From Concept to Commerce: Jodie Minto’s blueprint for building a successful online fashion business
Lots people have recently asked me about ‘starting their own online fashion or lifestyle business’ and ‘what I’d do differently’ if I were to start again in 2024. With over eight years of experience running my own online fashion brand and coaching others, I’ve learned a lot.
Today, I’m thrilled to share share the 25 things I would do differently if I were starting an online fashion store today and my essential tips for launching and scaling a successful online fashion store, drawn from my own experience and insights. Here’s a deep dive through the exhilarating (and often challenging) journey of starting your own online businesses.
25 things I would do differently if I were starting an online fashion in 2024
1. CHOOSING YOUR BUSINESS MODEL
The first thing I’d do differently is decide on the type of business model I want from the get-go. Do you want a lifestyle business that offers freedom and flexibility, or do you dream of scaling to a large office with a big team? Being clear about your end goal will dictate your strategy and help you build your business around your ideal lifestyle.
2. WHITE LABELLING PRODUCTS
I would opt for white labelling products instead of designing my own. White labelling involves buying ready-made goods and branding them with your own label. This approach saves time and money, allowing you to focus on selling rather than product development. Attending sourcing fairs and partnering with manufacturers can provide you with high-quality, customisable products.
3. PRICING AND ADVERTISING STRATEGY
When setting prices, I’d build in the cost of Facebook ads. Understanding that driving traffic and conversions often relies on paid ads is crucial. For example, if you sell a dress for £150, you might spend $30-$50 on ads to make that sale. Ensure your pricing strategy includes a budget for advertising to maintain profitability.
4. THIRD-PARTY FULFILMENT
Using third-party fulfilment (3PL) from the start is another key change I’d make. This service handles the storage, picking, packing, and shipping of your products, allowing you to focus on growing your business. It’s cost-effective compared to managing your own warehouse and provides flexibility to operate from anywhere.
5. RUNNING A LEAN TEAM
I’d keep my team lean by using virtual assistants (VAs) and contractors for tasks I dislike, like email marketing and social media management. Avoid hiring full-time staff until absolutely necessary to reduce overhead costs and administrative burdens.
6. FINANCIAL MANAGEMENT TIPS
Put aside tax money weekly or monthly to avoid unexpected tax bills. Set up a system to transfer collected sales tax to a separate account regularly. This habit will help you manage cash flow and reduce financial stress.
7. WEBSITE AND BRANDING
Invest in a good Shopify theme and hire a freelance designer for customisation rather than an expensive agency. This approach can save you thousands while still providing a professional, functional website. Also, invest in professional branding to create a cohesive and appealing brand image without breaking the bank.
8. MARKETING AND CUSTOMER ENGAGEMENT
Spend more time on your marketing and brand messaging than on product details. Effective marketing messaging helps build a connection with potential customers. Work on developing clear, compelling messages that resonate with your audience.
9. SCRAPPY PHOTO SHOOTS
Be resourceful with photo shoots. Hiring expensive fashion photographers isn’t necessary. Utilise freelance photographers and keep costs low by asking models to do their own hair and makeup. High-quality photos can be achieved without extravagant expenses.
10. FOCUSED SOCIAL MEDIA STRATEGY
Choose two social media platforms, such as Instagram and Facebook, and focus on them. Spreading yourself too thin across multiple platforms can dilute your efforts. Concentrate on where your target audience spends the most time.
11. LEARNING FACEBOOK ADS
Learn to run Facebook ads from the beginning and use them to drive traffic to your site. Understanding how to manage ads yourself can save money and help you generate traffic and sales from day one.
12. BUILDING AN EMAIL LIST
Start building an email list before launching your store. Create a landing page for sign-ups and offer incentives like discounts or free shipping. Having an audience ready at launch gives you a better chance of early sales and engagement.
13. EMAIL AUTOMATION
Set up automated email flows, such as welcome series and abandoned cart sequences, from day one. Automation ensures consistent communication with your audience and helps recover potentially lost sales.
14. PRACTICAL PACKAGING TIPS
Avoid expensive packaging like calico bags and boxes. Use simple, cost-effective packaging and include a thank you postcard with each order. This small touch shows appreciation and encourages repeat purchases without adding unnecessary costs.
15. FINDING THE RIGHT SUPPORT
Find a business coach who specialises in fashion e-commerce. A coach with relevant experience can fast-track your success and help you avoid common pitfalls. Their guidance is invaluable, especially in the early stages.
16. PRIORITISE CUSTOMER SERVICE
Excellent customer service is crucial. Over-communicate with customers, especially regarding pre-orders or delays. Happy customers are more likely to return and recommend your store to others.
17. TREAT YOUR BUSINESS LIKE A 9-5 JOB
Set boundaries and treat your business like a job to avoid burnout. Don’t work 24/7. Use automated replies for after-hours inquiries and ensure you have time for yourself and your family.
18. PLAN FOR PRODUCT DEVELOPMENT
Put money aside for future product development and reorders. Having a financial cushion ensures you can continue to grow and restock without cash flow issues. The book Profit First offers great advice on managing finances in e-commerce.
19. PAY YOURSELF EARLY
Start paying yourself a small wage early on. Even a token amount helps prevent burnout and resentment. Keep track of your personal investment in the business and plan to repay yourself when profits allow.
20. CONSIDER COMPANY STRUCTURE
Set up a company structure to protect personal assets and facilitate business growth. Consult with an accountant to determine the best structure for your business.
21. FIND A SUPPORTIVE ACCOUNTANT
A great accountant who believes in you and understands e-commerce is invaluable. They help with tax planning, financial management, and offer ongoing support for your business.
22. DELAY VAT REGISTRATION
If you’re in Australia, hold off on VAT registration until necessary. This reduces administrative burdens and cash flow issues, especially if most of your expenses are overseas and not subject to VAT.
23. IMPLEMENT EFFECTIVE INVENTORY MANAGEMENT
Efficient inventory management is crucial to avoid overstocking or stockouts. Use inventory management software to track stock levels, manage reorders, and forecast demand. This helps maintain a healthy cash flow and ensures you always have the right products available for customers.
24. BUILD STRONG SUPPLIER RELATIONSHIPS
Cultivate strong relationships with your suppliers to ensure reliable product quality and availability. Good supplier relationships can lead to better terms, faster turnaround times, and priority during high-demand periods. Regular communication and treating suppliers as partners can greatly benefit your business.
25. STAY UPDATED WITH INDUSTRY TRENDS
Keep abreast of the latest trends in the fashion industry to stay relevant and competitive. Attend industry events, follow fashion influencers, and subscribe to industry publications. Staying updated helps you anticipate changes in customer preferences and adapt your product offerings accordingly.
Starting an online fashion store today involves making strategic decisions that prioritise efficiency, financial management, and customer satisfaction. By learning from past experiences and adopting these 25 steps, you can build a successful and sustainable business.
