4 Things to Consider Before You Open an Online Store

Over the last decade, the popularity of online shopping has increased dramatically. It’s not surprising, considering the benefits for both buyer and seller. For the buyer, they can browse thousands of products without leaving home, and you, as the seller, can reduce premises costs, wages, and the time you would otherwise need to spend keeping tabs on your store. Before you dive into online retail though, there are a few things to consider.

Your Product

Product viability is a concern whether you’re selling your own product, or buying wholesale and selling on. Primarily, is there a demand for your product that’s not already being met. If so, are you in a position to meet that demand? If you’re producing and selling your own product, make sure you can cover your costs and still make a profit. You also need to have room for a decent markup with products you buy to sell, and allow for the possibility that your supplier may increase their rates.

To keep up with demand, and avoid losing money by running out of stock, vet your suppliers beforehand so that you know they are reliable. If it’s your own product, make sure you can maintain production alongside running an online store. You may also want to sell small scale through someone else, or at a craft market or similar first.

Your Website

Hiring a web design company to create a site from scratch can be costly, so consider other options as well. Sites like WordPress have a huge database of site designs, including retail. You can still register your own domain, for a small fee, rather than having the .wordpress.com link. You can easily set up and maintain your own site for a much lower cost, and still have the support you need through their help forums.

Payment Options

Your customers will appreciate a wide range of payment options, so try not to limit them. Set up an online merchant account so you can receive and process payments from multiple sources – PayPal, credit and debit cards, gift cards and vouchers. A merchant account gives you great rates and quick payments (an average of 2 business days), as well as any support you might need.

Shipping and Storage

You have two major stock options with online retail – purchasing stock and storing it yourself or drop shipping. Handling your own stock and shipping means you have more control over stock quality and quantity. However, it also requires constant inventory, storage space, and the actual packaging and shipping itself.

Drop shipping has several advantages: you still buy at wholesale prices and sell at retail, but the product is shipped straight from the supplier to the end user, eliminating your need to store, package and ship products. The downside is that you have little control over quality and supply.

Running an online store still requires a lot of time on your part, but you can take your office anywhere with your laptop, smartphone or tablet.