Online Businesses

How To Set Up An Online Gaming Store

Business Is A Game

Gaming is a real passion for some folks. People spend hundreds of hours of their lives exploring these alternate universes. If this sounds like you, now might be a great time to plan to make a living from your favorite pastime. Not as a professional gamer or a specialist critic, but by launching your own video game store. Entrepreneurship is also an exciting, addictive, and time-consuming activity, so if that sounds like fun, you may wonder how to start opening your own game store. You’ve come to the right place. This guide will uncover some of the main steps to launching a video game store. From market research to fundraising through the development of the business plan, we detail all the steps needed to create a store dedicated to gaming.

Sell Video Games Online

People of all ages across the world play online video games. Over the past two decades, online video games have become a multibillion-dollar business. Ten years ago, people used to buy new computer games every few weeks or every couple of months. This proved to be an expensive venture for most. Today, most computer games are played online, saving gamers from buying a new game every month, but these days, they have to buy a subscription to play these games. Experts estimate that nearly 200 million Americans play video games regularly. Over the past ten years, most people have transitioned to online games rather than playing games on their P.C. And experts suggest that the online gaming industry will continue to expand.

Are You A Gamer?

If you have little or no knowledge about online video games, taking some time out and surfing the internet is essential. You need to understand classic games that many people want and be aware of the newer releases. Your customers will usually ask you what games you recommend, so you must know the basics at the very least. You will need to know the different game consoles available and their differences. There are plenty of videos on youtube about video games where you can acquire a decent amount of knowledge if you want to start a business.

How To Increase Sales?

Run promotions
Start a rewards and loyalty program
VIP sales for good customers
Offer a paid membership

Partner With Other Independent Gaming Stores

It is difficult to start as an independent gaming store because it is so saturated with big players. You may succeed more by partnering with other solo entrepreneurs to help kick-start your business. Independent gaming businesses generally do not have brand recognition like E.A. or Ubisoft. However, some giant wholesalers may permit you to sell their brand as digital downloads from your website. Such partnerships can increase traffic and win over a loyal audience if you supply the latest games.

Sell More Than Games

Because profit margins in video games are small, you will need to sell much more than just games. You may have to run the store like an electronic or computer business to make a decent living. Some of the accessories that can bring more customers include:

Memorabilia
Board games
Collectibles
T-shirts
Phone cases
Phone plans
Music C.D.s and DVDs
Movies, C.D.s and DVDs
Computer parts, memory hard drives, different software programs

Video Game Store Business Plan

After completing all the preliminary steps, you can start writing your video game store’s business plan. If you have never produced a business plan and are not very comfortable with it, you can use online business plan software to help you throughout the process.

Using specialized software to create a video game store business plan has several advantages:

You are guided in the drafting by detailed instructions and examples for each part of the plan.
You can take inspiration from business plan models already written.
You’ll quickly realize your financial forecast by letting the software take care of the accounting aspects.
You get a professional document formatted and ready to be sent to your banker.

If you have not made a business plan before, some websites can help.

BizPlanBuilder: Most user-friendly
Business Plan Quick Builder (has many accessories)
Business Sorter: Best for internal plans
Entrepreneur Business Ideas – Tools & Tutorials (comprehensive)
GoSmallBiz.com: Most extra features
LivePlan: Best overall
Wise Business Plans: Best professional service

Do I Need A License To Sell Video Games?

Yes, you must register your business and apply for a license
You may also require a seller’s permit for the video games
You also need to register your business
Obtain an EIN
Register for state and federal taxes
Open a dedicated bank account

Check out these few companies that can assist you in getting your LLC started.

Here are a few government links you might want to visit

IRS Website

This site by the IRS is a must-see when beginning your LLC

Starting a Business? Incorprorate or Form an LLC!

Do I Need Insurance To Sell Games?

Yes, we recommend obtaining insurance. Video games are costly, and theft is common. Hence, it would help if you got general insurance to cover theft, fire, and vandalism.

Here is a list of some standard insurance companies

Best Places To Get Small Business Insurance

Can I Run A Video Game Business Out Of My Home?

Yes, as long as there are no zoning restrictions. All you need is the following:

Good internet connection
Storage space for the games
Audio and video
A quiet place to conduct your business

You will also be able to deduct the expenses during tax filing.

Opening An Online Store From Home

Selling games online from home has many advantages because you will save money on leasing, utilities, and all the other fees that come with running a brick-and-mortar store. The only negative is that you will need to store your merchandise somewhere. But if you are starting small, then an online home business is the way to go. This method will allow you to test the market and determine if it is worth opening a brick-and-mortar store.

Brick And Mortar Gaming Store, Getting Started

The first step in building your video game store is conducting market research to assess your intended location’s business potential.

You will need to gather information on your area’s video game industry and consumer practices. This will allow you to fully understand consumption habits, purchasing methods, and the issues facing gamers in your area.

Secondly, you will need to carry out a detailed analysis of local video game stores:

How have sales evolved in recent years?
How do stores cope with increased competition from the Internet (e-commerce sites, advertising sites between individuals) and publishers’ distribution platforms (battle.net, Steam)?
Who are the typical store customers (age, socio-professional category, etc.)?
What are the flagship products (consoles, games, accessories, new vs. used)?
What is the frequency of purchase? Etc.

Which stores are doing the best and why? Which are the stores at risk of failure and why? Examine the prices charged, the sales offered, ancillary services, positioning. Figure out the practices that work and avoid those you think might obstruct development.

Selling Video Games With An Amazon FBA Store

You will have to pay Amazon fees for a professional plan, which costs $39.99 a month.

Plus, other fees include:

Costs to access APIs and selling reports
Charges for creating listings in bulks
Fees for ads
Fees for promotions

Your Online Gaming Competition

Just a handful of players dominate the world of video games. Steam covers most digital downloads, the inventory in brick-and-mortar stores is ruled by Gamestop, and then Best Buy and Amazon control most online sales. So if you are going to enter the business, you’ll need to find something these big players have missed. And on top of that, you will need to have competitive pricing to attract the customer.

Your Online Platform

It should be done by an I.T. professional
It should be an interactive e-commerce platform
Show and review the games
Show details of the game with screenshots
Have a trial version for better user experiences
Create a game blog where you discuss games and the gaming industry

Multichannel Selling

Today, many online businesses have a multichannel selling modus operandi. This means that they sell online for their one website and set up an online shop on Facebook, Google, and several other social media channels. This way, you can reach many more customers than a brick-and-mortar store. Of course, this also requires more work and close monitoring.

Develop A Marketing Plan

There is intense competition in the online video game business, so you’ll want to make a thorough business plan to understand better where your new company might fit and what issues you will face. The plan focus on the following:

How will I obtain my physical inventory?
What are the startup costs?
Who is my competition?
What will I sell besides video games?
How Will I increase my profits?
Where will I acquire my gaming products?

The Marketing Plan Of A Video Game Store

You will also want to create a marketing plan when launching your video game store. This plan identifies the means to implement and acquire and retain your customers. Make the opening of your video game store an event that will attract the whole community! Distribution of flyers in neighborhood mailboxes, Invite journalists from local newspapers and television stations to your launch party.

You will also need to create a real community of gamers around your store. Beginning a presence on social networks will make this possible through contests, posts on your store’s latest news and events, and the release of new games.

A website is also a must-have. It will allow you to present your offers, inform potential customers about your address opening hours and allow customers to pre-order a game before its release.

Build Your Own Gaming Sales Website

Your business domain name protects your website address on the internet.

Some of the common domain registrars include:

Here is a list of some options you might choose when building a regular website.

Here is a list of drag and drop page builders for WordPress.

Figure Out What Your Game Shop Will Offer

Today, there are many gaming options that it is impossible to sell every video game and its corresponding accessories. Some of the gaming features you can trade in your online store include:

Consoles (e.g., cables, controllers, headset)
Digital products
Downloadable games
Game guides
Gaming related accessories
Offer hardware repair and refurbishing.
Physical games (new and used)

If you want to keep things simple, stick to just selling physical games and accessories to play the games or offer hardware repair and refurbishing gaming consoles.

How Much Does It Cost To Open An Online Game Store?

If you open an online store, you will save a significant amount of money on rent and utilities. For an online store, you will need to consider the following expenses:

A comprehensive online e-commerce website
Inventory of games
License
Registration
Lawyer fees
Storage for inventory
Insurance
Marketing
Shipping costs
Mailing costs
Software for tracking, inventory, ordering
Accounting fees
Security features for your inventories
P.C. and related software for business
P.O.s

The startup costs for an online store may range from $5K-$20K, but a brick and mortar store may cost anywhere from 50K to 100K, depending on your inventory and storage costs.

Where Will I Get My Gaming Inventory

You will need to search for a vendor to sell your games at a discount and maintain a steady supply.
If you run an independent online video game store, you will have to hustle to get the inventory. Most manufacturers of online games only deal directly with publishers.
Independent stores have to deal with distributors like Ingram entertainment.
Besides, you may have to continually search for people willing to sell their used games and gear. You can refurbish the equipment and sell it at a much higher price.
Buy video games in bulk because they are cheaper that way.

Wholesale Suppliers Of Video Games

Other places to find video games

Conventions
eBay
Internet forums
LinkedIn
Trade fairs

Here is a great place to find out where your gaming conventions are this year

Fan Cons

Staffing A Video Game Store

The launch of your video game store should also be an opportunity to focus on creating a great team. Identify all the necessary qualities your sales staff must possess, including administrative and stock management and communication.

Define the requirements for each position to determine whether you should opt for internal recruitment or use service providers for ad hoc assignments.