How to open an online store for consumer electronics

Today you will learn how to create an online store on your own and make your business successful.

Household appliances and gadgets have become our indispensable companions. They make life easier and save time. Therefore, online electronics stores are very popular. Any technique breaks down over time, and buyers come for a new one. In addition, manufacturers are constantly releasing new items and improved models that are instantly scattered among consumers. And in a world where almost everything can be bought with delivery, online stores are gradually bypassing regular retail outlets in popularity.

Therefore, if you open a home appliance and electronics store, you will always have a good profit. Are you ready for this kind of business? Then let's get started.

The main tasks that are important to solve before opening

Before getting down to practical steps, you need to know the main concepts and business processes that are the driving force behind any online store. Trading is always a risk and work in a highly competitive environment, so for your business to be successful, you need to think through every detail down to the smallest detail. What to look for before opening a store, you will learn later in this article.

Wondering where to start? Here's a list of the main steps to carefully plan before opening a store:

• Cooperation with suppliers
• Assortment of goods
• Main competitors
• The target audience
• Seasonality
• Payment systems and delivery of goods

Let's consider these points in more detail.

Cooperation with suppliers

At this stage, it is important to find responsible suppliers in order to gradually build long-term relationships with them. Reliable partners are the key to the success and stability of your business. They will be able to supply you with goods without interruption and offer convenient payment terms.

Many successful online retailers choose to work with Chinese suppliers, and this has a number of advantages:

• product prices are significantly lower, therefore, you can make good money on it;
• suppliers from China value their customers very much, so they can make a discount, deliver a large order at their own expense or provide other lucrative bonuses;
• an impressive selection of goods: Chinese manufacturers offer goods that are not yet available on our market, and new items are always of interest to buyers;
• high quality: in recent years, Chinese brands have been working on their reputation and producing equipment that is distinguished by reliability and long service life.

Assortment of goods

If you plan to open a home appliance store from scratch, you need to register the store's assortment. There are basic products for which a buyer comes to your site, and related products that will increase your average check.

An online home appliance store usually has the following categories:

• mobile phones and accessories;
• TVs and home theaters;
• laptops and computers;
• cameras and camcorders;
• Large home appliances;
• small household appliances;
• equipment for personal care.

Remember that competitors who have been on the market for a long time have a very large selection of products. Make sure that you have it as well. The wider the assortment, the better, but within reason. We also recommend that you take the time and study which products are currently in the greatest demand among consumers. Search engines and keyword selection services such as Google AdWords will help you with this. This will tell you which products you need to add to your site first.

Main competitors

Competition is the driving force behind the market, and thanks to it, stores are relentlessly improving service and finding new ways to attract customers. Are you afraid that your competitors will crush your online store at first? Here are some tips on how to find your place in the sun in this crowded marketplace and stand out from the crowd.

To open an online electronics store, first find out who they are - your closest competitors. Check out the sites, flip through the categories, explore the products, as well as the terms of payment and delivery. Your task is to do better, because you intend to earn money, and not just borrow a domain name on the network.

A good way to differentiate yourself from competitors is to use catchy features on your website.

Catch 7 tricks that always work:

• new items that others do not have yet;
• promotions, contests, sweepstakes;
• nice bonuses or cashback;
• loyalty program, for example, a savings card;
• excellent service and fast feedback;
• the ability to return or change the product;
• free shipping when ordering for a certain amount.

You probably think that now, with the colossal filling of the market, it is impossible to come up with something new. But every day, online retailers find ways to surprise spoiled shoppers. Original packaging, a catchy name, an individual approach that is felt in all the details - look for the zest by which your site will be recognized.

And now we will reveal to you the most important secret. Ready? Treat your customer not as a source of income, but as a guest. Show concern, go beyond the standard service, give the customer more than he expected. Thanks to a good attitude, the buyer will even turn a blind eye to a long delivery or a price that is higher than others.

The target audience

To successfully sell home appliances online, you need to know who is on the other side of the screen, in other words, who your target audience is. Still think that only young people use websites? But no. Now everyone, from a fifth-grader to grandparents, is advanced and modern. Therefore, you need to narrow your target audience as much as possible and focus your services on it.

Let's quickly go through the future categories of your site and figure out the target audience for them. Everyone, without exception, needs mobile phones. Tablets and laptops are popular among teenagers, young people and middle-aged people. Household appliances are most often bought by people aged 25 and over. They, as a rule, already live separately from their parents and equip new housing. But consoles, smart gadgets and all sorts of know-how are goods for modern, fashionable personalities who follow trends and novelties.

For you to better understand the essence of this point, below we give examples of compliance with the needs of the target audience and non-compliance.

• So, let's imagine the ideal model of relationships with your audience. If your potential buyer is a hunter of novelties and fashionable gadgets, prompt delivery is important to him. He will not wait for the goods for a whole week, and during this time he will find another seller. To meet the needs of your target audience, make sure that the most popular product is in stock and we can quickly respond to orders. Also, do not forget to delight your customers with the expansion of the assortment, even better - inform them about the arrival of new products.
• And now an example of how not to do it. Let's say your target audience is people with an average income level over the age of 25. They are looking for reliable home appliances and the same phones. Sales in this direction are going well, but instead of developing and improving this category of goods, you switch to expensive smartphones, throw money into mobile smartphones and study the market for smart gadgets. And at this time, your regular customers have already found where the goods are cheaper and more choice. As a result, sales fell across all categories.

Knowing your target audience, you can create an online electronics store that will satisfy the needs of customers. All changes and innovations on the site should be targeted at the target audience.

Seasonality

You will probably be surprised, but even in the sales of household appliances there is a seasonality. We advise you to prepare in advance for this phenomenon so that you have good sales all year round. Let's quickly go over the seasons.

• Summer is a starry time for fans, air conditioners, as well as garden tools - lawn mowers, grain grinders, chainsaws. Therefore, you need to think about expanding these categories since spring, and in the high season it will be great if you organize some kind of action.
• At the end of summer, goods for schoolchildren are scattered: table lamps, laptops, tablets and computers, e-books, smart watches.
• In winter, electric heaters, electric fireplaces are sold with a bang, and snow blowers are replacing lawn mowers. At the end of the season, it is advisable to make a sale of the leftovers, since by next year new models may appear, and there will be no demand for the old ones.
• It will not be superfluous to remind you of sales before the holidays. For example, before March 8, your site should offer various gadgets for women: hair dryers, curling irons or multicooker, before St. Nicholas Day - electronic toys for children, and a couple of weeks before the New Year, be ready to work in an enhanced mode - people begin to actively buy gifts for their close.

Seasonal products not only sell themselves, they also help sell other products. It is likely that a customer who comes to your site to buy an air conditioner will want to upgrade their coffee maker or get a toaster. And to save on delivery, he will order both products from you.

At the same time, there are also downturns in sales. So, during the summer holidays, people spend less on technology and more on travel. There is no need to sound the alarm if suddenly sales fell in July-August, people return from vacations - and sales will grow again. A similar situation can be observed in January-early February. Holidays are over, money is spent, sales are down. But such a lull lasts a couple of weeks, then the situation evens out.

• Special offers. A discount, additional service, a gift for purchase or an extended warranty will surely interest the buyer, and even in winter he can order the product that he planned to buy closer to summer.
• New. The desire to stay in trend, to be fashionable and modern motivates to buy, even in a "dead" period for sales. Present the product correctly, focus on exclusivity, describe its advantages - and you will have a good profit while competitors reduce the staff of managers.
• Stay in touch. Wake up sleepy shopping customers with your vigorous activity - write blog articles, email newsletters, keep social media alive. Do you think this is useless work when sales are declining? Successful online retailers regularly use this technique. This way, customers will remember you, and when they need to buy something, they will immediately come to your site.

And one more little advice from us: on the eve of the season, discuss with suppliers an uninterrupted, fast delivery of hot goods, and purchase some with a stock. If it's hot outside, a person needs a fan as soon as possible, he doesn't want to wait for several days. But delivery on the day of order is what he needs.

Payment systems and delivery of goods

Payment

Before launching the site, consider a convenient payment system. We already wrote above that now almost everyone uses the services of online stores, regardless of age and type of activity. For each type of buyer, you need to offer a different payment method. Also decide how you will work: on full prepayment or it will be possible to pay for the purchase upon receipt. Now you won't surprise anyone with prepayment, but reputable online stores offer their customers several options to choose from, thereby confirming that they sell only high-quality goods.

What payment methods can be added to the site:

• Payment by credit card Visa or MasterCard. This is for business, busy people who rarely use cash and want to quickly complete a purchase.
• Cashless payments through a bank. In this case, the client will be able to make a payment through the bank's cash desk to your current account.
• Cash payment. This method is relevant for delivery by mail or if you have delivery by courier within your city.
• Electronic wallets. To do this, you need to conclude an agreement with electronic payment systems. Many now use such wallets, and in order not to withdraw money to a bank card, it is more convenient for them to pay for the order directly from the wallet.
• Installment or credit. When it comes to buying large household appliances, an expensive TV or, for example, a computer, not everyone has the opportunity to pay the full amount. But when you offer this payment option, this customer problem will be solved, and you will make a profit.

The more payment methods you have, the higher the sales. People love to be given a choice.

Delivery

The principles we described above for payment apply to shipping as well. Think in what ways you can send orders to your customers. Household appliances and electronics are needed by everyone - both residents of megalopolises and those who live in villages. By increasing the reach of the delivery service, you increase the circle of potential buyers.

How can you deliver an order to your customers:

• Post office. This is the most popular method, which is convenient for both you and the client. Also, post offices provide a cash on delivery service, thanks to which people are more willing to buy goods, and a home delivery service.
• Courier. This service is possible only in your city and will be relevant for large equipment. But for this you will need a truck, a driver and a freight forwarder.
• Pickup. It is also suitable only for residents of your city, but people like this service, because you can save on shipping costs.

Do not forget to conclude contracts with transport services and calculate the possibilities of sending different types of goods, clarify the approximate cost depending on the weight and size of the parcels.

Business plan creation

We discussed organizational issues, now it's time to move on to the most interesting point of our program - the creation of a business plan. A well-written document will help you calculate costs and profits, predict which month you will start working in a plus, this is a step-by-step instruction for action.

We will highlight 5 main steps to consider when writing a business plan.

1. Registration of an organizational and legal form for doing business - an individual entrepreneur or a limited liability organization.

The advantages of an individual entrepreneur are a simplified procedure for registering and maintaining cash records. It is also possible not to hire a full-time accountant, but to withdraw cash directly from the individual entrepreneur's account. The tax rate in this case is low, and closing an individual entrepreneur is as simple as opening it.

Disadvantages of this form: there can be only one founder, he also bears property obligations to creditors. In addition, partners are less interested in cooperation with individual entrepreneurs.

LLC registration provides more business opportunities. Large suppliers, transport services and investors, including those from other countries, willingly work with such an organization. In such an organization there may be several founders, and the business itself can be re-registered or sold.

Disadvantages of LLC: money cannot be withdrawn directly, there are difficulties with registration and closure, too much paperwork.

2. Website development. It is advisable to entrust this moment to specialists who provide a "turnkey" service. Remember that the site is your main sales tool, your way of communicating with customers. Therefore, it must be functional and attractive.
3. Purchase and connection of an online cash register. Such equipment will expand the capabilities of your online store and optimize the work of sellers.
4. Selection of employees. At the start, you can do the work yourself, but in order to develop and increase turnover, you need a good team: sales manager, courier, content manager. For some services, you can hire freelancers. For example, you will only need a photographer or copywriter from time to time.
5. Online store advertising and promotion. Even if you have the best website and the most attractive prices, no one will know about it without advertising. Use those promotion methods that will be effective for your target audience.

Online store template and structure

At the stage of website development, it is important to choose an attractive design and a convenient template. An online home appliance store consists of many categories and subcategories, so you need to properly structure them. If the user finds it difficult to understand the site, most likely he will leave it. And you can't let that happen.

If a person is looking for a specific product, he will need a search string, preferably with a drop-down list. And if he only selects products, in this case a filter by parameters will come in handy. Always look at your site through the eyes of a buyer, ask your friends to rate its convenience, compare it with the sites of successful competitors.

Here's an example of a failed site structure:

A buyer who needs medicines for a cat will be taken to the section where medicines for all animals are collected. This is inconvenient and disadvantageous for you.

Now for an example of a good structure:

The owner of the cat will go to the section he needs, find medicines for his pet, and at the same time look at food, clothes and, possibly, order more than planned.

Registration of product cards

The site structure is there. Now it's time to move on to the product cards. In them, the products must be presented from the best side.

The card consists of the following elements:

• high-quality photos from different angles with the ability to enlarge them with a click;
• detailed description of the product;
• characteristics;
• warranty and service information;
• information on the availability of goods or its temporary absence.

It will be great if you add product reviews and customer reviews. For example, you can see the design of the product card on the demo version of OkayCMS Lite - a free CMS for opening an online store .

Several useful tricks

And now grab 3 useful bonuses from us on how to improve your site.

Unique content

Search engines dislike plagiarists and drop their sites in the rankings. Do not be lazy to make your descriptions for the product, at the same time you can better describe its benefits.

Back call

Not everyone has time to wander the site and place an order online. Or there is simply no money on the phone to call you. Add the ability to order a call back and sales will grow. In addition, an experienced manager will be able to convince a potential buyer to opt for your online store.

Featured Products block

Only a few come to the site for a specific product. If, after the viewed card, you run a block with recommended products, this will increase the likelihood of a purchase. Usually, the recommended list includes products with good reviews, which is very important for buyers.

It's time to take stock. If you decide to conquer the home appliance market, take this matter seriously and work out every detail. It is not easy work, but your efforts will be rewarded. Use our advice, do not give up after failures, give all your best - and you will succeed.