Here are a few e commerce startup ideas which you should definitely use. Commercial transactions conducted on the internet (e commerce), offer a great flexible business opportunity. Having an e commerce business means you can work it from anywhere and be your own boss. You can also build it around existing employment and other commitments.
Most e commerce businesses offer something to buy through a website. Either a drop shipping business or an affiliate business both mean you can operate it from a laptop. Â Both businesses are concerned with connecting customers to products. The final products or service are delivered by the company.
Depending on how much involvement you want to have with distributors, customers and products you may decide one is better for you than another. With both models you don’t have to talk to customers or deliver products, companies will do all that for you. Your job is simply to refer the sale. You get a commission for each sale you make, and you can even make back end commissions on certain products.
E Commerce Startup Ideas – Affiliate Marketing
Affiliate marketing is one of the most successful e commerce business models and one in which anyone can start. Affiliate products are everywhere on the internet. Almost anything you can purchase online has an affiliate program. Anyone can join an affiliate program, refer a customer to one of its products, and earn a commission based on that sale. If you have ever used e-bay to buy something, e-bay also has an affiliate program. You can refer people to the auction site, or even specific auctions, and earn commissions based on sales. See also my article how to buy and sell for profit on ebay.
E commerce Startup Ideas – Affiliate Models
The most common affiliate marketing startup idea is to join the affiliate network Clickbank.com and start promoting a product in whatever niche you feel most comfortable in. With digital products like the one you will find there, you can earn up to and even above 40% of the sale price on any given item. This means you can sell a $100 item and earn $40 – nearly half the value of the sale price! This is possible because digital products are cheap to deliver, they don’t cost anything to store and the biggest cost is advertising – which is taken on board by you, the affiliate.
However, before you rush off to Clickbank, get a product and start blogging there are a number of things to consider with this business. Firstly, there is a lot to learn about affiliate marketing. There are many people trying to tell you often conflicting advice. Where will you get your traffic from? Will you write a blog or use paid advertising, or both? Which products will you choose? What do you know about and which niche would you like to go into?
Basic Affiliate Model
The basic affiliate model lets you put a banner or a link on your website. You sell a $100 product and make $40. You will need to sell multiple amounts of products in order for your e commerce business to make a reliable and long term living.
Back End Products
Some affiliate products offer back end sales. This means you refer the customer to the product and they purchase the item. After their initial purchase the company offers them another product within a range of products which they sell. You earn commissions from back end sales for the customer you referred initially. This model is obviously better in many ways to the initial basic affiliate model. You can continue to earn long after the initial sale and later back end sales are closed by the built in sales team. This model offers more long term stability because each sale can continue to bring in sales in the future. With the basic model, you only sell once.
Monthly memberships are another way to make affiliate marketing much more viable and lucrative than many e commerce startup ideas. Selling an affiliate product can make you $40 as a single sale. With monthly memberships it can make you $40 every month for the lifetime of everyÂ customer. You can see how this model is far better than to simply sell single items with no further commissions attached.
High Ticket Sales
High ticket items which sell for $2000 obviously have a larger commission attached. At 40% commission rate you would earn $800. Perhaps it may be more difficult to sell a higher priced item, however it won’t be 20 times more difficult. If these same high ticket items also have back end sales and monthly memberships attached to them you can see how this model is far superior (and much more lucrative) to the basic affiliate model.
E Commerce Startup Ideas – Scaling Up
Good e commerce startup ideas should also have the ability to scale up. One of the main benefits to an e commerce business is its ability to be scaled globally. With e commerce you have access to a global audience. Putting the right systems in place to enable you to scale up your business is vital for long term success. The automation of much of the running of the business is therefore important. See autopilot income system.
E Mail List Building
An e commerce business should ideally always have an email list of subscribers. Products and services can then be sold on virtual autopilot to the list, while that list is being grown. List building and the power of email marketing is one of the main focuses of most successful e commerce startup ideas.
Traffic doesn’t necessarily mean sales. Getting the right traffic to your website and landing pages means you get the right people on your email list. See why target market is important. There are several ways to do this but once you have people on your list you have a ‘captive audience’. Getting them there is done either through content marketing or paid advertising. With the right people on your list, you can offer them your products and services in a way which gives them value, rather than the hard sell.
Access a system which offers high ticket sales, monthly commissions, back end products and all the training and support you need to build you own successful e commerce startup. Access a free video series and learn more here.