25 x things I’d do differently if I was starting an online fashion store in 2024

25 x things I'd Do Differently If I Were Starting an Online Fashion Store in 2024

After running my own fashion brand for over 9 years, people often ask me what I’d do differently if I started again from scratch.

The truth is I made many mistakes—some of them utterly stupid—but I also found great success, often unexpectedly. So, knowing what I know now, I’ve compiled a list of 25 things I would do differently if I were to start an online fashion business again today. This list is in no particular order (and I could have gone on forever!), but these are the top things I’d do very differently or tips I’d give to anyone just starting out.

If you want to hear more of an explanation of these points and my ‘why’, be sure to tune into the full podcast episode here.
Ok, let’s go:

25 x things I'd Do Differently If I Were Starting an Online Fashion Store in 2024

1. Be clear about the business model I wanted from day one.

From the start, I’d be very intentional in building a business according to the lifestyle I wanted. If I wanted a laptop lifestyle business, i.e., a business with location flexibility, no permanent commercial office, or staff, I’d make different decisions than if I dreamed of having a big warehouse full of staff.

I’d also be clear about my end goal with the business—is it to scale it up and sell it or to keep it as long as it paid me a good salary and then close it? Your end goal will determine your overall business strategy—is it to achieve scale and market share to appeal to a buyer or to pay yourself as much as humanly possible until you retire?

2. White labelling over manufacturing

Rather than designing products from scratch and going down the manufacturing road, I’d source ready-made goods from manufacturers that I could white label with my branding.

Manufacturing is not for the faint of heart. It’s an intensely drawn-out, expensive process that can really delay you getting your business going.

A recent trip to the International Sourcing Fair in Sydney showed me how easy and available this option is. It still has reasonable costs and minimum order quantities (MOQs).

Pre-COVID days, I attended the Canton Fair in China, and things were markedly different. White labelling was available, but the MOQs were in the thousands. Manufacturers have had to change with the current times and reduce their minimums to remain in business.

3. Build advertising costs into the final Recommended Retail Price (RRP)

If you run a direct-to-consumer (DTC) e-commerce business, I would allow up to one-third of the RRP for advertising costs to make the sale. Build this cost into the price (and raise your prices if need be to allow for it).

After many years of running paid Meta ads for myself and clients, I know you might have to spend $50 on Facebook ads to make a $150 sale on a ladies' dress. That would give you a return on ad spend /ROAS of x3 - most e-commerce folks are happy with an x3.

Your accountant will grumble about how you spend on advertising (see point 22), but given that you don’t have a brick-and-mortar store where customers can simply walk past and discover you, you will need to invest in paid ads to drive traffic to your website. And it’s best if we know this ahead of time and can price our goods accordingly.

4. Use Third-Party Logistics (3PL) as soon as possible:

Once daily sales are consistent, I’d ship my inventory to a 3PL warehouse early on.

Picking and packing orders is tedious and takes you away from other important tasks like marketing. Having all of the inventory stocked in your house is often a depressing reminder of how long it takes to build momentum and sell down stock. Plus, 3PL providers often have access to cheaper shipping rates than we do, so I’d send it off to them as soon as it was feasible to do so (rather than paying someone to come and pick/pack it from your house).

5. Contractors first before hiring staff:

I’d outsource to contractors and Virtual assistants wherever possible and avoid hiring staff ‘on the books’ wherever possible.

I found managing staff really difficult and hated having to develop and manage things like ‘work culture’, development plans, performance reviews, etc. I also got pure rage when staff wouldn’t clean up after themselves and had do it myself at the end of a busy day.

Aside from that, there are so many costs and responsibilities associated with hiring staff, such as superannuation, sick leave, annual leave, workers' compensation insurance, and more. Then, if the business takes a downturn and you need to let staff go, there’s a terrifying legal process that must be followed to the tee, which was enough to make me lose sleep for months.

6. Put tax aside weekly or monthly (don’t wait until the end of the quarter)

Set aside money weekly or monthly to prepare for GST and income tax bills. There’s nothing scarier than a huge tax bill after a busy quarter that you didn’t budget for! I’ve been there. I don’t recommend it at all.

7. Invest in a good website (but not an outrageously expensive one)

Choose a cost-effective Shopify theme and avoid expensive agencies where possible. I paid around $10,000 for my first website through an agency, and hated it after a year and it needed to be rebuilt. A good freelance developer will help you create a beautifully functional website without breaking the bank. I’ve worked with the same Shopify developer in India for 10 years, and he is affordable and great.

8. Invest in visual branding (but again, it doesn’t need to cost the earth)

Invest in getting branding help to develop your core brand aesthetics (a DIY Canva logo won’t cut it sorry). But you don’t need to pay tens of thousands of dollars for this. If you just need help with the font, logos, and a few design elements, you shouldn’t need to pay more than $2,000. Both my recent rebrands cost me only $1,200.

9. Spend time developing and refining your marketing messaging.

The words you say in your marketing matter. Make sure you really get to know your ideal customer and how you solve their problems, and then articulate that in all of your marketing. You can have a beautiful product and glossy photos, but if your messaging doesn’t resonate, conversions will be few and far between.

10. Be scrappy when it comes to photo shoots:

Find a friendly photographer who may not specialise in fashion but has the equipment and skills to help you capture great images for your products (without the ‘fashion photographer’ price tag).
I wouldn’t bother with stylists again, and I’d have the model do their own hair and make-up and pay them the extra money. I’d also never do studio shoots again, and instead, I would capture all product shots outside in natural lighting with a lifestyle feel.

11. Pick two Social Media channels only and do them well.

I’d recommend concentrating your efforts on just two social media channels, like Instagram and Facebook or where your ideal customer is, and go all in on those platforms. Each platform requites different content formats and nobody has the time to do all of them well. Once you’ve nailed these two channels and built an engaged audience, then try other platforms.

12. Learn how to DIY your Facebook Ads from the very beginning.

Learn how to run your own Facebook ads from the start. Paid ads will be a necessary part of your e-commerce journey (see point 3)and are incredibly expensive to outsource. Paid ads are often the biggest driver of traffic and sales for e-commerce businesses too, so wouldn't you want full control of that?

Learn how to run them yourself and then outsource later once your business grows and you have the cash to do so.

13. Prioritise list building before you even launch.

Start building an email list before launching your store so you have a list of people to launch to from day one.

If you sell at market stalls or pop-up shops, ask your customers to sign up for your newsletter list to be the first to know when your online store opens. Offering them a discount of some kind will help sweeten the deal!

14. Have automated email flows active from the minute someone can ‘subscribe’:

There’s nothing worse than signing up for someone's list to receive…. absolutely nothing. Set up automated email flows like your welcome series and abandoned cart flows from the beginning. This keeps your audience engaged and drives conversions.

15. Don’t bother with expensive packaging.

Avoid expensive packaging. It doesn’t often add to the customer experience and usually ends up in the bin. It also eats into your profit margins. Instead, include a thank you postcard—an affordable yet thoughtful touch.

16. Find a business coach or mentor to fast-track your success.

I’ve worked with different business coaches for my entire business journey. I wouldn’t have had the success I have had if it weren’t for investing in coaching. Find a specialised business coach in your industry. Their insights can fast-track your success and help you avoid costly mistakes.

17. Deliver excellent customer service.

Happy customers come back again. When all else fails, refund them. If there are delays in getting orders to customers, communicate with them regularly and respond to customer emails and DM’s promptly (but not outside of business hours - see point 18). Excellent customer service wins over the actual product or service.

18. Treat your business like a job (ultimately, that’s what it is)

You created your business for freedom and flexibility, right?! So why are you working 12-hour days, 7 days a week, for less money than you earned in a job?

Treat your business as a nine-to-five job. Set clear boundaries, such as not replying to emails on weekends or at night. Automated replies can manage communication outside working hours.

19. Manage your money well.

Set aside money for product development, future reorders, taxes, and marketing. Track personal investments in the business for future repayment. Don’t bank on having a big month and that will cover all those bills you’ve been avoiding. Business is unpredictable. Alleviate your stress by stashing money aside for the rainy days that always come.

I highly recommend reading "Profit First", particularly the ecommerce version, if you own a product-based business. This book will show you how to do this.

20. Pay yourself a wage as soon as possible (even a token amount)

We have to eat, and we also want to be rewarded for our hard work. Be sure to pay yourself a weekly wage, even a small amount, from the onset of sales to avoid feeling resentful (and starving). I pay myself as an employee of my business, issue myself a payslip, and pay my own superannuation and income tax weekly.

Pay yourself.

As Loreal says, ‘You’re worth it’.

21. Set up a company structure when it’s time to scale

Consider a company structure to protect personal assets. Check with your accountant about the best time to do this, especially if you are taking out loans or lines of credit for your business. The extra cost of setting up a company is like ‘insurance’ in case things go pear-shaped and your personal assets are at risk.

22.  Find a supportive accountant (who understands e-commerce)

Find a supportive and knowledgeable accountant who understands e-commerce and believes in you and your business growth. Yes, they will frequently tell you, ‘You're spending too much on marketing,’ but that’s their job, for the most part!

I speak with my accountant once a month to plan (avoid!) unexpected tax bills and make sure I’m not accidentally burning my business to the ground.

23. Hold off registering for GST if you can (but check with your accountant, obviously)

I should add a disclaimer here. I’m not an accountant, and I'm not permitted to give you financial advice, so be sure to check with a professional.

But I can share my personal experience. Being a tax collector for the Australian Taxation Office was a real drag. It also increased my bookkeeping bill significantly. Plus, I had hardly any GST I could claim back as most of my expenses were overseas (manufacturing, Facebook ads, software subscriptions, etc.). If it’s not necessary for you to register for GST yet, ask your accountant if you can delay it.

24. .Surround yourself with fellow (weirdos) entrepreneurs.

We live a different life and are excited by weird things our friends with regular jobs can’t understand.
Find likeminded businesspeople, whether in real life or online, with whom you can chat with abandon all day long about things such as conversion rates, Shopify themes, click-through rates, content strategies, SEO, ROASs, abandoned cart email flows, next collections, and painful customers. You will feel supported, and your friends and family will breathe a sigh of relief, too.

25. Collect frequent flyer points on business expenses.

Again, check with your accountant. But I regularly have around 500,000 Qantas frequent flyer miles in my account at any time. I use my business, American Express to pay all of my business expenses, earn miles, and pay off my card weekly.

Recently, frequent flyer miles paid for family trips to Hawaii, Hamilton Island, and Bali. It's so worth it!

I hope you found these tips helpful! If you want me to help scale your e-commerce business, find out how we can work together here.

If you want to hear more of an explanation of these points and my ‘why’, be sure to tune into the full podcast episode here.

Good luck with your business!