Aspiring entrepreneurs have looked for innovative ways to make money. Fortunately, Jungle Scout’s research has proven time and again that running an ecommerce business is a viable way to earn an income—and can generate enough profit to replace a full-time job.
Ecommerce offers entrepreneurs the kind of flexibility a traditional retailer could only dream of. Online sellers set their own hours, pay what they want to launch and grow their businesses, and can work from anywhere in the world. They succeed at all ages and education levels, many with no prior business experience.
Selling products online isn’t just accessible—it’s meeting miksemar an enormous surge in demand for online shopping. As more consumers shift to shopping on their phones, tablets, and even smart speakers, opportunities to launch ecommerce businesses will only grow. In fact, 57% of consumers shop online at least once a week.
Research your product idea
The first step to launching your online business is often the biggest bottleneck: finding a profitable product to sell.
Notice that step one of starting a business isn’t fundraising. You can start a business at virtually zero up-front cost—stay tuned to find out how.
If you don’t have any product ideas yet, don’t worry! Thinking about how you want to sell online will inspire you.
Validate your product idea with data
Here’s a gut check: Your product decision can’t hinge on a hunch.
That’s right—you can’t just take the revolutionary idea you conjured in the shower and run with it. You have to validate its profitability through product research, even if your family, your friends, and your dog all think it’s a million-dollar idea.
Find a supplier
Your supplier can be many things—a private-label product manufacturer, a wholesale distributor, or the local hardware store where you buy furniture-making supplies. Whatever your sourcing needs, the cost of procuring your product is a crucial aspect of product research.
Reliability is important—you’ll want to develop a rapport with your supplier if possible, choose materials you can easily reorder, and stay within your inventory budget instead of banking on runaway sales to cover the cost of goods.
Choose an ecommerce platform and fulfillment method
Thanks to ecommerce’s growing popularity, you can list your product on many different online marketplaces, where it can be viewed by thousands—if not millions—of potential customers.
While online marketplaces tend to have some similarities, you’ll find that each one offers advantages depending on what kinds of products you’re selling. For instance, used items tend to do well on eBay and Facebook Marketplace, whereas private-label products sell well on Amazon and Walmart Marketplace.
Choose a memorable brand name
Think hard about your brand name—it’s an important piece of marketing. Use it to evoke what you want your customers to feel about your brand.
It should be distinctive, memorable, and original. Be sure to check whether your intended brand name is already taken before you use it.
Not sure what to call your brand? Try riffing on branding trends and archetypes, or tell a personal story with a family name. If you’re stumped, play around with an online brand name generator—this one even suggests fonts and logos to match.