1. Invest Stock Small then Scale Up.
Many people are eager to dive in head first, ready to invest all their savings into overseas imports. The best practice is that we have to avoid such risky moves for two reasons:
- You haven't considered all the costs the enormous minimum quantities that may be required, or the price of having their goods shipped from overseas, not to mention the incidental charges they may incur in the process.
- You have little experience and, therefore, no way of knowing all that these transactions entail. You're going to make mistakes in the beginning. The way to minimize any kind of horrible error is to learn with inexpensive items, and Scale Up.
Start with a minimum investment; and as you begin to make a profit, put that money back into your business rather than buying new toys for yourself.
2. Research the Market and Find Your Niche.
As you go, you'll learn which products sell well and where you're actually making a profit. You start really broad, with huge categories. Then you do your market research and you funnel down. You get smaller and smaller, until out the other end of the funnel comes a handful of products that you can really do well with.
Finding a niche market is one of the key ingredients to really making it in online selling.
Did you know that beginner sellers are much more successful when they appeal to a very small market, rather than trying to appeal to everyone? Niche items really are the way to go for newbie sellers and there are so many out there to keep you interested and best of all, make you money.
3. Start on platform like EBay or Etsy.
EBay is a great tool for beginners just learning about online retail. There are several reasons why it's a smart place to start:
- It's quick, easy, and inexpensive.
- The traffic is built in, and the people that are seeing your listings are seeing them because they're specifically searching for your type of product.
- It's a good way to get exposed to the ins and outs of the business.
My personal secret for finding ideas on what to sell, or finding out what item will compete on eBay, is the SaleHoo Research and Analaysis Lab. SaleHoo collect data from all of the eBay auctions and they accurately predict the success (or otherwise!) of items at auction - so it makes my business foul-proof.
4. There's No Such Thing as Get Rich Quick!
Starting an e-business is just like starting any other business, it takes patience and persistence. Don't expect to be magically rolling in money overnight. And don't just jump at every opportunity that comes along, for fear of missing out. Research it first; if it sounds too good to be true well, you know... If you take the time to understand what you're doing, there's plenty of room in the e-commerce industry for you to make money.
If you're worry about working with suppliers that would supply you with products that wouldn't sell well on eBay (or even got scammed!) or you've been spending lots of time researching niche or products but still not sure what to choose,... then you may want to check out SaleHoo. You'll find list of 8,000 pre-screened and verified wholesalers, dropshippers, liquidators and manufacturers. And a Research lab at tracks which products are Hot sellers.