- advisor
- Business
Advertiser Disclosure
Katherine HaanContributor
Katherine Haan is a small business owner with nearly two decades of experience helping other business owners increase their incomes.
See Full Bio
Katherine HaanContributor
Katherine Haan is a small business owner with nearly two decades of experience helping other business owners increase their incomes.
See Full Bio
Written By
Katherine Haan
Katherine HaanContributor
Katherine Haan is a small business owner with nearly two decades of experience helping other business owners increase their incomes.
See Full Bio
Katherine HaanContributor
Katherine Haan is a small business owner with nearly two decades of experience helping other business owners increase their incomes.
See Full Bio
Contributor
Written By
Kelly Main
Kelly MainStaff Reviewer
Kelly Main is a Marketing Editor and Writer specializing in digital marketing, online advertising and web design and development. Before joining the team, she was a Content Producer at Fit Small Business where she served as an editor and strategist c...
Staff Reviewer
Rob WattsManaging Editor, SMB
With over a decade of editorial experience, Rob Watts breaks down complex topics for small businesses that want to grow and succeed. His work has been featured in outlets such as Keypoint Intelligence, FitSmallBusiness and PCMag.
See Full Bio
Rob WattsManaging Editor, SMB
With over a decade of editorial experience, Rob Watts breaks down complex topics for small businesses that want to grow and succeed. His work has been featured in outlets such as Keypoint Intelligence, FitSmallBusiness and PCMag.
See Full Bio
Rob Watts
Rob WattsManaging Editor, SMB
With over a decade of editorial experience, Rob Watts breaks down complex topics for small businesses that want to grow and succeed. His work has been featured in outlets such as Keypoint Intelligence, FitSmallBusiness and PCMag.
See Full Bio
Rob WattsManaging Editor, SMB
With over a decade of editorial experience, Rob Watts breaks down complex topics for small businesses that want to grow and succeed. His work has been featured in outlets such as Keypoint Intelligence, FitSmallBusiness and PCMag.
See Full Bio
Reviewed
& 2 others
Updated: Feb 2, 2024, 11:18am
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations.
Getty
Table of Contents
- Step 1. Decide on a Niche
- Step 2. Set Up Your Legal Entity
- Step 3. Make a Business Plan
- Step 4. Source Suppliers and/or Materials
- Step 5. Create an Online Store
- Step 6. Market Your Online Boutique
- Frequently Asked Questions
Show more
eCommerce sales in the U.S. will reach $1.06 trillion in 2022. With more people buying online than ever, starting a boutique is a great side hustle or full-time business idea. The average income for eCommerce boutique owners is $6,013 per month. Getting started is easy, but it takes time to have all the pieces in place for a successful store. In this guide, we’ll walk you through how to start an online boutique so you can launch your new business with ease.
Featured Partners
Advertisem*nt
1
Wix
Starting Price
$17 per month
Drag & Drop Editor
Yes
E-commerce (low-priced plan)
Yes
2
Squarespace
Starting Price
$23 per month
Drag-and-drop editor
Yes
E-commerce (low-priced plan)
Yes
3
Web.com
Starting Price
$1.95 per month
Website Building
Yes
Standout Features
Customizable templates, easy grag-and-drop technology, SSL certificate
Step 1. Decide on a Niche
A niche is a specific type of product you focus on. When starting an online boutique, it’s important to choose a niche so you can stand out in the enormous sea of e-commerce businesses. Do some research and figure out what type of products you want to sell. Consider your interests, what’s popular in the market and which gap you can fill.
Some niche ideas include:
- Cashmere clothing and gifts
- Vintage-style costume jewelry
- Children’s wall art
- Plants and gardening tools
- High-end stationery
- Ship and boat model kits
- Custom-fitted shapewear
One of the biggest mistakes entrepreneurs make when deciding on a niche is chasing saturated markets. The niche you choose needs a captive audience, but yours must have an edge to compete in a dominant category. How will your products differentiate from the hoard of the same products sold by other boutiques?
Before choosing a name, it’s best to check to see if the domain is available to purchase. You can do this using a site such as GoDaddy. Otherwise, you can check its availability but wait to purchase the name in step five through your e-commerce platform.
The name you choose must be easy to spell, memorable and catchy. While you can choose a domain name ending in something other than .com, it’s easier for customers to remember your site when using .com instead of .biz or .info.
Step 2. Set Up Your Legal Entity
Setting up your legal entity will determine how you’re taxed and what liability you have as the owner of the online boutique. The most common legal entities for small businesses are sole proprietorships and limited liability companies (LLCs).
Sole Proprietorship: As the name suggests, this is a business owned by a single person. There’s no paperwork required to set up a sole proprietorship, but you will need to register your business with the state and get a tax ID. This is the simplest way to set up a business, but you’re personally liable for any debts the business accumulates.
LLC: An LLC offers some liability protection for the owner, and it’s easier to get bank loans and other funding as an LLC than as a sole proprietorship. To set up an LLC, you’ll need to file Articles of Organization with your state and get an employer identification number (EIN) from the IRS. Most states offer this ability 100% online with little to no wait time to incorporate. You can also use an online business filing company, such as BetterLegal or Inc Authority, to do the filing for you.
Advertisem*nt
Start an LLC Online Today With ZenBusiness
Click on the state below to get started.
Step 3. Make a Business Plan
Many small business owners skip the step of creating a business plan. While not required, it’s a good idea to have one in place to track your progress, determine the feasibility of your boutique, understand both your customer and competition, pivot and secure financing.
Your business plan can include sections such as:
- Executive Summary
- Business Description
- Products and Services
- Market Analysis
- Target Market
- Marketing Plan
- Financial Plan
- Business Structure and Ownership
- Legal Requirements
- Operations and Management
You can find templates for your business plan by visiting the U.S. Small Business Administration site. Not only can you access help online, but the SBA also has Small Business Development Centers (SBDC) to assist you on your entrepreneurial journey. These networks provide advice, mentoring, workshops and small business grant opportunities.
Step 4. Source Suppliers and/or Materials
Finding reliable product suppliers for a price you can afford is half the battle of running an online boutique. Find a supplier or wholesaler who offers quality products, on-time delivery and excellent customer service.
To find suppliers, search for terms such as “wholesale” or “product supplier” and include the type of product you’re looking for in your search, such as “clothing supplier.” You can also check out trade shows in your industry to meet with suppliers and get product ideas.
Sources for products include:
- Alibaba
- DHgate
- Mable
- Oberlo
- Tundra
- Abound
- Boutsy
- Handshake
- Etsy Wholesale
- Faire
- Bulletin
- IndieMe
- RangeMe
- LA Showroom
- FashionGo
- Stockable
DHgate can be a great source of wholesale goods for your boutique.
Step 5. Create an Online Store
To establish your store, you first need an e-commerce platform. You can either use a hosted platform, which is a turnkey solution that includes everything you need to launch and maintain your store, or an open-source platform, which requires a bit more technical know-how to set up and maintain. Open-source platforms provide far more customization options than what you’d find with a hosted platform.
The platform you choose will determine the features and functionality of your store, so it’s important to choose one that offers the features you need to run your business. Read our e-commerce platform guide for recommendations.
For ease, we’ll show you how to set up a Shopify boutique. It offers a free 14-day trial.
- Go to Shopify.com and create an account
- Install product apps (e.g., print-on-demand apps)
- Select a theme and customize it with your branding
- Add products
- Add, delete and customize web pages
- Organize your menu
- Set up a custom domain name
- Set up shipping
- Create a test order
- Choose a plan and publish
Please note that while it’s free to create an online boutique with Shopify’s free 14-day trial, you will need a plan for your site to be professional with its own custom domain name and ad-free hosting. This is the case for every quality ecommerce site builder, including Weebly, Wix, Squarespace and WordPress.
Step 6. Market Your Online Boutique
Now that you have your online store up and running, it’s time to start marketing it. There are several ways to market an online store, and the best approach depends on your budget, target market and goals.
Common marketing strategies for online stores include:
- Search engine optimization (SEO)
- Paid advertising (Google Ads, Facebook Ads, etc.)
- Social media marketing
- Content marketing
- Email marketing
- Affiliate programs
- Influencer marketing
- Loyalty programs (create buzz through existing clients)
- Trade shows
- Press coverage
Frequently Asked Questions
How much does it cost to start an online boutique?
The cost of starting an online boutique varies depending on the type of business structure you choose, your product, the platform you use for your store and the marketing strategies you employ. You can expect to spend between $500 and $2,000 to get your online store up and running.
How long does it take to start an online boutique?
It typically takes about four to six weeks to get your online store up and running. However, this time frame can vary depending on the platform you choose and your level of technical expertise. If you’re dropshipping, you can have your site live in as little as a weekend.
What are some ways to drive traffic to my online boutique?
Some ways that you can ensure that your online boutique gets seen by the customers that you want to attract include using the right keywords to keep your store at or near the top of the search engine results pages, keep a constant presence on social media outlets, work with social media influencers, create or pay for relevant, useful content that draws customers to your pages and keep up with your current customer with emails and promotional deals.
Can I run a business from my home?
Yes, you can run a business from your home. Many small businesses start this way. But keep in mind that you may need to comply with local zoning laws and regulations, so be sure to check with your city or county about any restrictions before you get started.
How can I start a clothing business with no money?
One option for starting a clothing business with no money is to dropship products. Dropshipping is a type of e-commerce where you don’t keep any inventory on hand, but instead, order products from a supplier as orders come in. When a customer places an order, you simply contact your supplier to have the product shipped directly to the customer. This eliminates the need for any upfront investment in inventory.
Was this article helpful?
Send feedback to the editorial team
Thank You for your feedback!
Something went wrong. Please try again later.