropshipper has available. However, there are fewer upfront costs and a lot less work involved for ecommerce businesses. You can read our guide tostarting your own dropshipping business.

Hybrid Fulfillment Solution

A hybrid fulfillment approach combines some (or all) of the above order fulfillment methods. This is a popular solution for growing businesses because it offers a lot of flexibility. It is also ideal for brick-and-mortar stores expanding into online sales by allowing shoppers tobuy online and pick up purchases in-store.

If you are packing and shipping customer orders in-house, choose ashipping software or service, look forcheap shipping supplies, and shop around for the most efficient shipping rates amongFedEx vs UPS vs USPS—the most popular shipping platforms. However, if you plan toship internationally, there are different ways to do so, such as cross-border international shipping and localized fulfillment.

Popular ecommerce platforms like Shopify, BigCommerce, and Square Online have built-in shipping tools. They have discounted shipping rates, automatically calculate shipping costs for customers at checkout, and make it easy for ecommerce businesses to print shipping labels directly from the order management system.

However, if you build your own site or use a shopping cart plugin that does not have these features, you’ll need to find a third-party solution. For small operations, Stamps.com is a popular option. It syncs with many online marketplaces like Amazon and Etsy, plus shopping carts like Magento. Simply import customer orders and print out the shipping labels at home.

Most ecommerce website builders offer mobile-first website templates, varying levels of inventory management tools, reporting, and options for connected payment processing.

We recommend looking for these key features when deciding on an ecommerce platform:

• Mobile-first website templates and drag-and-drop builders:Mobile commerce is expected to account for about 40% of US ecommerce sales by 2024, so it is imperative that your online store be mobile-first. Also, look for an ecommerce builder that features a drag-and-drop online store editor to help you easily create your online store.
• Ease of use:Go with an ecommerce software that is easy to use and navigate, especially for tech newbies. Ecommerce website builders should be intuitive and quick to set up. Sign up for a free trial to help you decide which platform is a better fit for your business needs.
• Customer support:Most ecommerce platforms provide support, but it is helpful to go with a platform that offers support all, or most, of the time. For example, Shopify provides 24/7 support through live chat, email, and phone in 19 different languages.

当建立一个在线商店,寻找ecommerce platforms that also offer native or plug-in solutions for selling and advertising on social media, selling in person, connecting a blog, and selling on third-party marketplaces like Amazon. These features help you easily scale and market your online store.

Also, consider your current and future needs. While some may be the best solution for today, it might be a wiser investment to go with a more powerful platform if you wish to have one that can support your future growth.

Product descriptionsshould be uniform across the site, following the same template and tone throughout. In general, there should be three elements to a product description: a short intro, bullet points outlining high-level features, and a longer description at the bottom for shoppers who want greater detail.

Product photos are one of the most important elements of an online store. High-quality images can showcase the details and quality of an item, while low-quality or grainy photos leave shoppers with more questions than answers.

Some wholesale suppliers will provide high-quality photos of their products, which will save you a lot of time and money. Ask your suppliers if this is something they provide. If not, you can either take the photos yourself or hire a professional.

When taking the photos yourself, use a plain white background in a well-lit area. You can do产品摄影在一个预算智能手机的摄像头和自然光。虽然, if you are not a professional or experienced photographer, for the best (and fastest) results, there are services that specialize in ecommerce photography.

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In addition to standalone product shots and 360-degree photos, consider photos of the product in use. This is especially important for apparel, accessories, and makeup. Shoppers will want an idea of what the product will look like when worn. For decor and house items, consider lifestyle photos of the products so that customers can picture the items in their homes.

Expect to spend around $300 in setting up an online store (not including the cost of your products). These expenses mostly come from paying for your ecommerce platform and marketing efforts. If you’re hiring staff and renting a workspace, be sure to budget for that additionally—as well as registering your business and buying inventory to sell.

Square Online has a forever-free option that allows you to build a multipage online store. Once you gain traction, you can upgrade your plan for more advanced features. However, expect to put in a lot of work and time before your store becomes significantly profitable.

While there are no guarantees you’ll make any money, you may make a profit with the right resources. Whether you’re covering the costs of your monthly hosting or making a full-time income, any of it is possible given the time, talent, and resources. Your income depends on your niche, audience, and expenses.

Yes, you can start an online store for free using free ecommerce platforms like Square and Ecwid, although you’ll need to pay for inventory to sell. Consider starting a dropshipping business to sell goods online without paying for inventory.

You can get products for selling online by importing products from China, dropshipping, starting a private label brand, or manufacturing your own products.

You first need to decide on a business concept. Once that’s ironed out, you can decide where to source your products and how you will fulfill orders. Choosing an e-commerce platform and then building your online store comes next, together with making sure you can process online payments by choosing a payment gateway. Finally, you’ll need to develop strong product pages and a marketing plan.

Our top pick for the best ecommerce platforms is Shopify. It is an easy-to-use platform that gives you all the essential features you need. You can build a full website, use its built-in payment provider (no need to apply on another platform), sell products online (and on social channels like Facebook), and have marketing tools at your disposal—all within the Shopify dashboard.

Whether you’re starting a brick-and-mortar store or an online store, most states will require a business license. This is so that you can collect taxes from your customers and the Internal Revenue Service can track tax revenue. Your state’s department of revenue should have the info you need.