IS ECOMMERCE RIGHT FOR YOU?
Ecommerce is something that
almost anybody can do.
But - and this is a big "but" - just because you can do
it, doesn't mean you should.
Before going too much further in this tutorial, it might be a
good idea to take a moment or two to give some thought to your
initial idea. Later in this lesson, I'll provide you with some
questions which you should ask yourself before jumping into
the exciting world of online sales.
Case Study of a Failed Venture
To show you the importance of
THINKING before acting, I'd like to tell you about one of my
failures in this area.
I'm a partner of a successful business, and selling online is
a major component of that business. Altogether, we've racked
up over a million dollars worth of online sales.
For recreation, my wife and I often go to auctions. I began to
notice that books hardly ever sell for much at auction. They
can be picked up for almost nothing.
Earlier this year, I discovered that amazon.com now allows you
to set up a sellers account and offer your used books for
sell.
With these two bits of information, I began to think that it
might be possible to set up a small side business selling used
books online. I immediately set up a sellers account, and
headed for the auction. I bought several boxes of old books.
Back at home, the next day, I methodically looked up each book
on amazon. I figured that I needed to make at least $4.99
profit for any particular book to make it worth my while. For
each book, I checked out what other sellers had them priced
at, and placed the book in a stack of books I wished to sell -
or a stack of books I wished to discard - depending on the
value.
By the end of this exercise, I had 1 sellable book, and
several boxes of throw away books. I had invested two hours of
my time to list a single book which might bring me $4.99 in
profit - if it sold.
Being the savvy business guy I am - I immediately spotted my
mistake. Instead of buying books in bulk, hoping to find
sellable items, I should have done some research first.
I spent several hours on Amazon, that week, trying to get a
handle on what is in demand. I learned that technical books
sell easily, as do current release hardbacks.
Armed with that knowledge, I began to travel to the nearest
used book stores and thrift shops to find "in-demand" titles
to sell on Amazon. I came home with several, and immediately
listed them. In no time at all, I had several orders.
Being a conscientious guy, I wanted to get these shipped as
quickly as I could. I swung by the local office supply store
to buy some packaging material, and was really surprised how
much padded envelopes cost. I hadn't really added that to the
price. Nevertheless, I bit the bullet, packaged the books, and
sent them at the post office. Total time fulfilling the
orders? - two hours.
Already a bit dismayed at my loss, I decided to put this on
hold for a few months and catch up on the work I really should
be doing for my primary business. Eventually, I discarded the
book vending idea altogether.
Believe it or not, I look at this entire experience in a
positive light. Yes - I lost money and time, but the losses
are really insignificant when compared to the valuable lesson
I learned in all of this.
Here's the lesson: Every venture, no matter how small, must be
carefully thought out.
Before You Begin
You should ask yourself
several questions:
-
What do I have to sell?
-
Do I have a ready supply of
this thing?
-
Who do I want to sell it to?
-
Is it in demand?
-
How do I package and ship my
product? What are the costs?
-
How much time do I have to
devote to this venture each day?
-
If my venture is successful -
am I willing to quit my job?
-
If my venture fails - can I
afford the loss?
-
Once I factor in shipping
costs - can I price my product competitively?
-
Is the thing I sell readily
available to most people locally?
If, after giving long and hard
thought to these questions, and to your venture in general,
you believe you might be successful - you should proceed.
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