The e-commerce industry can generate high profits if we prepare properly. Opening your own online store can be a simple and enjoyable process, but one that still requires solid preparation.
How do you start your own online store?
Opening a store online takes good preparation. Only a thorough understanding of the market and the competition will let us determine whether a given business will pay off, and how to approach it so it succeeds in the future. According to statistics, the retail market in Poland is worth around PLN 40 billion, and more than 29,000 companies have already been registered. In practice, this means a new entrepreneur will face significant competition.
Statistics also show how hard it is to survive the first years on the market, since around 80% of new companies close within their first 3 years, and only 30% of online stores stay in business for longer than 8 years.
How do you start an online store step by step, so that it not only turns a profit but also survives in the market? It all starts with proper preparation and gaining knowledge on the subject. Having a solid business idea also matters, so you can stand out from other online stores.
What to remember when starting an online store
If you want to enter the e-commerce industry, there are a few rules you need to keep in mind that are essential to starting this type of business. The most important ones are listed below:
- Registering a business — opening an online store means registering your own business
- Accounting office — it’s worth partnering with a specialist
- Choosing a sales platform — this depends on your specific needs
- Sourcing products, photos, and descriptions — preparing products for sale
- Payment and shipping — setting up payment methods and shipping options
- Packaging — depending on the products you sell
- Invoicing software — the option to sell to other businesses
The points above are things you need to think through before starting your business. All of this will make for a better and significantly easier start in the world of e-commerce. Working out your approach will be the first step toward your online store’s success.
How much does an online store cost?
Setting up an online store comes with costs. How much money do you need to launch your own company? This depends above all on your financial resources. You can start an online store on a budget of around PLN 1,000. With larger financial resources, however, you can invest significantly more, not only in products but also in advertising. With substantial resources, you can afford dedicated stores or warehouses.
Limited resources are the ideal path for beginning sellers who want to test how their idea performs in the market. Ready-made solutions and free online tools are often used here.
Popular platforms
Choosing a platform is one of the points included among the rules to keep in mind when starting a store. Here you might consider the most popular platforms, which have been on the market a long time and are well tested. These include WooCommerce and PrestaShop.
Each of these platforms has its pros and cons, but a major advantage is that they’re free. However, if you want to extend them with additional plugins, this will usually come with extra costs. Another downside is security. These platforms are based on open source, which in practice means constant updates to fix bugs or code vulnerabilities that come up. It’s therefore worth considering server administration services — a service that will take care of your site’s security and updates, eliminating the risk of failures. The last drawback is the need to have your own server to run the software on. Here, too, specialists can help by taking care of your site for you. It’s worth adding that there are various types of servers, and a VPS server is ideal for an online store, with significantly lower costs than a dedicated server while still offering far more benefits than a shared server.
Popular platforms also have plenty of advantages, such as the ability to tailor features to your own needs and expectations. Both WooCommerce and PrestaShop allow you to install various plugins that can significantly expand your online store’s capabilities.
Marketing and logistics models
Starting an online store also means getting familiar with both marketing and logistics. The most popular logistics models are:
Dropshipping — a model based on collecting orders through our store and leaving the shipping to wholesalers and manufacturers
Pseudo just-in-time — a model in which we order goods from a wholesaler only after the customer places an order.
The options above each have their pros and cons, as well as differences in the financial outlay required.
When opening a new store, it’s also worth thinking about marketing — meaning advertising, whether online, in the form of banner ads, or through other forms of promotion. Here it’s essential to get familiar with content marketing, social media advertising, and Google Ads.
Summary
Starting an online store is, above all, about good preparation and understanding the competition. E-commerce success depends above all on proper organization and thoroughly researching the subject from every angle. Your store can start with a smaller financial investment and gradually grow from there.