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Our advisors for new businesses often get customers who are starting their business part-time and on a small scale, and often these plans also involve starting an online shop. According to Startia Manager Tommi Virkama, starting an online shop is cheaper than starting a physical one.

“An online shop won't get going without some financial investment, but everyone has a chance to start trading without having to put huge amounts of money into it. At the same time, an online shop needs to be actively and effectively marketed, because customers won’t stray into it the same way they might to a physical store.”

"And just like starting a conventional shop, you need a carefully considered business plan and all the calculations that go with it. Even if the entrepreneur has experience of running a physical shop, an online store won’t take off without thorough forward planning,” Virkama says, listing the basics.

An online shop is more than a website and some products

Making important decisions starts already at the planning stage. Of course, the most important decision is the choice of the software running in the background. There are numerous types on offer, but it’s wise to compare the alternatives carefully. The differences in store features include, for example, inventory management, invoicing and order handling.

You also have to find a place for your shop online; in other words, you need a web hosting service and a domain, i.e. an Internet address. The price of web hosting varies from twenty to over a thousand euros a year.

Don’t scrimp in the choice of your web host, because your business may suffer if your online shop is temporarily out of service or too slow. We recommend choosing a domain that ends in .fi, because Finns shy away from foreign online stores – that’s why it’s best to clearly show that your shop is based in Finland.

When starting an online shop, you should consider whether you’ll be selling domestically, abroad or both. You should also estimate the quantity of the products you will be selling and take into account whether they are physical or electronic.

All these are considerations that will influence the online shop’s platform, pricing and the payment alternatives required. If you’re going to sell products in Finland, you will definitely need all the usual Finnish online payment buttons, which in practice means online banking alternatives.

Finally there’s the "shop front"

Appearance isn't the most important consideration in an online shop, but it's something you'll have to think about. Price is a central competitive tool on the Internet, but before you can begin to compete with price, your online shop will have to look trustworthy. A messy looking shop will signal to the visitors that your shop is not a reliable option.

And let’s not forget the products: without them there’s no shop. Keep in mind that describing your products and writing introductory texts about them for your online shop often takes a surprisingly long time.

The most important thing to remember is that even online shops need marketing. This marketing has to be efficient enough to bring visitors to your shop. For this, it's best to create a plan and to remember to apply it.

“Competition is tough on the Internet and standing out from your competitors takes creativity. So think about the best marketing channels for your customer group,” Virkama suggests.

Search engine marketing is one of the most effective methods online. Although many online store software and web hosting services claim that they are optimised for search engines, this is usually a relative concept, because there are many levels of search engine optimisation.

“Finally, the products that have been ordered need to be delivered to customers!” Virkama continues. “It’s easy to forget at the planning stage that you’ll have to get the products to your customers somehow. Packing and taking the parcels to the post office or the Matkahuolto parcel services can be amazingly laborious and time consuming.”

Are you planning to start an online shop or an ordinary shop? Book a time to see one of our business advisors!

VASEK and Startia
+358 6 317 7600
info@vasek.fi

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