Studies indicate that the online market share will represent the worldwide in 2023, which is an increase from 2020. That’s right: selling things online can be profitable. But to break into this growing industry, you must first understand the process of selling online.
Marketing consists of multiple steps, from selecting the right products or services to creating effective marketing strategies. In this guide, you will learn all the steps and tools to create a successful online store, along with the benefits and challenges.
As this is an extensive guide, here is a quick summary of how to sell online:
- Decide the niche and what products to sell online.
- Choose a business model and a suitable plan for your business.
- Choose the platform to build your virtual store.
- Set up and manage the online store.
- Use marketing strategies to boost your business.
At the end of this article, you will know how to sell online and earn money easily. Let’s get to it.
1. Find a product or service to sell online
The creation of an online store begins with determining the products that are going to be sold. With some 12-24 million For online business, competition in the world of e-commerce continues to grow. Therefore, it is essential to find a product that stands out.
When looking for products to sell online, take the time to do market research. There are endless possibilities of forex, but not everyone can create a profitable business.
Here are four ways to narrow down the options that can bring in a higher profit margin.
Products that solve a problem
Selling services or products that are useful has a high chance of success. Research shows that 80% of consumers want brands to solve their problems, and 80% want them to solve society’s problems.
To find products or services that can solve problems, start by thinking about your concerns, as others are likely to have similar problems. Then, analyze how you can solve the problem and start selling the solution as your business.
hobbies and passions
Tapping into people’s hobbies and passions is another way to make money online. The toys, hobbies and DIY departments are expected to achieve a revenue of only in the United States. Consumers see this industry as an investment that brings them joy in their daily lives.
When it comes to finding the right product or service to sell online, think about your hobbies and passions. Next, look for communities that might be your target market.
trending products
Selling is one of the fastest ways to make money online. However, it is essential to catch trends quickly, as they can often change.
To stay up to date with the latest trends, use online tools like or . These show how long the trend can last. You can also check out the best-selling products on top marketplaces like Amazon, eBay, and Etsy.
niche products
Niche products typically have higher profit margins, as they target a specific audience. Also, they guarantee higher conversions and engagement when using precise marketing strategies.
Many choose a niche product to sell online, but fail to connect with their target market. To avoid this, it is necessary to know your ideal client when creating marketing campaigns.
2. Choose a business model and make a plan
After deciding what you are going to sell online, think about your future plans. First of all, choose a suitable model for your target market. Then, create a business plan to strategize how to sell your products and services online.
E-commerce business models
A business model it is a plan to make a business profitable. There are multiple models for eCommerce platforms, each with its pros and cons. Choose the most suitable model for your product and your target audience.
When considering which model works best for your online business, answer the following questions:
- Do you sell a single product or a range of them?
- Who is your target market?
- What value do you bring to the sector?
Business to business (B2B)
In a B2B model, a business sells products or services to other businesses. In 2019, B2B models accounted for all online sales, totaling $1.3 trillion.
Pros:
- Large orders.
- Long-term relationship with other companies.
- Low marketing cost.
Cons:
- Complex sales cycle from setup to delivery.
- Limited market and buyers.
- Long time to get new clients.
A great example is , a video conferencing equipment company, which offers systems for sharing content in offices.
Business to consumer (B2C)
B2C is the most common and includes companies that sell products or services directly to consumers. Its market size is expected to be worth by 2027, potentially making it the most profitable option.
Pros:
- Lots of sales.
- High probability of creating profitable marketing campaigns.
- More options of products or services to sell online.
Cons:
- It is difficult to get high orders.
- High competition in electronic commerce.
- High investment in marketing.
An example of a successful B2C company is , a digital music, podcast and video service. In 2020, the online business had an annual revenue of $5.90 billion.
Consumer to Business (C2B)
C2B applies to online sales platforms where consumers exchange their products or services with companies.
Pros:
- Personalized work with clients.
- More long-term job potential.
- Flexibility with products or services.
Cons:
- The commercial efficiency of the client is difficult to control.
- High competition, both with individuals and with companies.
This model includes freelance websites, such as . As one of the most popular C2B companies, Upwork had $373.63 million in revenue in 2020.
Consumer to consumer (C2C)
C2C consists of consumers buying and selling products or services to other consumers by putting them up for sale in online marketplaces.
Pros:
- Low cost and high profitability.
- Personal communication with consumers.
Cons:
- It is difficult to gain credibility to sell products or services.
- Quality control difficult to manage.
Some of the most popular C2C eCommerce websites are and . These online platforms connect consumers with other individuals.
ecommerce business plans
Once you have established the model, the next step is to figure out how to sell your products online. Al establishes a written roadmap for the marketing, financial and operational aspects.
When you make the plan, think about where and how you are going to source and sell the products online.
Direct to consumer (D2C)
A company can use the D2C business plan to enter the market without any partner. It is a popular strategy among manufacturers and sellers of consumer packaged goods to remove the barrier between them and their customers.
Pros:
- High flexibility with the profit margin.
- Feedback directly from consumers.
- Control over manufacturing, branding, marketing and sales.
Cons:
- High responsibility in each step of the process.
- Coordinate various business areas.
Wholesale
With wholesale, you sell products on a large scale at a lower price. Therefore, the larger the quantities purchased, the lower the cost per unit.
This business plan usually works well with B2B. Sometimes it can also work with B2C models. For example, an e-commerce store that sells wholesale t-shirts can sell to other businesses as well as individuals.
Pros:
- Long-term relationship with clients.
- Being able to establish minimum orders to have better control of the forecast of sales and income.
Cons:
- High investment and capital.
- Low brand identity.
White label and own brand
Other popular business plans are white label and private label. Although their names sound similar, both differ in the process of production and branding.
A white label is when your company buys products from a manufacturer and adds the brand to sell them as its own products. You do not intervene in production and you are mainly in charge of communication with consumers.
Pros:
- Control over the brand, marketing and distribution.
- Low production cost.
Cons:
- Less control of the product.
- It has a low level of exclusivity, as other companies can sell the same product under their brand.
With private label, a retailer produces the product for you. So you have your own brand and products, but there is still a supplier involved.
Pros:
- Ownership of the rights to the products.
- High brand awareness and legitimacy.
Cons:
- High cost to develop your products.
- Responsibility in product design.
It is possible to start with a white label and eventually move to a private label once you understand your customers better.
drop shipping
The means that a third party handles both production and distribution. In this way, the business does not keep a stock of the products and avoids the hassle of keeping a constant inventory count. It is one of the fastest growing business plans in eCommerce and is expected to achieve an annual growth rate of 2019 to 2025.
With dropshipping, you are primarily in charge of marketing and direct communication with customers and do not have any direct contact with the product.
Pros:
- Less risk when it comes to investment and start-up capital.
- There is no inventory and management cost.
Cons:
- Other businesses could sell the same product.
- Lack of control over the product, from quality to the distribution process.
Subscription
The subscription business plan includes the sale of a product or service with a recurring daily, weekly, monthly or yearly purchase. It is popular with streaming services, such as .
With a subscription, there is a contract with a set of terms and conditions. This contract details the duration, renewal procedure, cancellation policy and payment terms of the subscription.
Pros:
- Relatively reliable income streams.
- High opportunity for brand loyalty.
Cons:
- Difficult to maintain value as customers could lose interest.
- High customer purchase budget in the initial phase.
3. Choose a platform to sell online
Once you know what you want to sell online, the next step is to select an e-commerce platform. There are multiple forms of , but the main ones are:
- Buy a service.
- Use a website builder.
- Sell on online marketplaces.
- Use social platforms.
Let’s look at each of them in more detail.
Host your own WooCommerce online store
it’s a plugin gratuitous for WordPress, suitable for…
Facebook Comments
Disqus