Some amount of dedication and
quite a bit of hard work is required before you can start an online retail
business. There are certain steps that you would need to be follow to initiate
and maintain such a business. Entrepreneurs with minimal capital to invest upfront
can use this business idea to earn profits while giving an outlet to a creative
talent or a hobby.
For instance, if you’re
passionate about greeting cards, you can take up this product category and
create a brand targeted at a niche demographic. The idea is to identify a
“unique” product that you’re passionate about and confident that it would sell
in the market you’re concentrating on. If you can zero in on the right product
to sell, a retail business can be highly rewarding.
Decide
on a product to sell:
This is the starting point of any online retail business. You can research the
online marketplace to identify the products or ideas selling well. You can
visit auction sites such as eBay or Amazon to know more about customer
preferences in different product categories.
Alternatively, you could use
reverse keyword tools such as Adwords to know the exact number of people
searching for a particular product. Then, there are some special online tools
to research the selling potential of a product in particular market segments.
People planning on starting up their own retail business can use such a tool to
get an idea about the business viability of a product or an idea.
Esources.co.uk is the largest trade
directory
of verified wholesale and drop ship distributors. Their Market Research Wizard is one tool
that gives you valuable information about the business viability of a product
or an idea. You can type in a keyword
and know more about the selling potential
of the product in UK, USA, Canada and Australia.
Draw
up an informal business plan
Write
an informal business plan listing the products you want to sell and the
customer segment you are targeting. Get as much information as you can about
the spending habits of this category of people through online forums and blogs.
Get information on your competition and write down ideas on how you plan to
make your retail products unique. You could consider offering customization
services or specialty sizes to your customers.
Make
your business legal
Find
out whether you need any local or state licenses to run your online business.
The tax and licensing laws are different for different states. Get the proper
paperwork in order after contacting the appropriate agencies and legitimize
your business initiative.
Determine
the supply chain
Contact
manufacturers, wholesalers or drop ship dealers in your product category and
form business agreements or contracts with them. The best way to connect with
reputed suppliers, wholesalers and drop shippers in different product
categories is to visit online trade directories such as esources. Comments on review blogs suggest that this is,
in fact, the fastest growing trade directory in the UK; a retailer who is eager
to set up shop can take the help of directories such as these to connect with
the best in the business.
Purchase
a domain name
Purchase
a domain name and website hosting services for your retail business. Install a
shopping cart software package on your web host's server. Finally, modify your
website; create appropriate product categories with listings and details of
prices, sales descriptions and images. State the payment option for your online
store and finally test your retail website by making a purchase.
Advertise
Pay
for banner advertisements, promote your site on forums or create pay-per-click
campaigns to make your site stand out.
