Many individuals think that you need to quit your day job to pursue your dream of being a business owner. But, that is only a myth. Technological advancements have opened many opportunities. Nowadays, you can launch a business venture while keeping your nine to five job. What you can do is start an e-commerce side hustle.
Why Consider E-Commerce
E-commerce refers to the transactions involving selling and purchasing of goods or services using the Internet. It offers convenience to entrepreneurs and consumers alike. That is why many new business owners choose to start there.
In the United States alone, the amount of online retail sales of physical goods reached around 343.15 billion in 2019. This number is expected to grow in the coming years.
Here are some of the reasons that make it an attractive option for your side hustle:
- You do not need a big capital to start.
- You can manage it without affecting your day job.
- It is an asset that you can sell.
How to Start an E-Commerce Side Hustle
Starting a business requires preparation. The same is true when it comes to side hustles. Here are some tips that may help you out:
- Choose the right product. The product that you are selling is crucial. You have to decide on it before taking on the next step. It is best to choose a product that interests you. Make sure that it is not something that you will be bored of after a few days. This way, you will be motivated.
You should also offer a product that your target market is able and willing to purchase. Consider practical implications as well. Is it easy to ship? Are there others offering the same product? Are you planning on making the product yourself?
- Figure out where you will source supplies. After settling on a product that you are confident about, the next thing you have to think about the source of your supplies. Look for suppliers that can provide you with high-quality materials at an affordable price. Another option is dropshipping.
While dropshipping may slightly decrease your profit, it offers convenience. It allows the goods to be packed and delivered directly from the manufacturer to your customer. You will act as an intermediary storefront. With this, you also do not have to worry about where to keep stocks.
- Set a reasonable price. Once you have a product and have figured out how to handle supplies, you have to decide how much your products will cost. Determine your profit margin. Set the prices depending on that.
It will also help to conduct market research. Understand the buying capacity of your target market. It will also help if you check your competitors. Find out how much they are selling similar products online.
- Create a brand. While it is a good idea to check out your competitors, you should not copy them. Instead, figure out what they are doing right and what mistakes they are making. Use the information and add unique details to develop a distinguishable brand. You can start by coming up with a creative company name. Then, make your website user friendly and visually pleasing.
- Promote your business. Another thing you have to do is to attract potential customers and encourage them to purchase your products. You need an effective marketing strategy. It does not have to be expensive. You can start on social media and online forums.
Registering Your Business
Many new entrepreneurs who have side hustles are hesitant to formally register their business. However, choosing to formalize your business operations will protect you.
For example, you decide to register as a limited liability company (LLC). It will establish your business as a separate legal entity. That means that your personal assets will be safe against the debts and obligations of your company.
Forming an LLC will also allow you to transfer ownership without hassle, you can do it anytime. You can sell or hand the business over once you no longer want to continue running it.
It also helps establish the credibility of your business. More customers will be more willing to transact with you if they know that you are registered with the state.
Once you decide to formalize your business operations, you will have to go through a state process and submit some requirements. If you need help in handling the whole ordeal, contact a reliable third-party organization like DoMyLLC. Talk to us now and find out more about starting a business.