Want to start an online store? Start here

Here are some things you have to keep in mind to turn your online shop into a success:

• Developments
• Types of online stores
• Hobby or business?
• How much does an online shop cost?
• Laws and regulations for online sales
• Buying products
• Payment methods
• Product liability
• Apply for an e-commerce trust mark
• International customers
• Fraud
• General information for starters

Developments

In 2023, there were more online stores (in Dutch) than physical non-food shops. This is due to a decrease in the number of bricks-and-mortar shops and an increase in the number of online shops. In addition, more and more entrepreneurs are starting an online shop alongside (in Dutch) their physical shop.

About a thousand online shop owners also quit every month. They didn't understand how much time running an online shop takes, do not earn enough, or cannot cope with the amount of competition.

Before you start your online shop, do some research into how the market works. What products do you want to offer? Is there a demand for them? What does your target group look like? How many competitors do you have and how do they do it? You can list all these things in a business plan.

Popular products

Most e-retailers sell clothing and fashion accessories. There are also many online shops dealing in home and garden items and other non-food items.

Top 5 new online shops

(Source: KVK Business Register – January up to and including December 2023)

Types of online stores

There are different types of online stores, each with their own defining features:

Online shop

With your own stock, you are responsible for buying and selling your products yourself. You also take care of shipping your products and managing returns yourself.

Platform

Through an online department store like bol.com, Amazon and Coolblue, you get access to millions of buyers. You can have tasks like shipping and invoicing done by the platform, for a fee.

Dropshipping

Dropshipping is selling online without stock. When you receive an order, you place it with your supplier. The latter then sends the products directly to the customer. The advantages of dropshipping are that you don't have to buy and store items yourself.

Do you sell products via dropshipping to EU consumers or work with international suppliers? If so, pay attention to VAT rules and product liability.

Social commerce

With social commerce, you sell online but do not have an online store. Sales are made via social media. For example, Pinterest, Instagram Shopping (in Dutch) and Facebook Shops. The advantage of social commerce is that your customers can make their purchases directly through the Instagram or Facebook app.

Hobby or business?

Many e-retailers originally start their online store from home as a hobby or as so-called ‘side hustle’. But what if your hobby manages to grow into a business? If you meet the following 3 criteria, you are required to register your online shop with KVK:

• You sell products and/or services in your online shop and make the decisions yourself. Or you are preparing to do this. For example, you have already started purchasing products.
• You charge commercial prices that make you money.   
• You regularly supply goods or services through your webshop to people other than your family, relatives or friends.

To be a professional seller on online platforms such as Bol.com, Marktplaats, Amazon, AliExpress, eBay, etc., you usually need a KVK number.

How much does an online shop cost?

You can start an online shop without making any major investments. But you will need a budget for some things, for example:

• A subscription to an e-commerce platform
• Registration of your domain name
• Purchasing products
• Marketing
• Shipping costs

Laws and regulations for online sales

E-retailers have to comply with strict rules for online retailers that protect you and your customers. For example:

• You are obliged to state your visiting address, e-mail address and telephone number on your site.
• You must clearly state what you offer, what the price is and whether there are any additional costs.
• Your customers need to know whether they will get what they order, how they can pay and what service you offer if they are not satisfied.
• Your customers have a legal right to a cooling-off period. You need to explain that before they order anything.
• You have to explain how the ordering process works.
• You stay within the limits of what is allowed to entice customers to buy additional services or products.

These rules protect your customers as well as yourself.

Returns policy 

Ordering online is simple. That is why online retailers get a lot of returns. In fact, Dutch consumers return the most of all European consumers (in Dutch). Returns cost online retailers a lot of money: on average, you spend €12.50 per return. And customer service and financial settlement also take a lot of time. Fortunately, there are several ways to reduce these costs and prevent returns.

Keep in mind that there are rules about returns you need to follow. For instance, you must offer a return period of at least 14 days.

Sustainability

Rules on sustainability are on the rise and have an increasing impact on your business. For example, there are rules and laws on packaging, choosing business premises, or importing products. There are also rules that affect not only your own company, but the entire chain you are part of, such as the CSRD. This European directive requires large companies to be transparent about their impact on people and the environment. As a small company, do you supply to large parties? If so, you may have to provide information on your own sustainability performance. To get off to a good and green start, read this article. It will save you time, effort, and money in the long run.

Extended producer responsibility

Are you bringing a product onto the Dutch market for the first time? Check whether you have Extended Producer Responsibility (EPR). You will then be responsible for the waste phase of your product. This involves additional rules and costs. There are a number of product groups for which an EPR applies, such as textiles, packaging, and electrical and electronic appliances.

Photos and images

Good images are essential for an online shop. Suppliers and brands will often have ready-made product photos for you to use. Please note that you are not allowed to use photos that do not belong to you, as they are copyrighted.

Purchasing products

You can purchase the products you sell in your online shop from a wholesaler, a supplier, or straight from your brand of choice. A wholesaler is a company that sells to businesses. Therefore, most wholesalers will require you to be registered with KVK. 

Research the company you are looking to source your products from: 

• Are they reliable? 

• Is there a minimum order quantity per product or a minimum order amount? 

• Do they comply with Dutch rules and regulations? 

Payment methods

Your customers want to pay in a way that suits them best. Good to know:

• You are not allowed to require customers to pay in advance and therefore have to offer a payment method that allows them to pay later. 

• You can also work with a payment service provider who will let you offer lots of different payment methods, but you will usually have to pay transaction fees. 

• You want your customers to be able to pay securely. You need to protect your online shop against payment fraud with a secure payment system. 

Product liability 

The law stipulates that if a product causes damage, the producer is liable. This is called product liability. According to the law, you are a producer if you manufacture a product yourself, but also if you: 

• modify a product before selling it 

• sell products under your own brand name 

• import products from outside the EU 

Say, you source phone chargers in China and sell them in the Netherlands. If one of the chargers malfunctions and damages your customer’s phone, you are legally liable for the costs. Read more about your responsibility in regard to product safety.

Determine your risks with the KVK Insurance check. Discuss which risks to insure against with an insurance adviser. Also find out whether your products meet all the legal requirements. For example, is CE marking required for your product? 

Apply for an e-commerce trust mark 

More than half of all online shoppers prefer online shops that have a trust mark. An e-commerce trust mark proves your onlinme shop complies with all rules and regulations. Customers also know that you have a secure payment environment and offer a fair complaints procedure.

You can apply for an e-commerce trust mark for your online shop to WebwinkelKeur, Qshops (both in Dutch), Thuiswinkel Waarborg, and Webshop Keurmerk. These organisations also offer e-commerce advice and information. 

International customers 

What you may not realise as a new online store owner, is that you may quickly receive international orders. So, it is a good idea to put some thought into matters like international shipping and VAT rules for e-commerce before you go live. 

If your online shop sells products to European customers, they will expect you to comply with their local laws and legislation. International customers will be more likely to trust e-commerce trust marks that are well-known in their country. On 'Your Europe‘, you will find information on e-commerce rules in the EU. 

Fraud

The increased popularity of e-commerce has not gone unnoticed by criminals. They try to scam and steal from e-retailers and their customers in all sorts of ways. Fake shopping sites identity fraud, breaking into customer accounts, hacking, skimming, and more: you simply have to stay alert and take measures to prevent cybercrime and payment fraud.

General information for starters 

As a starting business, you may well encounter these topics:

• taxes
• small businesses scheme (KOR) 
• general terms and conditions
• part-time business
• administration
• choosing a company name
• writing a marketing plan