Online specialist tool shop

Tradies, hobbyists and DIY customers who want a specialist range, good advice or convenient delivery.

Markup on products sold, with higher margins on accessories, kits and consumables. Repeat orders from tradies help, and stocking only fast sellers keeps cash tied up less.

• Product knowledge in your chosen niche
• Online selling and basic marketing
• Order packing and customer service

• Australian Consumer Law covers refunds, warranties and accurate product descriptions, check your obligations
• Electrical and other products must meet Australian safety and compliance rules, check with your state fair trading or product safety regulator
• Heavy and bulky items can make postage costly and returns painful
• Public liability and product liability insurance, plus cover for stock
• Check council rules if you store stock at home, and ABN and GST requirements
• Price pressure from large retailers and overseas sellers

Estimates suggest startup costs typically around $5,000 to $30,000, depending on how much stock you buy and how you set up your web shop. You may hold stock at home or in a small storage unit.

Monthly revenue is typically estimated at around $3,000 to $15,000, depending on your chosen niche, range and marketing. The estimates start from about 15 hours a week, and revenue is not the same as profit.

Check your Australian Consumer Law obligations on refunds, warranties and accurate descriptions. Electrical products must meet safety and compliance rules, so ask your state fair trading or product safety regulator. Also check insurance, council rules for storing stock at home, and ABN and GST.