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:

1. What do I have to sell?

2. Do I have a ready supply of this thing?

3. Who do I want to sell it to?

4. Is it in demand?

5. How do I package and ship my product? What are the costs?

6. How much time do I have to devote to this venture each day?

7. If my venture is successful - am I willing to quit my job?

8. If my venture fails - can I afford the loss?

9. Once I factor in shipping costs - can I price my product competitively?

10. 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.