How to Get Started
Setting up a successful online shop takes a little planning upfront. First, you will need to decide what product
you are going to sell.
You will then need to determine the price you want to set for the product. Take into account all the costs involved, including shipping, and set a price high enough to make a reasonable profit but low enough that customers will be willing to pay it.
Once you have chosen a product and set the price, you will need to decide whether you will warehouse the products yourself or use a drop-shipping company.
is a process by which a third party holds the inventory of the product you are selling. When you receive orders, you pass them along to the drop-shipping company, which ships the ordered items.
Each of these approaches has advantages and drawbacks. You will need to weigh the options to see which will work best for you.
Next, you will need to come up with a name for your business and create a website
. During this process, you will need to set up payment options for your customers, including credit card payments with programs like PayPal
and Apple Pay
. Most website-creating platforms will walk you through this process.
Finally, you will need to decide how you are going to market your product
. An amazing product sold through a gorgeous website will still generate no profit if no one knows about it.
Training and Certifications
Before you start selling your product, you will need to set up your tax ID and prepare to collect sales tax
. It’s a good idea to meet with an attorney before launching your business to ascertain that you comply with all local and federal requirements.
You will also need to set up a product liability insurance
policy for your business.
The profits you make from your online shop will depend on your product and niche. Generally, the average eCommerce gross profit margin
is around 40%.