How to open your own online store: step-by-step instructions

In short: The trick seems complicated, but with instructions, you just move forward and open an online point of sale. The popularity of online stores increased during the lockdown period and remained high with the start of a full-scale war.

How to open an online store? What mandatory steps does the process include and is it profitable? Do you need to draw up documents and promote such a business? When will an online store pay off and does it need CRM? APPOINTER will provide answers to all your questions in today’s material.

Content:

• Is it difficult to open an online store without investments and is it worth it?
• How to open your own online store: a step-by-step guide
  • Step 1: Choose a niche
  • Step 2: Analyze your competitors
  • Step 3: Create a portrait of your potential client
  • Step 4: choose a format – open a separate online store or on a marketplace
  • Step 5: what documents are needed to open an online store in Ukraine
  • Step 6: Find suppliers
  • Step 7: choose an office or warehouse space
  • Step 8: Hire employees
  • Step 9: Name your online store, create a website, fill it with products
  • Step 10: Set up payment and shipping methods
  • Step 11: how to attract customers to your online store: advertising, promotion
  • Step 12: Continuously analyze performance indicators
• How much does it cost to open an online store in Ukraine, is it profitable?
• Does an online store need a CRM system?
• Final recommendations

Is it difficult to open an online store without investments and is it worth it?

The trick seems complicated, but with the instructions, you just move forward and open an online point of sale. Unfortunately, it won’t work without any investment. So the question arises, how profitable is it?

The popularity of online stores increased during the lockdown period and remained high with the start of a full-scale war. People have become accustomed to this type of shopping, having appreciated the advantages and are unlikely to want to let go of all this in the near future. In terms of stability, your own business is always more reliable than working for someone. Your own successful online store is a great business option that you can start without experience. And the chances of success increase if you know about the pitfalls in advance and go through all the necessary stages.

How to open your own online store: a step-by-step guide

Step 1: Choose a niche

Niche is the products/services that the store will sell. The choice will determine sales parameters, the number of repeat transactions, the size of the average check, the nuances of promotion, etc.

Which online store should you open? The following will help you choose:

• your profession, skills, interests, hobbies;
• analysis of large online stores – who/what sells, what trends;
• brainstorm: sketch out a list of ideas that interest you ~ 20-30 options, analyze them,
• Put it aside, reread it again.

The key is: your niche should really arouse interest and a desire to work in it (even with a small income).

Don’t choose niches:

• where there are strong rivals;
• super-profitable – crowded;
• with the sale of “disposable” goods (for example, wedding dresses);
• in which you do not know.

Step 2: Analyze your competitors

To bypass your competitors, it is important to know their weaknesses. Your task is to give the buyer something that others do not.

When opening an online store, studying the industry rating, searching for hashtags on social networks, walking through large online markets, viewing the leaders of medium/high-frequency Google Adwords queries, and talking to potential customers will help you calculate your competitors.

Structure and analyze the collected information. Divide competitors into direct, indirect, and potential. Pay special attention to direct ones: visit their websites, evaluate their design, prices, assortment, ease of ordering, quality of service, content, and promotion strategy.

Step 3: Create a portrait of your potential client

Knowing your audience is essential to opening a profitable online store. This will allow you to more precisely set your targeting, determine priority promotion channels, and understand how to achieve targeted action from your customers.

What to analyze in buyers:

• the problem – why the person came to you;
• gender, income level, education, age, marital status, place of residence;
• interests, hobbies;
• life aspirations, priorities;
• personality indicators;
• what social networks does he use;
• How to make a purchase – phone, written format, communication in messengers.

Step 4: choose a format – open a separate online store or on a marketplace

You can create your own online store or list your products on a marketplace. In the first case, you can try out different transaction channels. An online marketplace is such a channel.

The advantages of the marketplace are that you don’t need to set up advertising + analyze the results to ensure customer flow. The disadvantages are that customer loyalty is low, repeat transactions are rare. That is, in fact, you are promoting the market, not yourself. Marketplace is a suitable tool to increase product turnover. This is convenient at the start of a business and when sales are an additional part of it, not the basis.

Opening your own online store from scratch will allow you to both develop your brand and form a loyal audience, use advertising tools like GoogleAds, SEO, etc. But be prepared to spend time, learn, and face difficulties.

Step 5: what documents are needed to open an online store in Ukraine

First, you register as a private entrepreneur/legal entity in the Unified State Register. Then you choose the taxation system, register with the Tax Service, social funds. Then you determine the types of activities according to the KVEDs. To officially open your online store, be sure to register a TM, protect the rights to the site and its content: register a copyright or receive a copyright certificate. It is also important to regulate the mechanism of cooperation with customers (terms of sale, return, replacement of products), formalize labor relations with employees.

According to the law, the buyer of an online store must be able to conclude an electronic contract with the seller. Customers can pay for purchases by non-cash payment/cash (courier delivery). Most often, they pay by card on the site, post-payment in the courier delivery service via POS terminal. The first and third options are settlement operations that must be carried out through a cash register (PRO).

Step 6: Find suppliers

When you open an online store from scratch, you can’t do without suppliers. Priority is given to those who have a convenient catalog and a large selection. Start your search from your city, where 2 types of suppliers are probably already waiting for you:

• 1. Distributor/dealer – intermediaries between the manufacturer and you, buying in bulk, reselling in smaller batches.
• 2. Manufacturer – manufacturing+selling in large volumes.

You can find a suitable company among competitors’ suppliers, special catalogs/directories/databases, at thematic events, among Chinese suppliers, and in GOOGLE results.

Tips: It is wiser to deal with several suppliers instead of one, and it is better to start cooperation with small orders.

Step 7: choose an office or warehouse space

You can store products at home/in a rented warehouse. There is also a dropshipping option – delivery directly from the manufacturer to the customer. When opening an online store and solving warehouse issues, consider your budget, the number of goods, and their size. If finances allow, be sure to rent a warehouse space – this will make business more convenient.

If you don’t have a budget, try dropshipping first (be sure to sign a contract). Its advantages: you don’t need to pack, ship goods, or invest in advertising, and you can display a larger assortment on your online storefront. Cons: it’s more difficult to make returns and track inventory.

Step 8: Hire employees

If you’re on a tight budget, you’ll have to do a lot of things yourself. Ideally, to open and maintain an online store business, you’ll need:

• managers for finding buyers, compiling a database, consulting, sales;
• couriers – delivery, payment collection;
• marketer – advertising, promotion, business development, working with the audience;
• SMM specialist – creating content for the website, social networks;
• accountant – financial reports, accounting, taxes.

A storekeeper (work with the warehouse) and a manager for forming the assortment and finding suppliers will not hurt.

Step 9: Name your online store, create a website, fill it with products

The name is part of the brand + the network address of the site, which must be registered. Let it be short, simple, readable, memorable, associative. The brand in general will require a lot of work and investment to ultimately bring profit. In addition to the name, it includes a logo, slogan, brand book + what you associate with the audience. Be sure to invest in recognition – create diverse content, send it, communicate with the audience, analyze feedback.

Now about how to open an online store website, or more precisely – where? There are 2 alternatives – renting a site (SAAS) or purchasing a program that creates a store (license).

Definition:

Rent.

There are companies that rent hosting and install their software there. Want to open an online store? Rent such a platform with everything ready + use it, paying a fee regularly.

Pros:

• a good option for beginners;
• technical support, free software updates;
• hosting is handled by the developer;
• choice of tariffs;
• Platform bugs are resolved by the owner.

Cons:

• unoriginal design;
• ownership is not paid for by rent – ​​your store is not actually yours;
• limited site management.

Definition:

License

You buy a tool (software) to create an online store. You receive a code that gives you unlimited possibilities.

Pros:

• online shop develops and scales naturally;
• you will receive a product that can be modified and refined;
• The license is more expensive at the moment, but cheaper in the long run.

Cons:

• you are responsible for the success of your business;
• You need to constantly learn and gain experience in managing an online store (or hire an employee for this).

Step 10: Set up payment and shipping methods

The choice of payment and delivery options is one of the key characteristics of a quality service. Set up the ability to pay for orders in cash (pickup, delivery by courier), by bank card, cash on delivery, e-wallet, or terminal.

Also, a successful online store in Ukraine offers various delivery options:

• self-pickup from the store;
• by courier;
• using the Nova Poshta service (courier, pick-up from the branch, delivery to a post office);
• through Ukrposhta.

Step 11: how to attract customers to your online store: advertising, promotion

The success of the store depends on its popularity. After opening, you can promote it through social networks (Insta, FB), marketplaces (for example, Rozetka, Prom), investing in SEO, setting up contextual advertising in GOOGLE. It will be useful to send an e-mail (contact + inform customers), set up GoogleShopping, add the store to large catalogs (for example, UA-Region), use the “My Business GOOGLE” service (an alternative to SEO promotion).

Word of mouth can also help, and without any investment. To get recommended, try opening a customer-oriented, functional, modern, diverse online store with a high level of service.

Step 12: Continuously analyze performance indicators

Regular analysis of visits and sales on the website will help determine:

• best-selling products (to replenish stocks in a timely manner);
• the number of visitors who place orders in the online store;
• traffic sources (most effective);
• average transaction amount;
• how discounts, promotions, raffles affect sales, etc.

For this purpose, it is convenient to use Google Analytics tools.

By monitoring and processing indicators, you follow the development of your business, identify strengths/weaknesses, eliminate errors, increase your customer base, and profit.

How much does it cost to open an online store in Ukraine, is it profitable?

You can start with $1,000 or $10,000. Initial investment + regular expenses depend on experience, skills, opportunities, niche, economic situation in the country, etc.

Let’s consider a real-world example of launching an online store (your numbers may vary):

• 1. Initial investments: create and fill the website – $7,000, connect an accounting program – $1,000, equipment, furniture, cars – $8,000, investment in products – $4,000. Total – $20,000.
• 2. Monthly expenses: warehouse rent – ​​8,000₴, car (gasoline, repairs) – 6,000₴, accounting, taxes – 4,000₴, employee salaries – 26,500₴, consumables, packaging – 2,000₴, telephony – 500₴, SEO, SMM – 15,000₴, advertising and SEO budget – 25,000₴, postal returns – 1,000₴, technical maintenance, communications repairs – 2,000₴. Total – 90,000₴/month.

The break-even point (revenue = expenses) occurs in ~ six months (average data for the country). Expenses for 6 months were: 90,000*6 – 280,000 (revenue) = 260,000 UAH.

How much did it cost to open an online store? After reaching the break-even point, the expenses amounted to $27,000 / year. Net income began in the second year and amounted to 160,000₴ (then net profit grew). The online store paid off in 5 years.

The answer to the question of whether it is worth starting such a business is yes, but without inflated expectations.

Does an online store need a CRM system?

A CRM system is software for automating an online store. With its help, you can:

• reduce monthly expenses;
• improve the quality of service;
• speed up routine operations;
• make the calculations as accurate as possible;
• eliminate errors.

You can open your online store without CRM. But with it you sell more without hiring new employees + without investing extra in advertising, and by paying a monthly fee for use (which is cheaper). The average check grows, and with it – profit.

Final recommendations

So, we’ve told you how to open an online store in Ukraine from scratch. All that remains is to summarize.

Prepare and plan your business carefully. Visualize what it will be like. Study hard, invest capital and time. Don’t expect success in a month, but move towards your goals step by step. Don’t be afraid to make mistakes, prepare for difficulties and anticipate risks. If you are passionate about your business and understand why you need it, everything will definitely work out!

FAQ

Where to start opening an online store in Ukraine?

Steps: 1) Determine the niche and target audience, 2) Find suppliers, 3) Choose a platform (Khoroshop, Prom.ua, OpenCart), 4) Register an individual entrepreneur and connect PRRO, 5) Set up payment and delivery, 6) Launch advertising and the first sale.

Which platform to choose for an online store?

For Ukraine: Khoroshop — the most popular ready-made platform (reasonable price, SEO-friendly), Prom.ua — marketplace + own store, OpenCart/WooCommerce — for those who want full control. Rozetka and OLX Marketplace — for additional sales channels.

How much does it cost to open an online store?

Minimum: Khoroshop — from 700 UAH/month, Prom.ua — from 500 UAH/month. Own WordPress website — from 5000–15,000 UAH development. First purchase of goods — depends on the niche. Advertising budget — from 5000–10,000 UAH/month.

How to attract the first customers to a new online store?

Targeted advertising on Google and Facebook, free SEO (product descriptions, meta tags), reviews from first-time buyers (personal circle or promotional buyers), content on social networks, registration on marketplaces (Rozetka, Prom) for additional traffic.

How is Appointer suitable for an online store?

If the store provides services (styling consultation, personal selection, tailoring to order) – Appointer will arrange an appointment. For stores with a pickup point or showroom – online appointment for a fitting or consultation.