NOTHING QUITE LIKE ONLINE BUSINESS
There’s unlikely to be any industry out there that comes close to the low maintenance costs associated with running an online business. It’s partly due to the inherent nature of the Internet, which has already helped humans solve so many problems in the real world. The Internet and the online world facilitates many things to make our life all that much easier. Technology has assisted with the creation of many platforms on which you can build a fully fledged retail store off of - selling to a global audience. Ecommerce is our favorite online business model; you'll start to understand why in this blog.
NO INVENTORY NEEDED
You really don’t need any storage space, let alone a warehouse - when you’re running an online business. The lack of need to hold inventory cuts away a big chunk of costs right from the start, without even diving into the other factors. Here’s how it works. The customer pays you first for a product from your website. You use this money to order the product automatically from the supplier at a lower price. Then, the supplier sends the product directly to the customer. You don’t see the products that are shipped, except for when you order samples to analyze quality. When you do get big enough, you can start private labelling but that’s a story for another day.
SUPPLIERS HANDLE FULFILLMENT
Your suppliers will usually handle the order fulfillment part of your website, including all the headaches associated with shipping. As a retailer, your job is usually to just drive traffic to your website and provide as much value as possible to the customer. The supplier handles everything else, we believe it's fair to say that it's their job. This means that the costs for logistics are kept as low as possible. Finding trustworthy suppliers can be a challenge and we always recommend getting a referral (e.g. from online business owners who know what they’re doing) to avoid potential future problems.
HIGHLY EFFICIENT PROCESSES
The nature of online business is that many processes can be automated and become highly efficient - resulting in low cost operations: marketing, order fulfillment, website maintenance, and more. It’s relatively easy to outsource tedious tasks and move on to the next website. This is quite different from owning a physical retail store, where there can be a lot more complications and inefficiencies that result in higher costs. Set your website up, build it, then automate it - as long as you set things up oriented around providing value to customers, your beloved products can receive the attention they deserve.
EASE OF ADVERTISING
An online business owner who has just begun their journey can usually start marketing with a few clicks of a button from their laptop or phone. Marketing strategies for online businesses, in the present day, are still pretty cost efficient. While a Super Bowl ad may cost millions of dollars to target a certain number of people, it can literally cost a couple hundred or less to target that same number of people. This helps keep costs low for advertising - probably the most important component of any serious website. We believe that it's a lot easier for the global audience to discover your website, than it is for the local community to walk past your website. Inflation and saturation can contribute to increased costs in the future, which is why we recommend starting your website as soon as possible.
BEST TIME TO START IS NOW
Actually, the best time to start an online business was yesterday. The second best time is now. The worst time? Tomorrow. The more you delay starting an online business, the more competition there's bound to be. It’s all about first mover advantage and building a solid foundation now, which can continue to benefit you in the years to come.