Bad Information Will Get You Nowhere - The Real Costs of Starting an Ecommerce Website
I'm constantly being asked by my friends and acquaintances, "how much did it cost you to start your first website?" When I tell them, their response is almost always the same...
they're pleasantly surprised.
Many people who would like to step into the ecommerce arena, fear doing so because of the common misunderstandings about the costs required to get started.
They assume, or have been told by others, that it requires thousands of dollars of investment capital to have the website created, and thousands more for the inventory purchase of the items you are planning to sell.
That's not true! First of all, the cost of starting your own ecommerce website can range between $350 - $3000, but the vast majority of people will spend less-than $500 for what will end up being a pretty nice looking website.
Yes, you can spend more for a fancy, flashy, shiny website, but in the end it's all about the sales.
Consider some of the big names like Amazon; there website is about functionality, not looks.
They didn't invest a lot of time or money in creating a flashy site, but one that is user friendly.
It's not about the looks, but the brand.
People will buy from a particular website because they're comfortable with them, and they trust them, not because the website looks cool.
Another concern is the thought of tying up a lot of money in a garage full of inventory hoping that it will sell and turn a profit is big turn-off for most people.
Let's face it, you're taking a big risk and it may not pay off.
I'm not saying it's a poor business decision.
You may have access to the next "best thing", and everybody will want it, and you'll sell all of it and make lots of money.
But if you're like many of us, we just don't have the cash to invest into an inventory of products, nor are we lucky enough to come up with the next "best thing".
So, is there another option; one that will cost less? There are many Affiliate, or sometimes referred to as, Associate programs available.
What is an Affiliate? Basically an affiliate website is, a site that markets or sells another merchants products or services for a commission.
You can sell somebody else's products on your website and they will pay you a commission for doing so.
Great idea! As an affiliate, you do not need to invest in any inventory, or pick the order, pack the order, or even ship the order; that's handled by the merchant.
You job is to have a website that promotes their products or services.
Take the time to investigate the affiliate programs out there, because there are many of them.
Some are very good, with commissions ranging from 4%, all the way up to 20%.
Others you should steer clear from.
Read the reviews, listen to what others are saying and you should be OK.
Hopefully this article has accomplished what I intended; to dispel the fears and the misunderstandings about what it really costs to start your own ecommerce website.
Good luck and happy selling!
they're pleasantly surprised.
Many people who would like to step into the ecommerce arena, fear doing so because of the common misunderstandings about the costs required to get started.
They assume, or have been told by others, that it requires thousands of dollars of investment capital to have the website created, and thousands more for the inventory purchase of the items you are planning to sell.
That's not true! First of all, the cost of starting your own ecommerce website can range between $350 - $3000, but the vast majority of people will spend less-than $500 for what will end up being a pretty nice looking website.
Yes, you can spend more for a fancy, flashy, shiny website, but in the end it's all about the sales.
Consider some of the big names like Amazon; there website is about functionality, not looks.
They didn't invest a lot of time or money in creating a flashy site, but one that is user friendly.
It's not about the looks, but the brand.
People will buy from a particular website because they're comfortable with them, and they trust them, not because the website looks cool.
Another concern is the thought of tying up a lot of money in a garage full of inventory hoping that it will sell and turn a profit is big turn-off for most people.
Let's face it, you're taking a big risk and it may not pay off.
I'm not saying it's a poor business decision.
You may have access to the next "best thing", and everybody will want it, and you'll sell all of it and make lots of money.
But if you're like many of us, we just don't have the cash to invest into an inventory of products, nor are we lucky enough to come up with the next "best thing".
So, is there another option; one that will cost less? There are many Affiliate, or sometimes referred to as, Associate programs available.
What is an Affiliate? Basically an affiliate website is, a site that markets or sells another merchants products or services for a commission.
You can sell somebody else's products on your website and they will pay you a commission for doing so.
Great idea! As an affiliate, you do not need to invest in any inventory, or pick the order, pack the order, or even ship the order; that's handled by the merchant.
You job is to have a website that promotes their products or services.
Take the time to investigate the affiliate programs out there, because there are many of them.
Some are very good, with commissions ranging from 4%, all the way up to 20%.
Others you should steer clear from.
Read the reviews, listen to what others are saying and you should be OK.
Hopefully this article has accomplished what I intended; to dispel the fears and the misunderstandings about what it really costs to start your own ecommerce website.
Good luck and happy selling!
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