What to sell and How to sell
Starting an online store has advantages over having a physical
storefront: there's no rent to pay, and you can reach millions of customers
from the comfort of your own home. To have a shot at success, however, it's a
good idea to put as much thought into starting an online store as you would for
any other business.
Decide what you want to sell. If you
want to start an online store, you probably already have an idea for a great
product to sell. Keep in mind that certain things are conducive to selling well
online, while other items may be more difficult to sell when they can't be
viewed in person. In any case, you should believe passionately in the value of
your product - otherwise, it will be hard to connect with customers. Here are
some questions to consider:
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Is it a physical product that needs to be shipped, or is it a
digital product that can be sent through the Internet?
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Are you going to have an inventory (more than one) of each
product, or will they be one-of-a-kind (e.g. artwork, vintage items)?
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Are you going to want to sell a wide variety of products, or do
you plan to specialize, like selling just t-shirts or books?
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Are you creating the product yourself? If so, make sure you'll
be able to keep up with demand. Form a relationship with a reliable supplier.
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If you don't plan to make the product yourself, you'll need a
good manufacturer. Research different companies to find the one that works for
your business idea.
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Decide how your product will be shipped. Create a plan to ship
the product from your home efficiently, or work out a storage and shipping plan
with a warehouse. You could also look into drop-shipping if the product is
being manufactured by a third party.
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You are going to be intimately involved with your product or service.
In order to effectively spread the word and market your store, you are going to
need to socialize with people from this industry. Make sure the product is
something you can get behind for the long haul.
Find a niche. Knowing what product you want to sell is
only part of creating a successful online store. You'll need to figure out what
differentiates your services from all the other similar services people can
choose, either in person or online. Why should a customer buy your hand-knit
sweaters when they have 100 other online shops to choose from?
·
Size up the competition. Don't just jump into selling a certain
product line until you've looked at the websites you'll be competing with.
Consider the main online marketplaces you plan to advertise your products; and
check out the competition within those portals.
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Offer something truly original. If you're selling handmade crafts or works of art, the originality of your work
may itself be the draw that sets your product apart. Try to strike a balance
between something that is highly original and also has general appeal.
·
Offer expertise. Perhaps the quality that sets your company
apart from the rest will be your expertise on the type of product you are
selling. Maybe you're a former baseball pro selling a line of baseball gloves,
for example. Make your passion and expert knowledge part of the package.
·
Offer a user-friendly purchasing process. Even if your product
is very similar to other things for sale online, you can set your store apart
by making the shopping experience fun and easy. Make sure your website is easy
to navigate and fun to share. Be responsive and provide great customer service
where others don't.
Test the waters by selling your items on a small scale. In
the real world, it'd be wise to try selling your products through other,
low-commitment avenues (consignment, flea markets, craft shows, etc.) before
taking the plunge and starting an entire store. The same is true for selling
online. Try selling your items individually on eBay, Shopclues, paytm and the
like. Here's what you'll want to look for:
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Who is buying your product? Offer a discount coupon or free gift
if they answer a brief survey. Find out where else they shop online.
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How much are they willing to pay? Experiment with different
prices.
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How is customer satisfaction? This is a good time to test how
well you can get your product to the customer. Are you using good packaging? Is
the shipping method reliable? Are they happy with their product? Did you
describe it well?
Make a business plan. Before you start the process of opening your online store, take the time to draw up a detailed business plan, whether or not you're planning on getting outside funding from investors. It will help you plan the steps you'll need to take to make your business successful. Figure out your cost of operation and map out a marketing strategy. You'll want to take these factors into account:
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Production costs, whether you're creating your product yourself
or contracting with a manufacturer.
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Shipping costs.
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Taxes.
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Employee wages, if applicable.
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Fees for reserving your domain name and web hosting service.
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All-inclusive services usually take a small cut from each sale
you make.
·
The services have benefits, but there are also limitations,
since you have to operate within their systems. Get familiar with the different
services before choosing one. If you don't find one that suits the business
model you have in mind, reconsider starting a new online store on your own.
Take eBay to the next level. If you've already sold some stuff on eBay, and you're confident that most of your customer base will find you there, then you can "graduate" to an eBay store to save money on listing fees.
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If you haven't used eBay before, this approach may not be for
you, since it's best to start with an existing customer base. Your customers
will need to be web-savvy enough to feel comfortable using eBay.
·
Note that eBay tends to attract people searching for bargains
and one-of-a-kind items (and bargains on one-of-a-kind items).
Once you have spent adequate time on product
and competitor research, you should have a solid idea of what you want to sell.
Once you do that, you can begin listing items on your website and/or
marketplaces like eBay and Amazon.
Selecting a product niche requires a lot of
study and research.
Starting a store with low
overhead involves setting up an online store that targets a niche market. With
creative name, products that are in demand and a plan for advertising your
store online, you can capture potential customers for your online store.
Determine which brands you want to carry and apply to become an online retailer
for their clothing. Some online clothing stores purchase inventory in advance
at wholesale prices, while others carry one-of-a-kind selections from various
designers. Another option is to connect with a drop-ship company -- one that
ships items directly to the customer, who orders from your website. This method
doesn't require you to hold inventory of your own. You may pay a monthly fee
for your drop-ship business.
