Why You Should Start an Online Business.
Are you tired of going to and from the office every day? Is money not enough for you? Is your brick and mortar business suffering? Are you looking for a global reach?
The answer to these questions is starting an online business. While many people have tried to start online businesses and failed, it does not mean you will. The thing is, most people who succeed will not talk about it because they are busy making money. Then those who fail want you to join their losers’ club.
So, if you believe in yourself and avoid listening to people, other than me, of course, you can have a profitable online business in a few months. You don’t need any experience, only grit.
Here is why you need to start an e-commerce business:
1. Cheap and Easy to Start
Have you tried to open a shop in your local area? If you have, you have had to find a location, research on demand, and calculate the cost of rent, licensing, and marketing, among other things. Starting a brick and mortar business is not only expensive, but it is highly tasking.
But the age of the internet has removed this burden for you. If you can’t manage the cost and hustle of a traditional store, then an e-commerce business is ideal for you. Why? Because it is cheap and easy to start.
Starting an online business is so cheap that you might incur no cost to start, especially if you have a laptop and an internet connection. You will have to do some online research, which is free. You will also need to find a niche you like, and one that has the potential to make you money.
Keep in mind that some online businesses don’t even need a laptop; you only need your smartphone. How exciting is that?
2. Open to the Masses
More than 3.2 billion people have access to the internet, and over 2 billion people use social media regularly. As opposed to a brick and mortar store that only has access to a few hundreds of people who need to visit that particular location, an e-commerce business can be accessed by millions of people who need your service or product.
For instance, drop-shipping with Shopify connects you to millions of potential customers who need the products you are drop-shipping. From the comfort of your couch, you can market these products through Facebook, Instagram, Twitter, and other social platforms.
3. Operate a Business 24/7
If you have been late to the bank or the supermarket in the evening, then you know the pain of a customer who deals with a traditional brick and mortar store. That is why all these businesses are going online.
If you have a Facebook page, a website, an Instagram business page, or even a Shopify store, customers can always contact you at any time of the day or night. And due to automation, you can use various tools, like chatbots, to ensure your customers are taken care of even when you are asleep. So, you won’t experience customers complaining about your unavailability.
Because your online business is accessible to people from different time zones, you are likely going to have customers looking for your product or service all the time.
4. Easy to Obtain Exponential Growth
An online business allows you to achieve extremely high levels of profits and low loss levels. Since you can operate with zero inventory and no location when it comes to an e-commerce business, losses are likely to be on the low in case they happen. But because your market is almost unlimited, with over 3 billion people, then you can reach high growth levels in a short time.
In comparison, traditional stores take time to grow because customers already get their services elsewhere. The high costs also limit your marketing expenditure.
Having an online business can be very rewarding in terms of your needs and preferences. If you like to stay at home and not go to the office, then this is for you.
Do you wonder where the term ‘digital nomads’ came from? If you love to travel, you can visit any place in the world and carry work with you. And because a majority of the places have internet, this works for many people.
While your office friends are waiting for their 2-week vacation, you can work while on vacation every day of the year.
Popular Online Businesses to Start
Now that you know how easy and cheap it is to start and operate an online business, I will take you through the four popular online businesses that you can set up.
The concept behind drop-shipping is that, as a small business owner, you don’t own any inventory. You own a website or an online store with a third-party e-commerce site like Amazon and Etsy. Drop-shipping with Shopify is one way to go about it.
When a customer requests for products, you source them from a 3rd party company, the drop-shipper, who sells them to you at a lower price. They will also be responsible for the delivery of goods to the customer.
The good thing about this business model is that you need not worry about warehousing, staff, and delivery. You only need to concentrate on customer acquisition. When a customer shops in your store, you can use automation to forward the order to the manufacturer.
Since the only thing you need to do is marketing, you can invest all your money there to increase your sales and grow your business.
2. Informational Products
One of the best ways to make money online is through informational products. These come in the form of audio, video, and text. If you know Udemy and Coursera, then you know what I am talking about. Whether it is an instructional video, a travel guide, an interview with a popular person, or an online course, people are always searching for information online, and they will buy.
The internet is full of massive amounts of data that finding information that adds significant value can be hard. Therefore, transforming this information into a product you can market and sell will get dollars coming in.
This can work best if you are knowledgeable about something. For instance, if you love basketball and are good at it, you can create an instructional video and promote it for a price. When it comes to videos, YouTube is a great platform to use as you will make money from advertisements.
Have you heard of passive income? This is one form of it. Once you place the product online, you can do your things and wait for the money to trickle in.
3. Affiliate Marketing
Affiliate marketing shares some similarities with drop-shipping. This e-commerce model allows you to avoid the responsibility of maintaining stock and delivering orders.
The first thing you need to do in affiliate marketing is to identify a profitable niche, after which you will need to find affiliate partners with products in the niche. Examples of affiliate partners include Amazon.com, CJ Affiliate, and Clickbank.com.
You will need to have an online store or website where customers can view the products. When they click on the goods, they will be directed to the partner affiliate’s site for purchase. In return, you will get a commission, which normally ranges between 5 and 25 percent of the sale.
So, your costs are in marketing and advertising. But this e-commerce model is more hands-off than drop-shipping since the affiliate partner handles everything, including customer service, billing, order fulfillment, and more.
4. Online Videos
If you can’t create an informational video, but you are entertaining, then all is not lost. YouTube is the largest video-only platform in the world, with over 1 billion regular visitors per month. It hosts all sorts of content, including funny videos, songs, videos about interesting places, and more.
While it might be intimidating at first, creating online videos can be done with ease once you are used to it. You don’t need your video to go viral, but you require implementing proven strategies that will enable you to maximize views.
So, how do you earn money? You get paid by YouTube when people view ads as they watch your videos. The more the traffic on your YouTube videos, the more the revenue you make.
You can also make videos of product reviews and inform your viewers on how to use products as well as their pros and cons. Then include an affiliate link to the product on the YouTube description for people to click and purchase. This will make you an affiliate commission.
What’s more, if you are popular in a specific niche, companies can pay you to collaborate with them. Sponsored videos will need you to mention or feature company products or services.
What’s the Conclusion?
Well, if you have a laptop and an internet connection, you should be ready to begin your journey. Remember that it does not work overnight. But the good thing with online businesses is that solutions to your problems are available online.
Join a Facebook community that is in your niche, and you will leverage crucial information that can help you avoid costly mistakes. Many people have done it, and you can follow their blueprint to achieve success. Online courses in your niche are invaluable too.