3 Simple Steps to Setting Up Your Shop

In this digital era, online marketplaces are booming. According to a recent report by the management consulting firm McKinsey, e-commerce will reach $500 billion in sales this year, growing 20% faster than traditional retail and accounting for 8% of total retail spending in the U.S. by 2021. This explosion of e-commerce has opened doors for many entrepreneurs interested in selling their products digitally. Setting up your seller account on an e-commerce website is similar to registering any other business entity: There are administrative procedures, tax implications, and contractual agreements that must be taken into account. In order to get started selling on an online marketplace as quickly as possible, here are some useful tips!

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Narrow your focus

Depending on the type of seller account you choose, there are limitations on the types of products you can list for sale. If you're selling some general merchandise that could go in lots of types of shops, you can list your products on multiple online marketplaces. If you're selling a product that would only go in one specific marketplace, you might want to focus your efforts there.

Decide on the type of seller account you want to have

If you're just dipping your toes into e-commerce, you may want to start with a basic seller account. Many online marketplaces offer free seller accounts that don't require any startup costs. As you increase your sales volume, though, you may want to upgrade to a premium account with enhanced features to help you gain more exposure and increase your profit. If you're interested in selling a specific type of product, you should consider what type of seller account will be most appropriate. For example, if you're selling a product with a high level of inventory turnover, you may want to go with a fixed price seller account that allows you to provide a lower price for your customers. If you're selling expensive or high-end equipment, you may want to go with a seller account that offers a money-back guarantee to give your customers the confidence they need.

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Find out if you'll need licensed merchandise

If your products need a specific type of licensing, you need to get this in place before you start selling them online. This could include anything from government or private labeling to a license for a specific product category. For example, if you're selling baby products, you may need a license to sell products that contain specified ingredients, like a chemical found in many baby shampoos and soaps that can be harmful to infants. While some online marketplaces may let you sell your products while you get the necessary licensing, others will prohibit the sale of such goods to protect their reputations.

Find out how much it will cost to run your shop

Online marketplaces charge a variety of fees, so you'll want to understand the costs involved with your seller account type and any necessary investments in equipment. When choosing your equipment, you'll need to consider the space you'll have in your home as well as the functionality you need for each piece of equipment.

Check the requirements for registering your business name and merchandise ID

You'll also need to make sure you choose a business name that isn't already registered, and that you have a unique product ID number for your products. This number is critical, as it's what customers will use to search your products on the marketplace.

Conclusion

With the increasing popularity of e-commerce and other digital sales channels, more people than ever are starting businesses as sellers. But setting up an online store and selling your products online can be challenging, particularly for new sellers. If you want to start selling online, you need to plan ahead. First and foremost, you need to ensure that your products are compliant, from labels and pricing to any other necessary documentation. Then, you'll need to choose the best online marketplace for your products and create a seller account.

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