How Some People Missing The $740 Billion Dollar Market.
I couldn’t believe when I saw the data, but it’s true.
In 2018, U.S. online retail sales of physical goods amounted to 501 billion US dollars and is projected to surpass 740 billion US dollars in 2023. Apparel and accessories retail e-commerce in the U.S. is projected to generate over 145.8 billion U.S. dollars in revenue by 2023
Find more statistics at Statista
See These Shocking Facts in the United States Market:
- Retail e-commerce sales in 2018 are $501 Billion.
- In Q2 2019, retail e-commerce is $146.2 Billion.
- In 2023, retail e-commerce estimated to be 740 Billion dollars.
According to statista.com data.
This is the power of eCommerce, Now let’s jump to the subject.
If you’re selling products through social media like Instagram or Facebook or even have your own physical store, it’s essential to consider building your online store while keeping your physical store open if you want to serve local customers as well.
Most of you probably have no physical store, and probably don’t want the headache that comes along with the offline world. For me, I don’t want to have a physical store. There is nothing wrong with having a physical store, but let’s keep in mind the expenses that go with managing the physical store.
Having an online store saves you :
- Monthly rent for the property.
- Electricity bill
- Telephone & internet bills
- Other expenses
- Inventory management
On top of that, you stick in one location, and sooner or later giant companies will wipe your business. This is clearly seen as to what Amazon did to many small and medium-sized companies, heck even big companies like Toys R Us was wiped out. It is not bad to admit you are wrong, but it’s catastrophic if you remain stubborn and remain offline.
What is the benefit of owning an online store?
There are huge benefits to owning an online store. Here are some of them:
- Easy to scale through ads and brand awareness.
- Easy to manage
- Few people can manage it.
- Sell around the world
- The opportunity of selling worldwide.
- Not stick to one location
- Ease in mobility, since its online store.
- The cost is lower compared to a physical store.
- No inventory management(for dropshipping)
- No inventory needed especially for the dropshipping model.
- Easy to fulfill orders (can be automated)
- Automatic fulfillment process Apps.
Any entrepreneur or businessman/women know that scalability is the number one factor for the growth of any business. If that business can not be scaled there isn’t true value in it.
Scalability is the number one factor for tremendous growth. Online stores have unlimited access, unlike the offline physical outlets where they’re bound to one location.
How much does it cost to build an online store?
Cost of a single-store
- Shopify store costs $29 per month + $15 domain per year total = $44 to start.
Note: this doesn’t include Apps and premium themes, which adds to the expenses.
- Woocommerce costs $12-$15 for hosting and domain / per year total = $15 to start.
Related: Shopify one product store
That cost for getting started, you would need a budget for advertising as well.
This is an estimation and could differ depending on your goal.
Facebook Ads cost = $10 / day = $300 per month for testing products.
This varies depends on what your goal is. If you want to test 5 products each one $5 that will be:
$5 X 5 = $25.
Estimate cost for ads :
- Facebook Ads: $300-$500 / Month.
- Google Ads : $1000-$3000 / Month.
disclaimer: this is what I personally spend on ads, everybody does this differently.
This course might be helpful if to learn facebook advertising :
Related : Passive income sources 2020
What is the best eCommerce platform?
In my opinion, Shopify and Woocommerce are the best but many people would argue that maybe Opencart or BigCommerce are the best. But everybody has his own opinion I suggest you test and see which one suits you.
The reason why I like Wocommerce, for example, is that it’s cost-effective. You just going to need hosting for about $12/ year.
But if I want to start quickly and don’t deal with design and setting up a store like Woocmmerce.
I would choose Shopify, it costs $29 / month + $15 per year for the domain.
It all depends on your budget, I recommend Shopify because you could get started in a matter of a few minutes.
On the other hand, you have WordPress with woocommerce plugin which is free but designing and setting up your store is not so easy compared to Shopify.
Is it hard to manage an online store?
Managing online store is easy task specially if your business model is dropshiping.
If you have an inventory, that’s a bit different because managing inventory is not easy.
For managing your store these are the basic tasks you may need to do :
- Order fulfillment.
- Customers Service
- Editing / Adding Products.
- Creating Blog Posts (Not necessary) if you want to focus on SEO.
- Advertising (facebook ads, Google Ads..)
- Email Marketing
- Social Media Marketing
That’s basically what your daily tasks look like, it’s not complicated, you can skip some of these tasks, like creating blog posts or email marketing at least in the beginning stages.
What to choice Shopify or Woocommerce?
For my personal experience, it really depends on what I want to accomplish. For example, as I’ve mentioned before, if you want to get started quickly and you have the budget, I highly recommend Shopify, for a couple of reasons :
- Fast servers.
- Easy to setup.
- It comes with great themes.
- Variety of apps(some of them are paid apps).
- Fast Website.
- Easy to setup payment gateways.
What about wocommerce? Its great platform and its free, but it has learning curve, if you have no idea how to build or you never build worpdress website, I recommend you to stick with shopify.
If you still want to start wocommerce store, you can learn the basic of creating stores through youtube video or udemy courses. It’s not that hard.
What to sell on my store ?
This is the one million dollar question, how you know what to sell?
There is no right answer to this, you have to do some research through google, facebook pages,twitter and Instagram to see what people actually buying.
Finding the perfect niche is the 90% of the work. For that reason intensive research is the key.
Where to find hot products to sell online ?
There are many ways to get some information about this, but it’s not as acured as you think, you may also research further to norrow down the possibility of finding good products to sell online.
How to find my niche fast ?
This is 90% of the success of your business so I suggest you spend most of your time researching. Because if skip this step, you bidding blindly on your gut, I don’t think that’s necessary a good strategy, Its much better if you research prior to launch.
This is how can quickly find niches fast
- Google trends
- Type your niche and select 5 years to see the graph, this is good indication wither its good niche or not.
- Google Search
- Google search will tell you exactly if this is good niche, just look at how many ads showing on the first page, that means there is people actually paying to get clicks.
- Facebook Search
- This strategy not many people talk about but its powerful way to find out if there is enough looking for that. See any ads, engagement, comments and so on.
- Click on Ads related to what you looking for and see how they advertising.
- kwfinder ($49)
- This is powerful keyword tool, it shows you how many searches it gets, how many website advertising. It has competition analysis as well.
- This simple tool was designed by SEO guru Neil Petal, its similar to Semrush and Kwfinder, you can find a lot of useful insights and its free.
That’s what I use when I research particular niche, you can go even deep than that, But I like to keep it simple.
General Store or niche store ?
I would go with niche store here why :
Niche store allows you to focus on one specific market like health for example.
Easy to fillfull orders and advertise , write a blog posts much quicker.
General store on the other hand is much complicated where you have multiple categories, products, on top of that you competing with Amazon and those big eCommerce.
For these reasons I don’t like general store. It doesn’t mean general store can’t succeed, it’s just my personal opinion.
Should I sell physical products or digital products ?
Both are great, if your business modal is dorpshoping you pretty much like selling digital products because you not see or touching the actual product. You just fillfull orders on behalf of the customers.
Related : What is dropshiping?
Digital products basically means, CDs, Video files, PDFs and so on.
How can I get traffic to my store?
There is multiple ways to get traffic to your store.
- Facebook Ads.
- Google Ads.
- Banner Ads.
- Facebook Groups.
Why I get traffic but no sales ?
This problem is common among store owners. basically you get huge traffic through maybe facebook ads, Google Ads etc., but no sales.
Consider fixing there problem:
- Add to cart not working properly.
- Price is too high
- Not clear instruction on how to buy.
- Over usage of countdown timer App.
- Too much popups.
- Slow website.
- Product page is not clear
- Inconsistency of color, fonts and images.
All these factors could affect the buying behavior of your consumer, try to fix them as soon as possible.
Building commerce store never been easier no coding required most of platforms support drag and drop functionality.
I wish I knew this before I get started in ecommerce business and I hope you find this post helpful.