In this post, I will share with you the 3 best eCommerce businesses to start from home. Many decades ago, people in the eCommerce industry could not have imagined doing any business at home. But today, thanks to the power of the internet and advanced technology, many people have successfully started businesses from home and continuously earn an income from it.
In 2020, the eCommerce business revenue reached a staggering amount of $794.5 billion in the United States only. And it is expected to grow up to $843.15 billion in 2021. These figures only show how profitable it is, and it appears that the demand is still increasing per year.
We will share everything you need to know about eCommerce and our top 3 business choices on this topic. We will also discuss how you can start your eCommerce business right in the comforts of your home. So, let’s get started.
What is eCommerce?
E-commerce or eCommerce is a business model where businesses or individuals do transactions such as selling and buying online. Almost any imaginable products or services are available through eCommerce. It can be a substitute for a brick-and-mortar store, but most businesses prefer to have both.
There are 4 common eCommerce business model types:
- Business to Consumer – These are transactions between a business and a consumer, the most commonly known eCommerce business model type.
- Business to Business – Also known as B2B, these are transactions made between businesses like a wholesaler and a retailer.
- Consumer to Consumer – One of the earlier types of eCommerce where consumers sell products or services. Amazon and eBay are examples of C2C eCommerce.
- Consumer to Business – This model defines an individual making their products or offers services for businesses to purchase.
Can sometimes combine these business models to cater to the same industry’s consumers and business owners. But these models do not guarantee success. Other factors need to be considered for a startup eCommerce business which we will also discuss later on.
Is eCommerce a good Work-From-Home opportunity?
The direct answer is yes. With careful preparation, a solid plan, and a strong mindset, you could find it very lucrative and even a long-term income. You can think of Amazon, Alibaba, or eBay, as some of the most successful eCommerce companies in today’s world.
These companies have amazing, humble beginnings. Perhaps the most remarkable in the early years of Amazon, which Jeff Bezos started in their house’s garage. While Jack Ma started Alibaba in an apartment, and Omidyar started eBay at his home.
These stories only prove that anyone can start an eCommerce business at home or perhaps at their garage. What has started as small businesses with one or several people are now the world’s leading eCommerce giants earning billions of revenues and employing thousands of workers. Let that sink in for a moment.
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What are the pros and cons of starting an eCommerce Business?
Aside from managing your business from the comforts of your home, there are a lot of benefits of an eCommerce business from home and some disadvantages too. Here are some of the pros and cons that are good for you to know:
- Low capital business
- No rent for business space
- Fewer overhead costs
- Option to sell locally or globally
- Manage your own time
- You may still need to allocate a space in your home for your business
- You are still required to comply with regulations compulsory to the type of your business
- There’s a possibility that your business could outgrow your home and potentially rent a space
- There’s also a possibility that you may not be able to work on your business on your own and may need to hire some people.
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What are the types of Home-based eCommerce Businesses?
There are many eCommerce businesses that you can start from home, but we picked out the top 3 businesses that are proven profitable and sustainable.
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1. Start your Clothing Line
Starting a clothing line could earn you up to $100,000+ per year. With the right hustle and creative ideas, your clothing line can earn more. At least aim for a 50% profit margin once you have your clothing price down.
Whether you will be selling your own clothing line or drop shipping them, it is important to know your target audience first. Knowing what type of audience you will be focusing on allows you to create solutions surrounding their preferences or needs. Also, it allows you to strategize what direction you would like to take your clothing business to and create a better marketing strategy. Here’s a post that can help you with “How to Market your Clothing Products Online.”
2. Launch your Dropshipping store
Dropshipping is another profitable business that you can start with little to no capital investment. Some dropshippers started with no money at all. And if you’re curious how they did it, you can check it here “How to Start Dropshipping With No Money.”
The best thing about dropshipping is that you have plenty of products to choose from. You can check on the best seller products on Amazon and get great ideas from there. Managing a dropshipping business would involve taking care of the order processing, customer service, and shipping. However, you will not need to manage the inventory that removes the need to have storage rooms and the tedious listing of products on hand, and so on.
3. Start your online Food and Groceries business
Starting your online food and groceries business is an industry that skyrocketed just recently. And more likely will not decrease anytime soon as people prefer online food or grocery orders rather than going to physical stores. You can take this increase in demand to your advantage. Show your kitchen skills and make your own package meals, but you also have the option to sell retail package food instead.
Try to get a good deal with a wholesale grocery supplier so you can still set the products at an affordable price. Offer contactless deliveries where can leave deliveries on the porch or on an elevated area where customers can pick them up. You can also outsource delivery drivers that offer delivery options to customers.
How do you start a home-based eCommerce Business?
Starting an eCommerce business at home is slightly different from starting a business in a physical store. But there are a few similarities. The important factors that can be applied to most businesses are the following:
Research on your niche
The first step is to research the niche you want to focus on for your business. You can start by listing down your ideas about the products or services you would like to sell in your online store. Then check their marketability by using a keyword search tool. Here’s an example, using the Jaaxy keyword search tool:
By using Jaaxy, you’re able to check the average searches made by people in a month. You can also find some useful keywords to add to your niche.
Aside from Jaaxy, you can use Google Trends to check the sustainability of your business.
Google trends will allow you to see the popularity of the keywords or the niche you would like to choose. In this example, you can see that the demand is within the average range of the months for the past couple of years. Try to compare it with the other ideas you have.
Solidify your plan and create your business name
Carefully plan your eCommerce business, creating a checklist of questions to ensure that you have a solid business plan. To guide you, here are some questions you can base your business plan on.
- Where will you get your products?
- What are your startup costs?
- How will you ship your products to your customers?
It would help if you kept in mind other things during the planning stage, such as some legal and other regulations when securing the products for your business. When you create your business name, ensure that another entity is not using it. Also, check if your business name is available for your potential domain name.
Take care of the paperwork.
This includes applying for an Employer Identification Number, obtaining licenses, business permits, and others. However, the application for these may depend on the type of business you have. If you have chosen a general partnership or sole proprietorship, you may not need to register your business with the state. It is crucial to know what is paperwork you need to accomplish to avoid legal issues later on.
Shop for an eCommerce platform and build your website
There are plenty of free or paid eCommerce platforms available for you to choose from. You can find Shopify, Magento Commerce, BigCommerce, WooCommerce, and many more. You may want to choose a platform that runs on a single platform from order management, inventory, marketing, customer service, and many more. It should also offer a complete customer view, provide a superior customer experience, website security, and support business expansion.
Start marketing your business.
After building your website and uploading your products, it is time to market your business. You can either pay for online marketing services or do it on your own. You can share your website or product links across your social media accounts to promote your business. You can also create business pages on social media to cater to your social media customers. Besides that, you can also join social communities to grow your brand online and attract more potential customers.
Another way to market your business is to create blog posts about your products or your brand. Regularly publishing relevant and quality posts can help your audience know your brand better. You can also start an affiliate program to help promote your brand.
You may want to learn affiliate marketing using a complete platform such as the Wealthy Affiliate. It is a training platform complete with personal coaching, 24/7 support, SEO and social media training, and many more. You can also get a free website, hosting service, and free keyword research tool essential for starting up an eCommerce business. If you’re interested, you can click on the banner below, and we will personally meet you inside to get you started.
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