If you want to start an eCommerce business there are several different types of businesses to consider.
For example, do you choose affiliate marketing, drop shipping, network marketing or are you best to go down the route of developing your own products? Before deciding on the type of e commerce business there are a few questions you need to first ask yourself.
1) How much time are you able to commit to your business each week? 2) What's your budget? How much money are you prepared to invest to establish your business, and how much do you have available for ongoing expenses like advertising? 3) What are your goals? How much money do you want to make and how soon? 4) What do you know about generating traffic? (getting large numbers of people to visit your website) The answers to the questions above will affect your decision on what route to go down.
For example, affiliate marketing, where you promote someone else's product and then earn a commission when one of your customers makes a purchase usually involves a low start-up cost and is low maintenance because you don't have direct contact with your customers; they get serviced by the product developer.
You can earn money from affiliate marketing even without having your own website, although you'll earn more if you do develop your own site.
Drop shipping takes longer to set-up and involves more day to day maintenance.
You will need to build your own website and showcase the products you are selling on your site and also set up a shopping cart.
Your customers will pay you direct for their purchases and then you will pay the drop shipper the wholesale price.
Although you won't have the hassle of packaging and posting the products you will need to provide ongoing customer support.
The start up costs for setting up a network marketing online business vary from around $100 up to approximately $5000 depending on the cost of the main product.
It's possible to make a good income just from the retail profit, however, to benefit from a residual income takes time since it involves building a team and that can be hard work.
With network marketing it's vitally important that the product has true stand alone value; ask yourself, if you weren't promoting the product would you be happy to pay the full retail price for it? The last option of developing and selling your own products gives you total control over everything, however, it involves a lot more time and money and is much higher risk.
Regardless of which route you take to start an e commerce business it is essential that you have a good knowledge of how to generate traffic.
If you can't get large numbers of people to visit your website then you're going to struggle at being a success online.
Unless you decide to outsource this task, which is expensive, then you're best bet is to join a well respected online coaching club where you can learn as you go.
Make sure you shop around though and get the best deal.
You don't want to pay over the top and yet you want to make sure you join an established club with a good track record, one where you're going to get good sound advice and also ongoing support.