How to set up an online clothing store: 10 steps to success

For style enthusiasts, having your own online store is a dream come true. By not incurring the costs of running a store, you can focus on maximizing your revenue, selling products you’re passionate about, and building a loyal following for your brand.

However, before achieving success, you need to know how to set up an online clothing store from scratch.

This article will walk you through the ten steps to launching an online boutique, from choosing a business idea, through legal requirements and website design, to promoting your store. In addition, we will include some additional tips and examples of online clothing stores that will serve as a guide to earn money on the Internet.

1. Choose a niche

The first step in creating an online store is to choose a specific niche or market segment that your online business will focus on. By doing so, you determine exactly what kind of product you are going to sell and what kind of customers you are going to target.

Sticking to a niche also helps set your new business apart from big box retailers and other online boutiques, making it a sought-after brand for specific products.

When deciding on a niche, start by choosing a product category. Online boutiques often sell one-of-a-kind clothing or luxury accessories, but they also carry other items made from premium materials or ingredients.

Use the following questions to help you decide on a boutique store niche:

What hobby or passion do you have that has business potential?
What online boutique brands do you follow? What is missing in the market?
What kind of problem do you want to solve with the products?
What values do you want the boutique business to represent?

For inspiration, check out our guide to trending products.

As the business owner, you must also validate the . There must be considerable demand for the products you want to sell online. It can be difficult to market items if there are no customers looking for them in the first place.

Tools such as can help in this task. You can also check the A Better Lemonade Stand to measure the profitability of the new business.

2. Research the target market

After choosing a niche, you will need to conduct market research.

This step involves researching the target audience. In this way, you can develop the business strategy around their needs.

One way to research the market is to look for similar boutique brands. Ask yourself the following questions during this process:

What kind of consumers usually buy there? Research user-generated content on the website or on social media, if available. Take into account their age, gender, location, language, purchasing power, buying habits, interests and professions.
What are the motivations of your customers to buy the product? What problems do they need to solve? Find out by reading user reviews and testimonials. Find out what their most common complaints are to find out how to satisfy them.
What digital marketing platforms did consumers use to discover the business? Use to see which channel your e-commerce website is getting the most traffic from.

3. Create an eCommerce business plan

Writing a solid business plan is the next step in starting an online boutique.

This document works as a roadmap to build the store, run it and achieve any business goals. It can also help secure small loans to launch or grow operations.

Focus on the following items when:

Company identity. Include the business name, logo, brand values, organization structure, and key team members. In addition, it establishes the objectives that the company must achieve in the next quarter or year.
Product information. Describes the process of developing and manufacturing the item. Mention the advantages and characteristics that differentiate the product from its competition.
Operations plan. It explains the business model of the online boutique and the daily activities, from sales and production to shipping items to customers. It also includes the facilities, legal requirements and tools necessary to run the business online.
Marketing and sales strategy. This section covers offline and digital marketing channels, brand positioning, and pricing strategy to attract customers.
Financial plan. Enter financial statements detailing start-up costs, business expenses, cash flows, sales projections, and benchmarks.

As operations grow, boutique owners can readjust the business plan and change strategies accordingly.

4. Look for manufacturers or suppliers

With a business plan in hand, look for suppliers to supply the products of the online boutique.

How products are sourced or developed depends on the business model. One option is to work with a wholesale supplier, a vendor who buys wholesale items to manufacturers and resells them to smaller companies.

For online boutiques, check out , a wholesaler that sources high-quality products from independent brands.

Another possibility is to work directly with the manufacturers. There are two ways to do it:

Private Label or private label. The manufacturer will personalize the products to your liking and brand them with your company name.
White label or white mark. Choose a ready-made category of products and have the manufacturer change the brand to yours.

If you want to have an online clothing store, take a look at . This company offers a custom development service where customers can collaborate with fashion experts to create their products.

Working with a manufacturer or wholesaler often requires setting up a warehouse and managing order fulfillment, which we’ll cover in the next section.

If you want to eliminate storage and shipping costs, consider the drop shipping.

In this case, the entrepreneur joins such a dropshipping directory to search for suppliers and present their products in the online store. The supplier takes care of the execution of the orders and the shipments, while you manage the showcase of the online boutique.

With this method, it can be more difficult for your brand to stand out, since many other stores may sell the same products. Also, managing customer inquiries can be tricky when you can’t see the items or directly monitor their fulfillment.

For those who want cups or pillows, check out the print on demand services.

This is a dropshipping model where you create custom designs and the seller prints and ships them to customers. is an excellent example.

For those who do crafts, look for suppliers of the materials. has volume discounts for craft supplies.

Regardless of the product development model, it is good to request a sample first. Be sure to check the quality of the items and see if they fit the style of the online boutique.

5. Plan order fulfillment

Now that we know where to get the products, it’s time to think about storing and shipping the items to customers. Those using the dropshipping business model can skip this section.

There are two types of order fulfillment. With the self-fulfillment, the business owner usually stores their inventory in their own home. He will also process the orders himself, from packaging and labeling to shipping.

This method is recommended for new online stores with a small inventory. Once the boutique grows, stocking items and processing orders at home can be challenging.

An alternative is the fulfillment service outsourcing or the association with an external logistics company such as . All you have to do is ship the inventory to their storage facility, and they will take care of all the order processing.

In addition to choosing the type of fulfillment, decide on shipping rate options. Here are some of the most common options:

Offer free shipping. they want free shipping, so this option can keep most of your customers happy. That said, make sure to include shipping costs in the price of the products.
Create a shipping price table. Customize shipping prices based on weight, price, location, number of items, or other factors.
Set a flat rate. The shipping rate will be the same regardless of the weight of the package or the destination. This makes the calculation easier, but can seem expensive for those ordering small amounts.
Use real-time shipping rates. Install an extension that connects the online store with the carriers’ systems. It will automatically calculate shipping costs when the customer places the order.

Lastly, make sure you write a clear returns and refunds policy – they read it before placing an order. If this section is poorly worded, it can cause the fifty% of them decide not to buy.

Write a deadline for customers to return products and receive a refund. It includes the terms of what makes an item eligible for return and the procedure for returning it.

Also, consider return shipping to be . According to Narvar, asking new customers to pay these fees can deter them from completing their transactions.

6. Register your online boutique business

Let’s take care of the legal paperwork for your new business.

The documents to be completed will depend on where the boutique is located. Therefore, it is best to research the procedure and consult an attorney before obtaining a business license.

In general, the first step is to choose a business structure. This decision will primarily affect what taxes need to be filed and what counts as personal and business liabilities.

For US-based companies, these are the most common business structures to choose from:

Sole proprietorship. This type is the easiest to set up, as it does not require the owner to register their business. However, there is no separation between business and personal responsibilities, so you will be responsible for any business-related debts and accidents.
Collective society. Formed by two or more people who share the income and losses of the business. The liability of each of them may be limited or unlimited, depending on the type.
Limited Liability Company…