Things To Consider Before Your Business Opens An Online Store
Online selling through your website, Etsy, Amazon, or eBay can give your company an additional revenue stream. Opening an online store may not be the right decision for your specific company, though. Use this checklist to decide if your business should start selling online.
Consider Square Footage
If you choose to sell a physical product, you need space to store, package and market your goods. Consider your financial resources as you decide if your company is ready to move into a larger office space or rent a storage unit.
Purchase Inventory
To run a successful online store, you’ll need to purchase inventory. Then you’ll have to store, count and track that inventory plus figure out what to do with the products that don’t sell. Only open an online store if you’re prepared to deal with this reality.
Determine Manpower
A successful online store requires enough employees to handle order processing, customer service, returns, and website maintenance in a competent and efficient manner. Evaluate your current staff as you determine if you already have the right employees on board to launch an online store or if your company is ready and prepared to add more manpower to your team.
Know your Customers
Create a picture of your ideal customer based on your current customers’ needs, interests and wants. This information helps you choose the products and platform for your online store. For example, sell handmade pottery or vintage furniture on Etsy if your customers want those items, but choose a different platform if you sell flashlights or books.
Choose Complementary Products
It’s important to choose the right products for your new online store. They should match the products and services you already offer and be related to your brand. For example, sell hair care products if you operate a salon but not if you sell accounting services.
Calculate Profit Margin
Spend time with your accountant before you start selling products online. You'll want to calculate your profit margin as you ensure your online sales venture will be profitable for your company.
Purchase Insurance
You may need to purchase additional commercial liability insurance to cover your new online store. Discuss your needs with your insurance agent.
Do It Well
If you’re ready to launch an online store, go for it! Just make sure you can do it well. Be sure you have enough time and resources to run your online store and support your brand well. Otherwise, hold off on launching it until you’re ready.
Selling online can boost your sales and build your small business brand. Use this checklist to decide if selling online is right for your company.