The internet is full of stories about how people started selling online and became rich and independent. You too can do that, provided you do it right and avoid making the wrong decisions.
Join Online Marketplace
Establishing your own ecommerce website is expensive and promoting it to get customers is even more so. Take the easy way out. Join an already established marketplace like Amazon or ebay. They have millions of customers visiting their site and they also promote marketplace as well as sellers.
The downside is that such marketplaces levy their charges and commission and you must price a product right to get sales as well as make a profit.
Pricing it Right
Before you fix a price for your product you need to know what other sellers on the marketplace are charging for the same thing.
Calculate costs you pay to the site and courier charges and arrive at your profit. Since you will look to achieve volume sales, price the product at around the same price for which it goes on that marketplace and other sites.
Your purchase price is important so sourcing becomes important.
The first idea that springs to mind is to buy from a wholesaler and sell it. This works if the margins are good enough to take care of overheads and costs. However, this may not always be the case, especially with wholesalers of brand products.
If you wish to make more profits you must look to different ways of sourcing. Such as buying remnants from online stores and from malls that are disposing off old stocks.
You can get refurbished products at lower prices and sell as refurbished at a lower price and still make a profit.
You can enter into long term buying arrangement and get a reduced price.
Market and Product Segment
The first thing to do is to choose an appropriate market and product segment. You would need to conduct some research to know which products sell like hot cakes and in which number. Mobiles, for instance, are hot selling items. You can start to sell mobiles and accessories and expect high volume sales.
The downside is that many sellers will be selling the same product and competition is intense so your margins may be slim. Price it right and source at a lower price and you can make money selling online.
Conversely, you can focus on niche segment such as handcrafted items or works of art where competition is less and there is no fixed criterion for pricing. You can price a product the way you like and make a higher amount on each transaction.
If you sell online you need to establish relations with customers and give them top services. They will refer you to their friends if you are professional and you can sell more. You need to be dedicated and invest time and effort to grow your business and also promote it to see results.