What will we see in this post
Many people who wish to change careers think about creating an online store to undertake on the Internet.
This is because changes in people’s buying and consumption habits on the online market are perceptible, which draws attention to those who wish to start their own business.
In addition, growing sales numbers and e-commerce purchases have skyrocketed all over the world, which has prompted more people to create virtual stores.
The most exciting thing is that it’s not only people looking for a change in careers who are entering the virtual world. Many large chain stores that have well-known physical stores, such as Walmart, for example, have already realized the value that creating an online store provides to their customers and therefore have invested in this strategy as well.
Consider this, there is an important issue to ponder before you think about undertaking in this area:
Is creating an online store still worth it?
This is what we’ll talk about in this post. We’ll show you what are the main doubts of those who wish to open an e-commerce, but who are not sure if this is really a good option.
How it all started
There are reports that the first manifestation of online shopping and sales appeared in 1979 created by English inventor, Michael Aldrich. He created an online transaction processing system that would later evolve into the well-known e-commerce and online payment methods.
However, the big boom of what we now know as virtual stores was better structured and known in the 1990s with the rise of online sales by big companies such as Amazon, Pizza Hut and certain American banks.
What couldn’t be imagined at that time was that this sector would grow so much over a relatively short period of time.
Amazon alone has generated 46.37 billion dollars in online sales of physical goods, not to mention digital products.
But is this type of enterprise still profitable or has it become saturated?
This and other questions will be answered below.
Is the niche saturated?
After almost 3 decades since the beginning of e-commerce worldwide, it is plausible to believe that this niche has been extremely exploited and is possibly saturated.
Of course, there are a number of similar endeavors, especially when we think of highly sought products such as clothing, cosmetics, perfumery and books.
So if you are really thinking about creating an online store, you should know that you will need something different and innovative. After all, no one likes to see more of the same. You have to look for ways to stand out, and to help you with that, we’ve posted ideas to innovate in a saturated niche.
Is the market very competitive?
As we said at the beginning of this post, the fact that consumer relations are constantly changing makes more and more entrepreneurs to have an interest in investing in the online marketplace.
As a result, there are more opportunities that are seen not only by small entrepreneurs, but also by large companies.
You must be thinking: but with so much success in their mortar and brick business, is it even necessary to invest in e-commerce?
Believe me; commercial giants have noticed the advantages of expanding their market, so we find many stores that are known worldwide in the virtual world.
So, when thinking about competition, you need to keep in mind that your online store will have major brands as your competition. Does that mean the market is very competitive? Yes. However, if you know how to target your products well to a specific audience, you can succeed with your work.
If you still do not know what you need to do to find a market niche, read our post on micro niches.
Is it necessary to plan beforehand?
Whenever we intend to start a new business venture, we have to prepare ourselves for possible situations that may occur.
Just because you’ll have an online business, it doesn’t mean that you don’t need to think about your finances. There are expenses from the very first moment and it won’t be any different when you create an online store.
So don’t start this business thinking that you can start a virtual store overnight without planning.
The big problem with new online stores is that many people see them as an alternative for those who want a new job. So, they end up not planning for the new venture, which makes the store not achieve its expected success.
Is creating an online store difficult?
Starting a new business is never an easy task, especially since we have to deal with a number of new situations that we probably didn’t have before. So when we think about creating an online store, this is no different.
There are always negative and positive points that you need to analyze to really understand if it will be difficult to start your online store, and this is what we’ll talk about below.
The Pros of creating an online store:
- If you already own a physical store, selling in a virtual environment allows you to sell to people from all over the world, as there are no geographical boundaries. So, the possibility of increased sales is huge.
- Working on the internet makes your contact with customers faster and constant. After all, it is possible to establish communication with people through social networks, chatbots, emails, etc.
- Creating an online store is cheaper than maintaining a physical store because you don’t have to worry about expenses with rent or buying a space to set up your business, for example.
- You can promote your business with free advertising, a.k.a. content marketing. With this, you can save on marketing actions. However, it is important to know that only this type of advertising can take a long time to pay off. Therefore, it is always important to know and learn how to invest in paid media.
- Even if you are not a reference in the use of the technology, it is possible to open your virtual store because there are many different systems that can help you with it. All you have to do is choose the one you think is best to create a layout that fits your business.
The Cons of creating an online store:
- You can’t have an e-commerce if you don’t dedicate yourself and work hard; this is a digital market myth. Creating an online store isn’t just about taking photos of your products, creating a good presentation text and making them available on the internet. There is no magic trick in this business. You will be your own boss and you have to work hard to get results.
- As we said before, competition is high for those starting now. You will have to compete not only with other entrepreneurs like you, but also with major brands that are already known worldwide if you operate in a similar niche.
- You need to think about how you will deliver your products to those who buy them. At the least, you need to offer Postal delivery, which can generate expenses beyond the value of the product.
- Even if your business is online, you need it to be professional. Therefore, you’ll have to think about issues such as invoice issuance and form of payment, which may require more effort than you imagine. Trying to create an online store with payments only through bank deposits and as an individual does not create a good image of your business for your customers.
- Even if the initial investments seem lower (and they really are) than those of a physical store, there are still some necessary expenses for your e-commerce. If you sell a physical product, for example, you will have to create an inventory first, even without being sure that it will sell well.
Is this the only alternative of working with the internet?
After reading a few pros and cons of setting up an online store, you might still be in doubt whether it’s worth it or not. You might wish to undertake online and therefore you have thought of having an e-commerce.
However, you should know that this is not the only alternative for those who want to work online. Here are a few other suggestions.
Digital influencers are people who create relevant content for others and use their social networks to influence behavior. They can generate income by recommending other people’s products, attending events, giving lectures, etc.
Have you heard about online courses?
Online courses are digital products that convey interesting knowledge to anyone who buys this type of product.
There are two ways to operate in this area: as a Producer and as an Affiliate.
Producers are those who have an in-depth knowledge about something that people are interested in learning. It could be, for example, a foreign language, some kind of handicraft, music lessons, and so on.
The Producer’s role is to create an online course to teach what he/she knows best and thus, make money from what he/she knows without having to leave home to teach.
Affiliates, on the other hand, are those who sell online courses made by Producers and receive commissions for the sales.
If you provide a service that can be outsourced, such as copywriter, photo, and video editor; you can work on the Internet by offering your services to companies or others who need what you do.
Nowadays, there are freelance platforms where you can register to contact potential customers.
Creating an online store is an interesting way to start your own business and work online. However, if you are thinking of doing this so you can work less, you might have already realized that just like a physical store, it takes a lot of dedication to make your investment work.
There are a few objections when you start this type of business mainly because the financial return does not always come as fast as you had hoped. Also, you have probably understood that doing what already exists will not attract the attention you need to have a successful business.
The truth is that you have to understand which people you want to attract with your business in order to be able to establish the ideal moment to create an online store. Always keep an eye on the behavioral changes of your potential customers and what your competition has been doing, in order to analyze what you need to do to stand out.
But if you got this far and you feel that it is still worth creating an online store, make sure you read our post that teaches you step by step process to create an e-commerce.
See you next time!