How To Start a Business
Want to start selling on eBay, Amazon, or on your own website, but don't know where to start? You're in the right place! This guide will show you where to start, and how to do it right.
So you're interested in selling stuff online, eh? Perhaps you have dreams of quitting the 9-to-5 grind to start your own online, eBay or Amazon business. Or maybe you just want a few extra bucks in your back pocket.
Whatever your reason for wanting to start selling things online, eCommerce offers huge opportunities for anyone with an internet connection. Of all the ways of making money online, it's perhaps one of the easiest to understand and get started with.
How to Start Selling Online Professionally
We've broken the process down into six simple steps to take you from complete beginner to professional seller.
What You Need to Know Before You Begin
Before you get started investing time and money into an online business, you want to be sure that selling stuff online is right for you. Let's look at the pros and cons of selling online so you can weigh them up and make an informed decision.
The Pros of Selling Online
While working from home in your pajamas is definitely a plus, there are plenty of other amazing reasons to work from home while building your own eCommerce business:
- Flexibility and freedom: You can work from home, make your own hours, and choose how far you want to take it.
- Familiar and understandable: If you've bought or sold something online before, you basically understand how it works.
- Follow your interests: You can turn your hobbies and passions into a profitable business.
- Low barrier to entry: It's not as difficult or risky as starting a "traditional" business.
- No inventory needed: Through dropshipping, you can avoid the hassle of storing inventory.
The Cons of Selling Online
Like anything in life, selling items online comes with a few downsides. It's important you're aware of these before you begin:
- It takes time: It may take you a month or two to start seeing consistent results.
- There's a learning curve: You'll need to learn multiple skills like operations, marketing, and customer service.
- You wear all the hats: As a business owner, you're an incredible team of one.
- Not completely passive income: Your business will require you to do real work and invest time and effort.
To simplify, this isn't a get-rich-quick scheme. But if you're happy to spend a little time building a reputation, developing your brand, and optimizing your processes... the sky's the limit.
Choosing an eCommerce Business Model
There are several different business models to consider before you start selling things online, each with their own set of pros and cons. You will want to think carefully about which business model is best for you.
Dropshipping
Dropshipping is the darling of the eCommerce world. Why? Because the barrier to entry is so low. You don't need to make any financial investment to get started.
Basically, your supplier does most of the heavy lifting and your main job is to make sales. Simple, right?
Sourcing from Wholesalers
Sourcing products from wholesalers is a more traditional retail business model. Once you've decided on what product(s) you're going to sell, you find a reliable wholesaler and buy the product(s) in bulk.
Buying in bulk requires that you have significant cash to spend up front. The upside is that you'll usually get your products at a cheaper price than you would with dropshipping.
Sourcing from Manufacturers
Sourcing a product from the manufacturer is a similar process to sourcing from a wholesaler. The main difference is that you can work with a manufacturer to create your own product, or a private label product.
The initial investment is higher, but if you want to build a brand and sell a unique product, then sourcing from a manufacturer is the business model for you.
Step 1: Choosing What to Sell
You've probably thought about this step already. In fact, most people start by thinking of products they can sell online. Choosing what to sell is arguably the most important decision you will make.
How to Choose Products?
Of the billions of products out there, how do you know which one to sell? Generally, you're looking for a product that meets these requirements:
- You can make a profit from it: Don't forget to factor in things like shipping, packaging, and marketplace fees!
- There's reasonable demand for it: One of the common mistakes new sellers make is diving into selling a particular product without checking demand.
- The competition is not too intense: Competition can really drive down your profits, particularly when there isn't enough demand to meet it.
What Can You Sell Online?
The answer to that is: Almost anything. However, if you want to be successful at selling online, you should follow the strategies of top sellers:
Products related to your interests
The first thing you should do to get ideas for what to sell is to brainstorm your hobbies - the things you're interested in. You're more likely to be invested in selling products you're interested in.
Products that you discover online
Try to become intimately familiar with products that are selling well on the most popular online marketplaces, including Amazon, eBay, Alibaba, etc.
Products that are backed by market research
You can do your own market research, or use a powerful market research tool to do the heavy lifting for you.
What Products are Selling Best Online?
This is the million-dollar question. But the answer is not simple. Once a product becomes a "best seller", it's probably too late to start selling it as the market quickly becomes saturated.
However, according to our own data and research, products in these five niches are always selling well:
- Health and beauty products
- Home and garden supplies
- Electronics and accessories
- Clothing and accessories
- Children and baby products
Another strategy to consider is selling products that tap into consumer needs. Maslow's Hierarchy of Needs is still relied on by marketers and salespeople today:
- Physiological needs: Food, water, sleep, clothing
- Safety needs: Personal security, employment, health
- Love and belonging needs: Friendship, intimacy, family
- Esteem needs: Respect, status, recognition
- Self-actualization needs: Achieving one's full potential
If you can identify products that fit into these deep-seated human desires, then you are almost guaranteed to have success selling them.