How To Start An Online Boutique (2022 Guide) (2024)

Contributor, Editor

Updated: Dec 20, 2022, 12:36am

Table of Contents

Show more

A niche is a specific type of product you focus on. When starting an online boutique, it’s important to choose a niche so you can stand out in the enormous sea of e-commerce businesses. Do some research and figure out what type of products you want to sell. Consider your interests, what’s popular in the market and which gap you can fill.

Some niche ideas include:

• Cashmere clothing and gifts
• Vintage-style costume jewelry
• Children’s wall art
• Plants and gardening tools
• High-end stationery
• Ship and boat model kits
• Custom-fitted shapewear

One of the biggest mistakes entrepreneurs make when deciding on a niche is chasing saturated markets. The niche you choose needs a captive audience, but yours must have an edge to compete in a dominant category. How will your products differentiate from the hoard of the same products sold by other boutiques?

Before choosing a name, it’s best to check to see if the domain is available to purchase. You can do this using a site such as GoDaddy. Otherwise, you can check its availability but wait to purchase the name in step five through your e-commerce platform.

The name you choose must be easy to spell, memorable and catchy. While you can choose a domain name ending in something other than .com, it’s easier for customers to remember your site when using .com instead of .biz or .info.

Setting up your legal entity will determine how you’re taxed and what liability you have as the owner of the online boutique. The most common legal entities for small businesses are sole proprietorships and limited liability companies (LLCs).

Sole Proprietorship: As the name suggests, this is a business owned by a single person. There’s no paperwork required to set up a sole proprietorship, but you will need to register your business with the state and get a tax ID. This is the simplest way to set up a business, but you’re personally liable for any debts the business accumulates.

LLC: An LLC offers some liability protection for the owner, and it’s easier to get bank loans and other funding as an LLC than as a sole proprietorship. To set up an LLC, you’ll need to file Articles of Organization with your state and get an employer identification number (EIN) from the IRS. Most states offer this ability 100% online with little to no wait time to incorporate. You can also use an online business filing company, such as BetterLegal or Inc Authority, to do the filing for you.

Many small business owners skip the step of creating a business plan. While not required, it’s a good idea to have one in place to track your progress, determine the feasibility of your boutique, understand both your customer and competition, pivot and secure financing.

Your business plan can include sections such as:

• Executive Summary
• Business Description
• Products and Services
• Market Analysis
• Target Market
• Marketing Plan
• Financial Plan
• Business Structure and Ownership
• Legal Requirements
• Operations and Management

You can find templates for your business plan by visiting the U.S. Small Business Administration site. Not only can you access help online, but the SBA also has Small Business Development Centers (SBDC) to assist you on your entrepreneurial journey. These networks provide advice, mentoring, workshops and small business grant opportunities.

Finding reliable product suppliers for a price you can afford is half the battle of running an online boutique. Find a supplier or wholesaler who offers quality products, on-time delivery and excellent customer service.

To find suppliers, search for terms such as “wholesale” or “product supplier” and include the type of product you’re looking for in your search, such as “clothing supplier.” You can also check out trade shows in your industry to meet with suppliers and get product ideas.

Sources for products include:

To establish your store, you first need an e-commerce platform. You can either use a hosted platform, which is a turnkey solution that includes everything you need to launch and maintain your store, or an open source platform, which requires a bit more technical know-how to set up and maintain. Open source platforms provide far more customization options than what you’d find with a hosted platform.

The platform you choose will determine the features and functionality of your store, so it’s important to choose one that offers the features you need to run your business. Read our e-commerce platform guide for recommendations.

For ease, we’ll show you how to set up a Shopify boutique. It offers a free 14-day trial.

• Go to Shopify.com and create an account
• Install product apps (e.g., print-on-demand apps)
• Select a theme and customize it with your branding
• Add products
• Add, delete and customize web pages
• Organize your menu
• Set up a custom domain name
• Set up shipping
• Create a test order
• Choose a plan and publish

Please note that while it’s free to create an online boutique with Shopify’s free 14-day trial, you will need a plan in order for your site to be professional with its own custom domain name and ad-free hosting. This is the case for every quality ecommerce site builder, including Weebly, Wix, Squarespace and WordPress.

Now that you have your online store up and running, it’s time to start marketing it. There are a number of ways to market an online store, and the best approach depends on your budget, target market and goals.

Common marketing strategies for online stores include:

• Search engine optimization (SEO)
• Paid advertising (Google Ads, Facebook Ads, etc.)
• Social media marketing
• Content marketing
• Email marketing
• Affiliate programs
• Influencer marketing
• Loyalty programs (create buzz through existing clients)
• Trade shows
• Press coverage