You need to understand at this point that there are so many eCommerce websites out there. That is why you must know what you really wanted from the market and how to trade it. There are basically two (2) ways to make money from eCommerce.
- Sharing the profits eCommerce
- Seizing the profits eCommerce
- Sharing the profits eCommerce
Using this method simply means you are acting as a middle man. Here is exactly what happens. You will go to a website A (e.g www.sammydress.com) and list it to another website B (e.g www.ebay.com). Then a Buyer will come to website B (www.ebay.com) to buy your listed product while you keep the profit margin. Oh! Don’t ask me how they will know your product is listed because we shall be talking about that later.
With this method you don’t have to spend much. In fact, you might not even spend a din. But you will share a small portion of your profit with the owner of the website where you are listing your products. Hope you have not forgotten that eCommerce takes place on the internet. Somebody somewhere is buying something from a website (e.g eBay) listed by another person. So, the person who owns the website takes a small portion of the seller’s profits.
This is the best way to start eCommerce if you are thinking of starting on a small scale. However, it is safer to start trading eCommerce with this method if you are new to the system.
Advantages
- It is FREE to operate
- FREE advert
- No expertise is needed
- It is easy
- Risk sharing – you don’t bear the risk alone.
Disadvantages
- Shared profits
- You have limited control
- You don’t have the final decision
- Seizing the profits eCommerce
With this method you will order the product directly from the manufacturer e.g www.made-in-china.com and list it on your website www.yourwebsite.com and ALL profit is yours. This is the method used by BIG boys! They will buy from the manufacturers and sell on their own website.
Advantages
- You have 100% control
- You make decisions
- You can also ask other sellers to list their products on your website for a token too. Just like eBay does.
- More profits
Disadvantages
- You bear the RISK alone
- It is expensive
- Expertise is required
Here is a practical explanation
Smiles! Smiles!! Smiles!!! Oh, you want to know why am smiling? It’s because you are also going to smile at this simple SECRET.
In this section I am going to answer some of the questions that bother your mind. Still in this section; I will also tell you all the secrets of eBay powerful sellers.
The first secret is to know what to buy and the second is to know where to buy them. Remember, I will be giving illustrations with the sharing profit method (This mean, trading ecommerce without my personal website). So, for this example; I will be using eBay, because that was where I actually started from.
I shall explain this with the next article.
How to Buy and Sell without your own personal money – it is called Drop Shipping
Here is how you can make money from E-commerce without your personal money: Let us assume that there is a company Mr. A that sells in wholesale and two other individuals (Mr. B and Mr. C) of which one of them is the seller while the second individual is the buyer/consumer/customer/client.
Mr. Ais a company that offers drop shipping(not all wholesales companies offer drop shipping) while Mr. B is the acclaim retailer who collects goods in wholesale from company Mr. A without any initial deposit or payment and Mr. C is the buyer; so, Mr. A listed his wrist-watch on a website (e.g. www.sammydress.com) for $7and Mr. B went to www.sammydress.com to copy the product with its exact picture and description then re-list the item on another website; let say www.ebay.com but with a different price for $25. This is done without any payment or commitment. Now, Mr. C went to www.ebay.com to purchase the wrist-watch; he sent his money and shipping information to Mr. BandMr. B deduct his profit $18and send the remaining money $7with the shipping address of Mr. C to the original seller Mr. A.
From the above scenario Mr. B must have sold the wrist-watch for a profit.
For example:
The original listed the wrist watch for $7.
Then Mr. B re-listed the wrist watch for $25 with the same information.
Now, Mr. C bought the wrist-watch on eBay for $25.
The profit is $18 i.e $25 – $7 = $18
Here is the Big profit:
Imagine you have at least 3 orders per day.
That means you will be making $18 * 3 = $54
In a week you will be making $54 * 7 = $378
So, let’s see how much you are making in Nigeria money
At this time $1 = N160
That means $378 = N60, 480
Now imagine you have seven different products like this that brings you an average of $378 a week.
Oh, still want more? Then use your BRAIN!!!