The online business is rapidly evolving. In the USA and Europe, online stores have long become a part of daily life and generate substantial income for their owners.
In Russia, such stores are still rare. However, experts believe that the country has significant potential in the field of e-commerce. Consider this: currently, around 70 million Russian-speaking people have access to the internet. This number is expected to almost double in the future. Moreover, the number of potential buyers is even greater, as most online stores currently operate only in Moscow and St. Petersburg. The potential for growth in the regions is enormous. Let’s take a closer look at the process of opening an online store.
Step One – Choosing a Product
This is the first and most crucial step in creating a future store. Many novice entrepreneurs fail because they initially chose the wrong line of business. For instance, you are unlikely to succeed if you sell mobile phones or computer products due to high competition. Conversely, selling rare items is also unprofitable, as there won’t be many buyers for expensive jewelry in a small town.
Analysts predict rapid growth in the food trade sector. With the development of the internet, more people prefer to order groceries online rather than go to the store, especially in big cities with constant traffic jams. Also, trading pet products, household appliances, jewelry, and perfumes is very promising.
Step Two – Staff and Delivery
At the initial stage, you can store small batches of goods at home and deliver orders yourself. As your business grows, it makes sense to hire couriers and an operator to take orders. You should also consider acquiring warehouse space to avoid stock shortages. It’s recommended to have at least two suppliers to avoid dependency on a single one.
Step Three – Website
Once you’ve decided what to sell, you need to create a website. You can hire professionals to do this, or you can do it yourself using various CMS platforms with specialized solutions for online stores, such as Joomla and WordPress (though the latter is less suitable). Each system has a special plugin for creating an online store and is free. However, you’ll need to pay for hosting, a domain name, and site promotion. Initial costs are unlikely to exceed $100-200.
Step Four – Registration
Like any business operating in Russia, you need to register. Although your income may be small in the first few months and can be deposited into your bank account without attracting tax attention, it’s better to operate legally. The traditional recommendation is to register as a sole proprietor. Remember that as an individual entrepreneur, you must make mandatory payments regardless of your profit, including all social taxes. In 2012, mandatory contributions totaled 17,208 rubles.
Step Five – Payment Methods
One of the most important elements of any online store is the payment methods for ordered goods. It’s best to offer several options. Traditionally, there are three methods: cash payment to the courier, transfer to a Webmoney wallet (with a commission of 0.08% + 15 rubles), and bank transfer. For the latter, you’ll need to sign a contract with a bank and open a special account.
Of course, many nuances remain, such as advertising your store online and legal pitfalls. Despite the complexities, opening an online store today is significantly easier and more profitable than a traditional one.