The idea of starting an online store to sell your products can seem like a simple concept in theory, but the logistics can be quite complicated. It’s far more than just posting your goods to a website and waiting for someone to make a purchase; it takes knowledge of e-commerce, market research, and merchandising to succeed. To help you along your journey, we’re here to help with a few tips for successfully running an online store.
Learn About Digital Sales and e-Commerce Before Running an Online Store
Familiarize yourself with the online sales process before selling your products. Depending on the platform you sell on – such as eBay, Etsy, Shopify, or your own website – purchase an online product using these means to understand each step and what to expect. This can also be helpful because you can uncover the missteps in the sales process of your competitors, so you don’t commit those violations yourself. Bear in mind some platforms charge a monthly fee to sell on their website, and if you choose to build your own website, you most likely will have to invest in a developer and pay web-hosting fees.
Perform Market Research for Your Industry
Whether you’re a small brick-and-mortar store selling furniture or an individual selling knitwear, it’s your responsibility to find your customers online. Unlike a physical location, an online store has harsh competition from around the world. Study competitors and what they’re doing to attract customers, and see if there’s an untapped well you can home in on. Is a strong competitor mostly targeting quadragenarians? See if there’s an audience for your product among college students. It’s important you take the time to evaluate high-demand markets and trends.
Maintain Your Business Mindset When Selling Online
You want to take your online store every bit as seriously as any other business. Create and execute a business plan, set quarterly goals, and measure your metrics and analytics. Above all, you want to keep your customers happy and returning for more. You can achieve customer satisfaction by implementing great customer service into your business model, providing quality products, and resolving issues with delivery or otherwise. A negative online review can hurt your seller’s rating, leading to customers turning to the competition to fulfill their needs.
Invest in Insurance to Protect Your Assets
Whether you’re selling products out of your brick-and-mortar business or out of your garage, you need to ensure your inventory and finances are protected. Some useful insurance policies to safeguard your online store include:
- Cyber Insurance: You will be collecting a lot of personal information from your customers during transactions, so to protect yourself from the fallout of a data breach, cyber insurance is necessary.
- Commercial General Liability: This policy will cover your business losses in the event of property damage, and it can even cover the ensuing liability expenses if a customer is harmed by your product.
- Seller Suspension Insurance: If your online store is on a platform such as Etsy or Amazon, this policy will provide resources and financial backing in the event your account becomes suspended.
- Inland Marine Insurance: Inland marine insurance covers transportation of goods, along with assets that need broader protection than what may be provided by a typical property policy.
If your business grows to include employees other than you, you’ll need to look into workers’ compensation and employment practices liability, as well. Insuring an online store can be quite tricky, so it’s best you enlist the help of an independent insurance agent.
These tips for running an online store can be a great launching pad for those just starting. If you want to succeed with your online store, the key is to not only stand out amongst the crowd but also to have insurance that keeps your business secure. At TJ Woods Insurance, our expert agents will ensure you’re covered on every angle with comprehensive business insurance policies. If you’re interested in starting an online store but don’t know the insurance required to do so, contact us today.
