Online Store Business Plan Opportunities

Having your own online store has the potential to be very rewarding. There are a few different methods to creating your online marketplace, and each one has its perks. Depending on your situation and the brand you wish to build, having a website of your own may be the best choice.

Creating an online store business plan as a supplement to your brick-and-mortar store is a great idea. Making a website from scratch feels like you are starting from the ground, but if you already have a client base then having a site would be another way to offer services to your customers.

It may seem daunting, but this will not only bring easier access to your existing customers, it will also generate interest for new customers. In some cases, the strife of making your own website outweighs the headache of getting a host site that will more than likely charge fees and take a percentage of your earnings.

Pros & Cons of Not Owning Your Store

The most common host sites are Amazon and eBay. The benefits are obvious. Sellers who choose one of these sites do not have to generate interest themselves. Consumers are already familiar with Amazon and eBay, so advertising is not necessary.

The downsides include all of the charges and fees for using their marketplace as a host. All host sites require some form of payment for their service. In some cases they take a percentage of your earnings. The percentage may not seem like much when you first start out, but it grows exponentially as you grow. You could find yourself losing out on thousands of dollars.

Customer Reviews

Reviews are an important part of being on huge sites like Amazon or eBay. Since customers can only experience your products online until they order it, the only ways they can gauge quality is through reviews from others who have already purchased them. Maintaining good reviews is critical to keeping and gaining customers. If you get a lot of bad reviews, someone else with a similar product will easily outrank you.

Set Structure

Host sites have rigid structures set in place which can be both good and bad. On one hand, they have protections for their sellers that they would not have otherwise. If there are any fake or illegitimate purchases made, the host site will take care of it.

On the other hand, on a site like eBay, sellers are limited to the amount of items they can sell. Depending on the site, you may also be limited to the types and categories of items you can sell. When you want to grow as a seller and as a brand, this is a major roadblock. If at some point you want to expand beyond what your host offers, you need to move on to a different platform.

Due to the set structure of host sites, you might not be able to sell products as you would like to. If what you are selling does not fit in with what your host site wants, then you are forced to revise your inventory.

Some sites make it difficult to bundle items, and some do not allow you to customize in ways you need. For example, if you want to sell one item that comes in different sizes, does the site allow you to create sizing options? Sometimes working around the rigid template of the host site does not allow for the experience you want customers to have in your marketplace.

Pros & Cons of Owning Your Store

There are a few different aspects that go into whether or not owning your own online store is right for you. It can really depend on what your situation is and how much risk you are willing to take. Under the right circumstances, however, creating your own site will be the most profitable method of online sale.

No Fees or Charges

One of the best perks of your own marketplace is that you get to be greedy. The bulk of your profit goes directly into your pocket. There is no need to pay monthly or yearly fees to have the right to sell products on someone else’s site, and no one takes a percentage of your profit.

With free range on your earnings, it may be in your interest to lower your prices. You do not have to worry about having a percentage taken away, so offering products at the best price will attract more customers. Since you earn more of what you make, it doesn’t have to seem like such a loss to give discounts. This can help to increase interest and gain loyal customers.

Full Customization

When you create your own website, it can be whatever you need it to be. The rules and regulations of a host site can bog you down. The format, design, color scheme, and interface are all up to you. This can be really helpful if what you are selling comes in different forms. Not only can you have customers pick the color and size, they can pick length, width, or whatever else is relevant. You need only to customize what users will see when they visit your store.

Building a Client-Base

One of the more difficult parts of starting from scratch is attracting clients. If you are a beginner, this can be extremely hard and may not be worth it. It can be disheartening to put in so much effort to create the perfect site only to realize that you just aren’t getting the traffic you expected. This is why having customers to begin with is a key aspect to becoming successful on your own.

What Format is Best for You?

There is no perfect way to begin an online store. Not every format will work for every person. So how do you decide the best way to move forward? First, you have to consider where you are now and where you want to be. Is this just a supplemental income or is this your passion? Figuring out the answer will be the first step.

When Should You Use a Host Site?

If you are starting out entirely fresh, you’ve never sold anything online and you haven’t gotten your feet wet in any type of sale, then you should seriously consider a host site. Without a client-base, starting your own website will be very difficult. With the established clientele that a host site will offer, you can begin to get your business off the ground. You may have to deal with fees, but you need to start somewhere.

When Should You Open Your Own Store?

If you already have an online client-base due to a host site and you realized that you are not making nearly enough money, it may be time to move on. Just because you began with the help of a host, doesn’t mean you have to stick with it. You can build your own site and take your customers along with you. At some point, you may find on a host site that people enjoy your products coming from you and they will be willing to follow you.

You don’t necessarily need an online client-base to make your own website. If you have a physical store with customers who you deal with face-to-face, you can get them on board, too.

Offering an additional way for your customers to experience your store and buy your products can only be a good thing. It will also present an opportunity for new customers to access your store. Making an online store in addition to your established brand will expand your reach in ways that may surprise you.

The Decision

Once you have accessed your situation, it is time to decide the format that is best for you. Hopefully you now have an idea of where you stand and how to move forward. Starting your own website to have an online store is a big commitment, but it can be worth it.

Learn more about selling products online.