Thinking about starting an eCommerce business?
Here are 4 reasons why it is a wonderful business model:
1. Low cost of entry. You basically need some software [less than $100] and some elbow grease and you’re off to the races. That’s it!
2. Reach. You can reach the entire US market, Canadian market and worldwide markets with your eCommerce store. So you’ll have access to millions of potential customers.
3. Leverage. Once you learn the basics you can hire a virtual assistant who can run 90% of your operation. College educated virtual assistants can be found for $3 to $4 per hour from the Philippines.
Now that might not sound like a lot of money to you, but to them that is the equivalent of $15 an hour.
This business is so simple that once your store is setup you can work just 4-5 hours per week while your virtual assistant does the rest.
4. Overhead. Unlike a traditional store where you have to buy merchandise, stock it and then cross your fingers and hope it sells… with an eCommerce business you sell first, collect the money and then order the merchandise.
We show you how to setup your store using something called “dropshipping.” This way you have your supplier ship the product directly to your customer.
No having to keep a bunch of expensive inventory. No hassles with shipping your orders yourself.
With dropshipping, your customers buy the product from your store, and someone else ships it to them.
Want to learn how to do this?
The eStore Incubator Launch Process
You might be thinking “Ok Paul, starting an eCommerce business sounds like a great idea… But what do I do next?”
Here is our ecommerce launch process from a very high level.
1. Identify your market
This is the very first step in setting up your eCommerce business. This step will set you up to build on a solid long-term foundation.
First, you want to do some research and identify a market you can sell to.
A market is just a group of people that are passionate about something.
For example, in the pet market that would be people who love dogs, cat lovers, horse lovers, bird lovers, etc.
For the health / hobbies market that would be people who love things like running, Yoga, Pilates, hunting, fishing, etc.
Another example would be people who are passionate about their jobs: nurses, firemen, police, military, etc.
The KEY is these markets are things that people are passionate about. When they’re passionate about something they’ll be willing to pull out their credit card and buy your products.
So a market is all about the people NOT the product.
2. Pick your products
Once you have your market selected, your next step in setting up your eCommerce business is to learn how to pick products.
This is very important to understand: In order to get a store to $10K per month to start, you really only need 1 or 2 products that you can scale, not 1000.
A common mistake we see people make is they try to be Walmart on day one. They try to have a huge eCommerce store with hundreds or thousands of products.
You don’t need that. You just need one or two successful products.
We like to find a product that meets these four criteria:
Easy to ship
High perceived value
Low cost to acquire – $2.00 – $3.00
This last point just means they don’t have to think about it too much. It looks good and boom they buy it.
Think of the register at your grocery store with the gum, gift cards, and snacks. That’s the impulse section. You don’t Google chewing gum and do a bunch of research before you buy it. You just see it and add it to your cart.
You want the same dynamic with your store… and you get that with the right market and right product.
For all these reasons we like to start by selling products like jewelry.
Now, we don’t recommend you sell jewelry forever, but it’s a solid way to start.
So for pet lovers an “I love German Shepherds” necklace would be great. Or an “I love horses” bracelet, or “I love cats” earrings.
That sort of thing is a great place to start and learn the basics.
3. Test your products.
There are dozens of variables that can impact the success of your eCommerce store… but the most important variable is having the right products.
So we like to do a simple test to make sure we’re offering the right products.
The best way we’ve found to test your products is to set up a fan page on Facebook and run a simple ad for 3 days with a picture of your product. In the ad you just ask people to comment if they like it.
Notice we’re asking them to actually type a comment and not just click like.
This represents a slightly higher level of commitment then just clicking the thumbs up. So these people would be more motivated to buy the product.
The product that gets the most comments is your winner. It’s the one you should start selling first.
There are also other simple ways you can verify that you have a winning product. We show people all those tricks in our 8-week eCommerce Incubator program.
4. Take the winners live.
Once you’ve identified products that your audience responds well to, then you load them into your eCommerce store and send Facebook traffic to them.
Just focus on making that first sale, and then you can worry about scaling up and selling more.
Before you can sell 100 units of an item you need to sell 1.
You also need to understand what numbers to watch and pay attention to what these numbers are doing.
And then you simply do more of what is working and less of what isn’t.
That’s it in a nutshell!
So to recap, to launch an eCommerce business:
Pick a market
Pick 3 to 5 products
Test the products
Take the best ones live
To see how this process works in more detail, check out this free training I’m offering: