Ecommerce – Do You Really Need to Spend Money to Make Money?

It’s often said you need to spend money to make money. But do you really need to spend money to make money in ecommerce? Here are a few things to keep in mind if you’re considering starting your own online store.

Free Services Often Lack What You Need

There are ways you can do ecommerce on a near-zero budget. However, unless you’re an SEO master, or you’re selling the best product known to mankind, you probably won’t make very much money this way.

Several aspects of building an ecommerce store cost little or no money. For example, social media sites such as Facebook, Instagram and Snapchat don’t cost anything for you use on a basic level. While it makes sense for your online brand to have a presence on social media, don’t expect this to immediately translate to sales. In fact, unless you’re an already-established brand, you’re probably going to need to spend some money on social media marketing.

Targeted social media ads allow you to focus on audiences that you think will be most likely to engage with your product. You may also want to market your product with social media influencers. These are people who have dedicated followings on one or more social media platforms, and will vouch for your product in return for payment. Since people typically trust other people more than brands, social media influencers can be a great way to boost sales. They typically aren’t going to promote your products for free though.

Various enterprise ecommerce platforms typically offer a free version of the service, or at least a trial period to see if you like it. The best premium features, however, will cost you. Getting an upgraded version of an ecommerce platform will allow you to scale your store to make more money. But you’re going to have to pay to do that. There are also more customizations and other tools available to people who purchase an ecommerce store plan.

Other Ecommerce Expenses Will Add Up

Your site and marketing aren’t the only things you have to pay for to aggressively grow your ecommerce store. You also have to consider the most important thing of all: your product. Depending on your ecommerce model, you may or may not have to keep an inventory.

Drop shipping is gaining popularity among a lot of ecommerce store owners because it requires a relatively low amount of initial investment. Essentially, drop shipping allows store owners to act as a middle man between customers and manufacturers. Instead of purchasing a lot of a product at wholesale price, keeping it in your inventory, and then hoping you can sell it, which is one approach to ecommerce, drop shipping lets store owners sell directly to consumers without having to hold any inventory.

This works because the manufacturers or wholesalers sell each individual product for a higher price to the store owner than they normally would if they were to buy in bulk. It’s then the store owner’s responsibility to set a price that they believe is low enough to be competitive, but high enough so that they can make some money off the transaction. Due to the nature of drop shipping, it typically affords lower margins for owners than a more standard approach to inventory. However, the way it’s designed allows people to start making money without spending much on product. The thing is, you will still probably have to spend money on advertising in order to have a high-volume drop shipping business.

You really just have to decide for yourself how much money you’re willing to spend on an ecommerce store before you start buying anything. There are many different approaches to ecommerce; but almost all require you to spend at least some money if you want to quickly scale the business.

 

 

 

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Ecommerce – Do You Really Need to Spend Money to Make Money?

It’s often said you need to spend money to make money. But do you really need to spend money to make money in ecommerce? Here are a few things to keep in mind if you’re considering starting your own online store.

Free Services Often Lack What You Need

There are ways you can do ecommerce on a near-zero budget. However, unless you’re an SEO master, or you’re selling the best product known to mankind, you probably won’t make very much money this way.

Several aspects of building an ecommerce store cost little or no money. For example, social media sites such as Facebook, Instagram and Snapchat don’t cost anything for you use on a basic level. While it makes sense for your online brand to have a presence on social media, don’t expect this to immediately translate to sales. In fact, unless you’re an already-established brand, you’re probably going to need to spend some money on social media marketing.

Targeted social media ads allow you to focus on audiences that you think will be most likely to engage with your product. You may also want to market your product with social media influencers. These are people who have dedicated followings on one or more social media platforms, and will vouch for your product in return for payment. Since people typically trust other people more than brands, social media influencers can be a great way to boost sales. They typically aren’t going to promote your products for free though.

Various enterprise ecommerce platforms typically offer a free version of the service, or at least a trial period to see if you like it. The best premium features, however, will cost you. Getting an upgraded version of an ecommerce platform will allow you to scale your store to make more money. But you’re going to have to pay to do that. There are also more customizations and other tools available to people who purchase an ecommerce store plan.

Other Ecommerce Expenses Will Add Up

Your site and marketing aren’t the only things you have to pay for to aggressively grow your ecommerce store. You also have to consider the most important thing of all: your product. Depending on your ecommerce model, you may or may not have to keep an inventory.

Drop shipping is gaining popularity among a lot of ecommerce store owners because it requires a relatively low amount of initial investment. Essentially, drop shipping allows store owners to act as a middle man between customers and manufacturers. Instead of purchasing a lot of a product at wholesale price, keeping it in your inventory, and then hoping you can sell it, which is one approach to ecommerce, drop shipping lets store owners sell directly to consumers without having to hold any inventory.

This works because the manufacturers or wholesalers sell each individual product for a higher price to the store owner than they normally would if they were to buy in bulk. It’s then the store owner’s responsibility to set a price that they believe is low enough to be competitive, but high enough so that they can make some money off the transaction. Due to the nature of drop shipping, it typically affords lower margins for owners than a more standard approach to inventory. However, the way it’s designed allows people to start making money without spending much on product. The thing is, you will still probably have to spend money on advertising in order to have a high-volume drop shipping business.

You really just have to decide for yourself how much money you’re willing to spend on an ecommerce store before you start buying anything. There are many different approaches to ecommerce; but almost all require you to spend at least some money if you want to quickly scale the business.

 

 

 

Enjoy Plunged in Debt?

Pid

Subscribe to get our latest content by email.

Powered by ConvertKit

Speak Your Mind

*