How to start an online store and how digital tools can help?

E-commerce is growing rapidly. According to Forbes, 20.1% of all retail purchases are made online by 2024. And that percentage will grow every year.

Digital tools make e-commerce easier. They help entrepreneurs create and manage online stores and speed up business processes. In this article, we have a look at how they do that.

What do you need to get started with an online store?

An entrepreneur who sells goods online is not tied to a place of sale. They do not need to rent retail space. However, even in this case, business success depends on a clear plan. In particular, before opening an online store, you need to

Choose a niche. Research the market: Find out what your target audience needs and who your competitors are. If your niche already has big players, consider what value you can add.

Choose a sales model — dropshipping or your own warehouse. Dropshipping is the best option for beginners: it requires less start-up costs. If an online store is working with large customers, there is a need to stock goods and correspondingly store them in a warehouse.

Choose a platform to create a store. There are many digital solutions available today: website builders, customized CMS systems, SaaS services, etc. Each has its own advantages. For example, SaaS services are best for small stores with a limited number of products. With a customized CMS system, you can integrate more payment and delivery tools, etc.

Make your business official

Even before making the first sale from their own online store, an entrepreneur must legally register their business. The easiest way to do this is to open an Individual Entrepreneur (FOP) or a Limited Liability Company (TOV). This will allow you to work legally, pay taxes and protect you from tax audits.

Digital tools greatly simplify the process of registering an individual entrepreneur. Today, you can open an FOP online on the Diia portal.

In the first quarter of 2024, a record number of 57,665 individual entrepreneurs registered through Diia.

Mykhailo Fedorov, Minister of Digital Transformation of Ukraine

In order to register an individual entrepreneur remotely, an electronic signature is required. This allows you to digitally sign documents, thereby conferring upon them full legal force. Previously, companies invested a significant amount of time and resources in obtaining an electronic digital signature. This entailed printing out a package of documents and sending an employee to the provider’s office. The digital signature was recorded on a flash drive, which could be misplaced or damaged.

Today, providers offer secure cloud-based electronic signatures that may be utilized in mobile applications. Vchasno has transformed this sector by introducing a legally compliant approach to obtaining electronic signature keys. Vchasno.KEP can be obtained online via Diia.Signature.

Recruit a team

An online store requires a team of employees to operate effectively. While it is possible to combine multiple roles at the outset of your business, as your store grows, you will need to hire individuals to sell products, support the website, maintain accounting records, and so on. Even a small online store will require staff.

By utilizing electronic document workflow services and Diia.Signature, you can remotely hire an employee in accordance with all legal requirements. The entire process will take no more than an hour, after which the employee will be able to commence their duties.

Employees sign all HR documents with an electronic signature. This makes it possible to remotely arrange vacations and sick leaves, transfer employees to other positions, dismiss them, etc.

Organize the supply of goods

Digital services facilitate the establishment of internal business processes and enhance the effectiveness of collaboration with partners. In particular, electronic contracting services are specifically designed for this purpose. Online store owners utilize these services to enter into contracts with suppliers, lessors, etc.

The Vchasno.ODE service enables swift and convenient agreement-making with any counterparty, regardless of location, in a matter of hours.

Digital services are automating an increasing number of processes related to the supply and transportation of goods for online and offline stores. Vchasno.ODE can be integrated with a number of common ERP systems (BAS, Microsoft Dynamics, SAP) and CRM services.

Today, EDI services are becoming increasingly prevalent, with the entire supply chain—from ordering goods to shipping them to the warehouse—now conducted in an electronic format. The supplier and customer exchange electronic messages in accordance with a single standard on an EDI platform or in an accounting system.

The supply chain encompasses the generation of legally significant documents, such as cash receipt vouchers, cash issue vouchers, and consignment notes. EDI services provide the functionality to create, sign, and send these documents to business partners.

Once martial law in Ukraine has come to an end, the government will be introducing e-TTN (e-consignment note), a document that will fully digitalize the document workflow in freight transportation. It will be a requirement for all companies to use electronic TTNs. However, businesses are able to test the e-TTN services and select a solution that is convenient for their needs.

Vchasno’s customer experience demonstrates that the entire process of working with a supplier—from initial negotiations to the delivery of goods to retail shelves—can be completed in 14 days.

Work with clients

In accordance with tax regulations, sellers are obliged to provide a fiscal receipt for each purchase of goods. In order to comply with these requirements, online store owners utilize software RROs and send electronic receipts via messengers or email.

In addition to the ability to issue fiscal checks remotely, software RROs offer a number of advantages over physical cash registers, including:

Price. The cost of a physical cash register ranges from UAH 13,000. The cost of servicing a PRRO is set at UAH 160 per month.

Validity period. The typical lifespan of a physical cash register is six years, after which the seller is required to purchase a new device. The PRRO is valid for an unlimited period, with the provider installing all necessary updates automatically.

Additional service. In case of technical issues, the seller spends a certain amount of time on maintenance. All technical issues with the PRRO can be resolved remotely by contacting the provider’s technical support service.

When working with clients, it is essential for sellers to monitor sales statistics and budgets, identify deficiencies in sales funnels, and address issues in a timely manner. Modern CRM systems automate order processing and provide sellers with comprehensive sales analytics. If required, they can be adapted to integrate with marketplaces (such as Prom, Rozetka, etc.).

Setting up an online store from scratch is a time- and resource-intensive undertaking. However, with the advent of digital tools, the process has become increasingly streamlined. Make use of these tools to ensure a quick and straightforward journey from store creation to the first sale.