In this section, you will get a very good understanding about the different business categories you can start. Each business category has its pros and cons, ultimately you will decide which business model will fit around your lifestyle.
If you are new to Online Commerce, we recommend you have a read through our Fundamentals section that highlight some of the principles we like to share with people starting an online commerce. Although not necessary, our Fundamental section can help you get a larger overview of your expectations and the realities before even thinking about starting an online commerce.
Here are some questions that can help you shape the direction for each business category below:
Do you want to sell physical products online? i.e. cell phone cases
If you plan to sell your own manufactured products or dropship products online, opening an Online Store can help you reach many customers around the country or even the world. By opening an Online Store, you can display your products in a very professional way, take payments, refund, and increase your Brand.
PROS:
+ Very profitable if you sell the right product to the right audience.
+ Your brand can become very valuable if you build customer trust.
+ It can lead you to build a real Brick and Mortar Store.CONS:
– If you are not manufacturing the product you have to adhere to the manufacturer’s policies and prices.
– Outsourcing products can be a painful experience for you and your customers since you will be held accountable.
– Advertising can decrease your profits if you don’t set up your marketing and advertising correctly.Do you want to provide a professional online service? i.e. online gym instructor
Yes, you can provide services such as being an online gym instructor or even teach classes online. Having a website is a must in order for your prospective clients to window shop your services, fees, and credentials. You can collect important information about people visiting your website in order to adjust to their behaviors and begin building rapport with your prospective clients.
PROS:
+ Charge whatever you think your services and time are worth.
+ No need to worry about physical products!
+ You are 100% accountable to building customer trust and reputation of your business.CONS:
– You will have to adhere to your customer’s schedules. This can be a problem if you and your customer are in 2 different time zones.
– You might need to constantly reach out to new subscribers to your services and might not be a steady source of income.
– Advertising can decrease your profits if you don’t do it correctly, yes just like an online store your clients need to find you!
Do you want to sell digital products? i.e. video games or apps
Selling digital products can be the least tedious out of the 3 options presented in this section. When it comes to digital products, you don’t have to worry about sourcing, buying, and shipping products. Even though, you don’t really need a website to sell digital products, I’d still recommend it just because it gives your business a more professional outlook. Make sure you visit the actual Digital Products section to see a broader list of digital products you can create and sell online.
PROS:
+ No need to worry about inventory! You create it, you own it, you distribute it DIGITALLY!
+ Charge whatever you think your digital product is worth!
+ Unless you build an terrible product, feedback/customer reviews shouldn’t be too harsh.CONS:
– You will spend countless hours learning and practicing the software you want to use for your digital products.
– You might not see any profits or results for a very long time, especially if you have to learn the software to create your products.
– You might need big budgets depending on the digital product you are planning to create.
Conclusion
These are the 3 most common options you can start experimenting with Online Commerce. There really isn’t a best option, as we covered on our Fundamentals section, what will make or break your Online Commerce will be the amount of effort you are willing to put into, the research, presentation, and a bit of luck.
Click on each business category to get a more in depth analysis of how to start each category.