What you need to know before you start an online store in 2019 ?
Everyone these days are looking to be their own boss or want to start a business to earn some money. While there are plenty of ways to turn skills and interests into income, running an online store is one of the quickest ways.
Running a successful online business definitely has its appeal, but comes with own set of challenges. The bitter truth is that starting any kind of business is hard but with the right ideas and plenty of hard work, countless people have made the leap to entrepreneurship.
This is not about one tricks that will turn around the business. Starting a business is a collection of simple ways. It is all about finding the right product or service idea and a business model that fits your ambitions.
1. Find a product niche and sell online
Online competition is fiercer than ever. This is why figuring out what you want to sell is the most important of the factors.
No matter what products you choose, they can either be the ones that are already established or a niche. However, if you can offer unique products alongside regular ones and build a great experience in the process, you are setting yourself up for success.
Niche products are often made in small batches or on demand. Think of unique handmade shoes, homemade ice creams or leather bags.
“Many sellers sell a combination of common products and niche products”
As a budding online entrepreneur, there’s quite a bit of homework and this is the first step to take before you begin making money.
2. Evaluating market viability for your products
Once you’ve selected a product and niche to further explore and evaluate, its time to evaluate. Here are the basic steps to evaluate market viability
- Identify the potential market size.
- Understanding the competitive landscape
- Identifying if it is a fad, a trend or stable offering
- Identifying sourcing
- Understanding customers
3. Conducting a for your online business idea
On the contrary to popular belief that competition is bad, having some competition is good. With competition, the market is there. You have to differentiate yourself by having something unique in your product or by choosing a niche within your product idea that will differentiate you from the competition.
Take a look at the below brand. Though baby brands is a crowded space, this player beat his competition by introducing hand woven category.
4. Talking to your potential customers
Talk to your potential customers before starting your online store to know to find out.
- Start polls on your social media and get relevant opinions.
- Read product reviews of your competitor products on popular marketplaces like Amazon or eBay.
- You can also research for relevant keywords, traffic monitoring on google and other research tools.
5. Make sure you have all the legal requirements in place
Before you start your online store, make sure you double check to ensure your business is operating within the confines of the law. This applies before and after the launch. One has to make sure that the local laws are checked well, taxes are paid and registrations are done.
6. Source your product
Once you have all the basics figured out, it is time to figure outsourcing options.
Though there are multiple ways of sourcing, the basic types can be categorized into 3 types.
- Local manufacturers/ your own products
- Drop shipping
No option can be weighed as better than the other, but various factors will determine which option works out for your business model the best.
7. Choose the right platform
Once the research is complete, it is time to finalize the platform that you want to launch your platform on. There are a lot of factors that will help you determine the right platform for you.
A lot of businesses today are choosing Saas platforms like Yelo for starting their online stores and Marketplaces. These platforms are preferred over the rest of the platforms because
- Easy to set up with no technical knowledge
- Entry at prices as low as $10
- A Scalable framework that can grow with you
Now, you are ready to launch! Tackle the key areas mentioned in the article and you will have the solid foundation you need to build your online store.