How can i start a online business selling products? ?

Question

Hello, Once again!

I really want to start a home business selling pet supplies. I was reading some articles, but none answer my question: What do i have to do? where can i keep the merchandise? do i have to buy wholesale or just buy a few at first? Do i need a P.O box, and is it a good idea, and so much more. My point is, what should i do first on order to have a online store?

Answer 1

How about testing the market in a really simple way by selling products on ebay? If you're feeling adventurous you could even start up an 'ebay store'..

It won’t cost you anything to set up in this way and you'll be able to leverage the power of ebay to 'test the market'.

If things go well then you could move onto the next step (of having your own website built perhaps) safe in the knowledge that there is a demand for the products you're selling.

If it doesn't work - all you've lost is a little time :)

In any event I wish you the best of luck!

Answer 2

Starting on eBay is a good suggestion.  Start with a few auctions to keep the recurring fees down.  If you see that there is potential then I would push ahead.  However, be forewarned that eBay is expensive on a percentage basis.  I ran an eBay store that had small profit margins.  The problem was the monthly fee (if you have a 'storefront' there) plus the roughly 10%-12% they take from your sale.  If you find that you can sell and make money on eBay, you should use it as a tool to promote a site that you set up for yourself.

Doing some homework up front is a necessity.  Find out where you can get your supplies, what they cost and what quantities that you must buy in.  Figure out where you are going to store them (and what that might cost.  A few shelves in your basement or garage is no big deal, but if you have to rent a storage space then that is overhead!)  

When you have the cost of your items, then start doing searches online to see what the products are selling for.  If you can buy an item for $2.00, is it selling for $2.25 or is it selling for $4.00?  If your gross profit margin is only $0.25 (before expenses) then you need to figure out if there is any profit and if it is worth your time.  Remember if you can find it for $2.25 online, so can a customer who will usually choose the cheapest (or close to cheapest) product they can find online.

Also, don't forget about accepting payments.  There is a cost involved.  PayPal (another eBay company) is easy to set up and use, but they get a portion of your profits too.  There are ways to accept credit cards, but it will be dependent on where you set up your site (some sites offer shopping carts and the ability to accept credit cards).

There are places online where you can build your own product store which is a good idea for keeping costs down.  If you can't do the set up by yourself then contact a web designer to find out how much they would charge for set up.  The great thing about websites is that there are many great ways to promote a website that are very inexpensive.  They key for you will be how to get your products listed for sale inexpensively.  

Finally, a PO Box is a great idea, especially if you are going to use the post office to ship your products.  This will create a buffer between your home and your business (you won't have to worry about a knock on your door for someone looking for supplies.)

Good luck with your endeavor!  I hope that this info helps.  I provided a couple of links too that you may want to explore.  There are many ways to make money out there.  You just need to make sure that the one that you latch on to is a money maker and not a money drainer!