Building A Low Cost E-commerce Business
Updated: Apr 18
Are you growing bored and tired of working in the same office job? Have you ever wished to be your boss but do not know how to yet? Are you looking to start your own business? Do you have to save a huge capital from getting created on your small scale retail business successfully?
If your answer is yes to all these, then maybe entering the E-commerce industry is for you. What is E-commerce? E-commerce is also known as electronic commerce. It is the purchasing or selling of products or services through the internet.
More and more individuals are transitioning from their office-based jobs and working for companies to being small e-commerce business owners instead of opening the traditional built infrastructure business.
Pros and Cons of E-commerce
There are some advantages and disadvantages to entering E-commerce instead of the traditional brick-and-mortar market.
Pros: Accessible and Convenient
With the world wide web connecting businesses to consumers, consumers are no longer restricted only to go and visit retail stores in public places to purchase and shop for your products and services.
An individual only needs to have an electronic gadget that can access the internet, and he can visit and browse through hundreds of online shopping websites to check for products.
Cons: Limited Customer to Seller Interaction
One of the great things about going to a physical retail shop or store is face-to-face interaction, and query customers can maximize with onsite sellers, vendors, and sales personnel.
Here are some suggested resolutions for you to pass through the obstacles in starting your low-cost e-commerce business.
Establish If You Want To Be A Seller Or Reseller
If you want the convenience of not having to spend money on constructing your factory or purchasing raw materials and producing your products, opt to be a reseller instead.
You do not need to keep creating your packaging and consistently record inventories and stocks. Find a supplier or manufacturer who can offer you low prices so you can increase your profit margin.
Establish the right e-commerce business revenue model
There are different revenue models to choose from, like drop shipping, wholesaling and warehousing, subscription, and private labeling and manufacturing.
If you’re opting to be a reseller, choose between drop shipping or private labeling and manufacturing. The simpler and easier model is dropshipping.
First, your customer orders a product from your website and pays you online. Then you send the order to your chosen drop shipper. The drop shipper then ships the product directly to the buyer.
Maximize Available Online Selling Platforms
There are hundreds of available well-known shopping websites that you can set as your marketplace by just creating and signing up an account. These online shopping sites are eBay, Amazon, Shopify, to name a few.
Currently, thousands of people worldwide have not strictly limited their businesses to one shopping website. They have been making the most out of free and highly accessible social media websites and applications such as Facebook and Instagram.
You do not need to spend money on monthly rent for a commercial space, monthly utilities such as water and electricity, and monthly salaries for your in-store sales personnel. Maximize on the most popular free public social media platforms and shopping websites instead.