How much money do I need to start Ecommerce business? From where should I start?

 

How much money do I need to start Ecommerce business? From where should I start?

It varies from the size and nature of ecommerce business you want to start. Best way to assess how much does it cost to start ecommerce business, find the cost for followings and then sum those together add then add 20% margin for unexpected or miscellaneous expenses on the top of the sum to get an estimate.

1. Ecommerce platform  would cost you from $250/year to $2500/year depending up on plan you choose click here for more details WebStore - Plans
2. Inventory cost: find how much inventory of product you need to maintain in order to ship it as soon as order is received. Please note, this is important because most customer expect fast delivery.
3. Telephone and fax cost: Fax is almost absolute with the invent of email. You can eliminate this. Telephone cost with Toll free number may add up the cost. It would cost $600/year. Reach out your local telephone company or Ooma, Grasshopper, and others.
4. Marketing and advertising costs: With digital marketing strategy you can control advertising budget from $400/year to $3000/year Try using RegularAds.com. to keep advertising costs within budget.
5. Shipping costs: Your customer will pay for shipping therefore it should not be significant except for returns. When customer ask for returns then to and fro shipping costs are your responsibilities.
6. Tax: Taxes are paid by the customer however, if you are a reseller then you will pay for the taxes charged by the original seller. In some cases you may negotiate with original seller so, there won’t be double taxation for same product.
7. Accounting and finances: If you are not good at accounting and finances then you would hire accountant. They charge from $250/year to $1,200/year depending up on the yearly turnover.
8. Internet cost: High speed internet would cost $600/year.
9. Assets cost: Computer, Printer, router, Wi-Fi device, cables, would be one time cost approximately $3000.
10. Other consumable supplies costs: Packaging boxes, cartons, sticking tapes, labels, packaging fillers, cushions, sponges, paper for packaging. sanitizer, masks, Flyers, Printing papers etc. you may order flyers, cards from Vista Print.
11. Utility cost: Electricity, Water, Gas etc. Above list covers most of the fixed and ongoing costs for ecommerce business.
12. Other costs: Business is all about providing good service and support. You may either hire customer service and support persons or outsource to third party. In any case you would have count in costs such as Wages and salary costs.

Download the estimator excel spreadsheet (Costing calculator) from here.

I hope this is helpful for you to estimate the budget for starting an ecommerce business. Those who never thought business is not their field but after reading this I hope they will feel ecommerce is their piece of cake, too. Best wishes to you all and thank you for reading it. 

What can I sell online to make money?

There are many kinds of products sold online. You can do online trading with ecommerce by opening an ecommerce store for any one of the following categories.

• Fast moving consumer goods: Food & Grocery, Cosmetics, Cleaning Chemicals, Office Supplies, etc.
• Clothing & Fashion: Children's clothes, Women's clothes, Men's clothes, Jewelry, Draperies & Bedsheets, etc.
• Gift items & Souvenirs: Gift items, Paintings, Souvenirs, Arts, Crafts, Sewing, Home decors, Decorative items, Wall hangings, etc.
• Restaurant & ready foods: Kitchens & Takeout, Restaurant, Gourmet, Bakeries, etc.
• Cosmetics and beauty supply:  Facial wrinkle free creams, Nail paints, Hair clips, Hair cream and Hair oil, Fragrance and Perfumes etc.
• Electronics & Computers: Computers, Laptop, Accessories, Kid's toys, etc.
• Construction & Garden Supplies: Lumber Mart, Hardwood Floor, Lighting Fixtures, Garden soil and supply, etc.

List goes on and on. You may be novice to ecommerce field but there are always tried and tested businesses in your field. so, expect compétions in the business. Therefore, you must always think how you can create difference and impact in the market or niche and simultaneously provide good service. Always pick unique idea in selling or unique product so customers remember your brand for long. 

How can I start online business?

Starting an ecommerce business is not that difficult and easier than preparing for university or college examination. Only difference would be you need to dedicate for your own venture and be ready to spend more hours as you can operate ecommerce business remotely from your home. without making huge investment like seen in starting a conventional brick and mortar type of business. Read complete article - Systematic approach - Successfully start an ecommerce business. This article would guide you on how you can do online business so, you can avoid mistakes in starting online business.