Knowing how to start an online home business will take a little research on your part. You will have to know what kind of online business you are interested in starting. If you have products you want to sell, you could look at opening accounts with Amazon, eBay, Esty.

Some of these are, as you may know, already setup and all you have to do is create and account with them and start selling products. There are Pros and Cons to all the above stores and you need to consider what will work best for you.

Let’s Take A Look At Some Pros And Cons

eBay

eBay is one of the most popular multinational e-commerce company for people who want to sell a variety of items from pet products to cars. But there is a huge difference between selling a few items online to opening an online store. You would be wise to consider the Pro and Cons before opening and account with Ebay.

Pro’s

  1. eBay is quick and relatively easy to set up and start selling products. You open an account and sign up for the store subscription to be able to open your official store. You then receive a site that you can personal and load products to sell.
  2. You have different selling options on eBay, you can sell in the auction, sell in the auction with a buy now price or sell at a fixed price. Sellers option.
  3. Protection – eBay is well know for their user protection. They have methods in place to protect both the buyer and the seller from fraud if the seller does not ship the product or the buyer does not pay for the product.
  4. Good community support for anyone new to eBay, to learn tips on how to run their new store. There are forums to help with any issues they may have.

Con’s

  1. Competition is probably the biggest con for eBay. There are millions of people selling on eBay and that is your competition. You can try to make your site look better to attractive buyers.
  2. Bidding – Most people want to get the lowest price they can for your item, so they start very low on the bidding and if you do not have a reserve on your item – you can lose money.
  3. Let’s not forget the fees associated with eBay. You Have insertion fees, item value fees, and if you want to put your item on their recommendation list, there is a fee for that as well.
  4. Personal experience, every item I listed went to the last pages of the search.

Amazon

Amazon – The figures and statistics show Amazon to be a highly successful sales channel – both locally and internationally – so what it is that’s holding back ecommerce businesses from focusing more heavily on Amazon?

Here’s a look at some of the pros and cons for selling via Amazon.

Pro’s

  1. Selling on marketplaces such as Amazon is that you can scale of your online business. Amazon draws nearly 184 million visitors a month which can create a lot of traffic to your site for a higher sales volume.
  2. According to an Amazon executive, sellers report an average 50% increase in sales when they join Amazon Marketplace.
  3. Selling on marketplaces such as Amazon is that you can scale of your online business. Amazon draws nearly 184 million visitors a month which can create a lot of traffic to your site for a higher sales volume.
  4. According to an Amazon executive, sellers report an average 50% increase in sales when they join Amazon Marketplace.

Con’s

  1. Marketplace Fees: Setting up shop on a marketplace can potentially supercharge your sales, but it also exposes you to another cost center: marketplace fees.
  2. Most marketplace fees are deducted as a percentage of each sale, and can vary from site to site and even category to category. In highly competive, low-margin categories, the numbers may just not add up.
  3. Before selling your products on a marketplace, you’ll want to make sure you have a good sense of your margins and a firm understanding of the marketplace’s fee structure.
  4. Limited Control: While the marketplace infrastructure has many advantages, it’s important to remember that it can cut both ways.
  5. Marketplaces don’t exist to help you, but to help themselves. They want the focus to be on the products, not the sellers. And that means they might restrict the degree to which you can brand your presence, communicate with customers, dictate what items you can and cannot sell.
  6. Additionally, there’s nothing to stop marketplace owners—in the case of Amazon from going around third-party sellers, identifying popular products, and stocking them themselves.

Esty

Esty is an e-commerce website that incorporated in February 2006 and that focuses on handmade, crafts or vintage items. The site follows in the tradition of open craft fairs.

The platform generates revenue from primarily three streams:

  1. Marketplace fee of 5% on final sale value, which the seller pays at completed sales transaction
  2. A listing fee of .20 per item
  3. Service fees for Promoted listing, payment processing, shipping labels out of the platform

Pro’s

Etsy’s focuses on a few select product categories, so more users could be searching for what you’re selling. It has a suite of marketing tools that make it easy to create coupon codes and other promotions for your customers. And if you decide to move to another platform, you can easily download all your listings to a CVS file with one click.

Con’s

Esty has become a very popular market place There are more sellers with similar products, which means there is more completion. Esty’s stores are quite limited, so if you are looking to brand your business you will have a problem designing your own look.

Other Avenues Can Be Better Options

There are drop shipping companies that have items you can sell without having to have any inventory. You just list their products on your shopping website platform.

When you sell an item, you send the order to the drop shipper and they will ship it out with your company name. Sounds good in theory, but what happens when they don’t get the item shipped out in a timely manner or at all.

Your customer gets upset with you and you have really have no control over the products or the shipping. Be sure the drop shipper is a reliable company before you do business with them.

I personally liked the concept of this type of business so that I wouldn’g have to handle inventory, but I could not find any drop shipping I was really comfortable with.

Affiliate Marketing

I started researching affiliate marketing, the best thing I found as an online business. I have no inventory to stock, I have no shipping to contend with. All I have to do is create my website, advertise other peoples products and collect a commission.

Yes a commission! There is however, work you have to do to advertise your site to be able to generate traffic so that people can find you. You can do this from home, part-time to start or full-time if you are able to do so.

Commissions are made from sales and you can create a great income from sales, but this kind of income and be a passive income – meaning you make money even when you are sleeping.

 

Wealthy Affiliate is my choice for a home based business. You can join for free and check out all they have to offer. You can keep the free membership for as long as you want and never upgrade to the premium platform, and a lot of people do.

But if you decide that this program may be for you, you can go with the premium platform for 47.00 per month or 359.00 yearly. Which ever you choice is totally up to you but just remember that you can get all the free information about affiliate marketing from this platform and keep that knowledge to use however you like.

 

I hope that you find a business that will suite your needs and it will take off for you! Good Luck!!

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