Business Technology Online Store

I'm in the process of building an online store.

There are multiple products that I will be selling on the site. All the products are held in a warehouse from which I buy from, so I don't have to keep any stock on hand.

Is there anyone else on here doing the same thing?
Can anyone point me in the right direction as to what I actually need to LEGALLY run an online business?

I have a sole trader ABN in my personal name, but that's about it. I have never used it for anything other than getting a Bunning's Trade card.

I have registered a domain name, and the business name is available, but I'm not entirely sure what I need to get started (apart from the website and associated bits)

I don't technically have a business address, because its all done online.

I don't expect to make much at this stage.. Let's call it $10k/yr. I don't want to invest too heavily in it yet due to Amazon being just around the corner.

Any inputs please?

 

Random thoughts...

Is it drop ship from somewhere overseas?

You'll need public/products liability insurance.

How do you plan to market the products?

10k/yr to run a business? Pass.

 

You will have to comply with Australian consumer law regarding guarantees and returns on the products you are selling. You won't be able to pass the buck, the initial responsibility will be yours.

You will be responsible for ensuring products meet Australian standards.

Not sure what type of insurance you will require, probably some sort of product liability.

Think of the lady who imported the Infinity electrical cable from China, now the subject of extensive recalls and refitting costs. I believe she is facing jail time.
Marg

 

Business Insurance is a must. We use GIO. It's not too expensive.

Don't expect much turnover if your only market is your website. You will need to spend some decent coin to get noticed by Google.

If planning on drop shipping, don't bother trying to do it via eBay. If you can't supply product for whatever reason, you will see yourself with bad feedback & little sales.....even if you are the cheapest available.

If wanting to branch out to eBay, then go with something like Neto, Big Commerce, Shopify etc, where you can link your stock to your website. We use eCorner, which is similar, but not as good as the others....but a lot less expensive.

You will have to register your Business Name, get a Bank Account, and it's useful to have a way to take sales via Credit Card or Eftpos. We use Square, which is easy & you can just run through your phone.

If you are running out of home, then that is your Business address....or you can maybe use your accountant's address.

 

Yes, its drop ship.
Marketing will be Facebook advertisements initially.

Once its up and running, it won't require any input from me. Everything is automatic, unless there is a product return/enquiry.

The way I'm setting it up is basically:
1. Customer buys product through website, pays using payment gateway.
2. Website automatically orders from the supplier, and pays their account.
3. Product gets sent to customer.

I've been selling a few things on eBay to see the demand.. sold quite a few, but the fee's are too high for my liking, so now trying to avoid it.

I know.. $10k doesn't sound like much. Every bit helps though, and I intend on growing it in my spare time.

I wish I had more time in the day.. I've got an awesome business idea, which is in high demand, and would net me about $500/day, but I just don't have the time. And I love my job too much to leave it and get into this other idea.

I will only be selling known, proper products that we get absolutely ripped off with in Australia. All will meet Australian standards. I wouldn't dream of selling anything else.. too risky.

I'm not too worried about product returns because they are quality products. I'd have to take it as a loss if one gets returned.

Will definitely look into insurance, thanks!

Awesome, thanks heaps!

I have been trying out eBay as a hobby. Have sold a few things to test the demand, and its certainly there. But as above, the fee's are just too high for the amount of competition there. I can sell the products 15% cheaper than I do on eBay if I use my own website.

I intent on using Facebook for advertising. Have used it before for other things, and its been VERY successful.

I'm currently building the website, but its based off AbanteCart. Its freeware - a hell of a lot of stuffing around to get it working as you want it, but the entire website (domain, hosting etc etc) ends up costing me $17/mth doing it this way.

I'm looking at going down the payment path of PayPal, which offers every payment type - I don't intend on physically seeing debit/credit cards, nor do I want to store the information to process later. It's a bit dear, so I'll look into Square and see what they offer.

Is there a difference in business insurance and product/liability insurance? Haven't looked into this at all yet.

 

You need to check out the ATO and asic websites - they provide start up advice. BAS, business portal, GST if $75K or more, business structure etc etc. Good luck! (I dont have this type of business btw)

 

Thanks. I've done basic reading, but to be honest I find I learn more here.

 

If it's 100% online you don't need any paperwork or even business registration.

If your products are coming from OS, you will be responsible as if you were the manufacturer in case of problems/warranty.

So you had the products certified locally?
You or the drop shipper has obtained local c tick or whatever formal compliance is required?
Yes you are responsible.

Ebay too expensive? That tells me margins are too small.

You give up $500 per day for 10k per year..... yeah ok lol

 

Ill double check all that, thanks.

The margins are fine. I just dislike paying eBay and PayPal 15%. 5% OK.
But what do I know? I'm clearly new to this and trying to learn..

I won't be 'giving up' $500/day for $10k/yr. I'd have to quit my full time job to earn $500/day in something I don't enjoy. In the little time I have during the day/night, this $10k/yr for doing 5mins work a week I think will be worth it.

$10k/yr is half a cheap house in rent per year with almost zero outgoings and effort. I think thats 'worth it'.

 

I agree with you. When you're nicely set up an extra $10k from a hobby that you enjoy and doesn't take up too much of your time is very nice. I think it's fun to try out other ways to make money. $10k will pay for some nice short trips away or other treats during the year when you have everything else paid for.

 

I used to do exactly that, order from supplier, drop ship to customer and keep margin... it can work if you have the right product and reliable supplier (or more)
ABN as a sole trader I would say is sufficient and you can get some nice tax advantages there
Regarding business address, I had PO BOX and used that everywhere and for all mail correspondence as I didnt wana list my home address anywhere.
Good luck!