These days, opening up your own online business is easier than ever thanks to the many services and free software available on the internet. In fact, you can start an online business completely from scratch for as low as 300 dollars a month!
In order to make money online, you have to have goods to sell to the end customer. And to sell goods, you have to have a storefront. I’m going to show you just how easy it is to open your own online store in 5 easy steps and I will cover these 5 steps.
When most people think of owning a store, selling and delivering physical goods is usually the first thing that comes to mind. However, shipping physical goods is only one of the many ways to make money with an online store.
Did you know that you can setup up your store such that all you have to do is take orders and have the manufacturer fulfill them for you? Have you ever stopped to consider selling informational products that require no shipping whatsoever? I’ve outlined below the various ways to make money with an online store along with the pros and cons of each.
Dropshipping is one of the easiest ways to start an online store without ever having to worry about carrying inventory. Once you have set up an arrangement with a dropship distributor, all you have to do is set up your online store and take orders. As orders are received, you simply pass the customer information along to the distributor who is then responsible for delivering the actual goods to the end customer. The profit you make is the difference between your selling price and the wholesale price you’ve negotiated with the vendor.
Selling Physical Goods With Inventory
This is the most traditional way of making money via an online store. You purchase physical goods from the manufacturer at a wholesale price, stock inventory and ship the goods directly to the end customer. It sounds like a hassle and it definitely can be troublesome at times, but the profit margins are extremely high compared to dropshipping. It is because of the high margins that opening up a traditional online store is one of the fastest ways to make a meaningful amount of money in a very short period of time. The negative aspect of opening a traditional store though is that it involves greater risk because you have to put some of your own money up front to purchase inventory.
Opening up a traditional online store has been an extremely profitable venture
Selling Your Own Goods
Not everyone has the intelligence, creativity and aptitude to sell their own goods created from scratch, but those that do so successfully make the most profits of them all. The hot ticket items to sell online these days are informational goods. Why? It’s because you don’t have to ship anything physical. You can deliver informational products with a simple download once payment is received.
If you have a special talent or possess knowledge that is scarce, selling your own goods is definitely the way to go. Best of all, you get to keep all of the profits.
Selling as an Affiliate
Becoming an affiliate is very similar to being a drop shipper except that you carry no responsibility whatsoever. All you have to do is to refer someone to a product or service. If that person makes a purchase, then you get a cut of the sale. Once the sale is made, you are out of the picture altogether. Being an affiliate is by far the lowest energy way to make money. Unfortunately, it also carries the lowest profit percentage.