Today a blog post about 10 Common Pitfalls When Starting Your Own Online Store and How to Avoid Them. Starting your online store is incredibly exciting, but it often comes with challenges and pitfalls you may not have anticipated. Whether you’re selling handmade jewelry, crocheted toys, or custom clothing, preparing for potential hurdles is important. Based on personal experience, here are 10 common pitfalls to watch out for and practical tips to avoid them. Let’s dive in!

1. Choosing the Right Domain Name

Picking a domain name sounds simple, but it’s often more complicated than expected. You devise a brilliant name, only to find out it’s already taken. Or worse, it’s for sale at an exorbitant price. For instance, I once wanted “Luxury Soaps” for my webshop. When it wasn’t available, I settled on “Luxary Soaps”—a misspelled version that didn’t resonate with customers. Lesson learned.

Pro Tip: Brainstorm multiple names, even if they’re just random words, and use a business name generator to get ideas. Decide whether your store will be primarily in Dutch or English, and choose a domain extension accordingly (.nl for Dutch, .com for international English stores). Make sure your name is easy to spell and remember. Try to avoid things like ‘-‘ in the name.

2. Skipping Market Research

When I first started making soap, I didn’t realize how many regulations were involved. For example, you’re required to submit recipes for testing and certification, which costs around €100. Additionally, your production space must meet specific hygiene requirements, such as being separate from your living space. My attic workspace didn’t qualify, so my soap business ended before it truly began. So yes, I wanted to create a shop from every hobby that I had. For now, I just settle with crocheting, knitting, and pattern-making.

Pro Tip: Research the rules and regulations for your industry thoroughly before you invest in materials or products. Look into market trends to determine demand, and avoid oversaturated niches unless you can offer something unique.

UPDATE DEC 24: In the EU you now need to keep the GPSR in mind. Please look into this before creating your own business.

3. Entering an Oversaturated Market

The market for handmade jewelry, tote bags, and home decor is massive. If your product isn’t unique, standing out will be tough. For example, at one point, Ibiza-style bracelets were trending. Tons of small shops jumped on the bandwagon, making it nearly impossible for new sellers to gain traction. The same happened with designer face masks during the pandemic—those who joined the trend late missed the opportunity.

Pro Tip: Identify gaps in the market. Use tools like Google Trends or keyword research tools to discover what’s trending and where demand exceeds supply. Offer products that stand out with unique features or a fresh perspective. Also, stick to what you believe in as a product. Switching between soap making, crocheting items, jewelry design,n and so on isn’t healthy for a focused business.

4. Managing Inventory Wisely

Balancing inventory can be tricky, especially if you’re running your store as a side hustle. You’re not a factory—overproduction can leave you with unsold stock, while underproduction can mean lost sales.

Pro Tip: Start small. List 1-5 items per product type. Once you identify best-sellers, focus on restocking those. If something sells out, it’s okay to make customers wait a few days for restocking. Better than being stuck with excess inventory.

5. Offering Pre-Orders

Pre-orders can help you manage inventory effectively and reduce financial risk. For instance, before the holiday season, you can create a sample product and let customers pre-order. This way, you’ll know exactly how many items to produce and won’t waste money on unsold inventory.

Pro Tip: Offer two pre-order strategies: “Make to Order,” where customers pay in advance, and “Limited Stock,” where you set a fixed quantity (e.g., 25 items) and stop taking orders once it’s sold out. Both methods create urgency and help you manage expectations.

6. Setting Up Payment Systems

An online store needs a reliable payment system. While platforms like PayPal are simple, they can limit your customer base since not everyone uses them. Payment systems like Mollie require a business account, which can cost around €20 per quarter, even if you don’t make sales.

Pro Tip: Start with Stripe, or WooPayment which is easy to set up and only charges a small fee per transaction. It integrates seamlessly with WooCommerce, a popular WordPress shopping plugin. As your sales grow, consider switching to a more robust system like Mollie for added features.

7. Relying on One Social Media Channel

Social media can make or break your business, but focusing on just one platform limits your reach. For example, TikTok is great for younger audiences, while Instagram is ideal for users aged 30 and up. Facebook remains relevant for users over 40 and is particularly useful for niche groups.

Pro Tip: Research your target audience and create a multi-channel strategy. Post content tailored to each platform, and use analytics to determine what works best. Don’t spread yourself too thin—focus on 2-3 platforms to start.

8. Promoting Your Store

Don’t be shy about promoting your store. Many people feel self-conscious about sharing their hobbies, but word-of-mouth marketing can be incredibly effective. For instance, my family initially teased me about crocheting, but eventually, they started recommending my products to their friends.

Pro Tip: Start by sharing your store with friends and family. Encourage them to spread the word. Use email marketing, flyers, and community events to reach new audiences beyond social media.

9. Not Setting Clear Policies

Every online store needs clear terms and conditions. Return policies, payment terms, and delivery timelines must be outlined to avoid misunderstandings.

Pro Tip: Use online templates – or ChatGPT for a draft version – to create professional policies tailored to your business. Make sure these are easy to find on your website and communicate them clearly to customers.

10. Overloading Your Store with Categories

It’s tempting to sell everything you’re passionate about, but too many categories can confuse customers and dilute your brand. For example, offering crochet items, handmade jewelry, and clothing in one store may overwhelm potential buyers.

Pro Tip: Stick to 1-3 related categories. If you have multiple passions, consider opening separate webshops. This allows you to maintain a clear focus and create targeted marketing strategies for each niche.

Final Thoughts

Starting an online store is rewarding, but it’s not without challenges. By choosing the right domain name, conducting thorough market research, and managing inventory wisely, you can avoid common pitfalls and set yourself up for success. Remember, your webshop doesn’t have to become a full-time business. If it’s just a hobby, keep it small and enjoyable. After all, the goal is to have fun while sharing your creations with the world!