Online clothing store

Discussion in 'Starting & Running a Business' started by Lizzie, 20th Jun, 2021.

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  1. Lizzie

    Lizzie Well-Known Member

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    Has anyone started, and is running, an online clothing store - and would be willing to offer some tips (and answer stoopid questions)? Has anyone run one with success of failure and would be willing to share?

    I have a niche market idea that I have, for many years, wanted to cater to - and have some idea on how to undertake the selling/store side of things - but am uncertain on the best way for one actually source/store/ship the products.

    I've also reached a moment where I'm starting to thumb twiddle, so feel it's a great opportunity to look further into this venture. I've been doing lots of reading and researching, but most of what I can find are blogs or books that glance off the surface ... such as ... How to Start an Online Clothing Business in Just 7 Steps [2021 Update] ... and ... Oberlo | Where Self Made is Made

    Very happy to be directed towards more indepth learning or government run courses that might be useful.

    Most of the women in business, in networks that I belong to, are in service industries (bankers, lawyers, lifestyle coaches, management, personal trainers/instructors etc) and I struggle to find anyone who actually either produces or provides physical products. Those that are producers/providers tend to be hobby businesses selling via places such as Etsy or local markets - or set up their own bricks and mortar outlet rather than online.

    I am literally still at "idea" stage and looking at a "dropshipping" store model - so a lot of groundwork for me to cover before anything like a launch - but would like to have to ducks lined up so I know what is actually viable
     
    Last edited: 20th Jun, 2021
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  2. willair

    willair Well-Known Member Premium Member

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    One of the daughters set up 2 over the past year ,first one failed the other one still running is doing ok but the shortcomings seem to maniest ..no storage just find the right products..imho..good luck..

    What Is Dropshipping?
     
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  3. Lizzie

    Lizzie Well-Known Member

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    Am I able to ask why the first one appears to have failed? I always find I learn more from failures than successes.

    Do they feel it was because of the product ie, not niche enough or not enough demand for a product that was to niche? ... and/or was it due to the amount of time/enthusiasm required to input and build the brand/sales? ... and/or was it failure to deliver by end suppliers (rather than your daughter, being the middle person)? ... was there to much competition already out there? ... and/or anything else?

    The reason Dropshipping appeals is the "not having to warehouse stock" during the early period while I work out what sells and what doesn't - but I can also see this as a downfall as you're relying on others to fulfil the transaction obligation that you've given.

    Thanks for the link - another cuppa required
     
    Last edited: 20th Jun, 2021
  4. willair

    willair Well-Known Member Premium Member

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    All of the above ,plus all the answering emails and phone calls at night and on weekends ,as with modern technology there is no need anymore to pass around pieces of paper under the watchful eyes of a supervisor..

    The second one in very simple terms was started when we were sitting in the Accountants office and when the Lady left the room i asked our daughter to ask where did she purchase the fish-net stockings from in S-E-ASIA
    ..
     
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  5. sanj

    sanj Well-Known Member Premium Member

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    For what it's worth Lizzie, drop shipping and 3PL, or a combination of the 2 in some circumstances, is imo without a doubt the way to go forward once you have any kind of scale, or possibly from day one.

    I used to own a consumer electronics and technology business and we used to distribute our own brands/products plus other products to hundreds of stores in Australia (every single major city airport, every Harvey Norman, jb hi-fi, many Telstra stores etc and for a while to western Europe, Hong Kong, new Zealand, America, England, Germany, middle east and a couple of other places.

    When it was just starting it was of course a much smaller operation with literally 1 store a customer then grew from there but from memory within 3 to months distribution became a distraction and headache as it took time and attention away from growing the business and also after a while the garage at home stops being big enough etc.

    Imo if you start with a more efficient distribution model upfront it will mean less growing pains later on. You'll have to find ways to deal with the quality control aspect and to ensure your customers are being looked after though so it isn't entirely without its own set of problems

    The local physical distribution (this was in early 2010s up until around 2017) was always a drag on us and also a big cost when you factor in Aussie labour costs and parcel/courier costs.

    Things have progressed a lot since then, In terms of number and quality of 3PL operators, the software integrations and also general acceptance of the idea. There are also more options for local and interstate couriers.

    Without knowing the intensity of your planned business it's of course impossible for me to outright say that drop shipping or 3PL would be best but I thought I'd share the above as something for you to consider.
     
    Last edited: 20th Jun, 2021
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  6. Scott No Mates

    Scott No Mates Well-Known Member

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    Not having run an online business but the feedback on those businesses which I have setup their bricks & mortar outlets - make checkout easy (secure interface, multiple opportunities to put purchases into & to review your cart, capacity for multiple transactions/simultaneous users). Most online sales are lost at the checkout stage.
     
    Last edited: 20th Jun, 2021
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  7. Lizzie

    Lizzie Well-Known Member

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    The biggest tip I'm getting from my research is to start small and build - so suspect Dropshipping might be the best way to go at the start, and moving onto 3PL (Supply chain: What is 3PL?) if/when demand increases and I'm more aware of the desirable product lines. I am reluctant to turn the garage into a storage shed (where will hubby hang out?) - and potentially be left with unsellable product. Initially I'd rather pay more for the base cost of the product and not run the risk of overstocking ... bit like self-publishing a book with "print on demand" option.

    I agree that postage/shipping in Australia is the major downfall, and the bugbear of many burgeoning businesses.

    I've had to pull the plug on a couple of gangbuster businesses due to shipping costs, as there was a maximum one could charge (that a client would accept) for product and shipping, and covering the difference between actual costs and what clients were prepared to pay meant profits became negligible ... one example was an online store I had with Etsy, where I made a particular, simple but quality, product - made huge sales volumes but mainly to the USA. With a product that weighed over 500g (1/2kg) - which is really a "stuff all" weight - meant international shipping was costing more than the product. There was no way customers were going to pay $50/product plus $50/shipping - so I'd sell at $75/product and $15/shipping (eating into my profits).

    Then shipping costs went up. There was a maximum I could sell this product for and simply couldn't absorb any higher shipping costs - even with 200% mark up from gross to net in the costs to make/online sell the product, I was going backwards. Purely due to shipping.
     
    Last edited: 20th Jun, 2021
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  8. Lizzie

    Lizzie Well-Known Member

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    Totally agree - I've left things at the checkout due to intrusive information "demands" (ie, insisting you register with a password) ... or to many "review" stages which makes me think further about whether I really want to make the purchase ... or when shipping is calculated and I find it unacceptably high (I am seriously not paying $250/delivery for small two flat pack items when the truck comes up this way every day)
     
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  9. Cousinit

    Cousinit Well-Known Member

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    I'm surprised no one has mentioned Amazon. Why not try your product on there and do private label rather than drop shipping? That way you have something of value that can be sold eventually if you want. There is quite a bit to get your head around so you'd probably need to do a course and learn a few things.
     
  10. sanj

    sanj Well-Known Member Premium Member

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    Fulfilment by Amazon-FAQ - Amazon Seller Central

    Good call, Amazon fulfillment involves you shipping your stock to Amazon and then they will handle the picking and posting. Would be a decent way to test the market plus you'd have the confidence of Amazon's logistics setup in terms of knowing that your customers will receive their product etc.

    There's some info in the article above
     
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  11. Shazz@

    Shazz@ Well-Known Member

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    Hi Lizzie,
    Where are you going to source the product from?
    I ask this because I knew someone who sold high end fashion (store at first.. then online)… but went to Europe (Italy/ France mostly) regularly to check out the products and make sure they were getting the right quality. With borders closed, this would be difficult, but having an existing relationship would help.

    I know someone else that went to China regularly to send designs, check out the factory and manufacturing for the same reasons above. This was not in fashion though.

    Just something to consider. Ignore my post If your product is locally made as this will be a non- issue.

    Ps- If you haven’t already, watch ‘The Intern’ with Anne Hathaway. You may get some inspiration.:)
     
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  12. Lizzie

    Lizzie Well-Known Member

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    It's not that I have a specific product - I want to open an online store that caters to a particular body shape, and brings together clothes that women with that shape will instantly know are flattering to them.

    Because this body shape only makes up around 20% of the market, it is often overlooked in favour of manufacturing, and store buying, that cater towards the bigger (more profitable on scale) 80% market.

    This makes flattering clothes very difficult to find when scouring either bricks and mortar shopping centres, or scrolling thru thousands of pages of the larger online stores. Most smaller online stores simply do not stock products for this shape. Not helped by the "80% shaped" clothes are very unflattering on the 20% shape but women are duped into buying them because "it's all that is available".

    I find a lot of the shopping/fashion websites also advertise clothes claiming they're for the 20% - when, I know from experience, they would look ghastly.

    Anyhow, still just a concept that I'd like to investigate further - due to being that difficult shape, but being aware of it and liking to wear clothes that enhance my uncommon "assets"
     
    Last edited: 20th Jun, 2021
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  13. Cousinit

    Cousinit Well-Known Member

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    Yes that's right. I'm only selling on amazon.com but sales on amazon au are really picking up now from what I read. It's a great business opportunity for the average person. You will have to be tenacious as a lot of problems will come up. I almost gave up in the early stages.
     
  14. Lizzie

    Lizzie Well-Known Member

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    Not so much "high end" but well fitting with quality fabric is the aim (so much tatt rubbish out there). I would eventually like to involve local young TAFE designers with collections, and design a few myself, but that is a side-goal rather than the core business.

    Devil wears Prada is one of my fav films - and, for the same reason, enjoying Emily in Paris on Netflix - purely for the clothes

    p.s. Fav fav movies include Aliens (the second movie), Independence Day, Predator, the new Star Trek series ... so I'm not really a "chick flick" gal :)
     
    Last edited: 20th Jun, 2021
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  15. Shazz@

    Shazz@ Well-Known Member

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    Loved Emily in Paris…. But apologies.. I wasn’t talking about fashion. In the Intern movie, the main character has a start up (online fashion store) which has grown fast in a small time frame.. it raises issues like IT and the website, how the product is packaged and delivered, the marketing etc..

    Perhaps things for you to consider as well.
     
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  16. Piston_Broke

    Piston_Broke Well-Known Member

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    IMO.
    You have a product niche in mind and that's the first step.
    Next step you need a supplier for the products.
    If there is'nt one, there are sites like upwork/airtasker where you can contract someone to make a few samples of the ones you think are the most popular.
    It may take many steps as you may have to source fabric and get them made elswhere.
    Or make them yourself.

    Then list them on Ebay, and if you can Amazon and list them at break even price, or if it's less the price that you think they wouls sell at.
    Forget the website/carts/email etc.
    You may need to find a friend enthusiast photographer and someone to model the clothes.

    All up may cost up to $1,000, that's the price to know if there's any demand.
     
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  17. Lacrim

    Lacrim Well-Known Member

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    Lol, not many women like you around
     
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  18. skater

    skater Well-Known Member

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    I don't know.....I like those movies too. :)
     
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  19. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    I suspect I'm in your 20%. If you're going to look after the under tall with curves that's fantastic!
     
  20. skater

    skater Well-Known Member

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    LOL! I'm the kind of gal that buys capri's to wear as trousers.
     
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