Home Business Start Up: How to Assess Your E-Commerce Idea
If you’re the type of person who enjoys setting up yard sales, you will enjoy running your own E-Commerce Business. While you can make money with yard sales, they are too difficult to scale up into becoming a lucrative Home Business Start Up. Once you run out of odds and ends for your yard sales, then what? Another problem, is that yard sales are mostly fair weather weekend affairs. An E-Commerce website will make sales 24 hours per day, 365 days per year regardless of the weather or season.
Another advantage of E-Commerce is that you won’t need an inventory of products. Instead, you can use suppliers who will ship products directly to your customers. Once a customer orders a product from your Online Marketing website and you receive their payment, then you can place an order with your supplier and have them ship the product straight to the customer. Suppliers who are willing to do this are called drop shippers. The beauty of using drop shippers is that you don’t need a lot of money for an E-Commerce Home Business Start Up.
You can also set up an attractive E-Commerce website using free open source content management systems such as WordPress. Your Home Business will likely spend some money (but not a lot) on an E-Commerce theme and possibly on additional software called a plug-in. It will provide E-Commerce functionality to your site. There are additional details such as getting a domain name and low-cost web hosting. Later on, when your traffic builds up and you’re making plenty of sales, you can switch to premium higher-cost web hosting, which can easily handle the large traffic volume.
How to Assess Your E-Commerce Idea
Setting up an E-Commerce store is the easy part, but coming up with successful E-Commerce ideas and offers is not guaranteed. You need to do an assessment of the product or products you intend to sell. Here are four criteria to check your idea against:
Does a Market Exist?
To answer this, first do some Google searches on the product you will sell online. If you see other websites selling it, then you probably have a winner. There should be more than one or two sites, because you don’t really know whether they are successful businesses or are struggling. On the other hand, if you see several websites, then it’s likely the product is viable.
You should also look for the product or some close facsimile on Amazon. The more listings you see, the better. You can also get an idea of the demand for these items by the number of customer reviews they receive. However, very few people bother with reviewing products. Therefore, products that show a lot of reviews, means that a much great number of people are buying them.
A low-priced product will require too many buyers to generate a decent income. It isn’t realistic to expect that you’ll be able to build up enough website traffic with your Online Marketing efforts to make the necessary sales to support yourself. On the other hand, super high-priced products are difficult to sell over the Internet, and the customers will expect a great deal of customer service. This will require your hiring Customer Service personnel. A price range between $100 and $300 or thereabouts is desirable.
Will the Shipping Be Costly?
You don’t want shipping costs to be a hefty percentage of the product price. This discourages buyers and makes it unprofitable to offer free shipping as an enticement. Offering free shipping, on an occasional basis, can be an asset for your Home Business Start Up, and help differentiate you from some of your competitors. Smaller and lighter products are preferable to bulky and heavy ones.
Unless you plan to manufacture the products yourself, you need plenty of drop shippers who deal in the product. More drop shippers allow you to shop around for the best deals. If a drop shipper proves unreliable, you will have plenty of alternates.
An important criteria for drop shipper selection is the profit margins that their prices allow. The possible margins can vary tremendously between them. Your margins shouldn’t be less than 40% or 50%. They can be higher than 100% if you’re aggressive and smart in your selection.
For more information about E-Commerce, important aspects of Online Marketing and Home Based Business, feel free to join us today at OmniTech Enterprises, LLC: http://OnlineMarketingHomeBusiness.com . We seek to educate, inspire, and train aspiring online entrepreneurs. With our unique training products and world-class live events, we teach how to start and grow own own profitable business. We look forward to assisting you in the best way possible, to become a Digital Entrepreneur.