How to Sell a Product Online
How to Sell a Product Online
Online retailing or eCommerce as it’s more commonly known, is a rewarding business. There are many people who are making substantial incomes by selling products and services online and many others making nothing at all.
Like any other type of business, you need to have a plan in order to get started. You can’t just jump in and hope things work out because many fail before they even get their first eCommerce site off the ground.
An Idea…
But what if you could build an eCommerce site that makes you say, $1,000 per month, (that’s $12,000 a year). I am sure you would say this would be an ok amount for a part time hobby and a pretty good idea.
What if you could build a number of them, an entire website, or a bunch of websites, and turn those into cash flowing assets that continue to pay you thousands of dollars a month for the next 4 to 7 years, or longer?
Why an eCommerce Business?
The internet is killing traditional retailing…
It’s no secret that the internet has radically changed how we shop. These days, you can buy almost anything online with a few clicks of a mouse. Because of this, less and less people go to malls and department stores. That’s obviously is bad news for retailers that depend on foot traffic.
Of course, online shopping didn’t just suddenly sneak up on traditional retailers. It’s been steadily building since the 1990s.
But here’s the thing…
Most traditional retailers have underestimated the power of the internet. They didn’t adapt to it. Now they’re paying the price. Just look at these examples of some of the major retail stock prices that have plummeted over the last three years.
- Macy’s is down 45%
- Sears is down 72%
- J.C Penney is down 25%
- The Gap is down 42%
- Urban Outfitters is down 33%
Whereas, Amazon, the world’s biggest online retailer is up 130% since March 2014 and business online, globally is now in the billions of dollars annually.
Would you Like a Piece of this $400 Billion Market?
Estimates are, that during the year 2017 online retail sales will continue to grow to $434.20 Billion Dollars. If you doubt these numbers then take a look at these online retail growth stats:
Online Retail Sales Growth 2000-2014
- 2001: Alibaba.com achieved profitability
- 2002: eBay acquires PayPal for $1.5 billion
- 2003: Amazon.com posts first yearly profit
- 2009: Zappos.com acquired by Amazon.com for $928 million.
- 2010: the United Kingdom had the biggest e-commerce market in the world (per capita spend)
- 2012:eCommerce topped $1 trillion for the first time in history.
- 2013: Alibaba’s e-commerce market share is 80% in China
- 2013: India‘s e-commerce industry has grown more than 30% from 2012 to $12.6 billion
- 2014: There are 600 million Internet users in China (twice as many than in the US)
- 2014:Alibaba Group has the largest Initial public offering in history, worth $25 billion.
- 2015:China‘s online sales reached $253 billion in the first half of the year, accounting for 10% of total retail sales.
- 2015: Amazon.com accounts for more than half of all eCommerce growth worldwide.
- 2016 :Estimated retail eCommerce sales in Brazil was, $17.3 billion.
- 2017: Estimates are that online retail sales will to grow to $434.20 Billion.
The Online Shopping Trend
As you can see, online shopping activity has increased nearly tenfold since 2000. And Amazon, now the world’s largest retailer, is a big reason why.
Important News About Amazon
Amazon’s has recently announced that its is increasing its focus on ecommerce growth and they exceeded more than $136 Billion in sales in 2016 alone and they are expecting sales to grow into over a half trillion dollars in the next decade. They are investing heavily in the infrastructure and marketing initiatives to keep customers coming back for their every need.
Why should you care?
Because you can participate in this unprecedented growth. A relatively large percentage of Amazon sellers are already generating life-changing money by leveraging the massive marketplace that is ‘Amazon‘, and they benefit from Amazon’s investments in creating happy customers and now so can you by getting involved via an eCommerce business.
Here’s How the eCommerce Business Works
You identify products you want to sell in your online store, (maybe from Amazon). Or you setup a drop ship arrangement and a discount (profit margin) with a supplier.
“Drop ship means that when someone orders, the supplier ships the item directly to your customer. When a sale is made you get the profit margin from the sale”.
You then setup an eCommerce website and promote your selected products by writing a product review or a blog about the specific product you are promoting. If you provide quality content and interesting information, you will build a following for your website and a list of satisfied customers.
Here is an example of how this works out:
Product Sells For $49.95 – (Product Cost + Drop ship Fee) $25.35 = Profit of $24.60