So you want an online store. Now what?

It is no secret that many small businesses and hobbyists look at the online store as the holy grail.  But before you jump on that band wagon there are a few things you need to consider.

Will people be able to find you on the web? Take a look at whether you are one of about a million people with the same idea or are you one of ten?  Many times having a unique or niche item can make or break your online store idea.  Having an existing site and customer base is a great way to get started.  If you are just starting from scratch, then you want to make sure you have the time necessary to do some initial customer research.  Look for your potential competition.  Can you do it better and cheaper?  If no, then why would people spend their money on your product.  Be prepared to make your strengths clear.

Do you have a budget? Most people looking to delve into the e-commerce business for the first time do not have the capital to do it.  I know this from personal experience.  Yes, it is cheaper than ever to keep your store open and you have many options that span a large field with respect to pricing.  You can do everything from having a 3rd party host your store (like Yahoo stores) or custom build your site/shopping cart.  Most people opt for something in between — that of using an existing customizable/cart option with some white label transaction path.   The question is what level of control do you want over your site and how much of your pie are you willing to share?

Time! Many people have this notion that online businesses are so much easier to operate and cheaper than a physical storefront.  In some cases this is true. However, store owners often overlook the time it takes to maintain their product inventory, advertise and gain customers. Don’t expect sales to happen for at least 6 months (and that is if you are doing your job!).  Which leads me to my next point, don’t be discouraged.  If you truly believe in your product/store then keep going.  Many people just give up on their store, keep paying their hosting fees and let it sit.  The longer it sits, the less likely you will manage to gain customers.

One advantage of a store front is the fact that people actually physically pass your business, whether on foot or by car.  That alone is a big advantage over e-commerce.  Online businesses require so much more attention so be prepared and have a battle plan to get yourself noticed.  Participating in product related online communities on other sites is a good way to see what your customers want.  As I have recently learned, be authentic and respectful. Only be yourself and don’t overtly advertise your own product on another competing product site.

To be continued…