A woman searching on what e commerce business to start A woman searching on what e commerce business to start

Unleash Your Online Venture:10 E-Commerce Business Concepts!

The main problem every young entrepreneur faces is what e-commerce business to start. It is important to understand what product or service is worth selling online.

If you are considering starting your own e-commerce business, you have come to the right place. This will be a perfect guide for young minds entering the e-commerce world. E-commerce is a growing business that requires a lot of critical thinking to be successful.

Before setting up e-commerce, you need to know whether people might be interested in buying it. Proper analysis of the current trends in the market will help you grow your business venture. E-commerce can be a perfect venture to buy and sell products online. This new trend gives young people an opportunity to start their own businesses.

Many don’t have a clear picture as to how the whole process of setting up an e-commerce platform happens and how to plan the business idea for e-commerce.

It not only includes what to sell but also studies the price range of competitors and many more. This article gives you insight as to what e-commerce business to start in the 21st century. And not just to start but also to become successful.

researching on what e commerce business to start
By Firmbee.com, Unsplash Copyright 2015

1. About E-Commerce Business

E-commerce business has grown exponentially in this last decade. Buying and selling products online is the new method where people don’t want to waste time going to stores and buying them. Rather, they’d be sitting at home ordering things online.

When you want to start an e-commerce, you need to set up some core principles as to what your business model will be like, whether you want to have your e-commerce website or use an established business website. This decision is important as it will change the dynamics as to what type of products or services you sell online.

When you compare it with traditional businesses, e-commerce businesses have a lot of advantages in cutting down operational costs and ease of setup. Geography isn’t a barrier in the world of e-commerce. The online store helps the customer base to buy products and services anywhere.

Best Online Business To Start As A BEGINNER (2024)

2. What E-Commerce Business to Start?

Now, before you start an e-commerce business, it always comes down to what you want. You need to choose your potential customers to whom you want to sell.

You need to set up the objective of starting this e-commerce business. It is never about earning money for all people. Some just want to try new business models and get exposure.

You have probably heard of the big players in the field of e-commerce businesses like eBay, Amazon, etc. They were the first ones to predict how big this concept of e-commerce could go. In 2023, if you are planning to start an e-commerce.

Well, you are late. But now is the best time to hop on before the competition gets even bigger. You have to choose which model is best suited to your business plan.

The below-mentioned ideas are some of the most profitable e-commerce business ideas,

3. 10 Effective E-Commerce Business Ideas

3.1 Dropshipping

If you are new to the field of e-commerce and don’t have the resources to buy huge stock in the initial stage, then dropshipping is the best way to start your e-commerce business.

In Dropshipping, you just have to fulfill your customers’ orders. So, you tie up with the supplier who has the product and is involved in managing inventory. You promote the product and provide an e-commerce store where you can rope in customers.

The process starts when a customer places the order. Once they get the order confirmation, you must send it to the supplier. Now, the supplier takes care of the rest of the process. The only thing you need to spend on is setting up your online store.

ecommerce
Image Source: freepik

However, there are many big players in the market, like Amazon, to whom you can dropship. But the competition is so much and also the fees would drain your profit.

To make a good online store by yourself. You need to create a good website and pull traffic into it. To do that, you can use the help of search engines, etc. Then, people would come and place orders from your website.

You can sell generic products, like home accessories, books, pet food, office products, footwear, etc., in your online store using drop shipping.

3.2 Private Label Products

Selling private labels is the best way to know the real world of e-commerce. Here you can choose the products which you are gonna sell. You can create a brand identity for yourself by selling private labels and making some good money.

Here, you create your brand and the product in a way you want. And you have to seek reliable manufacturers who can produce your product in bulk. This is the independent business model where you are the decision maker as to what to produce and whom to sell.

In dropshipping, you cannot customize what product you want to sell. You can choose the type of product to sell, but mostly it will be generic.

Selling private label products will cost you quite some money as you are taking care of the storage space and branding your product using digital marketing.

Unlike dropshipping, you have to take care of shipping costs and ensure the delivery is on time. If you build trust among the customers, you can build a huge brand for yourself and fight with the top players in the market.

You can sell any type of product that you wish to create a brand for yourself, starting from beauty products, furniture, electronics, etc.

Private label products in e commerce business
By Mnz, Unsplash Copyright 2018

3.3 Subscription Boxes

The subscription e-commerce business model has grown exponentially in the last few years. The number of customers who have subscription boxes has increased by 90 percent.

In this e-commerce business, you need to segregate a product or service that a customer will need regularly. The subscriptions are usually per month. You offer them your product and convince them to subscribe.

The main reason for some people failing in this industry is not finding the right product. You need to convince the customer that the product they are going to buy should be bought regularly and offer them a doorstep delivery. This way, you can earn monthly income for the same product.

Another advantage of subscription-based products is that you are turning a single customer and making them buy it repeatedly. In this way, you are creating a loyal customer, as it reduces the effort of searching for potential customers. However, retaining the existing customers is important in this model.

You have to take care of the payment process for smooth operation. Usually, taking credit card payments is common in this model. It will be periodically sold once they subscribe to the product until the customer cancels it.

The most common products sold in subscription boxes are groceries, personal care products, games, books, etc.

3.4 Hand-Made Products

You don’t need to think big in terms of what products you want to sell. If you are good at creating handmade items and artisanal products, then you own products in e-commerce. They have a huge market among customers who love handmade items. Customers prefer it as it is unique and has a human touch.

clothes
Image Source: freepik

For this, too, choose a specific product that you wanna sell and make sure you have money to cover upfront costs for buying raw materials for making the product. Here, inventory management is key as you manufacture the product, and you need proper space from when you make it till you sell it to your customers.

Setting a proper price range is important while selling handmade products, even though you have the liberty of the uniqueness of your product compared to other types of e-commerce products.

You need to look at the making costs, shipping costs, retail prices, and prices of similar products sold online by other online stores. Separating your personal finances and business finances is important. Since these are handmade items, sending discount codes and bulk order offers will help boost your initial sales.

Apart from having an online store, marketing products on social media are the best way to induce more customers. Social media influencers are crucial in reaching more people, depending on your target audience.

Handmade products can include anything like jewelry, accessories, artwork, craft supplies, embroidery, etc.

3.5 Clothing Line

Suppose you have a taste for the fashion world and a passion for growing your business in the fashion industry. Then, choosing to sell your clothing line is the best way to venture into the e-commerce business. It is important to choose your niche to excel in this business. If you plan to sell all in one, then you are not offering anything unique compared to your competitors.

Once you choose your specific target, you have to make manufacturing arrangements. Whether it is in-house manufacturing or having partnerships with manufacturers who will produce for you the way you want, here, ensure that the product’s quality is good.

Apart from creating their brand, some people tend to buy clothes at thrift stores and resell them in their separate e-commerce stores. This is called Fashion reselling. But in this way, having a shipping strategy is important since you are buying from a different place and selling in your e-commerce store.

Setting up your online store for your clothing line is important as it is what will drive the customers from buying them. You need to have an attractive web design to gain traffic. Having a good quality image of the clothes and a proper model posing will boost your sales.

Providing an exchange policy will induce the buying motive of the customer as it provides a sense of credibility and trust. Posting customer feedback on your website will also prove to be useful in roping new customers.

Your clothing line can be sports collection, casuals, formals, E-commerce, etc.

How To Build a Fashion Ecommerce Brand in 2022

3.6 Vintage Collections

Especially in e-commerce, there is always a high demand for vintage or old collections. So, if you have a lot of vintage products in your home or access to many old collectibles. Then, setting up your own e-commerce business store is a perfect way to make some good money.

This is not only for those who own their collectibles. This can also be done by searching for vintage collections in thrift stores or even estate sales, where you can find many sellers of old items. You can find some scarce pieces and sell them for healthy profit margins.

Now, it is important to see the value of the item. Just because it is old and no one has it does not make it collectible. It should have a sound demand in the market. More research about the product is important since it will give you the power to market it with all the unique details you have about the product.

It is important for quality assurance since we are talking about handling collections that have existed for years. You must have a proper shipping strategy to ensure delivery of the product.

Vintage collections can include antiques, rare action figures, records, historic pieces, etc.

3.7 Natural Cosmetics

There will always be a growing demand for natural products since people are becoming self-conscious about maintaining their bodies and being environmentally friendly. If you are an expert in producing natural cosmetics, then you have a great venture in e-commerce.

However, your products need to be in regulation to what the FDA has provided in terms of production. People usually prefer products that have FDA labels on them. Also, before getting into business, make sure that you find out what business licenses are required in your state. In this way, you can create a sense of trust among the customers.

It is also important to build your brand, which has a series of cosmetics under one name. This will help in expanding your business to more than one product. The natural cosmetic industry is set to be a $56 billion industry by 2030. So, if you have what it takes, then start this soon.

Also, collaborating with social media influencers might help you grow your business since there are a lot of people who market cosmetic products. If people hear it from someone they know, then the product’s value will increase.

Natural products can include handmade soap, body wash, cream, house cleaning products, essential oils, etc.

Natural cosmetics idea used for e commerce business
By Brooke Lark, Unsplash Copyright 2016

3.8 Coaching And Mentoring

E-commerce is not only a platform to sell products. If you have the desired skills and knowledge, then you can make money by selling your service to the customers. But for this, you need to build a network where people have a sense of trust in acquiring your service. This needs to be personalized and specific.

It can include services like online fitness coaching, online education, consulting, etc.

Online fitness coaching has boomed after the Covid 19 pandemic where people have the practice of not going out. Personal trainers use this platform to build a network and train their clients online. This model is not only for live sessions. Even many eCommerce businesses have video materials, books, etc.

But to start this online business, you need to be a certified trainer in the field in which you are training. A proper website helps in attracting customers. Here, you need to market your service rapidly. Because they would only get access to coaching once they paid, they would make decisions after thinking in every way possible. So, you need to anticipate the needs of your target customers and have everything with you to satisfy them.

Since this involves live interaction with the customers, you need to ensure that you treat them properly and feel welcome. The quality of the service is key to success in this business model.

3.9 Affiliate Marketing

If you are not interested in manufacturing your product or building your brand. Still, you have a great chance of becoming successful in the e-commerce business. Affiliate marketing is the new trend in e-commerce, where you partner with a brand and promote their product or service.

As per your interests, you can choose with whom you want to partner and work with. You need to drive traffic to your partner’s website. For this, you need to grow your social media profile to attract traffic and make people buy your partner’s product or service when you share posts of your partner’s campaigns, reviews, discounts, etc.

You will receive a commission from the items which your audience buys. This is a great way to make easy money in e-commerce. But the rewards that you earn are performance-based.

Common affiliate marketing practices are influencers, bloggers, media websites, etc.

Affiliate marketing is another option for what e commerce business to start
By Laura Chouette, Unsplash Copyright 2020

3.10 Home Décor Products

After the long pandemic, people spent most of their time in their houses. The concept of making their homes aesthetically pleasing and buying more appliances has grown. Selling these unique décor products online has a massive market.

This includes products that make daily activities easier with improved technologies, decorative items, personal safety equipment, kitchen and dining mats, etc. These are some of the niche examples in terms of selling décor products online.

With the trend of smart homes, there are a lot of new tech products that have great demand in the market. If you have access to drop ship these products. Then it would improve your business. Business idea video doorbells are gaining popularity with the rise of video calls. People want to know who is at the doorstep. This might be a good example of a niche product that has a demand.

homedecor
Image Source: freepik

4. Closing Thoughts 

In today’s world, young business minds need to unlock the full potential of e-commerce. This is only possible if you know what type of business is trending. If you want to make your e-commerce business idea live, then you need to focus on how well you can execute your business plan.

The good thing about an e-commerce business is that you can start with zero capital and work your way through. Also, there are certain cases where you need more money just to start an e-commerce. But businesses can’t exist without capital, be it money or time. This formula is the same for online as well as traditional businesses.

Proper business study and market analysis should be conducted to grow a successful business venture. The important thing that people often fail is the logistics part. Suppose you feel like you cannot ship products by yourself. Outsource the work to someone who is an expert in the field. If you think about saving money in this, then the potential to lose your business is high.

Also, no matter how good your product or website is. If it is not promoted, then you will not have any customers to sell the product. You need to excel in digital marketing to grow your e-commerce. Check whether you are reaching more people and whether they like your service. You can start to monitor the metrics and key performance indicators (KPIs) as you grow your business.

e-commerce
Image Source: freepik

Thanks to digitalization, E-commerce has the potential to grow more than you expect. Whether you want to start a serious business or a side hustle. E-commerce is something that you can give a try. Major players in the business are utilizing every aspect of selling things online to their favor. Well, you can achieve your dream of having a business of your own easily through e-commerce.

Author

Hemkesh S
  1. The guide serves as a comprehensive starting point for young entrepreneurs, offering valuable insights into different e-commerce business models, practical considerations, and emerging trends. It encourages a strategic approach to building and growing an online business, making it a valuable resource for those looking to enter the e-commerce world.

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