Can you make a profit? Sometimes, even if you can sell a product, you can't sell it at a price that will make you enough money. Running an ecommerce business means you cut out a lot of the overhead of a traditional brick-and-mortar business – you don't have to have a physical store, which cuts the rent, heating, water, and power costs along with the furnishings and equipment. However, you still have to pay wholesale for the product or pay for the materials and production. You also have your own bills to pay, including the hosting and maintenance of your website. So do the calculations and figure out how much you can charge and still get people to buy, then figure out how much it'll cost you to do business and take care of your expenses. You have to do more than break even; emergencies come up and you need to be able to afford to expand your ecommerce business too.
Is it something you can keep selling? There are some items that customers only need to buy once and they're happy. However, it doesn't hurt to invest in a product that people will keep coming back for. Clothes, for example, wear out and fade, fall out of fashion. People will never stop buying clothes, and will continue to order. However, you have to stay on top of things and roll out new product designs and types every so often to keep your customers' interest. Sometimes that means retiring old models. You can choose to sell something that doesn't keep selling to the same people over and over; however, it won't be nearly as profitable and you will hit a time where you struggle. Keep your product line fresh and make sure you can come up with new ideas, and you'll be fine.
Deciding what your business will be about and starting it is the hardest part of the process. If you successfully answer these questions and still need a little extra help, you can contact a consultant or an ecommerce company for assistance. As with any traditional business, it takes time and effort but will be rewarding in the end.
About Infigra Ecommerce:
Infigra Ecommerce is a New York City based company that offers software as a solution (SaaS) and enables retailers to increase their sales by offering sophisticated e-commerce management tools. Our mission is to help move inventory by increasing the product visibility on different online global marketplace segments, such as Ebay and Amazon.
For more information, visit www.infigra.com