| So you want to open your own online retail store. You | | | | hosting company. |
| have visions of web orders rolling in while you take | | | | The hosting company is where you will house your |
| business calls and ship products all in your pajamas. | | | | website files and data. They charge a monthly fee and |
| What may sound like a quick and easy idea may | | | | typically provide you with e-mail addresses related to |
| prove to be a long road of fruitless searches and | | | | your site, customer support, secure transmission of |
| monetary loss. Too many people have your same | | | | data and storage space. Look into several companies |
| ideas and they may either be more experienced, have | | | | and ask their fees, whether they allow pop ups, banner |
| a better handle on the web or simple sell the right | | | | ads or annual commitments. Your web designer will |
| product at the right time. With the explosion of | | | | need the hosting information when it is time for your |
| ecommerce sites, it is now very difficult to carve out | | | | site to go live. |
| your own identity on the web. I have provided a | | | | There are several ways to go about designing a |
| number tips and pointers that I have learned along the | | | | website. Two of the least expensive routes are to |
| way in creating my own site: The Stork Store. I hope | | | | purchase an e-commerce template from an existing |
| that you can learn from my many mistakes and feel | | | | company or create your own site. Many companies |
| more educated about the steps needed to become a | | | | on the net have created basic templates that allow |
| successful online business. | | | | you to simply drag and drop your information into a |
| Tips for starting a small business online: | | | | pre-made site. These sites are designed to handle |
| Research the competition: | | | | e-commerce and make the process very easy. The |
| Before you spend any money on the new business | | | | drawback to a template is that you cannot alter the |
| idea, research your online competition to make sure | | | | website or customize the site to your needs. It also |
| this is a profitable venture. Every company has a | | | | makes it difficult to optimize a pre-existing site or |
| different business philosophy. Some companies play to | | | | rewrite any of the codes if necessary. As a result, you |
| the wealthy and upscale by offering higher prices, a | | | | may not rank as high in the search engines or receive |
| more sophisticated website and special perks for | | | | a significant amount of traffic or orders. The benefit to |
| spending at their site. Other companies offer | | | | the templates is that it may not cost a lot of money to |
| extremely low prices on their products in an attempt to | | | | begin your online store. This is a low risk solution and |
| undercut their competitors. They are willing to accept | | | | once your store is established, you can then move to |
| lower profit margins if it means an increased sales | | | | a custom made site. |
| volume. Make sure that you can find a niche within | | | | You can also design your own website using |
| your product market and it will still be profitable. You | | | | programs such as dreamweaver or frontpage. These |
| want to find a middle ground that will allow you to | | | | sites are more technical and require either knowledge |
| make money as well as attract customers. There are | | | | of the program or pairing with someone who can help |
| a few products that I refuse to sell on the web strictly | | | | you through the difficult parts. I have found that these |
| because my competitors are offering the products at | | | | programs are great for beginners who are creating |
| wholesale prices. Their trick is to charge a higher | | | | basic web pages that do not sell products. The |
| shipping rate to make up for the monetary loss. Find | | | | e-commerce and shopping cart side of the website |
| out about their return policies and if you can match | | | | can be difficult to manage if you are inexperienced. |
| their ability to accept returns. Do a keyword search on | | | | This is not to say that they cannot create functional |
| three of your top items you want to sell and see if | | | | web pages, this is simply advice for someone who |
| your product can compete price-wise with the search | | | | does not have extensive web design knowledge. The |
| results. Make sure that the internet is not flooded with | | | | positive side of designing your own site is that you can |
| your product because it will be harder to gain a ranking | | | | change your code at will and are not subject to a |
| among the search engines. It is easier to sell a product | | | | programmer's time schedule or payment fees. The |
| that is targeted at a smaller audience than the general | | | | web is constantly changing and websites need to |
| public. For example, you may do better selling ceramic | | | | keep up with new search engine optimization |
| pink frogs than selling dog leashes. Fewer people are in | | | | techniques. By joining optimization listservs and |
| the market for a ceramic frog and you may be able to | | | | attending classes, you can gain the knowledge to |
| move higher on Yahoo or Google. | | | | improve your own site and maintain its integrity. |
| Tax id: | | | | A more expensive route, but one that I highly |
| Next, register your business and receive a tax id | | | | recommend is to hire a professional web design |
| number. Tax identification numbers allow you to | | | | company that is capable of specifically handling |
| purchase a product from a manufacturer (without | | | | e-commerce. These companies should be up to date |
| having to pay tax) and sell it to a consumer. This is | | | | on the latest codes and techniques to make your site |
| known as a "reseller." The tax id number is a federally | | | | not only professional but easy to use by the consumer. |
| regulated and used to help the government monitor | | | | They should also know how to write the code so |
| your business. This number is also required if you have | | | | search engines such as Google have an easy time |
| any employees. If you are a sole proprietor, or a | | | | finding and crawling your site. They may be able to |
| person who is personally liable for all obligations, you | | | | create your site in a short amount of time due to |
| are able to use your social security number. This may | | | | programmers assigned solely to your site. Many of the |
| sound like an easier venture, however, if your business | | | | companies also have a variety of employees that do |
| is sued, they have the ability to access your personal | | | | everything from write copy, upload products, proof |
| assets. Don't forget that banks and credit card | | | | read, generate marketing ideas and create graphically |
| companies will also require a tax id number in order to | | | | appealing pages. |
| open a business account. | | | | When hiring a web design company, make sure to ask |
| Finding products: | | | | a lot of questions so you are fully educated about the |
| Once you have decided that your idea may just float, | | | | type of site they are creating. During my searches, I |
| you need to locate the product vendors. Use the | | | | found companies that ranged from a few thousand |
| internet, catalogs and yellow pages to locate their | | | | dollars to companies that demanded over $20,000 and |
| phone numbers and websites. Not all vendors will sell | | | | a portion of my profits. I happened to go with a less |
| to an online store so you need to spend time talking to | | | | expensive company for purely financial reasons and |
| each company. First, find out if the vendor offers a | | | | my website suffered in the end. My site took over 2 |
| wholesale program and at what type of discount. It is | | | | years to complete and I had to fight to get ownership |
| common for a company to charge you 50% of the | | | | of my codes. In the end, I ended up with a beautiful site |
| consumer's cost. If the product sells in the store for | | | | that is not functional from a search engine optimization |
| $100, then you should be able to purchase it for $50. | | | | standpoint and search engines have trouble finding me. |
| Smaller companies or artists may offer a smaller | | | | It is ok to lack knowledge in the area of web design. |
| discount such as 30%-45% so make sure those | | | | Talk to a lot of different companies and gain |
| products will still be profitable for you to sell. Some | | | | knowledge through them. You need to make sure that |
| companies will recommend that you stay within a | | | | your code is easy to read by search engine spiders |
| certain price point so that you don't undercut the | | | | and they use a program that is easily modified. If you |
| competition or grossly profit from a sale. | | | | feel daunted by the task of finding the right site design |
| Find out how they sell to vendors. Many companies sell | | | | and company, I recommend that you pair with a web |
| their products in cases so for example, you would | | | | consultant that is specially trained in web site |
| need to purchase six of the same picture frames. | | | | optimization. Many web design companies are looking |
| Some companies allow you to order one item at a | | | | to create an aesthetically appealing site; however, you |
| time as long as it adds up to a certain dollar amount. | | | | need a practical site that Google and other major |
| You can purchase 6 different frames but the order | | | | search engines can rank. I have been working with |
| must reach $100. This affects how you order | | | | two consultants, Ron Castle ( and Blair Stephens |
| inventory. If you believe a product can sell easily, you | | | | (e2solutions, llc. who have provided solid web site |
| are safe buying in terms of cases. If you are trying a | | | | optimization tips that will help gain exposure. Their ideal |
| new product, you may not want to commit to 12 of | | | | role is to use them to monitor the site as it is being |
| the same pillow. Some companies will allow you to | | | | created. Let the consultant check each page and |
| return products that don't sell so make sure to check | | | | code as it is completed to ensure that proper wording, |
| with their return policy. Typically, if a company accepts | | | | page structure and code are used. If you already have |
| a returned product, you are given a store credit | | | | a site, they can create a list of suggestions to modify |
| towards a future purchase. It is rare that a company | | | | your site to reach optimization within the search |
| will issue a credit check for unsold/returned | | | | engines. I cannot stress the importance of spending a |
| merchandise but it can happen. | | | | few extra dollars to guarantee that your site is done |
| Ask them if they are able to drop ship the product | | | | correctly - the first time! |
| directly to the customer. Drop ship means that the | | | | Accepting credit cards: |
| customer places the order through you and you pass | | | | Accepting credit cards is the last component for |
| it along to the vendor. The vendor ships the product to | | | | creating a successful online store. People use the |
| the customer and charges your account for each | | | | internet for the convenience of purchasing a product |
| order. This is the best solution so you are not | | | | at home. They want to enter a credit card number |
| responsible for carrying inventory that may not be sold. | | | | and receive a receipt for their records saying the |
| Most companies require that you carry inventory or | | | | payment was accepted. Accepting credit cards works |
| place a minimum order so they are guaranteed a | | | | to your benefit as well. By accepting credit cards, you |
| certain sales percent. I have one company that | | | | are guaranteed payment for your services and you |
| required a $250 minimum purchase. They still shipped | | | | don't have to wait for a check to arrive and then clear. |
| directly to the customer one order at a time and | | | | There are several steps necessary to accepting credit |
| deducted the money from my initial $250 order. I still | | | | cards online. First and most important, you need to find |
| didn't carry inventory and they knew they had a set | | | | a credit card processing company. Their role is to |
| sales amount. | | | | allow you to accept all forms of payment including: |
| Some companies are able to blind drop ship so the | | | | major credit cards, debit cards, electronic checks and |
| package looks like it came from your store. The | | | | traditional checks. There are many companies that |
| company includes your business cards, invoice, | | | | process cards so you need to continue with your |
| brochures and return address labels at no additional | | | | research. Each company will typically charge a monthly |
| charge. That way a customer can track the order | | | | maintenance fee, statement fee and a percentage of |
| back to you and not to the company. This will help with | | | | your sales. There may be an additional start up fee |
| reoccurring sales from the same customer. They | | | | and/or a gateway fee for transmitting the credit card |
| grow to trust you as a supplier and not the vendor | | | | information. We use Cocard.net due to their reduced |
| directly. | | | | fees and customer support. When we initially began |
| Make sure to ask how the company would like to be | | | | the business, I created a chart that compared each |
| paid and what type of terms you can negotiate. | | | | fee charged by the company. I was able to use this |
| Terms are the schedule of your payments. Some | | | | information, plus a referral from a current customer to |
| vendors will give you discount if you pay immediately. | | | | choose Cocard. |
| Others will demand that you pay immediately, and | | | | Once you have chosen a credit card processing |
| some will let you pay over 30 or 60 days. This flexibility | | | | company, you need a safe way to transmit the credit |
| will allow you to "float" the cost of the inventory. If you | | | | card information. Merchants use a Secure Sockets |
| get paid immediately, but don't have to pay the vendor | | | | Layer (SSL) that is able to encode the credit card |
| for 30 days, then you benefit. Money has an intrinsic | | | | number so that it cannot be stolen by a third party. I |
| value, and the longer you have it the better you are. If | | | | use Authorize.net because of the great rates, amazing |
| you are carrying inventory then longer terms gives you | | | | customer service, and the free logo that can be added |
| a chance to sell it and collect the money from your | | | | to your web pages explaining that you use a secure |
| customers before paying the vendor. I had a product | | | | processing company. Authorize.net sends automatic |
| that in my mind was a winner. I order 3 cases of them | | | | receipts to each customer and allows me to enter |
| and paid the costs. Two years later I was selling the | | | | transactions online. I do not need a terminal in my home |
| item at my acquisition cost. So dollar for dollar it looks | | | | to accept credit cards. Authorize.net's role is to |
| like I was even, however, I lost the value of the money | | | | process the card number and send it directly to your |
| (interest in the bank, or option to invest in another | | | | credit card processing company. |
| product) for two years. Check to see if you can pay | | | | Shipping: |
| via credit card so you gain the rewards on your credit | | | | The next step is to determine how you are going to |
| card or if they only accept a check. When starting | | | | ship your products. The easiest method is for the |
| with a new vendor, many require references that | | | | manufacturer to blind ship the products directly to your |
| show you have purchased items before and are | | | | customer. This way, you don't have to carry inventory |
| reliable for payments. It is ok if you have never sold a | | | | and the blind drop ship means that your name is on the |
| product. Let the company know that you are a start | | | | shipping labels and not the manufacturer's names. |
| up and ask if they can either keep a credit card on file | | | | Very few companies are willing to drop ship or they |
| or will waive the required references. | | | | may charge an extra fee for their time. Typically, you |
| Double check that you can use the company's product | | | | would keep the inventory at your home or store and |
| images on your site. Some companies allow you to pull | | | | ship it directly to the customer. I recommend that you |
| images directly from their site, some will send you the | | | | take one average size package to the different |
| picture files and others will not allow pictures to be | | | | shipping companies and see what they charge. I took |
| added to your site. Companies that restrict use of their | | | | one package to FedEx, DHL, UPS and UPSP and |
| images are typically concerned that you will distort or | | | | asked about shipping rates. I also asked about |
| modify the picture so that it no longer resembles their | | | | insurance on the package, tracking and signature |
| product. | | | | confirmation charges. I could then compare each |
| Questions to ask the vendor | | | | company and see which one would be the least |
| 1. Do you offer a wholesale program? | | | | expensive. |
| 2. Do you sell to online retailers? | | | | Several companies allow you to print and ship directly |
| 3. What is the acquisition price/ recommended retail | | | | from your home. This allows you to have a more |
| price? | | | | professional label attached to the package that also |
| 4. Is there a minimum order required (either a monetary | | | | includes your return address information. They may |
| figure or amount of product)? | | | | automatically include tracking information for free when |
| 5. Can they drop ship to your customers? | | | | you create the labels at home. You typically have to |
| 6. Can they include your information in their packaging? | | | | set up an account and you may have to pay an initial |
| 7. Is there any pricing restrictions on the item? | | | | set up fee. I purchased a scale that weighed my |
| 8. What type of payment is accepted? | | | | packages so I knew how much postage to purchase. |
| 9. What type of terms do they offer? | | | | Many companies offer free shipping or combined |
| 10. Can you use their images on your website? | | | | shipping costs to entice their customers. The company |
| 11. Can you use their product wording on your | | | | is losing money on the product but they understand |
| website? | | | | that consumers are afraid of high shipping fees. |
| Create a Website: | | | | Remember, almost all of the products sold on the |
| The first step in creating a website is to think of your | | | | internet can be purchased at a brick and mortar store |
| domain name, or the name people will use to look up | | | | for no shipping. People simply use the internet for |
| your site. For example, my store is called The Stork | | | | convenience and the possibility of a lower price - use |
| Store and my domain name is I searched for a | | | | this to your advantage! |
| registrar company that provides domain names (I used | | | | Starting an online business takes dedication, |
| GoDaddy due to cheap rates). Many times, your name | | | | determination, the right support system and a good |
| is taken and you need to play around with spelling or | | | | dose of luck. Hopefully this article will help guide you in |
| find a new company name. I recommend using a | | | | making the decision to open an online store. |
| simple name that explains your business and is spelled | | | | Remember, you are the expert in your field. Use your |
| correctly. Go with a .com ending instead of other | | | | knowledge and common sense to find the right |
| endings to your name as this is more common and | | | | vendors, products and customers to become |
| less confusing. Once your name is registered, you can | | | | profitable and successful. |
| either begin to develop your website or locate a | | | | |