What You Must Consider When Launching an Online Distribution Business

Deciding to launch an online distribution business can be a very exciting time, especially if you have an idea that you are working on. To ensure you get the most out of the process, you need to take some of the following considerations on board. The more knowledge and awareness that you have, the more accessible and successful a launch is likely to be.

What You Will Distribute

What is your online distribution business going to sell? Are you looking at reselling products that others have created? Are you looking at specializing and selling only one product, or are you looking at marketing and selling a catalog that features a variety of products? Knowing what you want to distribute early on is important as this will impact startup costs. It will also affect how much space you need, especially if you are purchasing the products in advance and then reselling them to consumers or customers.

Useful Info: When thinking about what to distribute, consider a niche for your distribution business as soon as possible. Without a niche, your business will struggle to stand out from the competition.

A Physical Address or Locker

Even though you want to start an online business, this does not mean you do not need a physical address or locker. This may come in handy for customer returns or even for shipments that will not deliver to a home address. When you are looking at a locker and address, you also need to consider locker sizes as well as security. You need to make sure that goods are safe and secure when you are not around, especially if you are only visiting a locker once every few days. A physical address or locker may also be useful for customer and supplier correspondence for those occasions when you do not want to give out your personal information and data.

Who Is Your Target Market?

Unfortunately, not everyone is going to be interested in purchasing items or products from you, and this isn’t anything personal – it is just the way business works. Understanding who your target market is (and where they are) will help you create a highly specialized and targeted business. 

Think about the following when defining your target market: 

  • Demographic 
  • Geographic
  • Age
  • Language 
  • Spending patterns 
  • Interests 
  • Their problems and challenges 
  • Stage of life 

You also need to decide whether you will direct your efforts toward b2b or b2c. When you are aware of who your target market is, you can then start working on pricing strategies and a business plan.

Professional Website Design

To reach customers, you need to have a professional website in place. If you have a site that looks homemade, you will attract scams, and you will struggle to build the reputation and authority that you need. Investing in professional website design and also looking at having a blog alongside your website will help you build trust and authenticity. When consumers and customers can see a professional website, it gives them reassurance. When they are purchasing from an online store, you need to put yourself in their position and think about what they need (and want) to see.