Multi-shopping in e-commerce

Data from the platform Shoper shows that 4 percent of e-commerce owners have more than one site. Using the same mechanism of operation can be a recipe for success. How to set up another store well?

Most retailers have only one store. Some focus on a niche, which requires them to focus on producing unique goods. Others, with more capital for promotion, struggle to dominate mainstream product categories. Some treat e-commerce only as a method of earning money alongside their full-time jobs. Then there's a group of sellers who want to try it with their next business. And then another.

According to Shoper , about 4 percent of retailers check every year to see if they can successfully run another store. Between 2009 and 2017, the record holder owned as many as 9 of them. When the processes are buttoned up to the last button and more orders fall into the shopping cart on their own, it's worth checking to see if something new can be created. - Setting up more stores is a bit like an addiction. It's relatively easy, because with practice, a new store can be set up in 48h. So the road from idea to testing is short. The investment is also, for business conditions, small. Setting up a store and setting up an AdWords campaign, when operating in a dropshipping model, is an expense of about 2000 PLN. Rolling it out is about 1-2 months, and after six months you know if it will earn well ," says Kamil Duszynski, owner of Funtoys.com.pl, Wystrojwnetrz.eu stores.

Ecommerce is still developing, the market is growing, so it is hardly surprising for experienced sellers who, based on their knowledge, start operations in other product categories, says Jacek Zientkiewicz, Brand Manager of the platform Shoper. - Especially since nowadays setting up a new store requires neither a lot of money nor the help of a programmer - not only at the very beginning, but also when adding integrations with wholesalers, accounting and warehouse programs or incorporating advertising campaigns.

The first steps in ecommerce are not easy - sellers often implement measures that do not always work. - In my first store I sold natural cosmetics. It required a lot of attention, each shipment was personalized, the aesthetic element was important. However, the store has not stood the test of time and is currently suspended. Although I already have some ideas on how to activate it," says Duszynski.

Business starts with math

In business, it all comes down to simple math. Given the competition within product categories and current demand, there are limited opportunities for growth. Therefore, if you master the principles of e-commerce, creating another store is a good idea to diversify your income. Although it is not without downsides. According to Around.io's analysis, the biggest problems for owners with multiple stores are marketing, time management and maintaining social media relationships. However, there are ways around this as well. For example, self-limiting growth - I currently have two operating stores, one for toys and one for home decor. I only spend three hours a week answering emails and checking payments. All by controlling the number of orders. I base them practically only on AdWords campaigns, so depending on the budget spent, I know how many products will sell the following month. With the current 60 orders per month and the stores are sustaining themselves and I have the freedom of time. Such a solution allows me to work full time at the same time.

How to set up another store?

Vendors who are thinking about their next business should focus mainly on testing. With experience, they can test more product categories with more freedom. Checking sales in new industries is very easy in the dropshipping model - agreeing on terms with the wholesaler, setting up the e-store and setting up an advertising campaign. - It is worth thinking carefully about the price of goods and logistics. Working in the dropshipping model, determining the price of shipping is important, because it happens that the customer orders products from different wholesalers. So you need to decide which costs you take "on yourself". It is also worth negotiating with wholesalers on the margin and the possibility of returning the goods," suggests Kamil Duszyński, owner of Funtoys.com.pl, Wystrojwnetrz.eu stores.

Setting up a second store is a good solution to avoid the impact of seasonality of sales in industries. A combination of, for example, building products that sell best in spring and summer can then be supplemented with products that sell more in autumn and winter, such as Christmas sets. This method of diversification allows for greater certainty of liquidity throughout the year.