Online selling is booming, with more people than ever before turning their pass-times and passions into profitable businesses through online stores such as Vinted, Etsy and Depop.
This is especially true for Gen Z, who were brought up with online selling, and are now discovering that trading online can be very lucrative.
However, while there are a number of online guides and tips to help you set up an online store, many of them are either full of jargon or focus only on certain platforms.
So, to save you hours and hours of scrolling and research time, we’ve pulled together everything you need to know about each of the main platforms…
Why is online selling such a phenomenon?
The digital marketplace is thriving at the minute, with recent stats suggesting that 89% of people in the UK shopped online last year, and the most common e-commerce purchase was clothing.
Thanks to its flexibility, convenience and low start-up costs, online selling is swiftly attracting people from all ages and backgrounds.
- Flexibility of online selling allows you to manage your business on the go, at any time.
- Low start-up costs mean that you don’t need a big upfront investment, unlike traditional high-street stores.
- Global reach of each selling platform enables you to reach customers world-wide, expanding your market significantly.
What’s the difference between Depop, Vinted, Etsy and Tik Tok Shop?
Every platform offers its own unique features and caters to different types of products and sellers.
Below are the most popular online stores contributing to the ecommerce boom…
Vinted is a digital marketplace for selling and buying second-hand fashion items, mainly clothing and accessories. It’s great for thrift shopping and selling, however there are some considerations such as fees, taxes and its varied shipping processes.
Vinted doesn’t charge sellers for listing, it charges buyers a ‘buyer protection fee’, which is between 3% and 8% of each purchase, with plenty of shipping methods to familiarise yourself with from pre-paid labels to collection lockers, so you can confidently ship to buyers.
Vinted made headlines recently with new tax rules brought in on the 1st January 2024, as the platform now has to declare sellers’ earnings to HMRC if users earn over £1,000, so ensure you’re well-informed on this before setting up your online shop.
Depop is a social shopping platform that combines aspects of social media with online selling, ideal for fashion and unique items. It’s high user engagement means it’s great for boosting sales and reaching a wider audience, and you can easily showcase your brand’s identity through its Instagram-like layout, however it’s worth noting that the platform takes a 10% commission on all sales.
Etsy is a global marketplace powered by a community of independent vendors and makers to sell unique and creative goods, particularly handmade gifts, vintage and craft supplies, offering SEO optimisation and built-in analytics for your listings to increase visibility. Although the platform charges a listing fee and takes a percentage of each sale, it’s easy to set up and maintain your Etsy store.
TikTok is better known as the viral short-video platform, but has now incorporated shopping features into the app, making it a powerful tool for marketing and selling your products. With high quality and engaging content, as well as staying up to date with the latest trends, you can gain visibility for your online store.
TikTok’s shopping features also allow you to link directly to your store from any content you post on the platform, making your shop accessible to everyone in the ‘For You’ feed.
Setting up your business
Starting an online business can be daunting as it requires careful planning and execution, but we’re here to guide you through it, from business plans to financial advice, there’s numerous ways we can help you get started with our free and fully funded business support.
As well as free support, the BIC offers free workshops on managing finances, securing your first customers, getting to grips with self-assessment and much more. Starting your business with the BIC is easy thanks to our expert business advisers with you every step of the way.