It’s not hard to see the attraction of running an online store: you’re your own boss, you don’t have to work the nine till five, and you can do it all in the comfort of your own living room. There’s a wealth of Shanghai-based entreprenuers who are exploiting the widening reach of the internet to supply customers all over the world with everything from perfume to podcasts. The SH Team meets with some of these innovative individuals to get the buzz on the hot biz.

Amber and Ying Chen, founders of Bouquet (shop33592488.taobao.com)

What do you sell online?
We sell clothes aimed at women between 25 and 35, who are too busy to find the time to go shopping. It’s casual, everyday wear. We also sell bags and other accessories. We think that women in this age range are a niche market: they’re used to buying things online, but there isn’t much clothing for them.

Why did you set up your online business?
I think that our reasons are the same as ever yone else. The initial cost of a real shop is a lot. If you spend a lot of money on a shop, your prices will go up and this goes against our idea of selling high quality goods at an acceptable price.

Where are most of your customers based?
Mostly Taiwan. We have a shop in the largest online shopping mall there. We also have a shop on Taobao, but we only started in the Chinese market about two months ago.

What are the advantages of selling online?
The low operating costs. The rotation of products is quicker. When a product arrives, we can take the photos immediately, and have it online the same day. It’s a lot quicker than in a real shop.

Are there any difficulties with selling online?
There’s a certain kind of customer who shop online and they like our products, but they don’t buy them because they can’t try them on or touch the material. This is why we offer a free refund service.

Do you think that online shopping is going to affect the business of conventional shops?
Of course. That’s why the high-end fashion stores are upgrading their online shops, such as DKNY and Dior. These conventional stores know that they have to do something.

Are there any customers who are wary about buying from someone in a foreign country?
Yes. When people see that the product is coming from China, they can be hesitant. We just tell them that we have control over the quality. But because we offer a free refund service, people are willing to give us a try.

Dan Washburn, co-founder of Mudan-Boutique.com

What do you sell online?
Our main products are pearls, jade, and handbags from local designers. We plan to expand into other jewelry, more home accents, fashion accessories– but we wanted to start with a small inventory. Ideally, we’ll be the go-to place for people looking for what’s hip and cool in Shanghai boutiques.

Why did you set up your online business?
Most people come here and see potential, a lot of great styles and products they’d like to introduce to a wider audience. We just wanted to do it the right way.

What do you think are the advantages of selling online?
It’s a lot easier to start up, there’s less overhead, and you don’t have to have a huge staff. I’m a lot more comfortable with the internet – it’s what I know. It’s the future of commerce.

What are the difficulties?
The biggest difficulty is getting the website in front of people, spreading the word and getting people interested in the store. We are aware it will be a slow process.

What tips would you give to someone who is thinking of setting up an online shop?
Figure out the supply side before you get going because supply here can be really tricky. You need to get quality and consistent supply under control before going forward.

Are any of your customers wary about buying from someone in a foreign country?
We have offices in Shanghai and Atlanta, Georgia, and we are incorporated in the US so we are technically an American company. People are coming to our store because they are interested in Chinese styles and goods. Because of the nature of our product line, I don’t think we will experience anything like that.

What would you be doing if you were not working on MudanBoutique.com?
It’s just one of my many projects – it’s not taking the place of anything. I have Shanghaiist.com, Mudan Boutique, and a freelance career I’m trying to maintain. I’m just adding something to the list instead of subtracting. I’m much busier now than when I had a full-time career.

What is it about running your own online business that is so exciting? Couldn’t you make more money at a conventional office job?
I’ve never been the type to sit in an office. I think the office opportunities will always be there. While I’m able, I will do everything I can to avoid having to fall back on that. All the different projects I’m involved in are varied enough to keep life interesting, challenging, and fun.

Wang Yipin, owner of Cosmetic Hong Kong (shop3362-6531.taobao.com)

What do you sell online?
I sell all kinds of big name beauty products on Taobao such as Christian Dior, Clarins and Clinique.

How did you get your online business started?
I work from home for a state-owned company, so I decided to take advantage of my flexible schedule and start a business of my own. I’m a maniac about beauty products, so why not use my knowledge and sell cosmetics to people? Online shops work just fine for beginners like me who can’t afford the rent for a real store, so I opened my own cosmetics shop on Taobao in April 2006.

So how is the business going?
So far so good. The beauty products I sell are cheaper than those in Shanghai’s shopping malls because they are bought in Hong Kong through my friends, so they are really appealing to girls in Shanghai. I get at least ten online orders every week.

What do you think are the advantages of selling online?
Low cost, low risk, and fast transaction process. Plus I get to meet a lot of new people.

What’s the most expensive thing that you’ve sold?
Clarins face cream, ¥569.

Are there any difficulties in selling online?
I think the most difficult part is that people tend to be more suspicious when they buy online. They might be afraid that the beauty products I’m selling are fake. I often have to scan and send my customers the shop receipts as proof, or I meet up with them in person and show them the products before they pay.

Do you think that online shopping is going to affect the business of conventional shops?
Online shops are definitely growing, but I don’t think they’ll damage conventional shops. As a matter of fact, I plan to open up a real shop in the future. Customers always feel happier about opening their wallets when they see the products for real.

What tips would you give to someone who is thinking of setting up an online shop?
Choosing the right products is essential. Make sure you sell things you are familiar with. You also need to get your goods from reliable sources. I’m lucky to have friends who visit Hong Kong regularly!

Henrique Valle, cofounder of MTO123.com

What do you sell online?
We sell shirts, cups, and items that can be upgraded with the customer’s unique logo or design. We also sell designs from various artists on our products. In a larger sense, we sell identity and exposure.

Where are most of your customers based?
We have received orders from all over the world, but mostly China, where we concentrate our marketing efforts.

What do you think are the advantages of selling online? We are open 24 hours a day, seven days a week. [Selling online] also allows adjusting to trends and market conditions much more quickly, and that gives us an advantage in incorporating trends into products.

Why made to order apparel?
We believe that the current model of brands deciding what people should wear, designing goods, putting them on sale and then expecting people to buy is not compatible with the freedom that the new media empowers us with. Think about it: why should you choose between a limited range of mass produced goods when you can use the reverse process and chose what to wear and then get it produced? It’s true that a large segment of the population just wants to wear what everybody else wears but, as time goes by, people not only here but everywhere else will tend to express themselves more on a personal level: that means customizing and tailoring everything to each individual customer. It’s already happening, it’s out there.

Couldn’t you make more money at a conventional office job? What about running your own online business is so appealing to you?
Maybe so... but at the end of the year, what do you have? Have you created something of value? Have you filled a need? There is tremendous satisfaction in bringing something from idea to reality and delivering a vision. Money is not and should never be the vision itself.

Ken Carroll, co-founder of Chinese-Pod.com

You started off with free podcasts. You are still offering those, but what else are you offering online now?
The podcasts are an ‘on-ramp’ to the rest of the service. You can listen to them to your heart’s content. They are all free, and that will remain the case. The premium service on ChinesePod.com gives you transcripts, exercises, flash animation tutorials, grammar, vocabulary building - basically, the chance to explore the language in a way that suits you.

Why did you set up your online business? What was your inspiration?
I’ve been in the language training business for 20 years – 10 of those in Shanghai. When it comes to Mandarin, there are some prehistoric (as well as crazy) ideas about how it’s learned… There is no reason why spoken Mandarin should be considered any more difficult than any other language. We want to try to overcome the perception that Mandarin is abstruse or inaccessible - it isn’t! With almost 6 million lesson downloads in 9 months, I think we’re managing to do that.

Where are most of your listeners?
The US, though we have people from over 70 countries.

What do you think are the advantages of selling online, specifically something like language lessons?
It’s a frictionless distribution channel that can bring the best teachers in the world, on a daily basis, into your home or iPod just hours after the lesson has been recorded. The configuration that we’ve put together, I believe, is unique: The web 2.0 tools – blogging, RSS, podcasts – also allow for constant feedback from users. They can request lessons, make criticisms/recommendations, and even help write the program. You can’t do that with a book! The scalability that the internet offers means you can do all of this for a reasonable price but still be profitable.

What tips would you give to someone who is thinking of setting up
an online business?
Don’t over-plan it, just start with a good idea, obviously, and develop as you go, based on user feedback. If you obsess [over] your feedback channel and you can execute really, really fast, then you are strapped to a rocket, and you have my profoundest admiration. In fact, I think I love you.

How many people have visited your site so far?
We’ve had over 1.5 million individual visitors and almost 6 million lesson downloads. The number of paid subscribers is in the thousands and growing.

Any plans to expand?
We’re here to take on the world, change the way language training is done, make the Mandarin language a global force, and do an IPO. The usual.