If you want to have your online business, whether you are making the product yourself, or selling other people’s products, The technology is already there; you have to choose an E-commerce business Model, who you’re selling to, and Choose a specific product to sell.
With a little planning, we will help make sure you don’t just have an E-commerce business but a business that’s profitable, easy to get started, and defensible once it’s set up. To have a solid foundation for your E-commerce business we’ll look into different types of business models, Choosing the right target audience, validating ideas, and managing cashflow.
Running an online store can be incredibly exciting, you can run the business from anywhere in the world, sending physical products to people’s doorsteps so they can enjoy them and live their best lives. But before you open an E-commerce store you need to do three things
- Choose an E-Commence business Model.
- Choose who you’re selling to
- Choose a specific product to sell
Our goal is to help you build a business that can last decades and find the model the works best for you, this could be about profit above all else, Or about how quickly and easily you want to get started.
It is easy to copy what else is doing but doesn’t mean you are going to build the business, so by really digging into a few different business models, we should be able to find one that’s right for you.
We will train you how the ease of getting started; transitioning between models And the defensibility of the business.
It is important that when you look into a ton of models before started selling things online, you have to found the one that works for you.
Drop-shipping is an online store that doesn’t hold inventory and isn’t visible to the customer. A drop-shipper is someone who doesn’t actually hold any inventory, they have an online store and they accept orders but they don’t do any fulfillment, which is shipping the products to the customers.
With dropshipping No need for a starting capital, you Could start with 30$ with No order minimums; No fulfillment, and No inventory, You don’t have to ship packages, Never have to count inventory, and most important your Location is Independent. No inventory means you can run the business from anywhere in the world and it is Scalable, it is Easy to accept more orders and You can accept twice as many orders and likely won’t have to hire extra employees
One of the well-known drop shippers is Wayfair, Currently, they have warehouses for some of their products but back in 2012, that 90% of their products were being shipped directly from suppliers and they worked with over 4000 different suppliers to ship out 93000 items each week. They build an incredible infrastructure around those suppliers to effectively manage. All aspects including shipping logistics and returns.
Another somewhat well-known store is TrollingMotors, this store actually lost money in its first year, the owner invested in a lot of programming and SEO that took time and money but by the third year he was able to automate much as the business, and now can operate the business with just two hours a day. So if you are willing to take three years to build a company that generates 650000$ a year for only two hours a day then dropshipping might be right for you.
A reseller buys products from wholesalers, distributors, or manufacturers, and they sell them through their own store for more than they bought them for. Functionally speaking, you have to have your own website where you accept orders and fulfill them yourself, you also have to store the products. The big benefit is you are selling other people’s products without the need to manufacture them yourself, which can take a few years. If you are familiar with a niche, you can sell existing products that already sell well.
- No need to spend money on R&D
- Single source Fulfillment
- You store all products.
- Control over shipping costs and procedures
- Can experiment with upsells and cross-Sells to get users to add more to their cart, so you can maximize the profit with each order; with reselling, when someone buys more then almost always means you’re going to make more money.
- Low-cost Experiments
- Can expand into other areas
- Can order a case (12-24 units), instead of a large amount of product.
- Can experiment with new products easily
Resellers have incredible flexibility when it comes to overhead, you can choose to run a very lean operation and outsource fulfillment or you can keep it in house and keep a higher percentage of each sale.
If you want to keep overhead low, you can use services like Amazon FBA or other third party logistics companies to store and ship your products. It Will east into your margins and keep your business completely remote. you can work from anywhere in the world, Or if you want to run your own warehouse and shipping setup, you can do that too, this can lead to higher margins for you and you make more with each order.
As a brand-new reseller, you might be able to start with a small inventory stored in your garage, which makes it very easy to get started. With reselling, you have the choice to build your own infrastructure and make more money per order or outsource it, run a lean and efficient machine, and focusing more of your time and energy on your products and marketing.
Source and Sell In-Demand Physical Goods
Step-by-Step Guide to selling in demand physical products online