How to Start an eCommerce Site and earn money
E-commerce is currently one of the fastest-growing markets, despite having started nearly two decades ago. Statista’s study estimates that about 2.14 billion people will make their transactions online by 2021, which is a massive rise from the 1.6 billion people who shopped online in 2016.
Moreover, e-commerce revenues have increased from $1.5 trillion in 2015 to $4.1 trillion in 2020, and are projected to cross $4.8 trillion by 2020. Such statistics are a clear indicator of the rapid growth of the e-commerce industry. There are large opportunities to form money by sound into the e-commerce trade if you’re sorting out money-making ideas.
What makes beginning associate eCommerce company even additional enticing is that the indisputable fact that the barriers to entry are terribly low compared to beginning different firms, like a brick and mortar look. While this means there’s going to be a lot of competition, it also means you don’t have an excuse not to start your e-commerce site.
So, with an e-commerce website, how much money can you make? The beauty of starting an e-commerce company is that how much you will earn is not limited. Anything is feasible, whether or not you’re attempting to begin a tiny low eCommerce website that will bring you many hundred or thousand bucks a month or an outsized eCommerce website that will vie with e-commerce behemoths like Amazon.
The key to making money through an e-commerce website is to ensure that the right products are sold and that the right platforms are sold. Let’s look at these two variables in more detail:
Identify products that are profitable to offer
If no matter you’re marketing isn’t profitable, it’s tough to make money from e-commerce. Therefore, you need to evaluate it and determine whether you will actually make money before putting something up for sale on your e-commerce site.
You should use the following variables to determine whether a product will make you money:
The Product Demand
People have to buy your products for you to make money from an e-commerce site. If there is no market for what you sell, however, no one would buy it. Using a tool like SEMrush, a good way to find out whether there is interest in the item is to conduct keyword research for keywords specific to your product. If the product is searched for online by a lot of people, this indicates that there is a high demand for the product.
Gross Margins
It does not essentially mean that your product is profitable simply because there’s a requirement for your product. You must also verify that your sale price will provide you with adequate gross margins to cover the cost of the goods and allow you to make a profit.
Supply Ease
How simple is it to source the product for you? Without a major price change, can you supply the product consistently? Ideally, you can go for goods that you can easily obtain. Just as demand is peaking, you don’t want to be unable to supply the commodity.
Shipping Ease
The harder it is to produce your product, the more it would cost you to get your customers the product, thereby eating into your profit margins. You should also look for goods that can easily be delivered.
