How To Start a Business

So you’re interested in selling stuff online, eh?

Perhaps you have dreams of quitting the rat-race to start your own online, eBay or Amazon business (which obviously involves waking up at 10am, working in your pajamas, taking long weekends whenever you like, and answering to nobody because you're the boss...)

Or maybe you just want a few extra bucks in your back pocket.

Whatever your reason for wanting to start selling things online, eCommerce offers huge opportunities for anyone with an internet connection.

Of all the ways of making money online, it's perhaps one of the easiest to understand and get started with.

Our ten-minute guide to the world of online selling will show you where to start, and how to do it right!

We’ve broken the process down into six simple steps to take you from complete beginner to professional seller.

Let’s jump right in!

Before you get started investing time and money into an online business, you want to be sure that selling stuff online is right for you.

So let’s look at the pros and cons of selling online so you can weigh them up and make an informed decision.

While working from home in your pajamas is definitely a plus, there are plenty of other amazing reasons to work from home while building your own eCommerce business:

• You can work from home, make your own hours, and choose how far you want to take it. The possibilities are endless. Want to make a few extra bucks to save? Want to create an online eCommerce empire? The choice is yours! There's no glass ceiling, which means no boss to suck up to. It's pure freedom.
• It's something you're probably already familiar with! If you’ve bought or sold something online, you basically understand how it works. Which, ultimately, makes selling online an easier skill to grasp than many other home business options.
• You can follow your own interests. Are you passionate about Women's fashion? Plus size? Sexy Lingerie? When you start selling things online, you can often turn your hobbies and passions into a profitable business.
• It’s not as difficult or risky as starting a "traditional" business. You don’t have to invest a lot of money when you’re first getting started (not to mention, you won’t have to worry about buying or leasing a physical property). It has a very low barrier to entry, which means practically anyone can give it a go! What’s stopping you?
• You don’t have to worry about storing inventory if you don’t want to! (Hint: It’s called dropshipping, and I’ll get to that later!)
• It’s fun! At least, we think it is. By the end of this guide, we’re sure you will, too!

Like anything in life, selling items online comes with a few downsides. It's important you're aware of these before you begin, so you set yourself realistic expectations.

• It takes time. It may take you a month or two to start seeing consistent results. The chances of you accumulating over $100 worth of sales on your first day is, well, highly unlikely.
• There's a learning curve. If you’ve sold a few things online before, you’re already one step ahead of your competitors! However, you’ll need to step up your game to sell online professionally.
• You wear all the hats. As a business owner, you’re an incredible team of one (at least starting out). You’ll take on the roles of accountant, marketer, web designer, as well as everything else. This also means that you shoulder all the responsibility. If something goes wrong, you can’t blame anyone but yourself.
• It's not all passive income. You'll hopefully be dealing with regular sales, regular shipments, and regular customer inquiries, which means that your business will require you to do real work and invest time and effort. That is, until you can afford to hire staff! Even then, you’ll want to remain involved in everything that happens.

To simplify, this isn’t a get-rich-quick scheme.

But if you're happy to spend a little time building a reputation, developing your brand, and optimizing your processes... the sky's the limit.

There are several different business models to consider before you start selling things online, each with their own set of pros and cons.

You will want to think carefully about which business model is best for you. They all require different levels of financial investment and will determine how you structure your business.

Take this quiz to find out which business model is best for you.

The simplicity of dropshipping does come at a cost. You usually pay a higher price to your supplier compared with buying in bulk, and you’ll usually incur a dropshipping fee.

Shipping also tends to take longer as most dropship suppliers are based in China. But dropshipping is extremely popular and many people have built successful eCommerce businesses using it. Dropshipping is best for people looking to dip their toe into selling online, those who don’t have a lot of capital to buy in bulk, and people who want to keep their workload to a minimum.

See our Complete Guide to Dropshipping.

• Dropshipping

  Dropshipping is the darling of the eCommerce world. Why? Because the barrier to entry is so low. You don’t need to make any financial investment to get started. Meaning, you won’t pay a cent until you make a sale.

  That means you don’t need to place any large orders or store excess stock. You just need to decide what you want to sell, find a supplier that provides dropshipping services, list your products on your preferred online marketplace, and start selling.

  Basically, your supplier does most of the heavy lifting and your main job is to make sales. Simple, right?

  Here’s how dropshipping works:

  1. A customer purchases a product from your online store (at retail price)
  2. You place an order for that product with your supplier (at wholesale price)
  3. Your supplier packages and ships the product directly to your customer

• Sourcing from wholesalers

  Sourcing products from wholesalers is a more traditional retail business model. It’s used by brick-and-mortar stores and e-commerce stores alike. Once you’ve decided on what product/s you’re going to sell, you find a reliable wholesaler and buy the product/s in bulk. Getting the best price usually requires some negotiation.

  Buying in bulk requires that you have significant cash to spend up front. The upside is that you’ll usually get your products at a cheaper price than you would with dropshipping. That means higher profit margins for you every time you make a sale.

  Once you’ve ordered the product/s, it’s up to you to arrange storage, to list them for sale online, and to organize shipping. Alternatively, you can use a third-party fulfillment service like Amazon FBA or Shipbob (there are many options to choose from) to handle the packaging and shipping for you. However, this comes at an added cost that eats into your profit margins.

  You can see how sourcing from wholesalers can be more labor-intensive than dropshipping, but the financial benefits can make the extra work worth it.

  See our Quick-Start Guide to Finding Wholesale Distributors.

• Sourcing from manufacturers

  Sourcing a product from the manufacturer is a similar process to sourcing from a wholesaler. The main difference is that you can work with a manufacturer to create your own product, or a private label product.

  The initial investment is higher as you’re creating something new, but if you want to build a brand and sell a unique product, then sourcing from a manufacturer is the business model for you.

  There are a lot more hoops to jump through in terms of product development, design, testing, packaging, and legal obligations, but if you’re ready to set in for the long haul and build a business that you can differentiate from the majority of online sellers, sourcing direct from manufacturers is a good option.

  See our Guide to Finding Private Label Manufacturers.

• Sourcing from manufacturers

  If you’re creative, artistic, or have a unique skill, then by all means, you can make your own products and sell them online. Think of it as turning your hobby into a business.

  You can even start selling your own products as a side-hustle, while you’re still working. If you are successful, you may be able to turn it into your full-time job.

  The main thing with selling your own products is that all of the responsibility is on your shoulders. You can only sell as much as you make, so you have to invest your own time into production.

  The main benefit is that, aside from the cost of materials and your time, you don’t have to make a significant investment up front. You also don’t have to rely on suppliers. It’s all on you.

  See our Guide to Turning Your Hobby into a Business.

You’ve probably thought about this step already.

In fact, most people start by thinking of products they can sell online and go from there. What starts as a daydream at the office often flourishes into a successful business, so be careful what you wish for!

Choosing what to sell is arguably the most important decision you will make as it will determine the demand for your product, price and profitability, market competition, sales, and marketing. It’s also one of the hardest decisions you will make.

Of the billions of products out there, how do you know which one to sell?

For the full run-down on choosing a product to sell, see our “What to sell?” article. But in general, you're looking for a product that meets these requirements:

1. You can make a profit from it. This one is pretty obvious. Don't forget to factor in things like shipping, packaging, and marketplace fees!
2. There’s reasonable demand for it. One of the common mistakes new sellers make is diving into selling a particular product without checking demand. Don't be that person stuck with a garage full of things you can't sell!
3. The competition is not too intense. Competition can really drive down your profits, particularly when there isn't enough demand to meet it. When a bunch of sellers are competing for a small pool of buyers... things can get ugly.

The answer to that is Almost anything. However, if you want to be successful at selling online, you should follow the strategies of top sellers and choose products that meet the criteria below.

• Products related to your interests

  The first thing you should do to get ideas for what to sell is to brainstorm your hobbies - the things you’re interested in. The reason why this can be a good idea is that you’re more likely to be invested in selling products you’re interested in. You’ll also have a certain level of expertise that can help inform your business decisions.

  Once you’ve identified your hobbies, try and think laterally and outside the box to generate product ideas that aren’t so obvious. The more specific your niche is, the better.

• Products that you discover online

  Try to become intimately familiar with products that are selling well on the most popular online marketplaces, including Amazon, eBay, Aliexpress, and Alibaba. Obviously you don’t want to sell products that are already doing well in highly competitive markets, but often those hot products can give you ideas for similar, complementary, and less competitive options.

• Products that are backed by market research

  You can do your own market research, or use a tool like Dear-Lover’s powerful market research lab to do the heavy lifting for you. You can simply browse by product category and set specific filters to identify products that you can be confident will sell online.

  See our Guide to Finding Hot Products to Sell Online.

This is the million-dollar question. But the answer is not simple. As you will know from your own market research, there’s a wide range of products that are selling well online.

The thing is, that once a product becomes a “best seller”, it’s probably too late to start selling it as the market quickly becomes saturated. You need to learn to anticipate trends, or identify ways to sell items that are similar or complementary to best-selling products.

However, according to our own data and research, products in these five niches are always selling well. You’ll just need a bit of creativity (and a dash of intuition) to discover the next best-selling product.

1. Women's Tops
2. Bohemian Floral Dresses
3. Western Accessories
4. Activewear
5. Shoes & Bags

Another strategy to consider is selling products that tap into consumer’s physiological needs. American psychologist Abraham Maslow created “Maslow’s Hierarchy of Needs” way back in 1943 and it’s still relied on by marketers and salespeople today. The hierarchy of needs are:

• Self-actualization: The desire to become the most one can be
• Esteem: Respect, self-esteem, status, recognition, strength, freedom
• Love and belonging: Friendship, intimacy, family, connection
• Safety: Personal security, employment, resources, health, property
• Physiological: air, water, food, shelter, sleep, clothing, reproduction

If you can identify products that fit into these deep-seated human desires, then you are almost guaranteed to have success selling them. You can see how luxury party dress might fit into the ‘esteem’ need, cross body bags tap into our need for ‘safety’, and the latest and greatest lounge wear our ‘physiological’ need for sleep.

"Best-selling" or "potential best-selling" products refer to items with high sales and popularity on a platform or market. Choosing these products can help improve your sales performance in e-commerce. Here are some tips on selecting best-selling or potential best-selling products on Dear-Lover:

There are several ways to look for "Best-selling" or "potential best-selling"：

• Selecting sales trends in the push section.

  The Push Section can assist you in saving time and reducing risk when selecting items to sell. It serves as a foundation for our customer research, aiding us in determining whether to proceed with mass-order production at the factory. Generally speaking, the more times you push, the higher the likelihood of your selection being pushed to the production stage. This means you can browse the selection ideas of offline wholesalers across the United States on our website, bringing you closer to popular products more quickly. Additionally, for every 4 valid Pushes, you will receive a $5 free coupon that can be used towards your next purchase. This coupon can be claimed indefinitely.

• Finding Pre-order Items.

  Pre-order refers to products for which we have placed orders in the factory but are yet to arrive in the warehouse. Typically, these items will reach the warehouse within 1-2 months and will be scheduled for delivery. By purchasing products from this section,you not only benefit from our progressive discount policy but also enjoy a 5% discount on orders of 12 pieces or more, and a 10% discount on orders of 24 pieces or more. Placing your order sooner will result in an earlier delivery schedule. We hope that by acting swiftly, you can seize the market for new products and maximize your profits.

• Finding Best Seller Directly.

  Based on the actual sales results of the products on our website, our system identifies the styles that have the highest number of purchases and the largest stock available. These styles are then featured in the Best Seller column, providing you with the best choices for sales styles, colors, patterns, and more.

So you’ve found a few products that you want to reach out to? Great! You’re making real progress. The next step is contacting them. This sounds as simple as flicking them a quick email.

You need to know what suppliers want in a potential customer/business relationship, and you should also know what you want from the supplier. These are the top five things that a supplier is looking for when you contact them.

1. A serious buyer mentality
2. Clear, concise communication
3. Good manners
4. Long-term customers
5. Low-risk relationships

You need to know what suppliers want in a potential customer/business relationship, and you should also know what you want from the supplier. These are the top five things that a supplier is looking for when you contact them.

We highly recommend that, whenever possible, you always opt for a telephone call. Email is OK, but it doesn’t give you that personal interaction which can help you determine the legitimacy, expertise, and professionalism of potential suppliers, which are all things you need to know when you're giving someone a bunch of money.

So you’ve contacted a suitable supplier and you’re ready to commit? Now’s the time to get down to business and negotiate your deal.

Remember: your goal is to be able to source your products for less than what you'll eventually sell them for. Every little discount you can get will count towards your profits — and it can really add up!

So, how do you get a better deal from your supplier? Simple! You can:

• Order in bulk. The more you order, the better the price you can negotiate. If you’re just starting out this might not be an option, but it's something to consider for later, especially if this product seems to be working out well for you.
• Develop a relationship with your supplier. As you work with your suppliers and show them you’re serious and consistent, most of them will help you out by offering discounts and other bonuses. If they don't offer... try asking. If your business is valuable to them, they'll try anything to keep you happy!
• Buy from the source (the manufacturer) if possible. If you can afford to order in bulk, buying directly from the manufacturer of the product (rather than a wholesaler) will get you the best prices. If you're not in a position to buy in bulk, consider splitting the cost with other sellers. You can sometimes find partners on wholesale forum sites (like Dear-Lover's members' forum) and arrange to split a shipment.

Now that you’ve decided on what product you want to sell and who you’re going to buy it from, it’s time to make everything official and legal! Yes, that means taking the step to becoming a real online business.

So you’ve got all the ingredients to launch your online business, now you just need to make everything official. Every country has different requirements when it comes to setting up a business, so it’s always a good idea to speak to an accountant or lawyer to get professional advice.

However, to make sure you’re getting started on the right foot, here are the four main things you need to consider when setting up your business.

• Choosing a business name

  Make sure it’s something you feel comfortable broadcasting via your social channels as well as in person. For example, don’t name your business “Miss Kay’s Underwear Store” even if you’re selling underwear. Who’s going to want to share (or even click on) a store’s social page if they think it’s a joke? Make sure your business name is on-brand. Even better, choose something original so that the .com domain name is still available.

• Registering your business

  Business regulations are different across countries and, in the United States, they vary from city to city and state to state. A simple Google search of your country and city will tell you whether you need to register your business in order to operate legally.

• Choosing a business name

  Make sure it’s something you feel comfortable broadcasting via your social channels as well as in person. For example, don’t name your business “Miss Kay’s Underwear Store” even if you’re selling underwear. Who’s going to want to share (or even click on) a store’s social page if they think it’s a joke? Make sure your business name is on-brand. Even better, choose something original so that the .com domain name is still available.

• Choosing a business name

  Make sure it’s something you feel comfortable broadcasting via your social channels as well as in person. For example, don’t name your business “Miss Kay’s Underwear Store” even if you’re selling underwear. Who’s going to want to share (or even click on) a store’s social page if they think it’s a joke? Make sure your business name is on-brand. Even better, choose something original so that the .com domain name is still available.

Now that you know what you’re selling and your business is set up legally, it’s time to choose where you want to sell. There are a lot of options, but how do you know which is the best for you?

I wish I could tell you that a specific online marketplace is the best one for you, but it really depends on what you’re selling and what you’re hoping to achieve with your business. Each platform has its own pros and cons, so it pays to do a bit of research into a few different platforms before deciding which one you will use to start selling online.

You should also consider starting your own online store using a platform like Shopify so you don’t have to compete in a crowded marketplace like Amazon or eBay.

• How many users does that platform have? The more users, the more potential customers for your business. That’s almost always a good thing!
• How many sellers does the platform have? The more sellers (particularly sellers in your niche), the more competition you’ll have. It’s a good idea to weigh up the number of sellers against the number of potential customers.
• What seller’s fees do you have to pay? Every fee eats into your profit margins. Do the calculations to see what the platform will cost you.
• What type of goods are you selling? Some platforms are more suited to specific types of products. For instance, Etsy has a reputation as being great for arts, crafts, and creative goods.
• How reliable is the platform? Are you confident the platform will exist 10 years from now? It’s hard to know, but if you build your business and customer base on a particular platform you want to be sure it’s going to stick around.
• How much flexibility does the platform allow you? Some online marketplaces have strict guidelines you have to follow. If you make a mistake, your account can be suspended. Whereas, with your own website, you have complete freedom. It’s up to you to decide what’s best for you.

• eBay - You’re probably already familiar with eBay being the big daddy of the online auction sites. eBay is great for selling all kinds of products, such as used goods, and one-off items you've purchased from liquidation sales (that's when a store is getting rid of a bunch of old stock, or going out of business). The thing with eBay is that prices can be pretty low, and for many products it can be hard to make a profit. You’ll need to make sure you're choosing the right product when dipping into the eBay marketplace.
• Amazon - Amazon is a bit more “high end” than eBay, mainly because they have a rigorous screening process you have to go through just to sell on their platform. That said, you can sell products at a much higher price than eBay. They also have more site traffic and people will see you as an actual store, rather than just a Regular Joe selling bits and bobs from around the house. Let’s not forget that Amazon has their FBA (fulfilled by Amazon) program which you can use to have them store and ship your products for you. This can allow you to grow your business without needing to hire more staff to help you pack and ship goods.
• Your own website - Having your own store gives you greater freedom, less competition and no seller fees, but it's a little trickier to set up. You can use platforms like Shopify to easily set up an online store, or integrate a plugin like WooCommerce with your Wordpress site. See our article, setting up your own webstore, to figure out whether this is something you want to do.
• Other alternatives - Other online platforms such as Etsy and Bonanza can also be used to build successful eCommerce businesses. Check out our complete list of alternative online marketplaces here.

Congratulations! Your online store is up and running. Now you need to attract customers to your listings or website. This is where your marketing strategy comes in. You can’t just sit back and expect the money to start rolling in. It’s time to get to work.

You’ve already got the first ingredient to running a successful online store: A great product! But there are several other factors you need to get right from the beginning to ensure long-term success.

• Good quality copy in your listings: The words you use to sell your products should sell the benefits to your customers. Don’t just use the description the supplier provides. Inject some fun and personality into your listings with creative copy.
• Good quality photos: You’d be surprised how many people decide to buy something based on a photo. Make sure your photos are high quality and show the product at all angles. Include an in-scale image and highlight important features. Great photography is an easy way to set your listings apart from the rest.
• A marketing strategy: You should have a plan for how to promote your business outside of your chosen platform so that you can attract more customers to your listings and make more sales. This should include paid and organic marketing methods, such as Facebook advertising and email list building.
• Ask customers for reviews: Positive reviews tell potential customers that you’re a trustworthy seller with a good product. You should ask your customers to leave reviews in order to put your future customers at ease when they land on your listings.

• Provide excellent customer service: Treat every interaction with a customer as though they’re your first and last customer. Be polite, honest, and provide all of the information they ask for. Your customers are your business’ lifeblood. Without them, you don’t really have a business at all.
• Fast shipping: Customers expect to receive their products quickly - often the next day. If you’re dropshipping products from China, make sure your customers understand that and have some other benefit, such as a lower price, that makes the wait worth it.
• Always be improving: Immerse yourself in the world of eCommerce. Try and pick up on trends before your competition. Offer additional services or benefits to your customers. Be adaptable and don’t become complacent. The online world changes rapidly and you need to be ready to change with it.
• Enjoy the ride: Starting your own business should be exciting and fun and, potentially, provide you with the freedom to work for yourself full-time. Try and take the time to appreciate the experience and be thankful that you’re not stuck in an office working a job you don’t like that much. When you’re enjoying your work, you’re more likely to succeed.

When you’re starting out selling online, you probably won’t have a big marketing budget like major retail brands. In fact, you might not have any money put aside for marketing. Thankfully, there are a lot of ways you can market your products online for free - as long as you’re willing to invest some time into learning how to do it.

• Social media marketing: Treat every interaction with a customer as though they’re your first and last customer. Be polite, honest, and provide all of the information they ask for. Your customers are your business’ lifeblood. Without them, you don’t really have a business at all.
• Start a blog: Blogging is still one of the most popular content marketing methods. If you’re selling women's fashion, why not start a blog on your website that your audience will enjoy. It can be great for SEO and will likely help convert customers over time.
• Start a Youtube channel: Vlogging is another option. If you’re good in front of a camera and having something interesting to say, why not set up a Youtube channel and start talking to your audience and customers that way?
• Positive PR: Do something that’s newsworthy. You’ll have to get creative, but if you can do something that generates media attention for your business that’s some of the best free marketing you can get. Just make sure it’s not a cheap “stunt” that could end up doing damage to your reputation.
• Competitions: Try giving some of your products away via competitions that you can run on whatever social media or website channels you’re using. It might not be 100% free, but it can be a great way to draw attention to your business and products.

If you have some money to spend on paid advertising, it can definitely be a worthwhile investment. Paid advertising allows you to target specific audiences with your products and generate traffic to your listings immediately. Paid advertising is the only method that some online sellers, especially dropshippers, use to make sales. If you can, it’s optimal to use a mix of free and paid marketing to give your online store the best chance of success.

• Facebook Ads - Facebook is the world’s largest social media platform with 2.4 billion users. It also has one of the most advanced advertising platforms that allows you to target people based on their location, age, gender, interests, and online behavior. This is an extremely powerful tool for online sellers. It does cost money, but you can start with a strategy that costs just $10-$20 a day and once you find an advertisement that’s working and converting customers, you can start spending more. The more you advertise, the more data Facebook collects on your audiences. This helps with targeting and retargeting, helping Facebook to connect your ads with the people who are most likely to purchase your products. Facebook Ads are a case of having to spend money to make money.
• Instagram Ads - Facebook owns Instagram, so the ads you set up on Facebook can also run on Instagram. You can choose to run ads on Instagram as posts or stories and you can target people the same way that you can with Facebook. You want to create ads that are native to the platform, meaning they don’t look like ads and blend into.
• Google Ads - Google is the world’s most-used search engine. Google Ads lets you place ads within search results. You know those recommended links you see at the top of search results? Those are paid ads. Google also allows you to target specific keywords relevant to your product or niche. You can set a monthly cap on how much you’re willing to spend on your Google Ads, but the average cost is said to be between $1 and $2 per click. Google also owns Youtube, which is another platform to consider advertising on.

Almost every online marketplace has its own paid advertising platform to promote your products. You should start by focusing on the platforms that your customers are likely to be engaging in most. Paid advertising is fast becoming a must have for growth and success in ecommerce. It’s worth becoming familiar with the different platforms as soon as you have some money to experiment with.

A great way to differentiate your online store from the masses is by creating a professional and recognizable brand.

When creating a brand make sure it meets these criteria:

• It’s simple, memorable, and professional
• It’s original (check that the domain name is available)
• It aligns with your business, its values, and aesthetic
• You won’t be embarrassed of it in 10 years

While social media and content marketing strategies, outlined above, definitely help with Search Engine Optimization (SEO), you’ll want to have a specific SEO strategy that bumps your business up the list on popular search engines.

You’ve got a lot of great tips to work with there, but if you’re after some additional resources to give you that extra edge on the competition, check out these guides:

• Email Marketing
• Pay Per Click Marketing
• Blog or Forum Marketing
• Social Media Marketing

Ou should now be well on your way to running a successful online store. It can be an exciting journey, but it’s important to never stop learning so that you’re always keeping up with - or staying ahead of - your competition.

Here are some extra resources that are going to help you as you navigate through the early stages of selling stuff online.

You could look into our advanced strategies for increasing your Shopify sales or your Tiktok sales.

You may also want to start considering your pricing and shipping strategies.

Finally, if you’re selling on your own webstore, you need to focus on social media, email, and content marketing to get customers to your store and keep them coming back.

We hope this guide has helped you understand the basics of selling online! If you follow the tips and tricks we’ve shared, we know you’ll be an eCommerce mastermind in no time.

eCommerce is a fantastic (and fun) way to make some extra cash online — and potentially build a full-time income. It also gives you the freedom to be your own boss while doing something you really love.

If you’ve found this article helpful, be sure to share it with your friends! As always, thanks for counting on SaleHoo to provide you with the tips and tricks needed to create your dream store.

Happy selling!