I. You can sell anything, but not everything sells. If you don’t have an idea of what to sell in an online store, use statistics. We recommend the website: www.ceska-ecommerce.cz, where you’ll find information on current trends and demand for online shopping in the Czech Republic. According to the site’s statistics, there’s a growing trend in purchasing clothing and accessories online, while conversely, the demand for children’s clothing in online stores is decreasing.
II. Decide on the type of website you will have. It can take a programmer several months to develop a unique “custom-coded” site. Website builders like Shoptet or Shopify allow you to create an online store in a very short time. These builders typically already have the necessary integrations with payment and logistics systems, as well as built-in accounting plugins, but they also have some drawbacks. We can recommend creating a site on WordPress. You will need a programmer’s services, but it won’t cost as much as building a site from scratch.
III. Legal Form. An online store can be opened under a registered sole proprietorship (IČO) or a legal entity. We recommend opening it under a legal entity due to the clearer “packaging” of the business for a potential sale or attracting investors in the future.
IV. Brand Creation. It’s not necessary to register a trademark immediately; it’s enough to choose a unique and memorable name for your online store. Use our recommendations from a previous article. It’s important to know: the name of the online store can be different from the name of your legal entity. In that case, check both names for their uniqueness and the absence of previously registered trademarks.
V. Finding Distributors or Manufacturers. A distributor is a company that has the rights from a manufacturer to sell a product in a specific country or region. Distributors usually already have all the necessary permits, correct labeling on packaging, and a pricing policy you must adhere to. Distributors allow you to make purchases in minimal amounts, which is suitable at the very beginning of your business. If your product is not represented by a distributor in the Czech Republic, you can become a distributor yourself by signing a contract directly with the manufacturer. This entails a number of responsibilities but also a higher margin.
VI. Warehouse Rental and Inventory Management. In small online stores, you can manage without automation. Nevertheless, it’s better to have an inventory management system integrated into the online store from the start to conduct stocktaking quickly and efficiently. Typically, such plugins are offered by website builders and on WordPress.
VII. Packaging. You can order packaging material from Paketo.cz. It’s one of the largest online stores for this. But even their wholesale prices are quite high. Don’t forget to include the cost of packaging in your product’s cost price when creating your business plan!
VIII. Contracts with Logistics Companies. In the Czech Republic, you can choose from a fairly large number. The most common are PPL, Zásilkovna, DPD, and Česká pošta. A contract can be concluded within a week.
IX. Connecting Payment Gateways. This process will take some time, as providers will conduct compliance checks. In the Czech Republic, you can contact providers like PayU, Comgate, or Gopay. If you anticipate high turnover, contact banks directly to set up acquiring services.
X. Marketing. Perhaps the most important point. Whatever you decide in point 1, whatever the market demand for your product, you are unlikely to sell it without marketing. The most important marketing points to implement are: a presence on Google and Seznam, social media profiles, CRM and e-mail newsletters, and paid advertising (contextual or on social media).
XI. Cooperating with an Accountant. An online store can be tricky because it involves many small and repetitive transactions. With a rough idea of your future turnover, arrange a “flat-rate” cooperation with an accountant so that you don’t have to pay an extra 50+ CZK per sale for accounting services. It’s important to include this in your product’s cost price, as accounting expenses can eat up a significant part of your margin, especially if you sell low-cost items.
If you have doubts or difficulties with choosing products and creating an online store, we will be happy to guide you through the entire process – from idea to launch. Do you have more questions about creating an online store? Write to us at info@unimfa.com