What do you need to start eCommerce shop?
First of all passion and vision. This sounds obvious, but it’s needed if you want to succeed. You’ll encounter so many problems along so if you’re driven only by money, you’ll give up.
Have a clear vision of why you want to start a business and what do you want to give to the world. Again, it may sound kitschy but money is just a by-product of providing value to others – either in form of service or a product.
Once you have an idea what you want to provide, you need to do a market research – understand your audience and identify trends.
Then you need to have branding; your logo and the general idea of how your brand should be ‘felt’ and perceived – but don’t spend too much time on it at the beginning. Decide on the name (try to find something unique which gives positive associations to the thing you’re going to sell).
You need to have an online presence, social media are a must. Depending on your client persona the way you communicate and the channels you choose will differ e.g. if you’re serving younger clientele, TikTok and Snapchat and Insta will mostly be your go-to channels, but there there are always exceptions to the rule. Again, I will drill this subject down on a dedicated video.
And let’s not forget about the website, where your customers can buy from you. I believe that no matter what, you should always strive to drive your customers to channels you can control like your own online store. Marketplaces like Amazon and eBay can be a good place to start, but you are bound to their rules and they can ban your store overnight if they believe you breached their rules which may be just a smart move from your competition (I
Reliable suppliers and shipping – we source but you can (I will talk about it in a separate video). We use fulfilment centre in the UK and soon, opening in Netherlands, but when you’re just starting out – you’ll likely to be shipping things out yourself.
While marketplaces are a good place so start selling as you already have potential customer base there and a lot of integrated tools that help you sell (paid advertising, analytics etc), you should always strive to drive your customers to channels you can control, like your own online store. Marketplaces like Amazon and eBay can be a good place to start, but you are bound to their rules and they can ban your store overnight if they believe you breached their rules for any reason. Appealing can be a painful and lengthy process and if it’s your only selling channel at that point, you can be left with no way to redirect or address your potential customers.
Legal foundations – you need to have a legal entity – you’ll need this to open bank account and payment processing account. When setting up your own business, you’ve got a couple of options for the legal side of things. One route is being a sole trader – it’s straightforward and you have total control. The catch? You’re personally responsible for everything, no separation between you and the business.
Now, if you’re thinking bigger or want some liability protection, there’s the limited liability company (Ltd) route (in the UK, it costs £12 to open a company directly with the Companies House if you file it yourself). This means your personal and business assets are separate, so your house isn’t on the line if things go south. But, and there’s always a “but,” it comes with more paperwork, like filing annual financial statements. On the flip side, going Ltd might give your business a bit more credibility and make it easier to snag funding should you require some in the future.
Ultimately, it depends on how much risk you’re comfortable with, the size of your operation, and your long-term goals (but we’ll get to this in a separate post).
When it comes to safeguarding your business ideas, there are two main tools: patents and trademarks.
If you’ve got some groundbreaking invention or a unique process, think of a patent as your legal defense against copycats (because they’ll definitely appear!). But, keep in mind, getting a patent can be a bit of a process – both in terms of money and time.
On the other hand, trademarks are all about guarding your brand. They protect your logo, company name, or anything that sets your business apart visually. It’s a bit more straightforward than patents, but the focus is on branding.
That’s what we did with Oishya. Like with patent, you can file trademark application yourself or you can use a IP lawyer to help you do so. Trademarks are easier to file, and they are very affordable. E.g. In the UK, it’s £170 to register a single trade mark in one class. It costs £50 for each additional class. If you want a lawyer to do it for you, you need to account an extra £1.5-2k per trademark application.
Helpful? Sucks? Let me know so I can stop wandering in the dark 🙂
