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PRESENTER LAUREEN: Welcome to the webinar How to start an online shop in the Netherlands...
where we will talk about what is involved in starting an online shop.
My name is Laureen, I'm your host today. Joining me is KVK Business Advisor Johan Laffra.
LAUREEN: Hi, good to have you. Ginfling.nl owner Emma Hutchinson.
Hi.
LAUREEN: And owner of capsulestudio.net Sebastian Pollesello. Thank you all for being here.
Before we start discussing the topic 'starting an online shop'...
let's take a look at a video on where to begin.
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WOMAN: Want to start an online shop? Discover what steps to take.
DOOR OPENS SEWING MACHINE
WOMAN: Kim makes handbags from recycled fabrics as a hobby.
COINS CLINKING WOMAN: But she's noticing that sales are going fast.
She decides to start an online shop.
Kim knows which products she wants to sell, and to whom.
TYPING SOUNDS WOMAN: She has also thought of a good domain name.
She gets started.
TYPING WOMAN: First Kim registers her domain name. BELL RINGS
WOMAN: She chooses the legal structure sole proprietorship...
and registers with the Netherlands Chambers of Commerce, KVK for short.
THUMP WOMAN: KVK reports her registration to the Tax and Customs Administration.
TING WOMAN: If the Tax Administration designates Kim as an entrepreneur for VAT purposes...
she receives her turnover tax number, and VAT identification number.
CLICK WOMAN: Kim checks which taxes she has to pay, and how she can manage her business records...
WOMAN: to meet the legal requirements on business.gov.nl. FILING CABINET CLOSES
WOMAN: Kim builds her online shop. CLICKING
WOMAN: She checks with ACM, the Netherlands Authority for Consumers and Markets...
which laws and regulations apply to online sales. CLICKING.
BELL RINGS WOMAN: She prepares general terms and conditions...
and ensures her website is properly secured against cybercrime. LASERS FIRING
WOMAN: She gets started with marketing. BUBBLING
WOMAN: She writes a social media plan and ensures her shop can easily be found on Google.
TING WOMAN: She also applies for a quality mark, signalling to visitors that her shop is reliable.
WHOOSH, BUBBLING WOMAN: Kim is ready to run her online business.
WHOOSH WOMAN: Want to learn more? Find all you need on business.gov.nl.
TYPING WOMAN: Government information for entrepreneurs.
LAUREEN: Johan, what can we learn from this video?
JOHAN: As you can see in the video, starting your own online shop seems fairly easy.
It's easy to set up and start doing.
We made the video to show that, and to make sure that people know it's easy to start.
But still, once you have your online shop, you'll be considered an entrepreneur...
and as an entrepreneur there are a lot of things to juggle in order to have everything covered.
LAUREEN: Sounds good. Sounds informative. Emma, you're one of those entrepreneurs...
who started a business in the Netherlands with Gin Fling. Let's have a look at what you do.
MUSIC EMMA: My name is Emma.
My company is Gin Fling. We're an online gin retailer in the Netherlands.
We've recently expanded to some other drinks as well, but gin is our passion.
We sell all the brands that everyone will know already...
but our mission was to bring different and exciting gins to the Netherlands...
which is the home of gin, or was the home of gin.
We now source from many different countries through sourcing partners.
We try to bring something a little bit different.
We try and find limited editions. So things people can try and explore on their gin journey.
So we registered in July of 2019 and by October we had the site up and running...
and our first transaction on the second of October.
I think we have more gins than most webshops in the Netherlands.
We currently have over 650 different options of gin.
We also like to provide more of a personal service.
So every order that goes out will have a personal note...
and we will try our best to accommodate people with trying to find a gin they'll really, really love.
It came from being made redundant.
My business partner Gary and I decided that we wanted to stay in the Netherlands as expats.
The idea came from an old viewing of a TV programme on a gin company in the UK.
And we thought: why not?
You don't always get to switch off, but the reward is there.
So when you see great reviews from customers, when you see repeat customers coming...
just when you're talking to people in the industry and they recognise you, it's a really good feeling.
Challenges for us come from the alcohol. We have different legislations...
and we have to get in touch with government departments...
and understand what the rules and regulations are...
and keep on top of them because they do change.
Gin Fling can have many faces. At the moment we are a webshop...
and we want to move into things like tastings and events.
And there's always the question whether there will be a shop or a bar somewhere down the line.
My advice would be to make a decision whether you want to run with it straight away...
or try and build up to it on a second income.
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LAUREEN: Well, that looked good. It looks great. 650 kinds of gin, that's a lot.
What made you decide to start a shop online in the Netherlands?
Following the redundancy, like we said, we wanted to stay in the Netherlands.
We had always said we wanted to start a business together doing something.
It just so happened to become gin.
It's now two-and-a-half years down the line, and we're doing well.
Going strong. So, why in the Netherlands? And what was it like?
The Netherlands because we both separately made our homes here.
But the connection with the gin is really because gin was born in the Netherlands.
We stole it in England for quite a few years.
And we wanted to bring some of the excitement that the UK now has for gin...
back to the Netherlands and also prove to people that gin is not just a summer drink.
LAUREEN: Sounds good. But what was it like to start your company over here?
EMMA: Very, very simple, in terms of all the registration...
once we'd decided which municipality we were going to be dealing with.
We had the choice between Amsterdam and Almere, because that's where we both live...
and we went along to the local office, we registered the business very simply.
All the information was available in English, so that was perfect for us.
It was almost too easy.
But our challenge and our difficulty is the alcohol side.
Because we sell alcohol, there are some strict rules and regulations we have to abide by...
that other online shops won't need to.
Okay. So you've done your research first? LAUGHTER
We did as much research as we could. There were things that surprised us afterwards.
Learning that the EU is not totally open for sending alcohol...
unless you have registrations in those countries, mainly to do with tax.
But everything else has been quite straightforward.
LAUREEN: I can imagine.
Johan, hearing this as a business advisor for the Netherlands Chamber of Commerce...
or KVK as we say, what in your opinion is the best preparation for starting an online business?
It's just as Emma said: It's easy to start your business.
The actual paperwork isn't the biggest deal.
But I always advise people to take some time for preparation right from the beginning.
It's an actual thinking process, which is going to take some time.
You need to look at what it is you'll be doing, you'll be looking at your unique selling point...
you'll be trying to find where you fit in. That's important.
On top of that, you're going to look at the markets, you're going to look at competition.
You want to make sure there's enough room for you to be successful with your business.
That's important. And for me, I'd always tell people to look at the financial part as well.
Look at your investments maybe.
It could be that you have an investment budget you need to make in order to start the business.
But you'll also be looking at your own personal situation:
How much money do you need to be able to live and do everything you want to do?
So by calculating your revenue for your business...
you can make some decisions accordingly.
That's all going to be helpful in the preparation phase of your business.
Write a business plan. I think that sums it up.
It's not mandatory to do that, a lot of people don't, but in my experience...
by taking the time and writing it down, things will get clear and it will help you be successful.
Paying yourself a salary is also very important.
JOHAN: I would say so, yes. -Besides having a healthy business.
True. Yes, true. LAUREEN: -Good that you mention it.
LAUREEN: I was wondering, for an online business you have the whole technical aspect as well.
Are there things to keep in mind when building a website, for instance?
If you're going to go with the online shop...
the website itself is going to be one of the most important things that you'll work with.
So make sure that it's 100% okay. Make sure it works, it has all the functionalities you need.
Make sure you don't just do half a job. Make sure it works.
You can outsource it. You can build it yourself, but you can also outsource it to other companies.
Yes, it's going to cost you money, but if you have a working website...
it will make things much more efficient...
and it's probably going to save you time and therefore money as well. So yes, it's important.
LAUREEN: So, less hassle? JOHAN: -Less hassle, yes.
I can imagine. Emma, maybe for you, did you build your website yourself?
Because gins are no websites, of course. LAUGHTER
EMMA: We didn't built the initial set-up of our website.
But from the handover of that, we do everything.
We maintain all the lines, we change any details that need to be changed.
We are actually on mark II of our website.
It's interesting what you said about investing and that kind of thing.
With some of our growth plans, our first host site wouldn't have allowed that.
So we quickly moved on and now we're on our second.
LAUREEN: Would that be a quick tip from you?
Make sure that you get someone to build your website, and then you can maintain it yourself?
That was easiest for us.
Gary is also quite technically minded, which is good. He is the technical one out of the two of us.
So it's also good for him, because he understands a lot of the functionality.
Getting the bulk of the work done, but then concentrating on the details yourself...
because no one's going to know the details like you do.
LAUREEN: Exactly. Okay. Sebastian, I want to draw you into this conversation as well.
But first, let's have a look at what you do with Capsule Studio.
SEBASTIAN: Yes, absolutely. MUSIC
ANNA: My name is Anna, and I'm the co-founder of Capsule Studio.
I started the brand together with my husband two years ago.
My name is Sebastian, I'm the second co-founder of Capsule Studio.
An Amsterdam-based, online webshop for women's wear.
We sell suits, but also casual clothes for women of all ages.
SEBASTIAN: We sell these clothes online...
but also in our showroom in Amsterdam and in different shops around the world.
I have more of an interest in numbers, in partnerships...
and we used her passion for the industry to develop the brand.
Our clothing is made to impress. It's made to make women feel confident and powerful.
ANNA: We work with many talented people, with freelancers, creators...
also store owners, business owners.
SEBASTIAN: From the idea behind the product, creating the product, delivering it to customers...
selling, partnerships, you're responsible, but you're also taking part in the whole value creation.
We carefully select the partner factories, suppliers that we work with.
We make sure that the people who produce our clothing work in decent conditions...
they're are fairly paid and fairly treated.
That's also a very important aspect of our brand.
ANNA: It was March 2020 when we received our first collection.
And since then, we have produced five collections already and there are more on the way.
SEBASTIAN: We're really strong in the mid-range where the clothes are still affordable...
but at the same time, fashionable, durable and made in Europe.
The best thing about having your own business is, of course, flexibility.
Every day, you can do different things.
Sometimes you can just wake up with an idea and start executing it from scratch.
For ideas in the corporate world it sometimes takes eight to ten people to say yes...
before you can try something.
When you run a business with your partner, sometimes you just look over the shoulder...
and say: Can we try this? And then you just do something crazy together, and that's amazing.
That gives us great speed. We can innovate very quickly and we can also iterate quite quickly.
Online shopping has definitely become an integral part of our day-to-day life.
At the same time, a lot of people are looking for a bit of the offline experience with a personal touch.
So for sure, in the future it'll be a balance between the digital experience and the offline experience.
My advice for someone starting a webshop is to try fast, fail fast, try again and iterate.
Get in front of customers as soon as possible...
and then figure out the perfect website and the perfect pictures.
LAUREEN: So Sebastian, I heard you say 'looking over the shoulder at your partner'.
How is the dynamic? How does it work, starting a business with your partner?
Great question. Capsule Studio started as more than a business.
It was a project, something to do together. Instead of going skiing, we started a business.
When we started Capsule Studio, we were still dating, and today we're married.
So I think we did something right along the way. LAUGHTER
It's really great. I think there is a downside to this too, which is that the business never sleeps.
You're really in it 24/7 when you live and work with the team.
So it makes it really intense, but that also means we're going ahead really, really fast.
LAUREEN: What was it like for you to start a business in the Netherlands as a non-Dutch person?
I can really echo Emma's experience of how easy it was.
The whole process with the KVK was really, really seamless, quick.
I think we paid 50 euros for the registration and the service from the KVK has also been amazing.
We're in touch with them with WhatsApp even, asking questions about registration.
Maybe we want to change the form of the company, they send us PDFs over WhatsApp.
So it's really, really easy, and a great service, actually. I never gave the feedback to the KVK.
Well, thank you, it's noted. LAUREEN: -That's what we're doing right now.
Does it also count for your partner? Positive experiences as well? Easy to start up?
I think I answer for the business, because I'm more on the paperwork side...
while Anna is more on the creative side.
If there were any issues with the government or taxes, that would be more me trying to solve them.
LAUREEN: Nice. And Emma, how was it for Gary? More on the technical aspect? The website you mentioned?
EMMA: I think that part is understanding what you want...
and what you need and how quickly it can be delivered.
But working with Gary is...
We've known each other more than twenty years, so we know each other quite well.
We know our strengths and weaknesses...
and we complement each other really well for the business.
And as a non-Dutch speaker, or maybe your Dutch is perfect in the meantime.
It might be, who knows? Any experiences with that?
EMMA: I won't embarrass myself with my Dutch.
What we have found, is that starting the business was really good, everything was in English.
We do have customers call us, and what I would say to people is:
Don't be scared that you don't speak Dutch. Almost everyone who phones us speaks English.
In a very endearing way, everyone will say: 'My English is not so good.'
Trust me, it's better than my Dutch. LAUGHTER
We've never had a situation where we couldn't resolve a conversation or request.
We do that by, obviously, telephone, and if we receive an email in Dutch...
then we'll use our friend Google Translate sometimes and we'll resolve it that way.
LAUREEN: It works out fine? EMMA: -Yes. LAUGHTER
LAUREEN: Good. I was wondering, Sebastian, you have an online clothing shop.
But there must be loads of competition. How do you stand out?
There is a lot of competition.
However, you need to remember that not every clothing company is a direct competitor.
We're really trying to find our niche in the mid-range...
where we offer clothes that are of high quality, made in Europe...
and at what we think is a reasonable price.
So we really try set ourselves apart from both the mass market, which is cheap and accessible...
but we also want to be cheaper and more accessible than the high-fashion brands.
So we're trying to find our niche in the middle. What we found, is that...
we don't have much direct competition in that niche.
It's a small one, but we're quite happy to be there.
LAUREEN: So your unique selling point would be?
SEBASTIAN: Our unique selling points are really centred around sustainability...
ethical, local production, and, of course, also a sense of fashion.
When we compare our designs with those of some of our competitors we look at...
we think we are a bit ahead of the curve in terms of designs.
What helps is that we're still quite small...
while bigger brands need to plan productions a year or even a year-and-a-half ahead.
We often make changes and redesigns up until a couple of weeks before the actual productions.
So we're quite fast to adapt to changes in trends.
Nice, sounds good. I was wondering, does the sustainability part come from a moral...
or is that just going on with the trend that we have at the moment?
So, there's a couple of aspects. We see it as two different things:
There's the sustainability aspect, and there is ethics in the fashion industry.
The ethical part is really what we founded the business on.
We decided we wanted to found a business with local production.
We want to be able to visit all the factories ourselves, see the working conditions.
We know the salaries of the people working in the factories that produce for us.
That's something really important for us.
The sustainability aspect is something that grew with the business.
We didn't start saying: We want to make ethical and sustainable clothing.
But we found that it really helps us define our niche to also be as sustainable as possible.
Our cotton is certified, it's organic, it's sustainable...
and we try to do everything we can to find good materials, to reduce the time on the road...
to reduce the CO2 effects of transport...
while at the same time not forgetting the ethical part.
So the USPs are in there. Johan, you mentioned that they are very important.
Emma, what are the USPs of Gin Fling? -I think for us it's our broad range.
We are the destination for gin within the Netherlands.
LAUREEN: The go-to? -Yes. There are other online sellers...
that have lots of gins, but we will definitely have some that they won't have.
We actually import to ourselves. Yes, we can resell them on, and maybe we will.
But for us, it's not just about the products that we have.
We understand that price is very important within the Netherlands.
That's something that on a branded product is quite difficult to set yourself.
You do need to really look at what the market is doing.
But we look at creative ways of having really good value without just having very low prices.
And for us as well, it's a very personal service that we like to offer.
For every single order that goes out, Gary or I will write a card...
and it's a genuine thank you for supporting our business.
Sometimes we'll put a little tip on there.
We see the repeat customers coming through, which is always really good.
But we also have the ability for people to come and collect from our premises.
It's always nice to have a conversation with a customer...
see what they're mixing their drinks with.
And also get recommendations from them of something they couldn't find.
LAUREEN: So it's the true personal touch for you, even adding that personal card?
EMMA: Yes, definitely.
LAUREEN: Johan, we mentioned a few trends, personal touches, very important...
sustainability is on trend. What are other trends that are going on in the market as we speak?
There are a few. You can look at recommercing.
That's happening a lot now.
Also, there is voice commerce, which is a thing now. That's a trend.
Customers becoming more and more critical of what they're expecting from your webshop.
That is something that is a trend in this day and age.
And, of course, there's multichannel. If you look at those, those can be considered trends.
LAUREEN: Yes, so the trends go both ways.
Both what's on trend for buying, but also how the customers behave in this aspect.
You mentioned being increasingly critical of delivery times.
Is that something you've experienced, Emma, maybe starting with you?
EMMA: Yes, we have a delivery promise.
Our promise is that we will hand it to the carrier on the same day.
We can't have full responsibility for getting it to the customer's front door...
because we don't physically make that delivery. We are reliant on a carrier.
We will promise to do our part, and most of the time the carrier will do theirs.
I think customers do like to receive things quickly, they also want to receive them affordably.
That for us is a challenge, because our products are quite heavy.
Our products have to be shipped in certain packages.
And there are extra things that we need to pay for in the delivery service...
such as age check verification.
LAUREEN: So different rules and regulations for the shipping partners.
Johan also mentioned multichannel. Is that something you apply as well, Sebastian?
SEBASTIAN: Yes, of course. I think it's really important to be wherever your customers are.
We started as an online-only shop.
We thought online-only would work for a fashion company.
What we quickly learned, was that you need to have a physical presence as well.
So we decided to try partnering with different stores.
Right now, we have stores in Amsterdam, Berlin. We have a store in California, in Antwerp.
That gives customers the opportunity to try on the clothes themselves before buying them.
We also have a showroom.
We don't only sell on our website, but also through Instagram, through Facebook.
So we have all that integrated in our webshop, which is still our primary channel.
So really multiple channels then? -Absolutely.
Johan, just a final question: What would your advice be for someone starting an online shop?
There has been a huge transition from everything offline to online.
So you're not going to be the only one there.
Please take some time to look at, as Sebastian said, a niche, which is good.
Have something that you're specialised in, the same goes for you with gin.
Make sure you figure out what your specific place in the entire market is going to be.
So that clients know what they'll be coming for, and what you can offer them.
I think that's important. And, maybe on a side note:
Also look at security issues. I think that's important too.
Everything is done online, everyone has their shop online...
but cybercrime is really something to take into consideration in this day and age.
So if you have an online shop, make sure you read up on that as well...
and make sure that your website is secure.
Thank you, Johan, Emma and Sebastian for sharing your insights and knowledge with us.
Let's recap. The foundation for a successful online shop...
is a unique idea and product range, good preparations, stable and secure software...
you also need to be able to respond to current trends and developments in the market...
and you need to keep up with what is important to your customers.
Find this and more on the website.
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