How to create an online store

How to create an online store

€39 per month (excluding VAT).
How to create an online store

Everything you need to know to start selling online

As e-commerce continues to grow as a general purchasing method for all types of products, from food to electronics, toys or books, more and more small companies and retailers are expressing their interest in expanding their physical business and, at the same time, taking it online.

The problem with this expansion lies in how to do it and how to succeed. What can you sell? How do you set up an online store?

This article will cover how to do this and much more. The answers to these questions will make the task of opening an online store that little bit easier. It will also provide information on the importance of selling online, creating an online store, creating adverts for products, organising storage, shipping and delivery, offering a range of payment options and how to make a store attractive and more visible to customers, i.e. through publicity.
It will also include a comparison between creating stores for selling partners on consolidated websites and creating a new store, with the potential advantages and disadvantages of both options.

In addition to the above, the article details the process of creating an Amazon store and the benefits, tools and services offered to help selling partners create and increase the success of their store.

Following this, the logistics management or delivery process will be discussed. Details will also be provided about Fulfilment by Amazon, one of the options available specifically when selling through Amazon.

Finally, the article will discuss how selling partners can advertise their website and the tools offered by Amazon for this purpose.

How online selling works

E-commerce has become increasingly popular in recent decades with the emergence and proliferation of the Internet, but this is not the only driver for its expansion. The following aspects have helped to make online sales so successful:
  • Widespread access to mobile devices: The vast majority of the Spanish population has a smartphone and Internet access, which has made it both quick and easy to shop online.
  • Convenient shopping: Not having to leave home, especially during the pandemic, and being able to shop in stores from almost anywhere in the world, has opened up a whole new range of opportunities. For customers who live in more remote areas or far from urban centres where physical shops are therefore scarce, online shopping has allowed them to access a very wide catalogue of products at competitive prices.
  • Price: In connection with the previous point, being able to shop in a multitude of stores on the online market means that the offering is much wider and prices therefore become more competitive, something that has benefited buyers.
  • Shipping and return options: Today, almost any product can be shipped anywhere in perfect condition. What's more, if the product does not meet the customer's needs, they can simply return the product and, in many cases, this is also free of charge.
With all of the above, it is little wonder that e-commerce has become increasingly attractive to customers, with fantastic offers from both national and international stores just a click away and available from the convenience of their homes.

However, proper management of all these aspects requires a certain amount of preparation and knowledge. So, if you are considering setting up your own online store, be sure to read on to find out about operating an online sales establishment.
How online selling works

Comparison: online stores versus conventional physical stores

In the last decade, e-commerce has been heralded as the natural evolution of traditional physical commerce. Everything would indicate that this is true. Primarily, this is due to:
  • Greater business opportunities: By opening up to the world of the Internet, a store ceases to depend on the clientele that passes in front of its physical shop or the street where its shop is located. The Internet is now their high street, and their audience is so wide that, with the right promotional tools and an optimal marketing strategy, anyone can become a new customer.
  • Longer hours: With online sales, opening hours are a thing of the past, as access to your store is extended to 24 hours a day, 365 days a year. There are no holidays for shoppers, who can visit the online store from anywhere in the world, regardless of their time zone.
  • New selling options: Dropshipping allows an e-commerce store to start selling new products without the risk of having to invest large amounts of money in expanding its catalogue and inventory, as would typically be required in a physical shop.
  • Lower opening costs: Opening a conventional shop is undoubtedly much more expensive than an online store. This is because online stores have no need for commercial premises or additional staff to cover different opening hours or shifts. And with dropshipping, you don't even need a physical warehouse. Initially, one person may be enough to manage an online store.
It's also increasingly common to see traditional physical shops also deciding to set themselves up online, even if they still keep their physical shops. This has multiple advantages for these shops, such as:
  • Increased revenue: By expanding into the world of e-commerce, they benefit from two sources of revenue – physical commerce and online commerce.
  • Increased visibility: Having an online presence can benefit not only your e-commerce store, but also your physical business.
  • Better customer experience: Collecting data on customers, visits and sales through the Internet can be a great advantage if used in the right way to improve the customer experience after analysing their wishes, needs or buying habits.

How to set up an online store

Creating an online store is a simple process that doesn't require large investments or huge numbers of staff. Some of the initial steps are the same as those that would be taken to open a traditional business, such as:
  1. First, it would be a good idea to carry out a survey of the market and your competition. To do this, you should research, observe and learn from companies operating in the same sector as you, if applicable.
  2. Next, you should create a business plan, in which you specify the products you want to offer and sell online.
  3. Once you have figured out the above, it's time to create your website: choose a meaningful domain, so one that references the name of your company or the product that you want to sell so that your website is easily recognisable and easy to find. You'll also need to choose a hosting service provider. An attractive and distinctive web design will also make customers associate the website with your brand.
  4. The next step is to make your online business legally official. To do this, register your trademark and register yourself in the mercantile registers as required by law.
  5. You're now ready to develop a marketing strategy that will advertise your brand and your products, to increase your online business sales and stand out from the competition.

Registering an online business

As you can see, one of the most important steps when starting a business in the e-commerce sector is to register your company to avoid legal problems that can cause you a lot of headaches.

To sell products via an online business, you need to register as a freelancer or set up a company, just as you would if you were creating a physical shop. If you choose to set yourself up as a freelancer, you first need to register with the Spanish Treasury (Hacienda) using form 036, and register as a freelancer with Social Security.

However, in most cases, it is advisable to set up a Limited Company (Sociedad Limitada or S.L.), as this means that civil liability is limited and the private assets of the business owner(s) will not be affected in the event that the company does not perform as expected.

Setting up a company is not particularly complicated, but it is usually advisable to entrust this legal and bureaucratic aspect to a company.

To avoid fines or financial penalties, you must have all the relevant paperwork in order and have taken out all the necessary insurance policies, in addition to making sure that your company complies with current regulations.

In this respect, it is important to remember that there are increasing restrictions and requirements to be met in terms of data protection and privacy laws to protect consumers in the e-commerce sector. You must also inform the buyer or visitor to your website of all the selling conditions, delivery times, payment terms, legal guarantee, etc. so that all the relevant information is always published and available to anyone who wishes to consult it.

Creating a sales strategy

As mentioned above, once the company has been set up, you need to decide what you are going to sell and how, i.e. to think about a strategy and sales plan.

To do this, you need to choose the products that you are going to sell in your online store, taking into account that there are certain types of products for which sale is subject to restrictions or special requirements. Once the product category has been determined, you need to create a catalogue or product list to categorise and advertise them on your website.

An important aspect of your sales strategy is to customise the products in your online store. Some actions you can take to customise products include:
  • Taking good pictures of your products: The more high-resolution, complete images from different angles you include, the more accurate the potential buyer's idea will be of the product that they want to purchase.
  • Record videos: Sometimes watching the product live, in motion or action, can be highly beneficial when selling online.
  • Include your corporate image: Both in products and in images. This will make a better impression on the customer and will strengthen your image as a brand, so customers will remember and recognise it in the future just by seeing your logo or emblem, for example.

Selling on your own website or selling on Amazon

As we have already seen, you can create an online business from scratch without having to invest large sums of money and by following a few simple steps. Before deciding to create your own website and manage your online store completely independently, you should consider whether this is worthwhile or whether it would be more beneficial to set up your store through Amazon.

Setting up your online business on Amazon will save you a lot of management, logistics and marketing strategy problems, as it offers you countless tools to facilitate all these tasks. However, you should assess the pros and cons of setting up on your own without intermediaries or counting on Amazon and its popularity among e-commerce customers.
How to set up an online store

How to set up your Amazon store

If you ultimately decide to sell online and choose to set up your online store on Amazon, there are a few things you should know:
  • The first thing you should do is register as an Amazon selling partner. You can do this via the following link by following a few simple steps.
  • You'll then need to choose a selling plan. There are two options available to selling partners. The first is the Individual plan, where you must pay €0.99 (excl. VAT) every time you sell a product. Alternatively, if you sign up to the Professional plan, you'll pay a monthly fee of €39 (excl. VAT) plus additional selling fees, regardless of the number of products that you sell at the end of the month. For both plans, Amazon also charges a referral fee for each sale, which is a percentage of the total transaction and varies by product category.
  • Once you have chosen your plan, you must select the categories of products that you want to sell. Not all products are free from restrictions. For example, to sell products protected by copyright, trademark or patent, you must be the legal owner of those rights or be a distributor authorised by the owner. There are many categories of products and their condition (new, refurbished, used, etc.), so you'll have to divide your online store into set categories.
  • Last but not least, provide your potential customers with clear and concise information about the payment and returns policy, and make sure that you provide suitable customer service.
However, the above is just a brief summary of all the information you can find on Amazon, where there is a very extensive guide that includes all the aspects we have discussed about creating your own online store, your product catalogue, establishing your payment and shipping options or returns policy, among other aspects.

What’s more, if you build your own brand as a selling partner within Amazon, your reach will be that much greater. To this end, Amazon makes various programmes available to selling partners so that they can choose whichever programme best suits their type of online store and the products they sell. The most notable programmes include:
  1. Amazon Custom: For selling customised products.
  2. Amazon Handmade: A programme designed for selling handmade products. This community already hosts artisans from more than 80 countries.
  3. Amazon Renewed: With this programme, you'll be able to offer certified, used, open-box refurbished products with warranty.

Using special Amazon services for selling partners

Amazon has created a set of tools to help customers find your own brand on the website. This is called the Amazon Brand Registry and, by registering your brand here, you can access a range of tools that will help you design and protect your brand.

What’s more, the Amazon Brand Registry also has an IP Accelerator tool, which gives you access to a wide network of law firms specialising in intellectual property, which will advise you so you can legally register your brand in the shortest possible time.

There are further services on offer, such as Brand Analytics, which allows you to access large collections of aggregated data reports on search terms most used by Amazon visitors, shopping behaviours, analysis of potential customer shopping baskets, demographic data etc.

With the right selling programme, advertising your listings and making optimal use of some of the tools and services made available to you by Amazon, you will be able to find your niche, increase your sales and reach many more customers.
Using special Amazon services for selling partners

Fees and payments for selling on Amazon

Selling plans
As mentioned earlier, Amazon offers two selling plans:
  • Individual: you pay €0.99 (excl. VAT) per product sold (plus additional selling fees).
  • Professional: you pay €39 (excl. VAT) per month regardless of the number of products that you sell (plus additional selling fees). This plan also includes many more features than the Individual plan, as it allows you to request sales in additional categories, save time by creating bulk listings, manage inventories through files, spreadsheets and reports, increase sales efficiency with API integration, etc.
Category referral fees
This consists of a fee that selling partners must pay for each product that they sell. This fee will vary depending on the category in which the product is classified. Minimum referral fees apply if the price of the product is too low, or referral fees can also be based on a percentage. Don’t hesitate to check the fee table to see what fee applies to your products.
Fulfilment fees
Selling partners must also pay a fee corresponding to the shipping plan for their products. Shipping can be fulfilled by the selling partner themselves or fulfilled by Amazon through Fulfilment by Amazon. You can find more information about the service offered by Amazon and its fees here.

Delivering products to customers

The next step to consider when setting up your online store is how to manage the logistics and delivery of the products once the purchase has been made by the customer.

Late delivery or delivery after the guaranteed deadline can result in customers having a poor opinion of your service, which will cause considerable harm to the value of your overall product, as well as your online store.

It is also important to offer a responsive after-sales service that meets customer needs, and to have an adequate returns policy so that the customer experience is as positive as possible.

Choosing the right fulfilment option for your store

In terms of fulfilment options, Amazon sales can be managed in three different ways:
  1. Seller-fulfilled shipping: Selling partners are responsible for shipping, which may require additional staff if order volumes are high.
  2. Entrust the shipping management to a third party, i.e. a dropshipping provider: An option that avoids the need for additional staff or a warehouse with product inventory.
  3. Use the Fulfilment by Amazon service: Amazon offers the seller a comprehensive service, while also providing customer service and returns management.

Use Fulfilment by Amazon for product delivery

When you register as a selling partner with Amazon, you will also be automatically signed up for the Fulfilment by Amazon service free of charge. If you choose to keep this service, your inventory will be sent directly to Amazon’s fulfilment centres and you won’t need to worry about shipping, customer services, refunds or returns.

What’s more, with Fulfilment by Amazon, you will also benefit from the 1-day shipping service for Prime members on certain products, which will be an advantage for your brand, as the Prime badge will appear on your eligible products.

Advertise and promote your online store

Amazon also offers advertising solutions with sponsored ads to help you achieve the growth targets of your e-business: Giving visibility to your brand, increasing sales and improving return on your advertising costs.
Advertising
Amazon Advertising provides you with four tools to achieve all of the above as a selling partner on Amazon:
  1. Sponsored Products: These are cost-per-click (CPC) ads that promote individual product listings on Amazon. They can help you reach high-intent shoppers who are actively searching for products like yours.
  2. Sponsored Brands: Showcase your brand and product portfolio with your logo and corporate image, a personalised title and a selection of your products to give them greater visibility.
  3. Sponsored Display: Allows you to reach relevant audiences by creating programmatic and self-service display ads with just a few clicks.
  4. Store: Allows you to showcase your brand and products through various Amazon pages in an immersive shopping experience, where you can introduce your potential audience to everything about your story, your mission and your products.
Promotions
There is also another fundamental tool to accelerate the growth of your brand: promotions.

It will come as no surprise that one of the main search criteria used by customers is for the product in question to be on sale or reduced in price etc. In particular, this happens during specific seasons of the year, such as Christmas, Black Friday or Prime Day, when many online businesses decide to launch special offers.

Therefore, creating an offer will give your brand better positioning in searches, which will bring additional visibility, while also increasing your sales and maximising traffic to your store.

There are different types of promotions:
  • Flash Deals: A discount on the price of a product that only lasts for a few hours. These offers usually appear on the Amazon deals page, which is one of the most visited.
  • 7-Day Deals: In this case, the deal lasts for seven days, enough time to give visibility to the entire catalogue of a seller and their brand.
  • Vouchers: Discount on the price shown on the product detail page, which is applied directly to the buyer's basket.
Amazon Launchpad
If your online business is not a regular store, but you are an entrepreneur trying to launch and boost sales of innovative, unique or sustainable products on Amazon, the Launchpad programme is perfect for you.

Here are some of the benefits of Amazon Launchpad for startups:
  • Strategic support
  • Customer engagement tools
  • Merchandising on Amazon
  • Global expansion
Make sure that you visit the link above if you'd like to read some success stories from this innovative programme.

Tax requirements in Spain for online selling partners

As we know, tax matters tend to be the most difficult to manage. To make it easier, we have compiled all the information you need to know about tax requirements in Spain for online selling partners and made it available in one place: Amazon’s VAT Knowledge Centre.

Here, we invite you to download the VAT manual, which tells you what VAT is, the countries in which it applies, its purpose, the tax rate depending on the country (as it may vary), the products to which it applies etc.

Conclusion

Having all this information to hand will make it much easier for you to open your own online business. Once you have got going in the world of e-commerce, you now need to decide whether, in your particular case, it is more advantageous for you to create your online store independently or on Amazon.

Now you know a little more about the benefits of creating an online business through Amazon, the programmes and sales plans it offers to selling partners to help launch their brand, and all the tools you can find on the website to make it a little easier to find your niche in the market, at a time when competition is really fierce and being different can be key to making an online business succeed.

If you are keen to learn more about the e-commerce sector, Amazon offers you many more training resources to expand your knowledge in the field.

FAQs

Which selling plan is best for me if I sell more than 40 products per month?
If you sell more than 40 products per month, you're probably best signing up for the Professional plan, for which you'll pay €39 (excl. VAT) per month regardless of the number of products that you sell each month. You'll also need to pay additional selling fees, which apply to both the Individual and Professional plans.
How do I know if I'm a selling partner suitable for creating offers?
Currently, only selling partners on the Professional plan can list offers. In addition, the products that you want to apply an offer on must meet certain requirements, which you can find on the corresponding Help Page in Seller Central.
Which fulfilment method is most cost-effective in my case?
Amazon lets you try out the Fulfilment by Amazon Revenue Calculator, so you can compare different fulfilment methods. You can access it via this link.
What do you need to launch an online store?
To launch an online store, you’ll need to define the products you want to sell and where to list them. It is important to identify your target audience and design a marketing plan accordingly.

An online business also needs a logistics system for delivering products to customers, in addition to optimised payment methods for your customers. Many sellers choose to sell through Amazon to facilitate the launch and development of their online stores.
How do you reach more users with an online store?
Nowadays, the number of users who prefer to buy through online stores has increased considerably. In this sense, selling products online will allow you to reach more users than you would probably reach with a conventional store.

With an online store, users from any location can see your products or services. This, together with different resources such as ads, customer reviews or optimising your listed products, can drive your business and help you reach a larger audience.
How does an online store work?
In order for your customers to see your products or services on the internet, you’ll need to have an online store. When you publish your products on e-commerce pages or create your own website, you need to establish secure payment methods for your customers, in addition to having logistics for delivering and returning your products.

As you receive orders, you also need to keep track of your inventory, so you can replenish products with decreasing stock and keep your inventory up to date.

Once you have your online store, it is important to be consistent with your customer service, optimise your product pages and apply marketing strategies that boost your visibility and reach.
What is Value Added Tax (VAT)?
VAT stands for Value Added Tax. This tax is added to the price of products purchased in Europe and is then transferred to the tax authorities of each country when filing the tax return.
If you've already decided to sell through Amazon instead of through a personal domain, all you have to do now is start taking advantage of the services that Amazon offers to its selling partners to protect their brands and prevent counterfeiting.
How long does it take to set up my online store?
Once you have met all the requirements for creating your online store, the process of setting it up is much faster.

The time to build your own website will depend on the team of developers who manage the website setup. If you want to set up your online store on Amazon, once you choose the selling plan that best suits your needs, add your products and create your sales strategy, you can soon start selling online. Read the requirements for becoming an Amazon seller here.
How much does it cost to have an online store on Amazon?
The cost of having an online store on Amazon can vary depending on the type of selling plan that the selling partner chooses. Amazon offers two types of selling plans: Individual and Professional.

The Individual plan costs €0.99 per unit sold, while the Professional plan costs €39 (excl. VAT) per month, regardless of the number of units sold. Choosing the correct plan will depend on business type and sales volume. More details about our selling plans are available here.

If you want to increase your visibility and reach more potential buyers, you can choose to create ads. Sponsored Products and Sponsored Brands are cost-per-click ads, meaning that you will only pay when someone clicks on the ad. You can choose how much you want to spend per click and set a daily budget that you can update at any time.

Advertising costs are automatically deducted from the balance of your Amazon Seller account and you will only be charged when your ad receives clicks. Read more about ads here.
What products should I sell in my online store?
You can sell almost any type of product in your online store.

To be successful, it is essential to consider several factors, such as the market niche and your target audience, the supply and demand of your products, and their profitability.

On Amazon, there are some categories of products that can be sold without prior approval, such as cars and motorcycles, computers and electronics, for example. The full list of products and whether or not they require prior approval can be found here.
Is e-commerce the same as an online store?
E-commerce is a term that refers to all commercial transactions that take place online, including the purchase and sale of products and services, as well as online advertising, digital marketing, payment processing and customer service. An online store is just a specific part of e-commerce.
What are the benefits of having an online store?
Whether you decide to sell on established websites or create your own, an online store offers a number of benefits. Benefits include:

1. Exposure to an audience of potential buyers
2. Access to a global market.
3. Cost reduction with logistics services such as Amazon Logistics (FBA).
4. Greater flexibility and customisation.
5. Grow your brand with services such as Amazon Brand Registry.
6. Marketing and advertising tools, such as Advertising on Amazon.
How can I increase my online store sales?
To increase your online store sales, it is important to consider:

1. Optimising your product listings with images, descriptions and clear product information.
2. Offering good customer service.
3. Expanding your online store using logistics services such as Fulfilment by Amazon in Europe.
4. Using educational resources and marketing tools.
5. Setting competitive prices

By selling on Amazon, you can access resource libraries that help you broaden your e-commerce knowledge, such as Amazon Seller University.

Start selling today

€39 (excluding VAT) per month plus sales commissions
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