How to Start an Online Clothing Store: Tips for Fashion Entrepreneurs

Launching an online clothing store can be a profitable endeavor. Although finding suppliers might take some time, the initial setup process is straightforward. This guide outlines how to establish your store online quickly, within weeks rather than months, and with a small investment. An online clothing store can transform your interest in fashion into a successful business, especially given the current growth of the eCommerce sector.

This guide covers the essential steps to open an eCommerce store and sell clothing online, including drafting your business plan, creating your website, and beginning to make sales.

Selling Clothes Online vs. Offline

Comparing online and offline clothing sales reveals clear benefits and drawbacks for each method.

• Ease of Entry:

Launching an online store can be faster and less costly than opening a physical shop. You can set up a website or join an eCommerce clothing store platform within days, with expenses much lower than the $50,000 to $150,000 typically needed for a physical location.

• Reduced Operating Costs:

Online stores generally require lower operating costs than physical stores. Online retailers can allocate more resources to marketing and product development without needing physical space, utility bills, or a large staff. In contrast, physical stores face substantial recurring expenses.

• Customer Convenience:

Online stores allow customers to shop anytime and anywhere, enhancing buyer accessibility. This ease of shopping has helped expand the eCommerce market, with online clothing sales now representing 46% of total U.S. apparel sales. Conversely, physical stores provide the benefit of immediate purchases and the ability to try on items without waiting for delivery.

• Omnichannel Strategy:

Many retailers combine online and offline sales to enhance customer engagement. This approach, known as omnichannel marketing, aims to deliver a unified shopping experience. Data indicates that retailers adopting this strategy may see up to a 33% increase in sales. This method allows customers to research products online and buy in-store or explore in-store and purchase online, utilizing the strengths of both formats.

A Step-by-Step Process to Start an Online Clothing Store

1. Find Your Niche

First, identify a niche that aligns with your interests and market needs. Whether it’s sustainable fashion, plus-size clothing, or another underserved market, choosing a specific niche can help you stand out. Your niche could be anything from sustainable activewear to streetwear for young adults. Having a focused niche allows you to target a specific group of consumers, which makes your marketing more effective and helps you stand out among the competition. When identifying your target audience, think about:

Who are you excited to serve?

What problems can you solve for them that others might overlook?

What story do you want your brand to tell?

How can you stand out from the competition with your message?

Conduct market research to understand the target audience, buying habits, and preferences. Create buyer personas representing your ideal customers, including their age, location, income, and shopping motivations. Look at your potential competitors. Identify their strengths and weaknesses to understand how to differentiate your offerings and cater better to the market needs. Here are some niche ideas for starting an online clothing store:

2. Create a Business Plan

A comprehensive business plan is crucial. It will outline your business strategy and help you attract investors if necessary.

Define your target market clearly and provide data about industry trends. Use tools like Google Trends to track the popularity of specific keywords related to your products. Conduct a detailed market analysis, create buyer personas to understand your customers better, and perform a SWOT analysis to understand your competition better.

Additionally, estimate startup costs, ongoing expenses, and potential revenues. Create a detailed financial projection for the first year to understand how much you need to invest initially and what you need to break even. Typical costs include the eCommerce clothing store platform fee, inventory, packaging, and marketing​ fees.

It is also essential to have a clear plan for sourcing your products (e.g., manufacturing, dropshipping, wholesale, etc.). We will discuss this later in the 8th step of this guide.

3. Choose Your eCommerce Platform

Selecting the right eCommerce clothing store platform is a foundational decision that impacts how well your store operates and grows. When deciding, consider the technical capabilities required, the features (e.g., SEO capabilities, marketing tools, etc.), and the platform’s scalability. Most platforms also offer pre-designed themes that can be customized to fit your brand’s image, making it easier for you to get started without needing a web developer. Platforms like Shopify, BigCommerce, and WooCommerce offer robust solutions, each with its advantages.

Shopify

Shopify is known for its user-friendly interface and comprehensive features, serving businesses of various sizes. It provides options for selling across multiple channels, such as online stores, social media, and marketplaces, inventory management, marketing tools, and access to a library of over 8,000 plugins. Shopify facilitates drop shipping and works with a wide range of payment processors.

Shopify offers three pricing tiers: the Basic plan at $29 per month, the Advanced plan at $299 per month, and Shopify Plus, which is tailored for large businesses with custom pricing starting at $2,300 per month. They also provide a 3-day free trial to new users. If you opt not to use Shopify Payments, a 2% transaction fee will be applied to your sales.

BigCommerce

BigCommerce caters to expanding businesses with built-in features, including SEO optimization, multi-channel selling, and support for extensive product catalogs. It stands out by not imposing transaction fees. Its capabilities are suitable for growth, providing tools for managing multiple storefronts and international sales.

The pricing structure includes the Standard plan, which costs $39 per month and covers up to $50,000 in annual sales; the Plus plan, which costs $105 per month and covers up to $180,000 in sales; and the Pro plan, which costs $399 per month and covers up to $400,000 in sales. For businesses with higher sales volumes or specific feature needs, the Enterprise plan offers custom pricing based on those requirements.

WooCommerce

WooCommerce is a plugin that converts any WordPress site into an ecommerce platform. It is adaptable and favored by businesses needing a customizable setup. While WooCommerce is free, additional costs for premium features, such as payment gateways and advanced shipping options, apply. Hosting is separate.

WooCommerce is free. Hosting costs range from $5 to $30/month, with extra charges for additional plugins or extensions.

Wix eCommerce

Wix provides an easy-to-use, drag-and-drop website builder with ecommerce capabilities. It’s particularly suitable for small businesses or individuals with minimal technical skills, offering a range of templates. While it doesn’t match Shopify or BigCommerce regarding features, it is adequate for smaller operations.

Wix offers several pricing plans for ecommerce, starting with the Light plan at $17 per month, the Core plan at $27 per month, and the Business plan at $36 per month. The Business Elite plan is available at $159 per month for more advanced needs. While Wix does not provide a free ecommerce plan, they offer a 14-day money-back guarantee for users to trial their services.

Squarespace

Originally a site builder, Squarespace now supports e-commerce. Known for its stylish templates, it suits creative professionals or service-oriented businesses. It offers features for handling digital downloads, subscriptions, and physical products, plus tools for appointment scheduling and detailed analytics. Prices range from $16 to $49 per month. Squarespace offers a 14-day free trial but no free plan.

Each platform has unique advantages tailored to different business needs. Shopify and BigCommerce are great for scalability and established businesses, WooCommerce offers extensive customization, and Wix and Squarespace excel in simplicity and design for smaller ventures.

4. Pick a Name and Register Your Domain

Selecting a name and securing a domain for your clothing line involves a few key steps to ensure your brand is recognizable and easy to find online.

The name should reflect your brand’s style and be simple for people to remember, spell, and say. This helps with brand recall and makes it easier for customers to find you. When brainstorming, consider how the name aligns with your brand’s identity. Ensure the name is unique, isn’t used by competitors, and doesn’t carry unintended meanings in other languages.

Before finalizing your choice, check for potential trademark conflicts by searching databases like the U.S. Patent and Trademark Office (USPTO) and local registries. This helps you avoid legal issues later. Also, confirm that the domain name you want is available. Domain name generators can help you come up with ideas while checking availability.

After settling on a name, pick a domain name that’s short, easy to remember, and fits your brand. Many businesses prefer using a “.com” domain because it’s widely recognized, but you can also consider industry-specific extensions like “.clothing” or “.fashion.” Domains can be purchased from registrars like GoDaddy and Namecheap or through hosting services such as Shopify or Bluehost, which often offer extra services like privacy protection, email hosting, and website builders.

A domain name costs between $10 and $20 annually, but premium names or specialized extensions might cost more. Remember that renewal fees may exceed the initial purchase price, and some services offer first-year discounts. Set up automatic renewals or reminders to avoid losing the domain when it’s time to renew.

5. Register Your Business

When launching an online clothing store, selecting the appropriate business structure is essential due to its legal, financial, and operational implications. The most typical forms are Sole Proprietorship and Limited Liability Company (LLC), each offering distinct advantages and disadvantages.

Sole Proprietorship

This structure is the most straightforward and economical option for starting a business. It requires formal registration only if you operate under a name other than your own, which would necessitate a Doing Business As (DBA) registration. As a sole proprietor, your business earnings and expenses are filed on your tax return.

The primary disadvantage is personal liability for all business obligations and legal issues, which puts your personal assets at risk in cases of lawsuits or financial difficulties. This option is ideal for those starting on a small scale without immediate plans to employ others.

Limited Liability Company (LLC)

An LLC protects your assets from business debts and legal claims. Although more structured than a sole proprietorship, it provides greater operational flexibility than a corporation. Establishing an LLC involves filing Articles of Organization with the relevant state authority, covering applicable fees, and creating an operating agreement, mainly when multiple owners exist.

This structure benefits those looking to expand their business, attract investors, or plan for sustained growth. LLCs also allow for tax flexibility, offering choices in how the company is taxed and generally enhancing credibility with suppliers and investors.

Additional Considerations

• Licenses and Permits: LLCs and sole proprietorships might need specific permits, such as a seller’s permit or sales tax registration, depending on your location.
• Taxation: Both structures are typically pass-through entities where profits are taxed once on your tax return. However, LLCs can opt for different tax statuses, such as S-Corporation, to reduce tax liabilities.

Due to its simplicity and low cost, a sole proprietorship may suit those just beginning and testing market viability. Conversely, forming an LLC might be more prudent for those expecting business growth, hiring employees, or needing personal asset protection.

6. Source Your Products

When choosing products for your online clothing store, you can consider several methods, each with distinct advantages and drawbacks.

Manufacturing

Manufacturing your items is a viable option for those who desire complete control over their product’s design, quality, and brand identity. This approach involves creating and overseeing the production process, which allows you to offer unique products. However, this method demands significant initial investment and extensive resources, such as obtaining raw materials and managing production processes.

Direct collaboration with manufacturers enables full customization—like incorporating branded elements such as custom zippers or rivets—but it also increases operational complexity and extends production lead times.

Dropshipping

This strategy suits entrepreneurs seeking a low-risk entry without the burden of inventory management. In dropshipping, you select products from a supplier who handles fulfillment when orders are placed. This model minimizes the need for initial inventory investment but reduces your control over product quality and delivery times.

Dropshipping is advantageous for those eager to launch quickly and expand over time, though it is vital to establish partnerships with dependable suppliers to minimize delays and maintain product quality.

Private Label

Positioned between manufacturing and dropshipping, private labeling involves collaborating with a manufacturer to produce items already on the market but branded with your logo. This strategy lets you influence branding and design elements without establishing a complete manufacturing infrastructure.

Private label manufacturers often provide flexible conditions, such as low minimum order quantities, which is especially beneficial for small businesses. You can locate manufacturers tailored to your market through directories or platforms like Alibaba; some may even offer dropshipping services.

Wholesale

Buying products in bulk from wholesalers strikes a balance between controlling inventory and reducing initial costs. In wholesale, you purchase ready-made products at a discount and sell them for a profit. This method enables you to offer a diverse product range without manufacturing complexities.

However, it requires storage space and active inventory management. Wholesale is particularly useful if you sell well-known brands alongside your private-label products.

White Labeling

Like private labeling, white labeling involves selling generic products manufactured by others but branded with your store’s name. This approach is suitable for products where customization is not a priority.

It allows you to market products under your brand affordably without deep involvement in design or development. The drawback is that white-labeled products are not exclusive to your online fashion store, and competitors may offer the same items under different brands.

Custom Cut-and-Sew

This option allows for full creative control, where you design and produce original items. While this offers more customization than other models, it requires a significant initial investment in materials and manufacturing. It’s a more labor-intensive process, but it can result in a unique product line.

Local Artisans

Collaborating with local artisans or small-scale producers can set your store apart by offering unique, handcrafted items. Although this option may be more costly, it allows you to promote products as exclusive and finely crafted, appealing to customers who prioritize sustainability and locally-made goods. This choice is particularly effective for stores targeting eco-friendly or specialized markets.

On-Demand Printing

Services like Printful or Printify provide on-demand printing, allowing you to offer customized designs on products such as t-shirts, hoodies, and accessories without maintaining inventory. Items are printed and shipped only when a customer purchases, significantly lowering your financial risk.

This model is ideal for stores specializing in graphic designs or personalized clothing. The main disadvantages are higher per-unit costs and dependence on third-party providers for fulfillment, which may impact delivery times.

Print-on-Demand (POD)

This approach lets you sell custom items such as t-shirts, mugs, or phone cases made only after an order is placed. It keeps upfront costs low since you don’t need to store products. Platforms like Printful or Printify handle production and shipping, but profits may be smaller, and product customization options are limited.

7. Set Up and Customize Your Ecommerce Store

When establishing your online fashion store, follow these key steps, especially when utilizing platforms like BigCommerce, which provides a variety of themes and templates that you can adapt. Below is a guide on how to set up and tailor your store:

Selecting and Tailoring Templates

Ecommerce platforms typically offer a range of templates, enabling you to build a store that fits your business needs. For instance, BigCommerce has free and premium themes applicable to fashion, technology, and health and beauty sectors. These templates are built to be flexible, allowing you to alter features such as navigation, product pages, and overall layout.

BigCommerce allows access to the template files for further customization, allowing you to incorporate unique design elements. Whether choosing a ready-made template or a custom design, ensure it reflects your brand’s identity.

Product Listings and Page Optimization

After setting up the store structure, start listing your products. Effective listings are crucial to boosting sales. This includes providing detailed, accurate descriptions and using SEO techniques to help search engines recognize and rank your products. Detailed descriptions should highlight materials, dimensions, and functionality, as customers cannot physically examine the items.

Additionally, multiple high-quality images of each product from various angles and settings, such as on models or mannequins, will give customers a thorough view of what they are buying.

Navigation and User Experience

Your website’s navigation significantly affects how users interact with your site. Complex or unintuitive navigation can discourage purchases. To keep your site user-friendly, make navigation straightforward and organized. Use simple menu structures and logical groupings of products. Many themes from platforms like Shopify, BigCommerce, and Wix offer helpful navigation tools like side menus and search filters, helping customers find products quickly.

Streamlining the Checkout Process

The checkout process is crucial in converting visitors to buyers. A complicated checkout can lead to cart abandonment. To combat this, implement a one-click checkout option or allow for guest checkouts, simplifying the process for those who prefer not to register an account. Additionally, consider enabling autofill for returning customers and offering various payment methods to accommodate different preferences.

Enhancing Search Functionality

A powerful search feature can significantly increase customer satisfaction. Customers typically look for a quick and easy way to find products. Ensure the search bar is prominent and influential. Themes come with enhanced search functions that let users filter results by type, price, brand, or color, streamlining their shopping experience.

8. Develop Your Brand Identity

Creating a solid brand identity is essential to building an online fashion store that customers can connect with. Your brand identity includes your name, logo, color scheme, and tone of voice. Branding helps set you apart from other online stores, especially when your products are not unique, but how you present and market them is. Your store’s design is one of the primary drivers that attract customers.

Make sure to focus on the emotional aspects of branding—what story does your brand tell? Why did you decide to start it? These questions can be answered on your About page to help connect with your audience on a deeper level.​

9. Set Up Payment and Shipping System

To establish payment and shipping systems for your online clothing store, concentrate on two primary elements: payment gateways and shipping strategies.

Payment Gateways

Payment gateways facilitate the secure processing of transactions on your website. PayPal, Stripe, and Square offer reliable service and easy integration with most eCommerce platforms. When selecting a gateway, ensure it accommodates various payment methods like credit cards, debit cards, and mobile wallets (e.g., Apple Pay or Google Pay) to provide flexibility for your customers. Choosing a gateway that ensures robust security measures, such as SSL encryption and fraud detection, is crucial to safeguard customer information and maintain trust.

Also, look for a gateway with features for tracking sales and managing inventory. These tools can streamline the checkout process and help you monitor your store’s performance.

Shipping Solutions

Begin by deciding how you will charge for shipping. Your choices include flat-rate, free, or calculated shipping rates based on product size and destination. Calculated rates provide precision but might lead to unexpectedly high costs, which could discourage customers. A flat-rate or free shipping strategy can mitigate this issue and enhance the shopping experience.

It’s essential to communicate shipping costs and delivery times clearly before customers checkout. This clarity can help boost conversion rates and reduce cart abandonment. Many eCommerce platforms offer integrated shipping tools, and you can also use services from FedEx, UPS, or DHL to improve order tracking and expedite fulfillment.

Finally, if you sell to customers outside your country, ensure your shipping provider supports international delivery and that your payment gateway can process multiple currencies.

10. Publish and Promote Your Store

Once your online store is operational, the next step is to promote it effectively to attract a larger audience and boost sales. Here are some strategies to consider beyond the usual social media and email marketing:

• Content Marketing:

Producing valuable content can enhance your visibility and establish trust with your audience. A blog can be an excellent platform for sharing insights on fashion trends, styling tips, or product-related guides. For example, discussing how your clothing aligns with seasonal trends educates your customers and can elevate your search engine presence, drawing more organic traffic to your store.

• Search Engine Optimization (SEO):

Optimizing your website for search engines is a strategic approach to boosting visibility over time. This involves incorporating relevant keywords in your product descriptions and meta tags and crafting high-quality content that addresses your customers’ queries. To improve your search engine rankings, make sure each webpage features unique titles and meta descriptions.

• Paid Advertising:

Utilizing paid advertising on platforms like Google and social media can quickly increase traffic to your site. Google Ads lets you bid on keywords related to your offerings, helping your store appear prominently in search results. Ads on social media platforms like Instagram and Facebook can be finely targeted to reach specific audiences based on their interests, behaviors, and demographics.

• User-Generated Content (UGC):

Encourage customers to post photos or videos of themselves using your products. This leverages authentic social proof and enhances engagement with your brand. Promote UGC by creating branded hashtags and initiating contests to motivate more customer participation.

• Influencer Marketing:

Collaborating with influencers who resonate with your brand ethos can dramatically broaden your reach. Influencers can produce genuine content that displays your products to their audience, thus driving brand awareness and sales. Micro-influencers might offer higher engagement rates at more affordable costs than larger influencers.

• Social Media Engagement:

Social media remains essential for promoting online stores despite expanding into other areas. Utilize platforms like Instagram and Pinterest to post attractive content, conduct giveaways, and engage with your audience. Pinterest is especially beneficial for fashion brands, as many users look for style inspiration and are inclined to purchase.

• Retargeting Ads:

Retargeting can effectively recover potential customers who visited your site but left without purchasing. Platforms like Facebook enable you to specifically target users who engaged with your products but did not complete a purchase, helping reduce cart abandonment and boost conversions.

• Collaborations and Partnerships:

Forming partnerships with complementary brands for cross-promotion can effectively introduce your products to new audiences. For instance, if you sell clothing online, teaming up with an accessories brand can benefit both parties by broadening your customer base.

Remember this too: A clear return policy is crucial for gaining customer trust. Make sure your return and refund policies are simple and easy to understand. Include details on timelines, conditions, and steps for making a return. It’s best to have a dedicated page on your site explaining how returns and exchanges work.

11. Post-Launch Maintenance and Updates

To ensure the long-term success of your online clothing store, it’s vital to keep it updated after launch. Regular updates to product descriptions, images, and blog content can enhance customer engagement and boost your SEO. Outdated content may reduce your credibility and lower your search engine rankings. Displaying customer reviews and user-generated content like photos and testimonials can also increase trust and conversion rates.

Analytics tools, such as Google Analytics, can be used to track bounce rates and conversion rates. This data helps you fine-tune your site based on user interactions. Additionally, it’s important to keep your store secure by applying the latest security updates and monitoring your site’s uptime to avoid breaches that could damage customer trust.

Utilize automation tools to manage tasks more efficiently and motivate your team by setting clear business goals and celebrating milestones. Ensure that your store’s technology can handle increasing traffic and sales as your business grows. This might include implementing faster load times and adding new features like product recommendation engines. Also, consider expanding your product line thoughtfully to align with market trends and customer demands.

Conclusion

Launching an online clothing store offers a unique opportunity to enter the fashion industry with relatively low overhead costs and the potential for substantial growth. You can create a successful online business by carefully selecting your niche, optimizing your ecommerce platform, and effectively managing your product listings and customer experience.

Remember, the key to longevity in the ecommerce space lies in continuously adapting to consumer trends, leveraging technology for efficient operations, and maintaining a strong, engaging brand presence. Your online clothing store can thrive in the competitive digital marketplace with dedication and strategic planning.

Frequently Asked Questions