The world of e-commerce is fascinating. It is also growing fast. In every corner of the globe, people are getting hold of smartphones and going online to buy everything from fork handles to gym shorts.
You name it, people are buying it online. As you can see here you can even buy customized signs via the web. Whether you want a standard “mind your head” or a customized one directing people to your campsite, you can order it online.
Crazy levels of growth
Since 2014, e-commerce sales have soared by a whopping 200% and the growth is accelerating, not slowing down. So, the opportunity to make money by getting involved is huge in e-commerce.
It is easy and inexpensive to set up your business
The good news is that you do not need much money to get started. If you can afford to set up and host a website, you can easily set up an online store in just a weekend. In most parts of the world, your initial costs would be about $25. Then for the next 11 months, you would just need to cover your monthly hosting costs to keep your online store up and running.
You do not necessarily need to hold any stock
You can use your e-commerce store to sell goods that you make or products that you buy wholesale. These are the traditional ways to trade using an online shop. But, there is a third, potentially more attractive approach, which is the drop shipping model.
Basically, with this approach you list other retailer’s goods on your site. But, do so for a higher price. When someone clicks through and buys, you get paid. You then take some of that money, buy the product that has been ordered and get it sent directly to your customer’s address. The difference in price is yours to keep as profit.
It is a strange sounding business model. But it is a very cash efficient one. There is no need to hold any stock, so potentially you could start your e-commerce empire with virtually no capital.
Over the past few years, it has become harder to make money using this e-commerce approach, but, when done right it is still viable. You can find out of the pros and cons of this way of getting involved in e-commerce in this way, by reading this.
Learn other skills
E-commerce is a fantastic proving ground for budding entrepreneurs. Initially, you can easily run the business on your own. But, make no mistake, it is a real business. You will have to promote and advertise your online store, register your business and file your accounts. Later, when your e-commerce enterprise takes off you will need to start employing people. Doing all of this pushes you to learn a long list of business skills. Potentially, you can use those skills for bricks and mortar business ventures.
Turn it into a passive income
It is relatively easy to train people to run your e-commerce business. So, if you want to, you can turn it into a virtually passive form of income. There will be a few tasks that you, as the owner, will still need to do. But, after a few years, it is perfectly possible to make a full-time income while working just a day or two per week.