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Business

6 Things to Know Before Starting a Retail Business

The retail industry has continued to evolve over the years, especially with more people shopping online. Being an online retailer offers tons of benefits that a brick and mortar store does not, including working anywhere in the world, hiring more remote contractors, and having more flexibility. However, before you start any retail business, there are a few things you should know.

1.    Your Mission Statement

You should know your mission statement before you start selling merch by Amazon or through your own online store. Your mission statement tells you and everyone else what you hope to achieve by operating your online small business. It should also emphasize your values and can be used to attract customers whose values align with yours.

Read the mission statements of your competitors by doing a quick search on Google or Amazon and learning more about those companies. Keep your statement short so that it can be easily memorized and recognized.

2.    Your Finances

While you may not need as much seed money for an eCommerce business as you would for a brick-and-mortar store, you should make sure that your finances are healthy enough for you to start the business. Normally, a business will take at least a few months before you’ll actually begin to make any money. Instead, you’ll be spending money on things like advertising and overhead costs while putting any money you make back into the business.

Remember, you’ll need money for business and personal expenses, so make sure that you understand your operating costs so that you can determine whether you have enough to start selling products online. Once you begin selling products, make sure that you keep track of your finances with online financial software so that you can easily do your taxes and manage all of your costs.

3.    Delivery

When you sell a product online, your customers will not be coming to a location to pick that product up unless that’s the way you’ve decided to set your business up. However, most online store owners recognize that people shop online for convenience so that the items they purchase will be delivered right to their doors.

With so many businesses offering two-day shipping, you’ll need to ensure that you can stand up to the competition. Do your research to determine the best delivery options so that your customers will choose to purchase your products because of the quality of goods, customer service, and delivery and shipping times.

4.    Shopping Experience

Many first-time eCommerce business owners fail to realize that they need to provide a quality shopping experience online. Instead of simply setting up a website because you like the design, you need to think about things like the user experience and user interface, both of which can impact your sales. While the shopping experience may be different online than it is in retail stores, you’ll still need to focus on things like convenience and accessibility.

5.    Design & Branding

When it comes to design, brick and mortar stores and eCommerce stores need to make sure that their branding and design stays consistent throughout all of their advertising. While an eCommerce business doesn’t have to worry about point of sale signage, you do have to worry about website design, display advertising, branding, and social media advertising.

Before you hire a designer, try working with a design program like Canva so that you can play with different colors and designs before you decide what your branding should be.

6.    Customer Service

Brick and mortar stores have salespeople ready to answer questions that shoppers have. While you can’t do exactly the same thing with your eCommerce store, you can offer customer service when shoppers need it most. Many stores have chatbots that answer general questions, and if you need to speak to a person, the bot will connect them to someone they can talk to immediately through their device. Make sure that you focus on customer service to provide customers with an even better experience.

While starting a retail business can be a challenge, it can also be a great money-making opportunity. We hope these tips help you on your entrepreneurial journey.

 

 

 

 

 

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