Table of Contents
To start an online business, you must first understand the market, regulations, and technical aspects specific to that country.
To help you maximise your chances of success, we’ve put together the key elements to consider before you start an online business.
Market research
The first step requires an in-depth market study to start an online business in Spain.
How to create an online store?
The Spanish market is dynamic and shaped by unique cultural and economic factors, making it an attractive opportunity for entrepreneurs looking to start an online business.
With a growing preference for online shopping in sectors like fashion, electronics, and travel services, understanding consumer trends is essential for successfully setting up an online business.
Analyzing these trends will help you tailor your offerings to meet market demand.
Equally important is researching your competitors.
Identifying key players in your industry and studying their marketing strategies, strengths, and weaknesses will give you valuable insights.
This thorough analysis will enable you to establish a unique and competitive position when starting a business online in the Spanish market.
A structured legal and regulatory framework
First, choose the legal form of your business:
- Self-employed
- Limited Society (SL)
- Public Limited Company (SA)
Each has advantages and disadvantages regarding the types of taxes in Spain, liability, and registration costs.
Electronic commerce regulations are strictly applied in Spain.
The Law on Information Society Services and Electronic Commerce (LSSI) imposes obligations such as displaying the general conditions of sale and legal information on your site.
Additionally, you are required to comply with the General Data Protection Regulation (GDPR).
This aims to protect your customer’s data and inform them about its use.
To start an online business, also make sure you understand your tax obligations and accounting needs.
Technical and Logistical Operations
Here are key operational factors to consider when setting up an online business.
Online trading platforms
Choosing the right online business platform is essential to opening a successful online business in Spain!
Popular options include:
- BigCommerce
- Shopify
- WooCommerce
- PrestaShop
Each platform has its own strengths: Shopify is known for its simplicity, WooCommerce for its flexibility, and PrestaShop for its compatibility with European markets.
Payment methods
In Spain, it is recommended to integrate local payment methods such as Bizum and gateways such as Redsys.
Search Engine Optimisation (SEO)
Reliable hosting and a suitable domain name are crucial for your website’s performance and accessibility.
To start an online business also requires specific skills.
Your website should deliver an excellent user experience, featuring an appealing design, easy navigation, and strong search engine optimisation (SEO).
Inventory management and logistics
Spain has a good logistics infrastructure, with companies such as SEUR and Correos.
These offer fast and reliable deliveries.
Make sure you have an effective inventory management system to avoid stock-outs and delays.
How to Attract and Retain Customers in Spain
To grow your online business in Spain, you must develop a digital marketing strategy tailored to the Spanish market.
Checklist for Success:
1. Leverage Social Media
- Use platforms like Facebook, Instagram, and X to promote your products.
- Run targeted ad campaigns to reach your audience effectively.
- Engage with your audience through posts, comments, and direct messages.
2. Implement Content Marketing
- Publish blogs and create newsletters with valuable, relevant content.
- Use content to build your brand and drive traffic to your website.
- Focus on creating high-quality content to stand out from competitors and build trust.
3. Deliver Outstanding Customer Experience
- Ensure your website is user-friendly and offers seamless navigation.
- Provide fast, helpful responses to customer inquiries.
- Go above and beyond to exceed customer expectations.
When you combine social media engagement, content marketing, and great customer service, you’ll attract more customers, gain their loyalty, and drive the growth of your online business in Spain.
Financial control and optimisation
Do you want your online business to succeed in Spain?
Then, financial planning should be a top priority.
Establish a detailed budget that includes initial costs (site creation, marketing, inventory) and recurring costs (hosting, maintenance, advertising).
Explore different sources of financing, such as bank loans, investors, or grants.
In Spain, some public and private institutions offer financial support programs for new businesses.
Use accounting tools to manage your finances and track key performance indicators such as revenue, profit margin, and conversion rate.
When you understand the unique characteristics of the Spanish market, you can anticipate financial challenges and seize growth opportunities more effectively.
One key advantage for entrepreneurs is utilizing Spain’s favourable tax regulations, such as the Beckham Law. This law allows certain expatriates living and working in Spain to benefit from a flat income tax rate in certain situations.
When you structure your business operations to take advantage of such expat tax laws, you can significantly reduce your tax burden while focusing on growth.
Human resources management and skills development
Consider hiring based on your company’s needs, focusing on skills like order management, customer service, and digital marketing.
In Spain, work-life balance is highly valued.
Flexible policies like teleworking, disconnection and holidays, and adjusted schedules can help attract and retain top talent.
Offering perks such as meal vouchers, gas and mileage allowance, and ongoing training can further boost employee satisfaction and engagement.
Delaguía&Luzón helps you with your procedures
By integrating these practices, you will be able to build a competent team and improve the overall performance of your online business in Spain.
Do not hesitate to contact us if you have any questions on the subject!
You can count on Delaguía&Luzón to make your project a reality.
