Ecommerce: How to be Successful and Make Money
Ecommerce or buying and selling products and services over the internet is a rapidly growing market. It is possible to make considerable amounts of money through ecommerce, but just like any other business, success will require hard work, good planning and marketable product.
The basic things you will need when starting an ecommerce business are a website on which you advertise and sell your products, a product or service to market, effective marketing to attract consumers to your site, and computer software that enables you take payments for the goods or services you are selling. As your business grows you may need to hire staff to process your sales and ship products to your consumers.
Ecommerce falls into two main categories. The first is as a business that provides a "real world" product - a genuine article that consumers can purchase online just as they would in a retail shop that you sell and then ship to them. The second area available to someone considering ecommerce is internet based product (digital products) - you create a product that is only available online such as a website with a premium access area, consumers then pay you to access this premium content.
How to sell your products online
Selling a "real world" physical product to a consumer is a very effective way to make money for anyone from an amateur selling an unwanted Christmas present on a site such as eBay to big business who offer "virtual" or internet based copies of department stores and to anyone in-between. The three important factors you must take into account to be successful selling these types of products are: The suitability of your product for marketing over the internet as well as your ability to market your product effectively to attract customers, and finally the price of your product.
Your product, obviously you need a product that people are willing to buy, the more attractive the product the more potential sales just like in the real world. The other factor you must consider when choosing the product is it's suitability for sale online - is it too big or heavy to ship economically? Consumers will not purchase a product that will cost a large amount of money to have delivered or a product they think could easily be damaged during shipping. Some products need a salesman to talk to the consumer to discuss the benefits of the product and encourage them to buy; these products can be difficult to market on the internet, consumers see the internet as a fast and convenient way to shop, and protracted sales discussions could turn them off.
Effective marketing is essential to any business and even more so to an internet based one. If you have a good product, you will be able to sell it easily from a store front in a small town. Selling on the internet is like moving this store to New York City and having every retailer there selling the same product. You need to find an effective way to make your store stand out from all the others.
Ecommerce quality and products to sell
Pricing your product is another important consideration; you must be able to compete with retail stores and other e-sellers and have a product price point, including shipping that is competitive. However be careful not to sell your products at a loss to attract customers, you will need to increase prices to ensure a profit at some point and may loose customers who may perceive you as trying to profiteer. You can also end up in financial difficulty very quickly if demand for your products is greater than you anticipate if you are selling at a loss.
Selling internet based services such as premium content on websites, is less labor and space intensive as you will not have to store and ship products. The available market however may be smaller as you will most likely be selling to a particular interest group of niche of the market. Your emphasis on the quality and individuality of your product must be extremely high in this situation, as this possibly small demographic could have numerous choices apart from you to purchase from. Marketing and price will also be extremely important as in any other form of commerce so that you stand out from the crowd and attract customers.
Excellent customer service standards are essential in any form of ecommerce as people need to feel they can not only trust your description of the product, but need to be confident that you will deliver the product and provide them with service if the product is broken, damaged or there is some other problem with the transaction. You must remember you are asking people to provide you with money or their credit card details on the good faith promise that you will do what you say, excellent customer service standards will ensure higher customer confidence which translates to more sales.
Making money online with ecommerce can be quite difficult at times and requires a lot of time and patience. To speed things up, Big Money Forum has an Ecommerce: online business and marketing forum for those who are starting up a new business and want to ask questions or learn how to start one. Join our community today! There are many experienced members who can help in the development of a website and the marketing, that way you can start making big money sooner rather than later!