It’s no secret that the fashion industry is a huge money-maker. In fact, it’s one of the most profitable industries in the world. But what exactly is it that makes fashion so popular and lucrative? And how can that benefit you?
Well, for starters, fashion is all about self-expression. It allows people to express their individuality and style. With so many different trends and styles to choose from, there’s something to suit everyone.
But fashion isn’t just about looking good. It’s also about feeling good. When you look great, you feel confident and empowered, and that’s something that everyone wants to experience.
Building your own empire
If you’ve always dreamed of running your own fashion house, maybe now’s your time to shine!
For the budding entrepreneur, online marketing has opened up a wealth of opportunities, and with the big names competing for business, there’s plenty of chances to sneak under their radar, entering the niche gaps that they don’t cater for.
Specialization is the key
Established brands offer choice, but independent stores, both online and in the mall, can offer specialization, carried out to an exceptionally high standard.
Identify a niche, such as ethical, petite, or plus-sized fashion. Wow Fashion stocks a wide range of budget-friendly fashion lines, including linen and cotton pants, that satisfy these niche markets, allowing you to select your specialization and plan your eCommerce website.
You could also consider drop shipping as a way to avoid holding stock, and the costs that doing so entails. By placing your customer’s order with a drop shipping company, it’s their responsibility to pack and ship the product straight to the customer.
Create an image
Fashion is all about image, and this needs to be reflected from every part of your online store. It’s one thing to know and understand fashion; it’s another to have both the vision and knowledge to design a fully functional eCommerce website. You’ll need it to take orders, customer details and process payment at the very least.
Fortunately, there are companies designed to build just the sort of website you’ll need, such as Browne Jacobson. Specializing in eCommerce, their team can do as much or as little as you want, including support in the legal aspects of developing a fully functioning website.
The legalities of online retailing
Taxes
If you’re starting a business, whether online or not, in the UK, you’ll need to apply for a tax ID. This is a unique number that identifies you to the Internal Revenue Service (IRS). Every state has different laws when it comes to tax so it’s crucial to research your particular state, and this can vary again depending on the nature of your product. In New York, for example, clothing is taxed, whereas in California, it’s tax-free.
Payment gateways
This refers to how your customer pays you, and there are several types of payment gateway. Points to consider include:
- Are there anti-fraud features?
- Are there any fees for setups, transactions, terminations or monthly charges?
- Is the gateway hosted or not?
- How are payment processing problems dealt with?
Business insurance
To protect both your business and yourself, insurance designed for small businesses is necessary. At the very least, it’s wise to have Professional Liability insurance which guards against complaints of malpractice and any errors that might occur.
Federal Trade Commission compliance
There are certain rules in place for online advertising, and these fall under the jurisdiction of the Federal Trade Commission (FTC). The FTC carry a lot of authority and there are heavy penalties for violating their rules, which include:
- CAN-SPAM Act – guidelines for emailing customers
- Consumer Review Fairness Act – allows customers to share honest reviews online, including on social media
- Deceptive marketing – making false product claims goes against the FTC’s rules
Although the red tape may seem daunting, once you have the basics in place, the rest can be eased in over time, as your online business becomes more established. Fashion is an ever-growing market that shows no signs of slowing down, so why not make your mark now!
