eCommerce and retail Business set up?

R

reddeagle

Registered User
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Hi Guys,

I worked last year with a local retailer implementing an online shop for them. The shop wasn’t particularly well know but it sold hampers online.Come xmas time they got about 30 orders online (not a huge amount but still better than none) The solution i gave them was simple enough.

So after work the over the last x months I developed a good online ecommerce solution. I will be going back to this shop to show them this with an aim to sell them this for 3000 euro. (The agreed verbally but getting the money is another thing!)

So I got my thinking hat on again. A few years ago I helped this same company with hamper business and got a good insight into it. My brother now also works in retail area and has his experience aswell.


So what I was thinking was why can’t I try my hand at selling hampers on line. I have the greatest cost already covered the web site development. I purchased a very good domain name that I plan to sell the hampers from and it looks good too.



So my thoughts.


Set up a company that I could sell

1)[font=&quot] [/font]My eCommerce Solution to maybe other businesses (it can be ported easily to other systems etc)

2)[font=&quot] [/font]Set up an online shop to sell hampers that I and my family could make at home



Finance:

Assume I make the sale of the ecommerce application (85% sure this will go ahead) I could use this to buy contents for about 5-10 hampers.

Work: continue my 9-5 job

Labor: use my mum who works at home, me in the evenings and my brothers (who are in college)

Delivery of hampers: Not sure about this one, I have checked out prices for the dhl , ups etc but need to examine this more.



Question.

Does this sound feasible and what do people think when they read the above


Whats the next steps for me to get a business set up so that I can sell my ecommerce app and the hampers.

Any tips ?
 
It could be feasible but is it viable - i.e. have you put hard figures on the sums involved to calculate whether you will make money or at least breakeven and what this will entail? Have you drawn up a business plan?
 
Personally, I'd be more inclined to 'stick to the knitting' - Can you sell your eCommerce solution to other small businesses? Have you considered hooking up with an ISP so you can sell a 'hosted service' rather than just the software?
 
Very interesting RedEagle

1) on the ecommerce solution. What makes this better than the existing ecommerce solutions? Who are your target market? You will need a test site, so stay in touch with your hampers client.

I imagine that the biggest cost of a software company is the actual selling and marketing of it. And I don't think you have experience of this area yet.

If it is a very special world-beating product, you will need to interest a partner with financial and marketing muscle.

Having said all that, there is nothing to stop you selling it on a small scale locally.

One key feature it could have would be that it was tailored for the requirements of a special industry.

2) I would not think that the hamper business would be big enough, but there seems to be very little risk involved. How much capital would you need? I presume just a lot of advertising in the run up to Xmas. If you are prepared to take that risk, go for it. Advertising is expensive. PR is free

Brendan
 
reddeagle said:
So after work the over the last x months I developed a good online ecommerce solution. I will be going back to this shop to show them this with an aim to sell them this for 3000 euro. (The agreed verbally but getting the money is another thing!)

So I got my thinking hat on again. A few years ago I helped this same company with hamper business and got a good insight into it. My brother now also works in retail area and has his experience aswell.
Click to expand...

Just from an ethical point of view, will you take the 3,000 euro off them and then go into business directly against them? Or would you be targetting other markets? I guess it depends on your relationship with the business but I'd be careful about that one.


So what I was thinking was why can’t I try my hand at selling hampers on line. I have the greatest cost already covered the web site development. I purchased a very good domain name that I plan to sell the hampers from and it looks good too.

That's a great start, but don't forget about:

- marketing costs (you're an internet website, you don't get passing trade, this is critical and could easily cost more than 3,000 depending on your plans)
- hosting costs
- merchant account (accepting credit cards online)
- raw materials (the hampers)
- storage costs

1)My eCommerce Solution to maybe other businesses (it can be ported easily to other systems etc)

Definitely the less risky of the two options as you are now selling a high margin product which has no input costs. Unlike the hampers were you have to buy the raw materials in, and have storage costs.

Can't remember what entrepreneur said this, but basically all things being equal a high margin product is better. And all things not being equal a high margin product is better.

Whats the next steps for me to get a business set up so that I can sell my ecommerce app and the hampers.

Start writing your business plan and good luck!

http://www.startingabusinessinireland.com/
 
reddeagle said:
Labor: use my mum who works at home
Click to expand...

Like the way you put that! She's noting better to do?! Good luck whatever you decide to do. Just out of interest, whichg host whould you be going with? I've been using letshost.ie for the past month and must say they have been superb.
 
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