Electrician online store: analysis of the benefits of doing business via the Internet + registration of business activities + premises and equipment for the sale of electrical goods + an assortment of an electrician store + site creation features + calculation of the cost of launching a business idea.
Internet commerce today is one of the most promising areas in the field of sales. This niche cannot be called free, but despite this, the number of online stores is growing every day.
The sphere of trade in household appliances is gaining particular popularity. And although there are many competitors in this sector, entrepreneurs still prefer to conduct such business through the Internet, rather than renting kiosks in the markets.
In this review, we will look at what advantages an online electrical store has over a regular outlet and how to build your business in this direction.
Online electrical store: prospects and benefits of business ideas
All types of online stores have long gained popularity, both in Russia and far beyond its borders.
The reason for this was the large number of advantages of online trading:
- Opportunity to save time and money.Delivery in online stores is carried out directly to the door, and prices, thanks to savings on rental premises and staff salaries, are often lower than in conventional stores.
- Large assortment, the ability to buy everything at once.Since large showrooms are not needed to organize online sales, an entrepreneur can easily expand his product range.
- Opportunity to also buy goods that are produced on the other side of the country.Thanks to modern technologies, online stores allow you to buy goods almost anywhere in the world.
Looking at all the positive characteristics, it is easy to guess that the field of Internet commerce will develop for many more years, which means that organizing your business in this niche is a very promising business.
On the Internet, you can sell anything – clothes, shoes, building materials, appliances, household appliances, and even food.
But why are we talking about electronics?
Because, like food, household appliances are an indispensable commodity group today. None of us can imagine our life without lighting and electricity, and this suggests that the demand for such goods has been and will be in the future.
And here another question arises: why should a person order a light bulb or a battery via the Internet, if you can go and buy it all in the nearest stall?
If the light bulb burned out, then most likely the really best way out would be to go to the kiosk. But if you are doing repairs or changing the wiring, isn’t it easier to order all this online?
It will not only be cheaper, but also cheaper. Plus, you can save a lot of time and money on your round trip.
Another positive quality is the range. You don’t have to go to all construction supermarkets in the city to find the right cable. All you need is to go to the site and order the desired product in a couple of clicks.
This suggests that an online electrical store is a profitable investment. So, if you are looking for a promising line of business, this is perfect for you. In addition, such a business idea does not require a multimillion-dollar start-up capital and special education.
And now we will step by step consider all the nuances of organizing such a business.
How to start an online electrical business?
To clearly see how an online store is created in the field of electrical engineering or any other field, pay attention to the diagram:
This sequence of actions is generalized and allows you to understand where exactly your business starts.
So the first element we have is the definition of the business idea. We have already taken care of this, it consists in opening an electrical goods store.
The next important step towards the goal is the legal registration of entrepreneurial activity.
You have the right to register as an individual entrepreneur (IP) or a legal entity (LLC). Since we are talking about opening an electrical goods store, the best option would be to register a single enterprise. But if you are planning to open a chain of electric supermarkets, then it is better to consider an LLC.
First, you need to prepare a set of documentation required for registration.
Includes the following documents:
- Passport and a copy of the passport of a citizen of Russia.
- TIN code and its copy.
- IP registration application.
- Receipt of payment of state duty.
all prepared documents must be sent to the tax service inspectorate at the place of registration (you can find the address on the official website of the Federal Tax Service: https://service.nalog.ru/addrno.do)
The cost of state registration in 2018 is 800 rubles.
No license is required to open an electrical shop, as you will not be selling excisable goods. In addition, only permits from the Sanitary and Epidemiological Station and the fire department are required.
You can choose the simplified system (STS) as the taxable system. It is calculated in two ways. You are more suited to the system “income-expenses.”
Electricity – online store: what to sell?
To organize and open your electrical store, you will need to decide what products to sell.
The range of household appliances is really the first thing to think about, since the area of the warehouse, the site interface, and so on will depend on the goods you sell.
Electrical engineering is a very broad concept, and it will not be possible to purchase all assortment groups at the same time. Firstly, it requires a significant start-up capital, and secondly, you do not yet know which products will be in the greatest demand.
You can analyze the market, find out what your competitors are selling and, based on this data, choose a product for your online electrical store.
But it should be understood that it will not be possible to obtain accurate information, since online sales are difficult to tie to a specific place. And another advantage of such a business: your target audience is much wider than that of standard “shops.
Based on the foregoing, we recommend that you first purchase 40-50% of the total assortment of an electrical engineering store, and then add the missing items to the list.
What groups of goods can be offered in the online store of electrical engineering, we will present in the form of a table:
|Product type||Product Names|
|1. Wires||Wires and cables.|
|2. Cable routing systems||Pipes, trays, metal pipes.|
|3. Sockets and switches||Switches, sockets, street sockets.|
|4. Lightning protection and grounding||Conductors, lightning rods, ground electrodes, connectors.|
|5. Extensions||Plugs, boxes, extension cords.|
|6. Low voltage equipment||Automatic switches, contactors, sensors, automatic switches, timers.|
|7. Wiring products||Junction boxes, sleeves, cable lugs, cable clamps, heat shrink tubes.|
|8. Power supply||Voltage stabilizers, accumulators, batteries.|
|9. Fixtures||Technical and decorative lamps, LED lighting.|
|10. Shields||Accounting and distribution boxes, shields.|
In addition to these products, over time you will be able to replenish your assortment with other products:
- Electrical equipment.
- Flood protection.
- Underfloor heating systems.
Having decided a little on the assortment, the second question arises: wholesale or retail?
According to experienced entrepreneurs, they receive about 90% of their profits from large sales and wholesale sales. And only 5-10% is a small retail profit.
It is up to you to decide how you will sell, but the best solution is still to organize a retail trade with a small wholesaler. This option will lower the required start-up capital and attract more customers.
Firstly, you can sell expensive goods and wholesale goods to order, and having decided on the financial situation, you can further expand the range, increase purchases and wholesale sales.
How to increase sales in the store: 9 golden rules
Now your next step is to find the right suppliers.
Today, there are a large number of manufacturers of electrical products ready to deliver orders anywhere in the country. It is better to work directly with suppliers, as intermediary companies will have a higher cost of electrical products.
You can simply search for suppliers online as well:
- At annual thematic exhibitions.
- On online bulletin boards.
- In business newspapers and magazines.
When looking for suppliers for your electrical shop, it will not be superfluous to visit some large hardware supermarket in your city. You can visually familiarize yourself with the offered assortment and learn new information for yourself.
Web showcase for an online electrical store: what should a website look like?
If for an ordinary store it is very important to place it in a convenient and accessible place, then for an online store of electrical engineering or any other product, one of the most important elements is a website.
In this case, it acts as a marketplace. The success of a business idea also depends on how functional the resource will be.
Many aspiring entrepreneurs want to save on this expense and create their own websites using free website builders, but we strongly discourage this option.
After all, for an online store of electrical engineering, the site is at the same time a showcase, a warehouse and a seller of goods, so you can’t save on it.
To get a functional online store, it is best to address this issue to professionals. Finding a smart programmer online today is not difficult. Of course, services for creating an online store are not at all cheap, but it’s worth it.
What should be on your site:
- Simple and clear interface.
- Convenient product search.
- Colorful design, but not too flashy.
- High-quality photos and detailed descriptions of all products.
- Possibility to remember and comment on products.
It is also desirable to provide for different types of payment: cash and non-cash payments, as well as payment through web wallets (Webmoney, PayPal).
it is important that the site be easy to manage for people of different age categories and work without errors.
* An example of the design of the website of the online store of electrical engineering
What premises and equipment will be needed to open an online electrical store?
Although it is not necessary to rent space for the commercial floor, you will still need to rent square meters for organizing the storage of goods (if you do not have suitable premises).
In addition, it is necessary to provide a workplace for the operators of the electrical equipment store, who will take over the ordering.
In total, we need two premises: a warehouse and an office. They can be placed side by side or even in the same building, but this is not necessary.
We will analyze the layout of each room separately.
1) Organization of an office for operators.
At the beginning of your store, it will be enough to organize two workplaces for operators and one for an accountant. It turns out that your office space can be minimal – about 20-30 square meters is enough for me.
For office equipment you will need the simplest:
|Equipment identification||Quantity||Cost, rub.)||Image|
|Total:||102 000 rub|
|A computer||3||20 000|
|Document holder||one||2000 rub|
2) Organization of a warehouse.
The area of the warehouse where you will store goods for electrical engineering should be slightly larger – about 50 square meters. This is necessary so that all goods are stored in suitable conditions, they can be quickly found and that warehouse workers do not interfere with each other when taking orders.
Since this is a warehouse for products, only equipment for storing electrical materials is needed. So another plus is the savings on windows and the organization of the place of the seller.
|Equipment identification||Quantity||Cost, rub.)||Image|
|Total:||46 000 rub|
|Stands for placing chandeliers and wall lamps||2||5000|
|Tables (for packing orders)||2||3500|
|Trolleys (for collecting orders)||3||3000|
As soon as you finish cleaning the premises, you can order the goods and take them to the warehouse. At the same time, it is necessary to complete the design of the site by filling it with product photos.
What other organizational issues are important when opening an online electrical store?
To start your business and start promoting your online store, you should also take care of hiring employees, arranging shipping, and advertising your business.
1. What workers are needed in your state?
To start sales and officially open a store, it is not necessary to train large staff. Hire about 6-8 people first, then expand as needed.
Make sure you provide jobs for:
- Accountant.Many entrepreneurs at the beginning of their business prefer to keep their own tax reporting, accounting for expenses and income.If you can do it yourself, you won’t need an accountant. But, as practice shows, in the state a good accountant and financial specialist will never hurt.
- Operators (commercial managers).Even those who are just opening an online store of electrical equipment simply need at least one operator who can take orders and send them to the warehouse, as well as advise customers.It will be better if you hire two such employees at the same time.
- Programmer.Since you will be doing business directly through the online store, your employees should always have someone who can help you in case of problems with the site.It is not necessary to hire him for a permanent job, if necessary, cooperation is possible.
- Warehouse workers.These employees will be responsible for the storage and availability of goods in the warehouse, as well as take care of taking orders. You will need a minimum of 2 people.
- Charging device.To receive and distribute goods, you will need to hire at least one, and preferably two, movers.
You can also include an advertising specialist in your staff and, in addition, an administrator or manager. In this question, start with the volume of your sales and financial capabilities.
2. How will the goods be delivered?
The organization of a delivery service for an online store is a very important point that directly affects the reputation of your business and the amount of profit from sales.
Very often, people stop using the services of online stores if the delivery was not made on time or the goods were damaged during transportation. Therefore, treat this issue very responsibly.
There are several ways to arrange delivery:
- Rent (buy) cars and hire couriers to deliver.
- Hire people (couriers) with available transport.
- Conclude an agreement with the transport and transport service.
The first option is very good, but in this case, you will have to spend a lot on renting a car. The second option is less expensive, but keep in mind that electrical appliances can be large, and large items do not fit in a small car. The third option is the cheapest and does not require any special action on your part.
The best solution in such a situation would be to combine all these methods into one. We explain why.
it is possible to rent a car for the transportation of oversized cargo. For delivery around the city, hire a courier with a car. And for delivery to other regions, conclude an agreement with a transport company.
Please note that in this case, couriers must also be included in the list of mandatory civil servants.
3. How to advertise an electrical store and attract customers?
Taking into account the fact that you will be selling through an Internet platform, the first thing you will need for advertising purposes is SEO optimization of the site, which will help promote it on the network. This type of business should be carried out by a specialist with experience in this field.
But, in addition to this, to attract buyers interested in electrics, an online store can also use the following methods:
- Distribute flyers on the streets of your city describing your project and the benefits of selling online.
- Place ads in newspapers, on bulletin boards.
- Create social media accounts to grab the attention of the public.
- Leave promotional messages on thematic forums.
- Agree on cooperation with large manufacturing companies, let them recommend your store as a point where you can buy their products.
- Collaborate with electricians and electricians, in other words, advertise each other.
- There is a system of discounts for regular customers, as well as for those who make large purchases.
Finally, we will calculate the costs required to open an online store and analyze the return on investment.
Household appliances store business plan.
How to start your own business?
I work from home on the Internet.
How much capital investment is required to start an electrical store?
We will describe in detail how much you need to invest in order to open a competitive business by analyzing each section of expenses:
|Total:||562 800 rub|
|Registration of individual entrepreneurs.|
Related expenses (current account, stamp duty, vouchers).
|Online store showcase design|
|35 000 rub|
|Shopping.||150 000 rub|
|Premises for rent|
|RUB 15,000 RUB|
|For the office.|
|RUB 102,000 RUB|
|Salary of employees (8 people).||120 000 rub|
|Advertising (producing discount cards, printing flyers).||30 000 rub|
As you can see, opening an online electrical engineering store requires a lot of investment, but compared to opening the same stationary store, this amount is much less.
Estimated payback of this type of activity is 9-12 months with the most optimistic forecasts. On average, such a business idea pays off in 10-18 months, which is also a very good indicator, due to the low cost and high margin on electrical products.
As a rule, the markup on goods in this sector ranges from 30 to 150%.
As for income, it should amount to 150 thousand rubles for a year and a half per month.
This sums up all of the above. An online store of electrical engineering is no longer a new, but very promising type of business. Today, anyone can do business in this sector, as this does not require knowledge, numerous permits and large start-up capital.
Home appliances are in consistently high demand, so this area is very suitable for start-up entrepreneurs.