Business is not a new form of work. This art of making money has been around for centuries. Since its inception people have been innovating and creating new forms of business. Today a wide range of activities can be classified as business. We recognize these activities as business because they result in revenue, earnings and profits.
Many people venture into business to make a name for themselves, pursue a hobby, make a living, make a little extra money or because of the convenience. Whatever the reason is the end goal is to double the investments you put into your business. The funny thing about business is while it has the ability to make you a fortune it also has the capacity to bankrupt you. No business is without risk however you can manage the size of your business risks by controlling your investment size.
Low Business Investment
Taking your business online is cost effective and much simpler than the conventional method. Internet usage is higher than it has ever been and it keeps getting better each day. Consumers find it easier to make online purchases instead of wasting time in traffic and running up and down shopping isles. Smartphones, tablets and progressive software allow them to quickly identify what they need and obtain it with ease.
If you haven’t already figured, we are talking about online selling as the ideal business to invest in. Online retail is a simple form of business. It is the cheapest and easiest way to start a brand new business. However, there are a bunch of things you can do to make sure your online business investment is reduced further.
How to Lower your Online Business Investment?
Learn the Basics
When it comes to business you must be a pro with the basics. Ignoring the small things is what gets entrepreneurs into trouble. Understand your financials and your capacity to do the kind of business you’ve chosen. Once you’ve come to terms with the type of ecommerce you want to do, you’ll need to understand:
SKUs or Stock Keeping Units are codes that depict products in stock. These are created by the seller to make inventory management easy. They vary based on the type of goods you sell and the variety among those goods. There are certain restrictions you must be aware of when creating SKU codes. Lack of knowledge about these could result in you investing more money than necessary in your business.
Reduce the cost of investment in your online business by preparing product descriptions yourself. You’re probably thinking, I get my descriptions from the manufacturer, why should I write new descriptions? Online Retail is a competitive business with multiple sellers like yourself. If your copy your product descriptions chances are others in your category of business are doing the same. This will affect your SEO and reduce your ranking as an online seller. So instead of hiring someone to write about your products you can do it yourself.
Reducing your service level agreement (SLA) gives you better ratings as well. This means you won’t have to spend as much on advertising your products online, which in turn will trigger lower investments from your end.
Start out Selling on a Marketplace
There are many ways to start selling online. You can set up an online web store, a Facebook store or sell on Pinterest. These platforms of online selling need huge investments in the form of money, time and energy. A cheaper yet effective alternative is selling on an online marketplace.
Online shoppers trust marketplaces, they are well established and have a huge consumer base! Sellers on online marketplaces need very little investment to set up shop. In addition to this, marketplaces offer sellers delivery services, reverse logistics, warehousing and internal advertising options. On a marketplace you forfeit development costs and the initial high cost of promotion.
If you don’t have the time, place or money to stock and manage inventory you can opt for the drop shipping retail method. Under this method you do not need inventory of any kind. Just an agreement with a wholesaler or product manufacturer will suffice. This agreement should involve an arrangement whereby you as an online seller receive an order then you pass on the details of the order to your suppliers (i.e. wholesaler or manufacturer). They in turn will package the required product and ship it off to the customer.
Through drop shipping you give up the hassle of inventory for good! You can sell multiple products on numerous marketplaces. It’s a much cheaper way of testing the marketability of products online. It cuts down costs giving you freedom and flexibility to explore ecommerce and renovate online retail.