Working from home has become such a huge trend that there are now almost four million Americans doing it. And while there are many types of businesses you can build on your own, e-commerce is arguably the best.
Many of the businesses people already own can be transferred to an ecommerce model, at least partially if not completely. But why is e-commerce the best type of business to start? Let’s take a look.
What is e-commerce?
First of all, it’s helpful to know exactly what “e-commerce” is. The term itself is a shortened version of “electronic commerce”. And this essentially just means the buying and selling of goods or services online. In other words, if you exchange currency online, you’re involved in e-commerce.
Types of products involved in e-commerce
While goods and services can be fairly broad categories, it can be expanded upon even further. Every e-commerce business fits into one of these categories: physical products, affiliate sales, digital products, and services.
Physical products are, of course, anything tangible you sell to customers. It can be new items, b stock supply products, or even used merchandise. Selling these usually requires sourcing, selling, and shipping physical items. However, many people that do this have their items dropshipped so that they never actually touch the products.
Affiliate sales, or affiliate marketing as it is commonly called, involves the creation and selling of products using a commission-based structure. The creator allows affiliate marketers to advertise their product, usually on their website, and collect a commission any time someone uses their link to complete a transaction.
Digital products are simply products created digitally for customers to download. These can be in the form of e-books, printables, audio, video, courses, software, and anything else that can be digitally viewed, listened to, or downloaded online.
Services encompass anything else that doesn’t fit in the previous categories. Some service businesses are entirely online, while others are partially conducted in other ways. For example, a consultant may use a website and an online payment method to complete transactions. But they then might schedule phone calls for their actual consultations.
That example would certainly be an e-commerce business, but there is an added element of phone conversations. Other examples of service businesses are marketing, writing, designing, etc.
What makes e-commerce so great?
As you may have figured out by now, one of the things that makes e-commerce such a great business model is the fact that you can start with very little overhead. You don’t usually need employees, a building, or any of the other physical things that come along with a brick and mortar business.
That’s not to say some e-commerce businesses don’t grow to the level that they need extra help or storage facilities. But most can be run fairly inexpensively. You can even outsource many of your own business tasks, such as making your accounting for ecommerce fully accountable.
Also, with an e-commerce business, you can usually work from home. This can save you money on things like commuting costs, wardrobe, and food. But it can also be beneficial for people who would rather work alone or have limitations that make working from home a necessity.
But perhaps most importantly, the earning potential with e-commerce is virtually unlimited. Your audience can be much larger than that of a physical location. And if you sell a product that can be downloaded over and over, you’ve created a passive income. You are no longer trading dollars for hours, so there’s no cap on what you can make.