I can’t tell you how many questions I’ve gotten over the past year about how to open an online store. Recently I’ve gotten a lot more messages about how I opened my online boutique ( http://www.shopjennaleeann.com ) and instead of answering everyone individually, I’ve decided to just write it all here.
DISCLAIMER: Every state is different in their processes. I live in Connecticut so my requirements may vary from yours. I recommend talking to someone at your local Department of Revenue Services and Secretary Of State office.
Come up with your business name-
The reason this is the first step, is because you’re going to need the name of your business for a few of the upcoming steps. I know this is self-explanatory but I wanted to let you know to do this first. Things to think about when creating a name are to make sure it’s easy to spell and understand. Create a name that shows what your store is and make sure the name is available for a domain and social media!
Sign up with an E-Commerce platform and create your domain-
This would definitely be the next step because you want to lock in your domain name (the url people will use to get to your site). Shopify offers a free domain with signup. I HIGHLY recommend Shopify for an E-Commerce platform. I use them for my business and their website is just so simple, plus it allows me to offer an easy-to-use and aesthetically pleasing website for my customers. I love the back-end because it shows me a dashboard with my reports to track my sales and inventory. Shopify’s credit card fees are great and you get a great shipping discount on each order you ship which is a HUGE plus because that cost adds up. Also, they offer a POS system which is great for when I do pop up shops around Connecticut. They shipped me a card reader and I just had to download an app! Trust me, it’s SO awesome when you don’t have to worry about technology on top of everything else. You can use my referral link and start with a free trial to see for yourself if you like it or not! Sign up here –> https://www.shopify.com/free-trial?ref=jenna-leeann
Register your business with the state-
I decided to create an LLC, but do your research on what type of business is best for you (S Corp, LLC, sole proprietorship, etc.). For this, I went to the Secretary of State. There is a fee for this and it depends on your state if it’s an annual fee or bi-annual. The next step would be to apply for a Sales and Use Tax Permit at the Department of Revenue Services. You can also get your EIN (Employee Identification Number which you will need to file taxes) here. Again, that step could depend on your state. This allows you to legally sell in your state. You NEED this to buy anything from a wholesaler. As a matter of fact, you can’t even access their websites or shows without one! Once you get this, you can now go to trade shows or find wholesalers online. Make sure you bring a photo ID for all of this!
Create your website-
I bought a theme from Etsy and was able to install it myself. A lot of them install it for you, but I’m pretty tech savvy and actually install themes for bloggers on the side (Need help with website transfers? Check out my Etsy shop so I can help you! http://www.etsy.com/shop/jennaleeannllc ). I just search Shopify themes on Etsy and scrolled through until I found one I liked. This is the cheaper option but you can also always hire a website designer! Make sure to buy or create a logo for your website and social media pages. It’s best to keep it the same so you are more recognizable when people are searching for you.
Shop for your first round of inventory-
A lot of this step is completely up to you on how you want to shop for your inventory. I HIGHLY suggest going to a trade show so you can touch and feel the product from thousands of vendors. I made the mistake once of buying wholesale clothing online and when it came in, I couldn’t even sell it the quality was so bad. I wasn’t going to hurt my brand by adding that product to my site and you cannot return wholesale product for the most part so I was out money. Learn from me! I now buy online but only from my main vendors that I know and love. I still like to go to the shows at least twice a year to find new vendors. Your product will mostly likely come in packages of 6 (2 small 2 medium 2 large). Plus sizing packages are usually separate (2 XL 2 1X 2 2X). Depending which vendor you use, your product package can cost anywhere from $80 and up. The average would be around $100 per package. Again, it all depends on your store, your vibe and what you’re selling! My store is focused on quality so my packages can run a little higher.
Product photos and opening-
By this time, you should already have made an announcement post letting people know when you will open! Uploading product photos, writing descriptions and creating pricing is definitely a longer process. I recommend writing all of the descriptions while you’re waiting for the product to be shipped to you. As far as photos go, obviously the better way is to do your own photoshoots and hire models, however, if you’re just starting out, you can use the product photos from the wholesale websites. Just make sure to check with your vendor first if you’re allowed to use them. All of my photos are from my vendors because I love the quality of them and it saves me from having to do photoshoots all of the time. I’m sure as I grow that will all change! You will need to create a profit margin for your items. Take into consideration all of your costs – having the product shipped to you from your wholesaler, your packaging, thank you notes, if you’re going to offer free shipping, etc.). You want to make sure you’re making a profit to pay off your initial debt and continue to order new inventory!
Packaging and shipping-
I ordered my custom poly mailers from Sticker Mule. I love them so much! Poly mailers are a cheaper way to go vs. boxes but I personally prefer them anyway for clothing/accessories. Boxes are so bulky and you normally don’t need all of that space. However you decide to package your items, just make sure you’re consistent with each order! As far as shipping goes, I absolutely LOVE Shipstation. They are super easy to use and integrate with Shopify so your orders automatically get placed into queue. Sign up with my referral link and start with a 30 day free trial! Sign up here –> http://mbsy.co/jVMcZ .You will need a label printer as well. I bought one that didn’t integrate with my platforms and then got my current one which has worked perfectly for the past year and connects to my ShipStation account so I don’t have to do much except enter in the weight of the package (also linked below the scale I use below to weigh my packages) and hit ship! I can create a whole separate post on shipping and ShipStation if you’re interested. Just let me know!
I’ve created a whole separate blog post about products i use to run my business and will add all direct links to the exact products. read it here –> Boutique Owner 101 | Products I Use To Run My Online Boutique
This is basically the step by step list you need to follow to start your own online store! I plan to make more in depth posts with questions I’m asked, but this is the basic knowledge you need for now! If you have any questions, leave them below and I will answer them in my next Q+A post. Best of luck to you on your venture. Leave your websites below so I can check them out!
xox
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