| These days, more and more people are interested in | | | | Minimum purchases are important to keep in mind |
| building an online business. As the economy has | | | | when choosing and ordering products. Some minimums |
| soured, an increasing number of people have been | | | | may be more than you want or can afford to meet |
| looking for ways to replace or supplement their | | | | when starting out, in addition to the added risk of not |
| incomes, and doing that from home on the Internet is | | | | knowing how they might sell. Keep reordering |
| an attractive option for many of them. | | | | minimums in mind as well. You might sell out of one |
| But, how to do it properly? In this article, I'll show you | | | | slow-moving product, but not want or be able to order |
| some of the considerations for starting your own | | | | more until you are ready to order more of your |
| business. Please keep in mind that this is meant only to | | | | fast-moving products. |
| give you an overview and does not get into specific | | | | Of course, experience will be a big benefit here. And, |
| details. | | | | since you may not have that much experience when |
| Your First Concern: Business Licensing | | | | starting out, you may wish to use dropshippers at first |
| First, you'll need to concern yourself with business | | | | and then only begin to stock your own inventory once |
| licensing. This is something often overlooked by many, | | | | you have a better handle on what sells quickly, what |
| but it is an important part of starting your business. | | | | sells slowly and what doesn't sell at all. |
| Also, if you get involved with wholesale merchants, | | | | Don't forget that you can always try to unload your |
| many will require that you have a business license | | | | slow-moving products on eBay. Hopefully you might be |
| number to establish that you're a real business and not | | | | able to at least recoup your costs! |
| just someone looking to get a discount on items for | | | | As for finding these products, you'll need to go through |
| personal use. | | | | a similar process that you do for finding affiliate |
| Business licensing varies from country to country. In the | | | | products. First, you can try the search engines. |
| United States, for example, it will also vary from state | | | | However, be aware that some manufacturers may still |
| to state and possibly city to city or county to county. | | | | not have good websites (or any at all) so they may be |
| For this reason, you'll need to speak with an | | | | difficult to find this way. Also, you'll need to watch out |
| accountant, a county auditor or other business | | | | for resellers and distributors who may advertise |
| professionals or government representatives that can | | | | "wholesale" prices, but not actually be true wholesalers! |
| give you information pertinent to your area. Also, you | | | | You can also try contacting a manufacturer |
| can try contacting your local chamber of commerce | | | | directly-they should be able to tell you whether they |
| for guidance. | | | | sell wholesale or who their distributors are. The third |
| Also, whether you need a business license or not, don't | | | | option is to subscribe to or join a wholesale directory. |
| forget that you'll more than likely need to report your | | | | While some people may not like the idea of paying for |
| online earnings as income on your tax filings. This is | | | | information that is supposedly "free," wholesale |
| also something you should discuss with your | | | | directories provide a good service by saving you a lot |
| accountant or tax professional. | | | | of time in tracking them down yourself! Of course, |
| Your Next Concern: Business Type | | | | you'll benefit by researching a specific directory before |
| By business type, I do not mean the type of business | | | | joining to make sure you're going to get a good value. |
| entity (sole proprietorship, limited liability corporation, | | | | And, if you just can't afford it, you can always continue |
| S-corp, corporation) you plan to have, which is | | | | to do the legwork yourself to find the products you |
| something best discussed with your accountant, | | | | want to sell. |
| attorney or other professional. | | | | Opening Your "Doors": Building Your Site |
| Rather, I mean the the specific type of eCommerce | | | | Your next step is to build your website. You have |
| business you want to run. Do you want something | | | | many options here. You can build a site through a |
| that's easy and largely "hands-off"-something you | | | | third-party that offers proprietary site-building software |
| might be able to run anywhere in the world-or do you | | | | and hosting all-in-one. There are many "stores" website |
| want something that is a little more hands-on? | | | | services that allow you to do just that. Another option |
| If you are the type of person that wants to dig in and | | | | is using third-party software solutions with a standard |
| really get involved with your business, if you want to | | | | hosting provider. There are many such solutions-some |
| be able to touch and feel and inspect any products | | | | include templates to get you started while others are |
| before you ship them to your customers, you want to | | | | much more hands-on and customizable. If you're good |
| be a direct seller of goods. You will stock the products | | | | with PHP or another web coding language, you may |
| in-house-where ever that may be, perhaps literally in | | | | be able to roll your own custom solution as well. |
| your home or perhaps you'll rent a storage or office | | | | Which route you go is also dependent on the type of |
| space-so that you can check everything out prior to | | | | site you will have. If you are running your business as |
| shipment. | | | | an affiliate, you don't need a shopping cart or store or |
| If you don't care to do that, if you want to take less of | | | | anything of that nature, so your site will likely be much |
| a "hands-on" approach by working with dropshipping or | | | | easier to build than if you need a full-fledged |
| affiliate programs, neither of which require you to keep | | | | eCommerce site, as you would if you are selling your |
| an inventory of your own. | | | | own products. |
| Alternatively, you can also deal in digital products, such | | | | As an affiliate, you may want to create a content-rich |
| as eBooks, videos and other goods that can be | | | | site so, rather than a shopping cart solution, you may |
| delivered electronically, so that there is little or no "real" | | | | need to look for a content management system |
| inventory to keep on hand. | | | | (CMS) to make things easier than doing all your pages |
| Another option is to do a combination of methods. You | | | | manually. |
| could choose to stock popular products, which can | | | | Turning On Your "Cash Machine": Accepting Payments |
| boost your bottom line since, if you purchase in bulk, | | | | The next thing you'll need is a way to accept |
| you can likely get better pricing than you do going | | | | payments. If you are running a business as an affiliate, |
| through a dropshipper. Then, just use dropshippers to | | | | this is an area you need not concern yourself with, as |
| sell the less popular products-the ones that don't sell in | | | | the merchant's site will process the payments. But, if |
| sufficient volume to justify maintaining an inventory. | | | | you are selling your own products, you'll need to |
| You could also use affiliate programs to complement | | | | accept payments. |
| your offerings. | | | | You can, of course, allow your customers to mail in a |
| The Next Step: Choosing a Niche | | | | check or money order. But, while that's a good option |
| If you ask about selecting a niche, many people will | | | | to have, you will lose a lot of sales if that is your sole |
| advise you to "follow your passion" while others will | | | | method of payment. |
| advise you to look for something highly profitable. Not | | | | You will want to accept credit cards. Doing so online |
| all passions are profitable, so sometimes you may be | | | | can be difficult and expensive. There are shopping cart |
| stuck looking for something with higher profit potential. | | | | and payment scripts that are prebuilt to handle that for |
| Still, it's best if you can find something you have an | | | | you-you just need to have a merchant account and a |
| interest in-this will be something you'll need to stick with | | | | payment processor-but you'll have to make sure that |
| for a while, so don't choose something you'll be bored | | | | whatever prebuilt solution you choose is compliant with |
| with after a couple weeks. It will take time and effort | | | | the latest PCI Data Security Standards. |
| to build your traffic and sales to the point where you | | | | Once you've located or built a script that meets PCI |
| are making money, so be sure to choose a niche | | | | DSS requirements, you'll need to shop for your own |
| where you'll feel comfortable sticking it out for at least | | | | merchant account and a payment processor. Many |
| 3 to 6 months. | | | | services will handle both of those for you. In any case, |
| Mind you, you may see success in less (or more) time, | | | | be sure to research providers carefully and look for |
| but you should be prepared for the long haul. So, be | | | | the best rates. Additionally, some of these services |
| sure to choose something that will hold your interest! | | | | may have resellers, and those resellers may be more |
| Another Step: Finding (or Creating) Products | | | | familiar with shopping cart or other payment solutions |
| Once you have selected a niche, you'll need to find or | | | | and provide you with better assistance in getting up |
| create products you can sell. | | | | and running. |
| If you have decided to run an online business as an | | | | It is important to know that there are big fines and |
| affiliate, you will need to find some online merchants | | | | penalties if you get caught processing credit cards and |
| with affiliate programs you can join. There are a | | | | not meeting PCI DSS requirements. Not only could it |
| couple ways to do this. First, you can surf the web | | | | cost you thousands of dollars in penalties and fines, but |
| and visit various merchants' sites. See if they have an | | | | you would also likely lose your merchant account. |
| affiliate link on their home page. If so, check it out. If not, | | | | If you don't want to get into worrying about PCI DSS |
| you can send send them an inquiry by eMail. Some | | | | requirements when you just trying to get started, you |
| merchants may have affiliate programs but not list | | | | can use a third party processing service. There are |
| them on their home page. The other way to find | | | | dozens of them, but the most well-known is perhaps |
| affiliate programs is to join an affiliate network and | | | | PayPal. |
| browse their listings. Be aware that some may require | | | | Whether you choose to process credit card payments |
| you to already have an existing website-and some | | | | yourself or use a third-party processing service like |
| may have other requirements-so be sure you satisfy | | | | PayPal, bear in mind that it may be advantageous to |
| any requirements before applying to a program. Some | | | | offer multiple methods of payment. For example, some |
| will approve anyone; others will only approve certain | | | | people may prefer to use PayPal, while others may |
| sites. It will be helpful to have a quality, informative site | | | | prefer not to use PayPal. So, giving a potential |
| built before joining affiliate programs. | | | | customer fewer excuses to not order by providing |
| If you have decided to run an online business as a | | | | them multiple options to pay can help to increase your |
| reseller, you'll need to purchase products wholesale or | | | | sales. |
| make arrangements with a dropshipper. Keep in mind | | | | And make sure that shopping or payment |
| that there are different levels of wholesalers. There | | | | solutions-whether you used a third party solution or built |
| are manufacturers that will sell their products directly to | | | | your own-will integrate with the payment processing |
| resellers at wholesale prices. Others will only sell their | | | | services you decide to use. |
| products to distributors, who will then sell them to | | | | Conclusion |
| resellers. Others will sell their products to distributors or | | | | That covers the bare essentials of getting your own |
| resellers who meet specific purchase requirements. | | | | eCommerce site up and running. While it may seem |
| There are also manufacturers that will sell to anyone, | | | | complicated, it's really not! Just take things one step at |
| including individuals, who meet their minimum purchase | | | | a time. If you find you can't do something yourself, |
| requirements. | | | | odds are good you can find someone to help you out. |
| Some manufacturers base their purchase | | | | You shouldn't let fear or trepidation hold you back. The |
| requirements on a dollar value while others base it on | | | | important thing is taking that first step-don't put it off |
| a specific quantity of units. Similarly, distributors may | | | | for another day! |
| have their own minimums. | | | | |