NOTHING QUITE LIKE ECOMMERCE
There’s unlikely to be any industry out there that comes close to the low maintenance costs associated with running an online business. It’s partly due to the inherent nature of the Internet, which has already helped humans solve so many problems in the real world.
The Internet and the online world facilitates many things to make our life all that much easier. Technology has assisted with the creation of many platforms on which you can build a fully fledged retail store off of - selling to a global audience.
Ecommerce is our favorite online business model; you'll start to understand why in this blog.
NO INVENTORY NEEDED
You really don’t need any storage space, let alone a warehouse - when you’re running an ecom business. The lack of need to hold inventory cuts away a big chunk of costs right from the start, without even diving into the other factors. Here’s how it works.
The customer pays you first for a product from your store. You use this money to order the product automatically from the supplier at a lower price. Then, the supplier sends the product directly to the customer. You don’t see the products that are shipped, except for when you order samples to analyze quality.
When you do get big enough, you can start private labelling but that’s a story for another day.
SUPPLIERS HANDLE FULFILLMENT
Your suppliers will usually handle the order fulfillment part of your store, including all the headaches associated with shipping. As a retailer, your job is usually to just drive traffic to your store and provide as much value as possible to the customer.
The supplier handles everything else, we believe it's fair to say that it's their job. This means that the costs for logistics are kept as low as possible.
Finding trustworthy suppliers can be a challenge and we always recommend getting a referral (e.g. from ecom store owners who know what they’re doing) to avoid potential future problems.
BAD FOR MONOPOLIES
Advertisers, graphic designers, suppliers, etc. can be easily found online. Due to this fact, there can be fierce competition for your business. This usually drives prices for these services down and really helps your eccom business maintain its low cost nature - in alignment with our goals of maintaining a healthy profit margin for all products.
On the other hand, a physical retail store might only have access to a local supplier, for example, who charges ridiculous prices for their goods and services.
It’s best that you also seek advice on exactly which apps, platforms, and services to use for your store.
HIGHLY EFFICIENT PROCESSES
The nature of ecom is that many processes can be automated and become highly efficient - resulting in low cost operations: marketing, order fulfillment, store maintenance, and more.
It’s relatively easy to outsource tedious tasks and move on to the next store. This is quite different from owning a physical retail store, where there can be a lot more complications and inefficiencies that result in higher costs.
Set your store up, build it, then automate it - as long as you set things up oriented around providing value to customers, your beloved products can receive the attention they deserve.
EASE OF ADVERTISING
A Shopify store owner who has just begun their journey can usually start marketing with a few clicks of a button from their laptop or phone. Marketing strategies in ecom are still relatively cost efficient.
While a Super Bowl ad may cost millions of dollars to target a certain number of people, it can literally cost a couple hundred or less to target that same number of people. This helps keep costs low for advertising - probably the most important component of any serious store.
We believe that it's a lot easier for the global audience to discover your store, than it is for the local community to walk past a store. Inflation and saturation can contribute to increased costs in the future, which is why we recommend starting your a Shopify store as soon as possible.
BEST TIME TO START IS NOW
Actually, the ideal time to start an ecommerce store was yesterday. But starting today is an excellent choice.
The more you delay starting an ecom business, the more competition there's bound to be. It’s all about first mover advantage and building a solid foundation now, which can continue to benefit you in the years to come.
You can make your journey even faster by buying a Shopify store, which we offer HERE.