Initial investment – from 450 thousand rubles.
Payback: from 8 to 14 months.
The business related to the sale of children’s goods is one of the most popular today. Young parents around the world are trying to provide their children with the best quality food and clothing so that they do not spend money on their purchase.
Among the entire range of children’s products, food occupies a special place. After all, if you can do without a new toy, then you can’t do without baby food. In this regard, highly specialized retail outlets dedicated to the sale of food products for children began to appear massively.
But we invite you to consider an even more promising business idea – an online baby food store that combines the two most profitable niches – online trading and the sale of baby food.
How to organize such a business and become a successful entrepreneur, we will discuss in this article.
What is a baby food store?
Baby food is a very limited group of products, but very necessary in the market.
A store selling baby food products is considered highly specialized, as it sells only one group of goods. But, despite the limited assortment, this type of business is popular, since Russia has a fairly high birth rate, which means that the demand for baby food is constantly high.
Moreover, not only the business in the field of trade in children’s goods is gaining momentum, but also its new form – online sales.
In 2014-2015, according to statistics, this industry, against the general background of the Russian Internet market, occupied a not so large share – only 6%.
But over the years, the situation has changed, and now sales of online stores of children’s goods have increased several times. This is justified by the fact that over time, consumers have seen many advantages of online trading that “standard” sales cannot boast of.
Most of the time clothes, shoes, diapers and toys are sold online. But these products are often returned by young parents due to the fact that they cannot test or check the quality of products while sitting at the computer.
With baby food, it’s different. The fact is that young parents know exactly what kind of porridge or mixture their child needs, so they can easily and without problems order products via the Internet.
And in this, parents, that is, the main target audience of the store, find many advantages:
- No need to walk with your child through crowded supermarkets, look for the right food and stand in long lines.
- A wide range of baby food allows you to buy everything you need at the same time and not go to several stores.
- Affordable prices, often lower than in regular stores, allow young parents to significantly save the family budget, which is already tight when there is a small child in the house.
In a word, an online baby food store is both a good business idea for a novice entrepreneur and a desirable niche for consumers.
How can you be sure this business is right for you?
If you love children and are ready to learn how to understand all the intricacies of online trading and baby food names, then this task is definitely up to you. Also, the organization of an online store does not require large investments, special education and extensive experience.
Who is the baby food store for?
It seems quite obvious to us that its main consumers will be wonderful children, or rather their conscientious and loving parents. Therefore, you should always remember that the key to a successful baby food business is your reputation and the quality of the product.
What range of products should be presented in an online baby food store?
Only at first glance it seems that the grocery store is a very bad address. In fact, the range of products sold is very wide. And it will be better if everything is presented in your store.
|The assortment of the online store of baby food:|
|1. Dry mixes (for formula-fed babies).|
|2. Baby food (dairy and non-dairy).|
|4. Puree (fruit, vegetable, meat).|
|6. Cookies and sweets.|
|7. Dairy products (cottage cheese, yogurt).|
|8. Tea (herbs, fruits).|
In addition to the main product groups, in order to get more profit, it would be rational to add related products to the list of food products, such as:
- Baby bottles
- Children’s dishes (plates and cutlery).
Which trade is better to organize: retail or wholesale?
For an online grocery store, the optimal solution would be to carry out wholesale and retail trade.
There are a number of reasons for this:
- First, many formula-fed parents have to buy a new bottle of formula every week (or even every 3-4 days), which is not always convenient. Therefore, for such consumers, the opportunity to immediately order the packaging of the product will be very useful.
- Second, even for older children, it often doesn’t make sense to buy a bag or two of juice, especially if that child goes to kindergarten.
But it would be a mistake not to sell products at retail, because young parents cannot always afford bulk purchases. Therefore, it is still better to combine both wholesale and retail.
And now, if you are still interested in opening a baby food store, let’s move on to organizational issues.
Business plan for an online baby food store
As with other types of business, when opening an online store for children’s goods, a business plan is required. It allows you to answer many questions that arise when organizing a business.
In this case, business planning will focus on the following stages of preparation for launching an idea:
- Market monitoring of potential consumers and competitors.For an online baby food store, the main commodity market is the city itself, where the trade will take place. Although it is impossible to say for sure that the circle of consumers will be limited to one city, since Internet platforms allow you to sell products in all corners of the world.However, you must analyze which segment of buyers will be your target audience. In other words, determine which product groups and in which price range will be most relevant.Do not forget about competitors: look at their offers and pricing on the market.
- Preparation of the material and legal base.Even before you start organizing a business, you need to figure out what your financial capabilities are, that is, do you have enough funds to open an online store.If you do not have the necessary funds, think about where it would be rational to take the missing amount: from a bank or from an investor.Also, get acquainted with the legal side of the issue: what is business registration, what documents are needed for this, what is the cost of the procedure.
- Resolve organizational issues.At this stage, you will need to carefully consider all organizational issues: what kind of website you want to create, what products you will buy, where to find a warehouse for a warehouse and how you equip it, how many employees will be needed.
Each of the stages of planning when starting your own business is very important, so before you start organizing, think through all the questions, calculate the start-up capital and analyze demand and distribution channels.
Only this approach will help you organize a profitable business without losses and losses.
In the meantime, we will move on to a detailed step-by-step plan to create an online store that will help you see how to build your own business.
Baby food for an online store: a step-by-step guide to opening
If you roughly calculate how many stages of implementing a business idea in the field of selling baby food via the Internet, then 7 main steps can be distinguished.
1. Registration of entrepreneurship.
When choosing a way to legalize a business in the field of Internet commerce, a rational solution would be to register an individual entrepreneur, that is, individual entrepreneurship.
This option is ideal for aspiring entrepreneurs planning to open a small baby food store. But, if your plans are to create a whole network of online supermarkets, then it makes sense to think about registering a legal entity (LLC).
To register an individual entrepreneur, you will need to submit an application for registration to the tax service.
In addition to the application, you will also need the following documents:
- Passport of a citizen of the Russian Federation (original and copy).
- TIN code (original and copy).
- Receipt of payment of state duty.
- Application for the transition to a simplified taxation system.
Please note that UTII (Single imputed income tax) is not suitable for doing business in the field of online commerce).
The cost of the IP registration procedure at the moment is 800 rubles. You will also have to spend money on opening a bank account – about 2 thousand rubles. (additional condition), as well as the creation of a physical seal of people – about 1.5 thousand rubles.
Since its activities will be inextricably linked with the sale of baby food, a prerequisite will be to obtain quality certificates and permits from the sanitary and epidemiological station and the fire department.
2. Creation of an online store.
Immediately after the legalization of entrepreneurial activity, we recommend that you start developing and designing a website that will be your online store.
The website of an online baby food store is the face of the company, as well as an “online seller”, on the convenience of which your profit will depend. That is why the development of the site must be approached with all responsibility.
It is better to use the services of experienced web designers and programmers to create a store that can make a site of the desired format. How exactly the online platform for a baby food store will look like, you decide for yourself, based on your preferences.
But in order for the site to bring good profit and attract potential customers on the Internet with its appearance, one should not forget about some requirements for such sites:
- The site must be highly functional in order to combine an online trading platform, inventory control and online orders.
- The entire assortment of the store should be clearly divided into groups so that the visitor can quickly find the product he needs.
- The interface of the site should be interesting and bright, but not too colorful, otherwise it will repel consumers with its appearance.
- A prerequisite is the availability of high-quality photographs of all the main items, as well as information about them. It is necessary to indicate all the basic data: who is the manufacturer of the product, the composition of the product, power, etc.
- In order for site visitors to be sure that you are selling a quality product, you should place copies of product quality certificates on the site. By the way, this is a very successful marketing ploy.
- It will not be superfluous to create comments on the site, as well as a comment system where all interested visitors can leave comments on your work.
- To pay for baby food in the store, you need to provide different options so that customers can choose the most suitable option: cash, bank transfer or using web wallets.
As an illustrative example, here is an example of a very successful interface for an online store for children’s goods:
3. Selection and rental of the necessary premises.
Although the activity of the online store of baby food is concentrated on the network, it is still necessary to rent some premises.
One of them is necessary for the formation of a warehouse for products sold, from where orders will be delivered. The second will be used as an office where operators will answer calls and process customer requests.
Since baby food is not the most numerous group of goods, the rented premises should not be very large.
To organize a site for an online baby food store, the following areas will be enough:
- Under the office – 10-15 m2 meters.
- Under the warehouse – 30-50 sq.
These rooms can be located next to each other and at a distance. But for convenience, it would still be advisable to rent them nearby, this will allow you to organize self-delivery of products from the office.
4. Equipment of office and warehouse premises.
To work in an office and organize the storage of baby food in a warehouse, you will need equipment and furniture.
We will give an example of an indicative list of the necessary equipment, as well as calculate its cost.
|A computer||two||20 000|
|Racks (for food storage)||five||4000|
|Refrigerator (for storing perishable food)||a||10,000|
|Table (for packing orders)||a||12000|
|Baskets (for collecting orders)||3||400|
|Trolleys (for unloading goods)||two||3000|
|Total:||115 000 rub|
It is important to note that in order to implement an online baby food store, you will have to spend half on the purchase of equipment than on equipping a stationery store. Savings come from the fact that you do not need to organize the workplace of the seller and buy showcases for products.
5. Purchasing food for children.
To attract a wide target audience, you need to make sure that the assortment of food sold is diverse.
The pricing policy should also be designed for different categories of the population, but should not give preference to the cheapest brands.
Well, if you buy baby food from well-known brands:
To start, buy about 50-70% of the entire range, and then expand the range with sales proceeds. In the process of running an online store, over time, you will be able to highlight the most popular food products and order more, as well as completely remove unsold products from the assortment.
To save on the purchase of goods, enter into supply contracts directly with manufacturers. Their prices are always an order of magnitude lower than those of wholesale intermediary organizations.
All suppliers must provide you with baby food quality certificates along with the products. And do not forget to check the expiration dates upon receipt of products to avoid conflict situations.
6. Selection of employees of the online store.
To open an online store, you do not need a large number of employees. This nuance is another significant advantage of online trading.
First, hire 5-7 people, on the basis that they will work in shifts.
|Workplace||Responsibilities||The number of employees||Category salary per month|
|Operator||Take orders, answer phone calls.||two||17000|
|Warehouse worker||Receive goods, pick up orders.||two||17000|
|delivery courier||Delivery of goods in the city.||two||17000|
|Total:||102 000 rub|
To save on the salary of an accountant, you can initially keep tax reporting on your own or use outsourcing services.
As for the education of your employees, no special knowledge is required. But the operators who will answer the calls must understand the range of baby food and know the main points regarding product manufacturers.
Also, do not forget that your employees should have health notebooks, as they work with food.
7. Organization of delivery.
It is very important for any online store to have a well-functioning delivery scheme, because both the number of customers and the profit of your business will depend on the speed of order fulfillment.
If you are planning to open a small baby food store, it will be enough for you to hire several couriers who can deliver orders within the city.
It is best to hire employees who will have their own transport.
As for delivery in the region or to other cities, the best option here would be to conclude an agreement with a transport company that delivers the goods.
The following messengers are popular:
- pony express.
- City Express.
You can also involve outsourcing couriers. The main thing is that the delivery works smoothly and quickly enough.
How to attract visitors to an online baby food store and make it successful?
First of all, in order for your online store to be popular with customers, you need to create a site for sale, as well as take care of its SEO optimization.
If you do not have skills in this area, it is better to involve specialists. By optimizing the site, it will become more visible to Internet users, and you will be able to increase the number of sales of baby food.
Do not forget about other promotional moves:
- Hand out flyers with information about your online store and a discount coupon for your first purchase. This is best done near playgrounds, hospitals, kindergartens, etc.
- Distribute your business cards in major supermarkets and toy stores.
- Negotiate cooperation with manufacturers – let them recommend you as their representative in the region.
- From time to time organizes seminars for young parents, inviting representatives of the manufacturer. Suppliers will be happy to talk about their products, and for young mothers this will be useful information.
- Provide a bonus program for regular customers, issue discount cards.
- Make sure your delivery is fast, add “express delivery” service to your list within 2 hours.
- Don’t forget about promotions, discounts and sales.
When creating an online store, it is very important to follow the pricing policy of competitors and not overcharge too much, because for most buyers, it is the cost of products that plays an important role.
Also try to work on your reputation: do not allow the delivery of expired and non-original goods.
We have carried out a detailed analysis of all organizational issues and now we will calculate how much start-up capital is required for investment in order to organize an online store selling baby food.
Baby food store as a business idea.
How to prepare a business plan? Market analysis of
The amount of initial investment: we analyze all items of expenditure
To say how much start-up capital is needed to open an online store, you need to sum up all the costs.
|Item of expenses||Quantity (rub.)|
|1. Registration of IP.||800|
|2. Obtaining permits, printing, bank account.||4000|
|3. Site creation.||30,000|
|4. Rent of premises.||30,000|
|5. Purchase of equipment (for office and warehouse).||115 000|
|6. Purchase of goods.||150 000|
|7. Remuneration of employees.||102 000|
|8. Advertising.||20 000|
|9. Unforeseen expenses.||10,000|
|Total:||461 800 rubles|
As a result of all calculations, we found out that the amount of capital investments for an online baby food store will be about 460 thousand rubles.
This amount is indicative, as the rental of premises and the cost of equipment may differ in each individual region.
The payback of a baby food store is already possible within 8-10 months, provided that your online store works stably and generates monthly income of 300-500 thousand rubles.
On average, such companies pay for 1 calendar year.
In this review, we will take a closer look at how to open an online baby food store, as well as what advantages distinguish this business idea.
Given the relatively small start-up capital and the prospects of the direction, you can safely start your entrepreneurial activity in this area.