Ways to Start Online Business Home can either discourage you or get you going. Rest assured that you can start an Online Business Home without putting a dent in your pocket.
Notwithstanding some limitations, the cost to Start Online Business Home can cost you zero dollars. That’s right, $0.00, nada. That is to say, you really don’t need a lot of money to start your business. Key focus of this post shares 3 ways to Start Online Business Home.
CLICK HERE TO LEARN HOW TO START YOUR OWN ONLINE BUSINESS.
“Nothing has ever been achieved without trying” ― Alex Munoz
Without a doubt, many people believe that an online business requires a lot of cash up front. But, this is far from the truth. Needless to say, it depends on the goal you have in mind and your finances. Of course, it pays to do due diligence: Check reviews and verify everything before you put money into the business.
In like manner, you also want to think about:
- The competition in your niche
- Does your niche offer products with an upward trend
- How easy can your business grow
Three Trendy Ways to Start Online Business Home
1. Sell on Amazon FBA
Given the current high demand for products on Amazon, there is no doubt that selling products on this marketplace is one way to start without having cash up front. Matter of fact, when you match up Amazon with other business models, this is possibly the easiest way to start earning money.
Keep in mind that Amazon has a tremendous number of customers who are willing to purchase items they want and wish for. By the same token, you can start earning money quickly in comparison to starting your very own business from scratch.
For these reasons, that’s how I started selling books on Amazon FBA. Surprisingly, my books were selling within a week and went like hot bread. With the money earned, I was able to purchase other items. Needless to say, those went fast too.
Moreover, during the holidays, any holiday that is, it seems like anything you list on Amazon sells. So these are a few great benefits of selling on such a gigantic marketplace.
How Much Does it Cost to Sell on Amazon
Apart from selling with FBA, there are other ways to sell on Amazon. Even though you don’t pay money up front, there is a cost to sell on this marketplace. Certainly, there is no shortage of customers and earning with Amazon FBA. A key point to note is that you have to pay some very high fees. In fact, the only way you do not pay fees is if you sell as an associate.
Before considering selling with FBA, it is important to note the costs. Overall, you pay between 25 – 30% of the proceeds from your business. As a FBA seller, you sell products as a professional. When you go this route, you can expect these fees:
- $39.00 per month to list your items on the marketplace
- Give up 15% of your earnings
- Pay for Amazon to store and fulfill your orders: Key point here is that the cost depends on the type of products.
Check Products With High Profit Margins
Consequently, you could benefit more if you sell products with high profit margins. Then again, if you want to have your own private label items, you probably need to start off with at least $500 – $1000. How much money you are willing to pump in the business is a key factor indeed.
Another significant factor is that if you invest small, you may get slow returns. Naturally, you may just want to try things out, with the focus on your financial goals. Undoubtedly, Amazon is the marketplace you want to test your sales before you launch your own online business. Chiefly, this can give you an indication as to what the demand for the product will be like.
Pros of Selling on Amazon FBA
- FBA Helps Your Business to Grow
Key point is that FBA stores your items, ships them to the customers and handles customer support including returns. Seeing that FBA does all this for you, it frees up more time for you to focus on the growth of your business.
- No limits to Your Earnings
As long as there is a demand, there is no limit to your earnings. Hence, you’ll need to keep products on those shelves in the warehouses that Amazon specifies.
Cons of Selling on Amazon
On the negative side, here are a few things to keep in mind.
- First of all, your sales are not private.
Other sellers can see how you are doing with your sales: For instance, the number of items sold and how much money you make. Likewise, how your product ranks. Evidently, there are tools like Jungle Scout and Amazeowl that can show all of this.
Sure enough, there are copy cats out there, just waiting to check out the earning potential of products. These copy cats look at the negative reviews on a product. Then they go all out to make the product better for their own private label. Just tweaking those negatives and slapping their label on are enough to set you back. Clearly, if you shop on Amazon, you can see how many identical products there are.
- Can be Ruthless
Despite the goodness of Amazon, selling on the marketplace can be ruthless. I have experienced that firsthand with my listings and I was horrified. Therefore, you need to be on your guard as often as you can to protect your listings.
- Rules and Fees are Always Changing
An equally significant point about Amazon is that the company changes the rules and fees all the time. By the way, the fees always seem to go higher. Rarely do you ever get a break with costs: If your products are on the shelves too long, you have to remove them within a certain time.
When Amazon informs you about the removal, they usually pull them from the shelves free of cost. If you do not want them to discard the items, you have to pay return shipping.
Furthermore, Amazon can end your listing anytime. Because you are not selling on your own platform, you have no control over these changes.
2. Start a Drop Shipping Business
An online business that you can also consider is Drop Shipping. Here, you do not carry an inventory, so it is also one of the cheapest way to start an online business. Actually, many people choose this model, so it is a popular to start a new online business. Not to mention that it is easy to start selling products.
One of the key points to note about this business model is that it’s good to have a website. Basically, you need it to help with your sales. Whenever a customer makes an order from your website, you place the same order with your Drop Shipping vendor. Then the vendor fulfills the order and ships it to the customer.
Writer’s Note: In case you want to learn how to build your website. CLICK HERE.
“If you don’t try, you forfeit the opportunity.” ― Frank Sonnenberg
How You Earn From Drop Shipping
It is important to note how you earn from this business model. Generally, you mark up the price for the products on your website. Then when a customer makes an order, you contact the Drop Shipping vendor who sells you the same product at the wholesale price.
Of course the wholesale price is lower than the price you offer on your website. This is how your profit comes in. It’s the difference between the two prices. Additionally, the merchant charges a fee as well.
How Much Does it Cost to Start a Drop Shipping Business?
Signing up with SaleHoo Drop Shipping company is one of the cheapest. Apart from the fact that this company links you up with reliable vendors, they offer training to help you along the way.
Shopify Drop Shipping Alternative
On the other hand, if you don’t want to build a website from scratch, you can check Shopify. Specifically, their platform offers the opportunity for you to start a drop shipping business. After a 14-day free trial, prices start at $29 per month. For one thing, they have everything set up for you to get going.
By the way, if you already have your own website, you can check out Shopify Lite which costs $9 per month. In this case, you can sell a few items directly on your own website and also on Facebook.
So if you don’t mind taking transactions, you can set up your buy buttons. However, if you don’t want to bother with that, Shopify can assist with the payments. Cost for that service is 2.9% + $.30 per transaction.
The Cons of Drop Shipping
- Profit margins are low
Keep in mind that you don’t have to carry inventory or fulfill orders. Surely, the companies pass on the cost of these services to you though. Similarly, the wholesale price for the products can be high. Then again, most drop shippers also charge a fee to fulfill your orders. Of course, all of these add up and put a dent in your profit margins.
- High Competition
Considering that you are selling products that belong to other people, there is no doubt that others are also selling the same products. Therefore, the competition can be high. As a result, this can lower prices.
- Others Can Copy Your Ideas
Of central concern is the fact that others can copy your ideas. Once they love what you are doing, they do the same thing, like sell the same products.
3. Start Your Business With Inventory
Obviously, if you start your business with inventory, it requires money upfront to purchase the items. Based on the type of products, this can be costly. Similarly, many vendors have a minimum quantity that you can order and this can be a big number like in the thousands.
Depending on where you choose to source your products, you many need a minimum of $700 – $1000. The first time I did a big order from China, the cost was just over $500.
Generally, many entrepreneurs like to order products from China. However, you can check out vendors at home where you can order less quantities. While the cost per item may be higher, ordering fewer can cost less.
- Source and brand your own products
- Control your packaging and shipping times
- Earn more money, even faster than drop shipping
- Operate a unique online business
Despite the benefits of having your own products, here are a few caveats.
- Make bulk orders
Given this factor, you may need to have a lot of cash on hand. Sometimes it can be a problem to come up with all the money.
- Find merchants to source your products
Sourcing from reliable vendors can be challenging sometimes.
- Storage for inventory
Needless to say, this is added cost if you do not have the space at home. With third party logistics (3PL), you pay a company for storing and shipping your products to customers. Amazon falls in this category too.
- Returns on investment can take a long time
After spending hundreds and even thousands on purchases, it can take a long time before you start to see the financial benefits.
Regardless of the model you choose, there are some caveats. Most important is that you know exactly what your goal is and what you can afford. Once you have that clear vision, you’ll want to work hard at it.
Hope you are happy with your experience at theworkathomebusiness.com. If you have any questions, concerns or suggestions please let us know. Feel free to share this page or leave a comment.
P.S. If you need help to build your website, free training is available with Wealthy Affiliate. When you sign up with them, you don’t have to worry about other payments to get your website going. For instance,
- Web Hosting
- SSL certificate
- Buying a Domain
Keep in mind that free is very limited, so if you want to upgrade you can buy your own domain. Even though, you have access to free WordPress templates, you can also opt to purchase what you prefer.
P.P.S. “Nothing has ever been achieved without trying” ― Alex Munoz
CLICK HERE TO LEARN HOW TO START YOUR OWN ONLINE BUSINESS.
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6 thoughts on “Ways to Start Online Business Home: Here’s How (Review)”
Great article, and I can personally testify that starting your own business online does not need to cost you an arm and a leg to get going – particularly when you start small and think big!.
I am very surprised that you have not mentioned affiliate marketing in the list here – very viable business model and pretty low cost to get started.
Derek (from wa-returning comment)
Affiliate marketing is definitely one of the best ways to start an online business. I have written a few articles with reference to starting as an affiliate. There are links to them in this post.
Those are great ways to start an online business. There are many different ways to start an online business today, and your suggestions are top definitely. I am doing something similar to the first suggestion, and I am happy with it. Online business is a future in my eyes. Ivan
Good to know you have your eyes on online business. It is definitely the way to go these days.
Very informative and easy to read. Wish I had this information when I was just starting online business.
Thanks for visiting.