3 Profitable Ecommerce Business Ideas to Try
You want to start an online business. You have the ability, time and money to put it into practice. But you cannot be sure of the final online business ideas you read. Scouring the internet typically turns up hollow ideas that do little to increase sales or bolster your online presence.
For evidence of this effect, look no further than to the Small Business Administration. According to them, only half of all new businesses with employees will survive more than 5 years.
With odds like that, you can’t afford to put your stock in a business model that is neither tried nor proven. This is especially true when ecommerce is your only source of income. That’s why we’re here. Below, you will find proven ideas that you can implement into your business for real results.
Here’s What We’ll Cover:
Ecommerce: Is It Worth It?
Before we jump into successful ecommerce business ideas to try, let’s look at some of the pros and cons to getting into the world of ecommerce. The latest statistics show that eCommerce as an industry is growing steadily by the year.
However, the market has seen its fair share of disaster following the recent pandemic. Spending on certain product categories has fallen, while other vertical products have flourished. That said, let’s explore why you should or shouldn’t get into eCommerce.
For starters, the location is independent. As long as you have a laptop and reliable internet access, you can start an ecommerce business anywhere in the world. That's a business plan many people can get behind.
And at the personal level, you can live abroad, travel indefinitely, or move to more affordable places. At the operational level, you can compete internationally. What's more, you can flexibly scale up, profit from arbitrage and earn passive income.
What’s more, you’ll have a flexible schedule. Once your business is up and running, you can adjust your work schedule to suit your lifestyle. You’ll have the option to use delegation, intelligent integration, and automation.
Then, you can run your growing ecommerce business with co-founders. Not only that, but you don’t necessarily need a robust team. You can even run your business individually and without the need for 12-hour shifts.
Ecommerce is fragile. As such, ecommerce platforms are not as flexible as other types of online businesses. This is because there are many components that are susceptible to interference. What’s more, delivery may be delayed and manufacturing may stagnate. And if you have any product recalls, they can be costly. Since there are many third parties involved in your supply chain, there are many risks, as well.
Not only that, but there’s stiff competition. Small business owners in the ecommerce industry are in a particularly difficult situation. Why? Because they must compete with other small- and medium-sized enterprises.
And then there’s the ultimate ecommerce giant, Amazon. Large retailers also set high standards in terms of customer expectations. Because Amazon provides Prime delivery, many consumers now expect all other retailers to deliver fast and free. As such, it can be challenging to stand out from the competition and meet customer expectations.
These shortcomings are an important part of operating an ecommerce business. And they are ones you must consider. But even as a small business owner with a limited budget, you can overcome them with appropriate strategies. Let’s explore some of these now.
Profitable Ecommerce Business Ideas
Now that you have a better understanding of what you are going to do, let's go back to the business idea of ecommerce. Let’s look at what works, so you can implement these ideas into your business strategy.
There are various product ideas you can try, but we've narrowed down one of the easiest to get things started. If your ecommerce business grows, you can always venture out into new niche product options.
Offer a Niche Apparel Product
You can create an ecommerce website to sell niche custom clothing products. Consider items like branded merchandise or slogan T-shirts. You don't even need to invest in inventory up front. You can use on-demand printing services to ship all types of clothing.
What’s more, you can easily connect your online store with on-demand partners. If a new client orders your clothing, the partner will make it and ship it out.
Everyone needs clothes. When you enter the apparel market, you don't have to worry about unexpected exhaustion of demand. According to research conducted in 2020, sales of T-shirts increased by 47%, while sales of pajamas increased by 143%.
What’s more, clothing is still an evolving industry. In 2020, the global apparel market generated $1.46 trillion in revenue. And, it is expected to grow to approximately $2.25 trillion over the next 4 years.
Sell B2B Without Much Competition
When people consider starting an online business, especially an online store, they often first consider the B2C space. However, there’s no need to limit your options when B2B is accessible to new startups.
The industry is growing rapidly. Just last year alone, the growth rate of digital B2B sales was 10 times the total offline sales. And, they were 10 times the total sales of manufacturers and distributors. Companies are ready to buy online, but suppliers have not kept pace.
Nowadays, anyone can sell B2C products on consignment. At the same time, sourcing new products in the B2B field proves to be even less challenging.
Offer What Amazon Can’t
That’s right. It might sound crazy, but you can offer things that Amazon can’t. If the product is available on Amazon and your ecommerce store, guess which option the customer would choose? They choose Amazon every time because they know and trust them.
This is why you should keep yourself away from direct competition with "all stores". What you need to do is to provide your potential customers with something that Amazon can't. Provide a personalized, high-quality selection of niche products.
Why are some people willing to patronize more expensive shops? Because they don't want just any product. Rather, they want high-quality items that aren’t always available on Amazon. As such, they will pay a premium price.
This is the positioning you want to pursue as a small business owner. Amazon is the ecommerce version of grocery and retail stores. You want to be the ecommerce version of a specialized store.
Therefore, you should find a profitable ecommerce niche market. Conduct extensive market research and make sure you understand your potential customers. Then position your findings into a carefully curated online shopping experience that consumers can’t get on Amazon.
Yes, it’s going to take a lot of effort on your part. But the rewards are well worth it once you start seeing select customers flock to your ecommerce business. And once you have the ecommerce side of things down on your end, you can bring in new and exciting products.
This will serve to attract a new niche of customers. And in doing so, you will see even more profit on your end.
Amazon is indeed an intimidating giant. However, the right planning can give you a fighting chance. With a smart approach to competing with the larger corporations, you can attract those that they can’t. It takes time, but you’ll see real results from your hard work.
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