How to Sell Online
You want to open an online store. This may be because you have a dream of owning your own business, or it may be that you already have an offline business that you wish to bring online. Selling physical goods is a great business model for many reasons.
Benefits to E-commerce Stores
Benefits to E-commerce Stores
- E-commerce sales are growing steadily in the United States, China and in the United Kingdom.
- Online stores save on costs.
- You can take orders 24 hours a day.
- With online platforms and store builders, opening a store has become very easy.
- You can get traffic to your store from social platforms such as Twitter, Facebook and YouTube.
- E-commerce can help brick and mortar stores reach a wider audience. It cuts down on advertising and paperwork expenses. Online business needs fewer employees.
How to Get Started
The very first thing that you need is a product niche. A niche is a market segment consisting of people who are interested in a particular topic. A good niche is one where there are a significant number of people talking about the subject on social media, forums and blogs. Another indication of a profitable niche is when you see advertisers spending money in that market. Examples of strong niches are in passion topics such as hobbies, weight loss, pets, sports, and health.
Take a look at Amazon, Clickbank and Books for Dummies and note the books that are selling in particular subjects. Peruse Reddit and see which topics have a lot of conversation. Are there magazines centered on your niche? Can you narrow down the niche so that you are in a large, but less competitive area? What is the possibility of being able to obtain inventory easily?
Once you have identified a promising niche, you should research further into how much competition exists, how many people are buying that product on eBay and Amazon, and what the price range is of the item? Ideally, you want to pick products that sell for more than $100 in order to cover your costs of advertising and overhead. Your profit per item should be more than $25.
The very first thing that you need is a product niche. A niche is a market segment consisting of people who are interested in a particular topic. A good niche is one where there are a significant number of people talking about the subject on social media, forums and blogs. Another indication of a profitable niche is when you see advertisers spending money in that market. Examples of strong niches are in passion topics such as hobbies, weight loss, pets, sports, and health.
Take a look at Amazon, Clickbank and Books for Dummies and note the books that are selling in particular subjects. Peruse Reddit and see which topics have a lot of conversation. Are there magazines centered on your niche? Can you narrow down the niche so that you are in a large, but less competitive area? What is the possibility of being able to obtain inventory easily?
Once you have identified a promising niche, you should research further into how much competition exists, how many people are buying that product on eBay and Amazon, and what the price range is of the item? Ideally, you want to pick products that sell for more than $100 in order to cover your costs of advertising and overhead. Your profit per item should be more than $25.
Sourcing Inventory
You can get inventory from wholesalers and drop shippers (I recommend Salehoo), or you can get inventory from liquidators, local warehouses and local big box stores. You can also sell digital items such as t shirts, courses and art. When you are considering a supplier, it is imperative that the supplier has positive reviews. You also want a reliable supplier who has enough inventories and who can supply you with quantity information on a daily basis.
It is beneficial to have more than one supplier so that your business does not depend on one source.
You can get inventory from wholesalers and drop shippers (I recommend Salehoo), or you can get inventory from liquidators, local warehouses and local big box stores. You can also sell digital items such as t shirts, courses and art. When you are considering a supplier, it is imperative that the supplier has positive reviews. You also want a reliable supplier who has enough inventories and who can supply you with quantity information on a daily basis.
It is beneficial to have more than one supplier so that your business does not depend on one source.
Where to Sell Your Items
There are so many places to set up shop. Since we are talking mainly about online stores, I recommend Shopify, Big Commerce, Zazzle, Storenvy, Etsy, Cafepress, Amazon FBA and Bonanza. Things to look for are low monthly fees and sales fees, how much is hosting, included features such as affiliate programs, shopping cart, coupons, ratings, payment gateways, chat, search engine optimization, and if the platform helps you to market and advertise.
There are so many places to set up shop. Since we are talking mainly about online stores, I recommend Shopify, Big Commerce, Zazzle, Storenvy, Etsy, Cafepress, Amazon FBA and Bonanza. Things to look for are low monthly fees and sales fees, how much is hosting, included features such as affiliate programs, shopping cart, coupons, ratings, payment gateways, chat, search engine optimization, and if the platform helps you to market and advertise.
Final Tips
- To be successful in e-commerce, you should have a well thought out business plan which includes budget, expenses, traffic acquisition, target market, competition, and advertising.
- Pick a niche in which you are interested. It is painful to promote something that you do not believe in.
- Determine how you will be different from other stores and sellers.
- Learn how to use coupons and other tactics to close sales.
- Have a brand and a presence on all the main social medial channels. Promote yourself daily.
- Buy a unique domain URL. If you can afford to buy one that is aged with backlinks, you will be at an advantage. I recommend GoDaddy.
- Maintain good customer service. Have a phone number, address and professional email address available to customers. Keep your customers updated about their order delivery.
Recommended Reading
Salehoo: Salehoo is a directory of thousands of suppliers. Each supplier has been researched and reviewed. There is also a free research tool that shows you if an item is profitable before you sell it! I am a long term member here and I get a small referral fee for sending my readers there.
Dropship Lifestyle: This is a really good course on how to use dropshippers and how to set up a Shopify Store.