So one might ask…”What are the Benefits of Starting an eCommerce Business“
There are many entrepreneurs whose heartfelt desire is to grow a business that allows them to live a lifestyle of their dreams, and have it run more or less on autopilot.
eCommerce tends to correspond to those ambitions.
Wikipedia defines eCommerce as: the trading or facilitation of trading in products or services using computer networks, such as the Internet.
Being in the limelight and trying to recruit new people into an MLM. Making videos and being on periscope, snapchat, facebook live, and youtube doesn’t appeal to everyone , and if you are feeling the anxiety of trying to build a business online through the means of continually approaching others, then working the other side of the computer may be just what you are looking for . You must still get traffic to your site but can be done easily without the need to promote and recruit others into your “downline” where you earn from their efforts.
A Zero Cost business Model?
The growth of eCommerce has expanded the opportunity for people to start an online business very quickly with little investment. As a matter of fact you can actually get started for absolutely zero cost at all, provided you have some basic computer skills and some extra time on your hands. I recommend using a few helpful but inexpensive tools to help you get off on the right path. Starting and running an online business isn’t without its challenges. An online store doesn’t mean consumers will buy automatically.
One of the biggest conveniences to starting an eCommerce business is that it can be managed completely from any home on any schedule. An added benefit is utilizing the tools available by many online hosts and eCommerce resources, setting up a virtual store can be done swiftly, often within minutes depending on the type of store you wish to open, and the goods you wish to provide.
Prior to the Internet, it was an expensive proposition to open a store. Now it’s available to the average person to get a domain and set up hosting for less than $100. With dropshipping and wholesaling companies, access to a vast inventory of products is also economical. If you’re just getting started , you can look for a “hosted” solution. That means the website’s eCommerce functions are already built and you just have to customize your information. There are providers available that will handle most aspects of getting your eCommerce site up and running and have you making profit with record speed.
The Internet never sleeps, and therefore online stores are open 24 hrs a day. As a result, an eCommerce owner can be making profits while he or she is sleeping, awake, on vacation, or out on the town.
Here’s a few domain and web hosting providers that I feel comfortable recommending and that can handle the requirements of an eCommerce style website.
- Godaddy , You can get a domain name for free when you purchase a website for as low as $1.00 per month .
- Coolhandle , Free domain name and hosting for as little as $3.99 per month
- Hostmonster, also provides free domain, hosting as low as $4.99 per month with 1 click wordpress install, free site builder, plus you get $100 free ad credits on Bing and Yahoo which may come in handy as you begin to drive traffic to your site.
Still not convinced that e-Commerce is the road for you?
It’s cheaper and easier to get into the e-commerce business than ever before.
In July of 2015, retail giant Amazon turned 25 years old, it’s no wonder they are one of the leaders in the industry boasting same day deliveries and the soon to come “Drone shipping?” The company boasts of surpassing $100 billion in revenue.
They are already a behemoth of American and worldwide business. It’s the 56th largest company in America. It’s the 15th biggest retailer in America by revenue and surpassed by none as the largest Internet retailer.
It has also notably increased its third-party marketplace, where merchants all over the world can set up their own virtual stores on Amazon.com and sell their goods alongside Amazon’s — all while leveraging Amazon’s customer base and credit-card-processing services.
In fact, retailers who use Amazon’s third-party marketplace now account for 35% to 40% of all products that Amazon sells per year
Other big names like Macy’s and Nordstrom are investing millions of dollars over the next few years to increase their e-commerce operations and incorporate their in-store and online stockpiles.
Whats my Take?
What if you could have just a tiny percentage of Amazons revenue, what would say a 0.00001% of $100 billion give you? How about a whopping 6 figure income of $100,000! And that’s just one virtual retailer. Granted ,it’s the worlds largest one, but there are literally hundreds of others ready for you to get some commissions for selling their products.
If setting up your own website with your own products doesn’t suit your fancy, why not use Amazon’s already set up platform, payment processors and traffic? Did you know that you can set up a free account in eBay and Amazon and sell across both platforms?
you can list on one site, when someone makes the purchase of your product, you turn around, buy the product from the other site, where they will ship it to your customer and you keep the profit! Of course you have to do a little research legwork to get this working for you but it is just another way to earn from eCommerce with no out of pocket costs, just some time doing the research.
Here’s an example : Let’s say you have an item listed on eBay, this product is selling for $99.99, but the same product is listed on Amazon for $73.99. Someone shops on eBay and purchases your product, they will pay for this product through eBays merchant account and when you recieve the payment in your account, you in turn go to Amazon and purchase the item and have it shipped to the buyer you just sold the item to on eBay. Earning a profit of $26 ($99.99-$73.99=$26.00 )less Amazon fees which are typically low. So you just made a profit of $26 and you didn’t put any money out of your own pocket.
Ok now, that’s just one listing. Let’s assume you did more than 1 listing with the same product. Say you listed 10 of the same product…10x$26=$260 with ZERO out of pocket costs.
Where do I find products to sell?
You will have to search out what products are selling, and what the profit is on each item to be sure it will benefit you.
You can start by doing a simple search on Google trends.
Simply type in the name of the product you are researching and let Google tell you if people are searching for that particular item.
Why spend money on inventory? Test out your idea by placing products on your site that you buy afterwards at another retailer once the sale has been made on your site.
Here’s a few tips on helping you decide which products to list.
1. Accessory-Laden Niches: Merchants seldom make much profit on big-ticket items and will only earn a very small commission on products like TV’s or laptops. They often turn their attention to the accessories.
Accessories typically recieve markups of 100 to 1,000%, and consumers are less nervous about pulling out the credit card to purchase them . A buyer might shop for weeks to get a good deal on a computer, but wouldn’t think twice about dropping $50 on a wireless keyboard from the same place. However there’s a very good chance that your
business made nearly as much profit on the keyboard as it did on the computer.
Choosing a niche with a bunch of accessories, will land you significantly higher profits with much less price-sensitive buyers.
2.Problem or Passion: It’s shocking how much hobbyists and enthusiasts will spend. Skiers will drop hundreds on light-weight accessories to make the trip down the snow covered slopes, and eager fishermen will invest thousands of dollars in boats and relevant accessories.
Also, if you want a captive audience eager to buy, try offering a product based solution to a difficult or painful problem.
3. The Sweet Spot: $100-$200 price range is an ecommerce “dream land”. It’s large enough to generate modest per-order profit, but small enough that most customers won’t need to directly speak with someone before purchasing.
Remember, if you’re selling products that typically cost $500 or more, many potential customers will want personal service before whipping out their credit cards.
4. Repeat Customers: Providing consumable or disposable products is a great way to get your customers spending more of their money with you and it’s easier to sell to the customers who trust you than to new ones. If you have product that needs to be re-ordered on an ongoing basis – and you can keep your customers happy – you’re going to be well on your way to building a profitable business with repeat revenue.
Still not sure about finding the right product? Try this
good chance the Wholesale Directory complete with a training center, forum and research lab that will do the hard work for you.
Doing something that you’re passionate about is extremely important to achieving success for anyone. A common mistake new ecommerce entrepreneurs often make is focusing their passion on the products instead of the process of building a profitable and thriving business.
It doesn’t matter if you sell cosmetics or crayons; if you’ve built a fruitful and successful eCommerce business around a niche, you will become passionate about it.