In recent years, people have turned to eCommerce as their main source of income. In 2022, the total revenue generated by eCommerce in the United States was $905 billion! And it is only estimated to go up from here. There are many factors that you need to take into consideration to earn money from eCommerce. But what exactly does it refer to?
E-commerce means “Electronic Commerce” that involves the buying or selling different goods. The items can range from clothes to different services like consultation and teaching! Through eCommerce, customers can conveniently shop, and the sellers can earn while sitting at home. Here are some effective ways to make money from eCommerce:
1. Finding a product niche
It is important to find a product niche that is appealing to the customers and something of your interest. Finding a specific niche helps you focus on a smaller demographic that you can market to easily rather than selling general goods with no specific customer targets.
You can choose a broad category, like baking, and then explore its subcategories of it. In this case, the products will be baking tools and cutlery. There are some things you should do while searching for eCommerce Ideas:
- Perform competitive research to see which other businesses are selling the same product as you.
- Decide a price that is within your customer target’s range. You can use sites like Amazon to compare.
- Consider your knowledge about the product.
2. Create your Store
The next step to making money from eCommerce is to build your store. You can use Shopify or Squarespace for your store. Shopify is user-friendly, but you can easily earn money since it has a large market. Therefore, it is the best eCommerce platform for small businesses.
There are many aspects of the store you have to keep in mind. Firstly, the website should be attractive. When a customer lands at your store, they first notice the appearance. It should look organized with a good business logo and theme. Moreover, the checkout and payment process should be hassle-free.
Now that you know what factors to consider, you should consider options for making a store/website. For this, you can either use online software or get a freelancer on Fiverr to build a store from scratch. This way, you can state your requirements clearly to the person.
3. Launch ADS on Google Ads or Facebook ads
Digital marketing is one of the most powerful tools to attract new customers. According to a survey, 78% of the customers on US commerce sites say that they found the products through Facebook ads. Thus, the sellers spend a hefty amount of revenue on displaying ads. As of 2022, there was a 49.8% rise in ad spending.
Some of the main sites for ads are Google and Facebook. How do these sites help to make money from eCommerce? Well, the ads on google rely heavily on keywords. Using the right keywords will make your product appear on the top search. Meanwhile, on Facebook, the main focus is on the demographic; their internet surfing techniques.
You need to analyze your product first to decide which ad will make more money. If the product can be marketed visually through graphic designs and catchphrases, then go for Google. However, if it needs a video to be advertised, then Facebook will be more suitable as their ads are also connected to YouTube!
4. Automate Your Business Operation
How can you earn money from eCommerce automation? Before we get to that, let’s understand what it means first. E-commerce automation is the process by which all repetitive manual tasks are performed automatically through different software. These tasks include managing the website and taking care of customer service.
It will help you save your precious time by doing your tasks for you. You can spend the time you save focusing on other areas of your store, like product hunting. As a result, it will help to expand your business by marketing and attracting more customers! Because this is all done automatically, there are fewer chances of errors and mistakes.
Here are some of the types of E-Commerce Automation to use for your store:
- Managing inventory
- Security: identifying risky orders.
- Email and message automation
- Keeping track of your expenses.
5. Scaling the Business
Scaling your business is a great way to improve your eCommerce business through organizing, planning, and implementing scaling strategies. The major thing you need to know is whether your business can grow or not. Sometimes, scaling results in a loss instead of a profit, so it’s essential to know when to scale.
Firstly, you need to have a strong business foundation. You cannot scale your store while it is still in the early stages of growing! Once the store runs with quick sales and a loyal customer base, take it as a sign to upgrade. Before moving on to the next stage, think of the outcomes of spending more money and time on your business.
You can scale your eCommerce store by investing more funds in different departments. For example, you might want to hire a bigger management team to manufacture your products. Moreover, you can also add a wider variety to your products. You can add products of a similar niche or a completely different one.
That brings us to an end. These are some of the major ways you can earn money through eCommerce. There are no limits on how much money you can make through your eCommerce store. It can range from hundreds to thousands of dollars per day! It all depends on your strategies and the time invested into them.
The eCommerce market is increasing rapidly, so the competition is very high. It’s better to start your store now rather than wait around. And if you have already established your business, consider ways of growing it further.