eCommerce Business ideas that work
At the end of this post, you should be able to determine what business is right for you. Would you be opting for online-based eCommerce business ideas over any traditional business ideas?
In this case, you will want to think carefully, which business model is you should venture into.
All business models have their individual pros and cons. At the same time, they require different levels of financial investment. This consequently will determine how you structure your business.
While some models may appear difficult for some entrepreneurs, a few other entrepreneurs may record successes relatively.
In this post, we’d be treating a question with a view to helping you determine what might work best for you. It is assumed that you are here to find answers to the question about which online business you should venture into.
Let’s get in it right away!
One: Creating and Selling your own Product
The business of creating and selling your own product is one of the most lucrative eCommerce business ideas. It opens your doors of creativity to a world of waiting enthusiasts who can put down an extremely high amount of money for a very competitive product borne out of your creativity.
So if that is you, (I mean if you’re creative, or uniquely skilled, such as with the ability to create valuable new kinds of stuff), then by all means, you can make your own products and sell them online. There’s bound to be a market for your works, provided you have all promotional tools in place.
Mr. Wale Oshindeinde is a Chartered Accountant in Nigeria. He lectures as well but what beat my imagination hands-down, is the fact that he is also a Salesman!
He sells his own work! He is a Sculpture Artist, selling on Instagram and other platforms. He is growing the business and gradually it is becoming a big company.
So, you can sell your own products as a side-hustle, while working on a regular 9 to 5 job. If you are successful, you may be able to turn it into your full-time job.
The main thing with selling your own products is that all of the responsibility is on your shoulders. You can only sell as much as you make, so you have to invest your own time into production.
The main benefit is that, aside from the cost of materials and your time, you don’t have to make a significant investment up front, unlike with mini-importation (sourcing from wholesalers or manufactures). You also don’t have to rely on suppliers. It’s all on you.
The dropshipping business model is one in which the seller (you) does not keep goods in stock. Instead, you transfer customer orders and shipping details to the supplier, otherwise known as the dropshipping company, who then ships the goods directly to the customer. See the infographic illustration below for clarity.
It is a business of selling other people’s product at a price you determine, and keeping the profits.
If you are looking for one business that allows operation without making a huge financial investment to get started, dropshipping business ideas is one of the best options available.
With the current rave, dropshipping has turned a lot of lives around. It is hyped as the best online business idea in the eCommerce world. It has a very low entry barrier.
There is absolutely no need to place large orders or store excess stock in physical shops, as with the other eCommerce business ideas.
The major task is finding a niche (what to sell), finding reliable suppliers that provide dropshipping services, listing your problem-solving products in an online store (marketplace), and promoting through various free or paid channels.
Other activities are fulfilling purchase order requests by placing customer orders for them and also helping to track the orders until it gets to your customers’ doors.
YOU MAY ALSO LIKE: 5 Tips for Building a Dropshipping Business
You may ask, will I be responsible for the heavy lifting (shipping processes)?
This is basically your supplier’s responsibility – all that matters is the dropshipper (supplier) made sales and must supply accordingly to a provided destination.
Here’s how dropshipping works:
- Mr. A, your customer purchases a product from your online store (retail price)
- You place an order for that product with your supplier (at wholesale price)
- Your supplier packages and ships the watch directly to your Mr. A, your customer.
Please refer to the above graphics illustration once again.
It’s that simple, isn’t it?
The business model is extremely cheap and popular. It’s best for people looking to start selling online without their own products. It is for people who want to keep a minimum workload.
However, the dropshipping model has some downsides you must understand.
- Higher price compared to buying in bulk.
- Dropshipping fee may be incurred.
- Shipping also takes longer as most dropship suppliers are based in China.
Despite the above, millions of dollars are being made selling other people’s products.
Mini-Importation, as the name implies, is an importation business model that gives the interested sellers the opportunity to leverage on cheap product importation for reselling. It is also of the various eCommerce business ideas.
What makes this model interesting is, based on reports from experienced importers, that it offers at least a Return on Investment of about 250%. The business has a spice for generating profit from imported goods, sold at a relatively high cost due to high demand.
These products can be sourced from either Wholesalers or Manufacturers alike.
Sourcing Products from Wholesalers and Manufacturers
A wholesaler is a person or firm that buys a large number of goods from various producers or vendors, warehouses them, and resells to retailers.
This model is a traditional retail business model. Products sourced can be sold using an eCommerce store or simply stored and sold in physical stores. But it requires that you have the cash to spend upfront to buy the goods, though it does not require a deep pocket to start.
The Expected Tasks in Sourcing from Wholesalers & Manufacturers
Just like the dropshipping model, you decide on what to sell, but this time, you find a wholesale, negotiate the prices and then buy the products in bulk. This type of business is popular in Africa, Nigeria to be precise.
Once you’ve decided on what products you’re going to sell, the next is for you to find a reliable wholesaler and buy the products in bulk. Getting the best price usually requires some negotiation.
The higher the quantity, the lower the cost of purchase. This is the advantage of buying in bulk, as you get the products at a cheaper price than you might with dropshipping. But this requires that you spend in advance for the products.
One downside you can not avoid is that it is labor-intensive than dropshipping, despite that it benefits more on the financial side. Once you have the products, it’s up to you to arrange storage, to list them for sale online, and to organize shipping.
Depending on your side of the world, this model can be a bit tricky as it requires you to take your time in search of a problem-solving product, reliable suppliers, as well as reliable ads program.
Manufacturers & Wholesalers: Similarities and Differences
These two are similar eCommerce business ideas. Yet have some important factors differentiating them. They are similar in the areas of bulk purchase system but nowhere similar to dropshipping. They are however differentiated from one another in the area of own-product creation with the help of the manufacturers.
Sourcing products from manufacturers may require higher investment at first because you are creating something entirely new. This business model is a great one for you if you are passionate about building a brand and selling a unique product.
The manufacturers help in creating a branded product that is uniquely yours. It involves a lot of hoops but worth the time and energy if you are ready to sail through the entire process of development, design, testing, packaging and legal obligations.
If you are successful, you are indeed separated from every other online seller because of your uniqueness. You may as well grow your business further with affiliate marketing opportunity for Affiliate Marketers.
Now, here we are…!
It is up to you to respond to the question. We have talked about 3 very lucrative eCommerce business ideas you can choose from base on which one interests you most.
Creating a product all by yourself, Dropshipping or Mini-importation where you source products in bulk from the wholesalers or have the manufacturers create a branded product for you.
We’d like to hear from you.
Sharing is caring, kindly share this post to your friends who might need it.