Set Up an eCommerce Store Without Huge Investments
eCommerce stores have taken off in a big way. From the boutique on your street to the biggest consumer product companies to big box stores, everyone has their store online. Not many people shy away from buying online today as was the case before. The eCommerce industry is expected to be worth $370 billion in 2017. This is 10 percent of all U.S. retail sales – and all this, when the industry is still in the nascent stage. Forecasts for the eCommerce business have been positive worldwide. In 2011 alone, there was a steep rise of 18 percent, reaching a mammoth 590 billion pounds, says Raconteur.net. The same study found out the reasons people like to shop online. The top three were convenience, as rated by 28 percent people. At second place is, of course, bargains, which is close on the heels of convenience at 25 percent. Rounding off the top three is the surprise entry, speed, which was checked by 18 percent people.
What You Should Understand First
Seeing such a huge growth rate, many people think of putting their talents to use in an industry that seems set to only grow. Do you think you have it in you to market products or to administer a good online store? Many people think that if given a chance they would be very good at it. However, the one obstacle standing in their path is investment. For setting up an online store, you not only need talent and maybe expertise with the Internet and marketing genius, but an inventory. Whatever kind of store you set up, you need to have a stock of products. This needs big bucks. So, what do you do if you have the talent, or you think you have a great idea, but you don’t have the money? Simple. Sell from an established store’s inventory. There are a number of product distributors and drop-shippers to work with, in all areas of retail products.
No Huge Investments
The benefit of doing this is that there are no huge initial costs involved. You just have to sell the products that the store inventory procures. Let us assume you have an interest in opening a niche travel store online, but you don’t have the inclination or the willingness to invest that kind of money. What you can do is, for one, sell items from another established site’s inventory. This will lead to you being able to sell without cost commitment from the other store’s inventory. This is also a good idea when you want to test the waters. For example, you believe that you are a marketing whiz, but you are not willing to risk your life’s savings on testing out the idea. So you can try this out. You can gauge your level of talent, incur minimal costs, and later when you are confident enough and also have some experience under your belt, maybe sell your own inventory.
The Other Side
However, every coin has two sides. You need to check the profit earned by the inventory store and how much they pay you for referral or as commission. Of course, commissions and referrals mean that your profit is less compared to if you had been selling your own stock. What you need to understand is that the no-major-investment clause does not work without you giving something in return, too. While forming an opinion, think about the myriad range of products that you can sell from the inventory site and the profit you can make. Weigh the pros and cons, and see what works out for you.