The eCommerce market is rapidly expanding in the U.S. with reports showing that 17% of all U.S. retail sales by 2022 will be online. Furthermore, online sales are growing five times faster than projected offline sales growth. With brick-and-mortar retail caught on the “wrong side of the digital shift in retail” many entrepreneurs are looking to capitalize on the consumer shift to the digital market through eCommerce stores. While eCommerce stores may be on the rise there is still a question on how viable they are for making profit.
eCommerce Sites Are Retail Stores
eCommerce stores are like any business, if you have a valuable product or service there is a high chance of success. To earn money from an eCommerce store you need to find a niche product that can be competitive against the multitude of eCommerce businesses already available on the internet.
There are many success stories that demonstrate how it is possible to create a success eCommerce business, even if you have other work commitments. A therapist showed how she set up a successful eCommerce store that sold fine jewelry while also working her job. One of the key reasons why she proved to be successful was that she realized that while the markup on jewelry is high, the shipping costs were low. This meant she could beat the prices offered by brick-and-mortar stores that needed to cover the costs of rent and employees. She told Inc. that choosing the right product is important, and that it should be something that you are both knowledgeable and passionate about.
One of the biggest benefits of creating a business around an eCommerce store is how simple it is to set one up. Shopify is an eCommerce platform that is described by Ecommerce Guide as being both affordable and easy to use. As the platform already has a working online store, users don’t need to create a program from scratch and can customize their store based on their company and services. This is ideal for beginners who have no experience in eCommerce, as they can setup their own store using an easy to follow step-by-step guide. This allows new and experienced entrepreneurs to set up a store without worrying about the overhead costs that come with setting up a traditional retail operation.
Selling Your eCommerce Store
Once you have set up a profitable eCommerce store you can also earn money by selling it. Many believe that you should have an exit strategy in place for your store, with the aim to sell the business for double or three times your earnings. There are two key reasons for this. The first is that like any business venture, the market place is volatile and it may not be viable for you to continue the business in the future. Selling your business will give you a significant cash infusion that will allow you to move onto other projects. The second reason is that creating and selling successful eCommerce stores can become a business in its own right. Supply & Demand recommend that if you are successful with one eCommerce venture, you can replicate this success to generate more profit.
eCommerce stores offer a large number of avenues for entrepreneurs to generate profit and create a successful online business portfolio. While there is plenty of competition it is possible to be very successful and profitable.
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