A Beginner’s Guide To Launch an Online Accessories Business

Are you considering launching an online accessories business?

Going into business for yourself can be an exciting time filled with promise and anticipation. It can surely beat earning a paycheck while making someone else money.

Sure, there’s some sacrifice and hard work, long hours and stress, but if you can get an online retail business off the ground, you could see yourself earning far beyond what mere employment could net you. 

However, there’s so much to consider when it comes to launching a business. It pays to be prepared and check all the boxes. That’s why we’ve prepared this beginner’s guide for women looking to launch a business, to take you through all the necessary preparation and consideration. Continue reading to learn more about the steps to take to start an online accessories business.

Find a Wholesaler

Whether it’s wholesale eyewear or jewellery, you’ll need to find a suitable wholesaler to purchase your retail inventory from. Wholesale is when a company or individual buys goods in bulk directly from a manufacturer at a discounted rate and then sells those goods to a retailer (like you) at a higher price. The retailer – you, in this case, then sell the goods at the recommended retail price, or higher, or lower if they have a sale or particular discount period. 

Each company involved in the goods supply chain makes a profit at each step of this process. The manufacturer can produce the goods cheaply and profit off the sale to the wholesaler. Then, the wholesaler makes profits from the sale to the retailer. Finally, your profit margin is made when your customers buy the goods online, and you ship them out.

You should be able to find a reputable wholesaler via an online search, and you can usually contact them via phone or email. You’ll negotiate stock quantities, a price and delivery terms. Then, you purchase the stock and get ready for the next steps. 

Build a Webstore

The next step in the process is to build a website, your online store where you’ll sell your goods. This is a significant step in the journey to launching an online accessories business. It’s where customers will come to buy their accessories, such as eyewear, handbags, jewellery, and other fleek items. 

There are a few platforms, such as Shopify, that you can try to build your webstore. There are advantages to the DIY route, such as saving a significant amount of money. However, it is time and labour-intensive, and once you scale up to a specific operation size and scope, it may not be easy to maintain the website yourself.

An alternative is to engage either a freelance or website design agency who can build the site for you. They’ll work closely with you to ensure that the site design aligns with your vision for the business, is functional and works appropriately. They can also fix any bugs or issues that you lack the technical proficiency to do correctly. This will cost, but it should be viewed as an investment into your upcoming accessories business. 

Find Your Niche

The online retail space is crowded, and many people attempt to launch businesses that don’t last due to the stiff competition. For instance, some industries are inundated with online retailers, such as sports supplements, clothing and yes – accessories. In order to stand out in this crowded marketplace, consider if you can fill a niche that doesn’t exist. 

What’s the unique selling point for your accessories? Are they hand-made, quirky, or make a bold fashion statement? What separates them from the competition? If you can sell products that are unique and that your customers want to buy instead of from a competitor, you’ll be well on your way to successfully launching your online retail accessory business. 

Price Your Products and Figure out a Profit Margin

Part of launching an online retail accessories business is determining the price point for your product offering. You should be able to work out the profit margin on your items based on the wholesale rate, your overheads (such as website development fees, storage such as warehousing and utility bills and your wage), and the price that you sell them for. 

Ideally, you want a profit margin of 10%. 5% is on the lower end and may make it difficult to generate profit successfully, and 20% is a superior margin. If you can fluctuate between 8-12%, you should be doing okay. This is where finding a great wholesaler comes in. If you can build a healthy relationship, you can access discounts for bulk purchases or become the sole supplier of a particular accessory product – effectively cornering the market.

Figure Out Shipping

You’ll need to get your products to customers, and shipping them is the best way to do this. You’ll need to decide if you use Australia Post, a courier service, or a combination of them. There are advantages and disadvantages to both, including different rates, benefits, delays, potential damage and insurance options. 

Certain companies can offer you discounts if you’re shipping lots of items, and you can even make some money on the shipping fee this way. For instance, you can charge a specific rate but actually get a discounted shipping fee and pocket the difference. However, you need to be conscious of how much shipping you charge, as consumers don’t like paying expensive shipping. 

In fact, you could see a benefit to your business if you charge more for an item but offer free shipping. It’s a weird psychological trick, but people would rather pay $80 for an item with free shipping than a $60 item and $20 postage and handling.

Advertising and Marketing

Another factor to consider is how you’re making your product visible to potential customers. For an online business, it makes sense to eschew traditional marketing such as radio, TV and print and opt for digital marketing online. You can use a mixture of search engine optimisation (SEO), search engine marketing (SEM or paid search engine ads), social media advertising and browser advertising to make your product offering visible to people while they’re online. You’ll need to pay for this, of course, so it’s worth working out the best way to advertise so you can get a decent return on investment.

Create a Business Plan

Launching a business without a plan is like setting off to drive to a new location without a GPS app. You’ll get lost along the way and face delays and expenses. Even if it’s a bare-bones document that outlines the steps to launching your business, you’ll want to create a business plan to assist you in your new online accessories business endeavour. You can find lots of free templates online, which you can download and fill out yourself.

A Business Smart Summary

This helpful article shares a beginner’s guide to launching an online accessories business – perfect for women looking to embark on a new business venture. Follow these steps, and commit to learning more to begin your journey.