How to set up an online shop - the main issues to consider

Selling online is becoming increasingly popular. However, setting up an online store requires a lot of thought in advance. This article looks at the various options available to you if you are thinking of selling online.

Types of online shops

There are two types of online store:

1. Simple stores – products have a ‘Buy Now’ button that links to a payments system such as PayPal
2. Complex stores – the website has an integrated stock control system, order management system and accounting system.

What sort of online shop do I need?

Simple stores are ideal for the small trader who wants to sell a few items online, perhaps in addition to other outlets. Typical examples are authors selling their books online, crafts people selling their products online and artists selling paintings online. 

Complex stores are ideal for people who want to use the internet as the main or additional retail outlet for their products or services. Usually, owners of complex shops have a large array of stock on offer. However, they can also be used for smaller stock ranges. An example of a use of a complex store could be a retailer of specialist sport shop equipment. Complex stores are database driven.

How much does an online shop cost?

There is no simple answer to this question, as each online shop is different. We would need to discuss your needs with you to give you an accurate quote. Meanwhile, here are some typical prices to give you an idea.

Simple online store - template
Five page site, based on a template, plus a shop page selling four or five products: £300 to £450

Simple online store - bespoke
Five page bespoke (designed from scratch) site plus a shop page selling four or five products: £450 plus

Complex, database driven online shop
Set up from £500 followed by monthly fee of £20 all the time the shop is running.

Can I update my shop myself?

With, complex shops, you will have full access to your shop. You will be able to upload new products and maintain your orders.

Note that owners of complex sites need a basic degree of computing competence to be able to upload items for sale.

If you want to update a simple shop regularly, say every month, you will need to set up a maintenance contract – usually about £50 per year.  

What else do I need to consider?

There’s a lot to take into consideration when setting up an online shop. Here are some of the main issues:

- How many products are you selling? This will determine the sort of website you need, If it’s only one or two, a simple online shop should be fine.

- What type of products are you selling? This affects the way the products will be displayed. For example, if you are selling a complicated technical item, you will need to give details of its specification. If you are selling a decorative object, you will need a good quality photograph and maybe less of a description.

- Do you have digital pictures of the products? If not, can you take the photographs yourself, or do you need to hire a professional photographer?

- How much are you going to charge for your items? Are you planning discounts for bulk orders?

- How are you going to handle postage and packing? Are you going to charge a set fee or are your prices inclusive of posting and packing? Will your postage and packing be based on weight?

- What is your delivery policy?

- What is your returns policy?

- If you are planning a complex online shop, you will need a system so your shop can keep track of items. This might include the item number, product ID, a description of the product, and its price.

Handing the finances

You will also need to decide how you are going to accept payments. Paypal is a very easy and inexpensive method. Most people are familiar with Paypal, and feel safe making payments this way. Customers can use debit or credit cards to accept payments.

You can accept credit cards withoug using Paypal or another similar company, but you may find that some customers will not want to give a small, unknown business their credit card information.

This article does not cover all the issues concerning owning an online shop, but we hope it has given you a taster of the things to consider.

 

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