If you are thinking about starting an eCommerce company then you need to think about some things. But the more you think sometimes the less you do. So go ahead and just start up the company. Jump in and dive into the world that is booming in 2020. I am amazing at how much money was spent online and the longer you wait the longer and more you have a chance to lose. I think there are some things to consider when you are thinking about starting your new company. One of those things is going to be the platform you sell on. Another thing to think about is going to be how are you going to send those items to your buyers. Where are you going to get your shipping supplies from is an area that hurts many new companies and old ones as well. Some companies are transitioning from brick and mortar to eCommerce and are losing money hand over foot due to their failure to shop at the right location. So let's go over a few things to think about and to know while you start your new company.
Amazon is a great platform and so is eBay. There is a lot of information to see on the search and you can also get on them very easily and start selling. But there is a cost for all teh search traffic on these platforms and that is the cost of doing business. These platforms will change from 10-20% of each sale you make. That comes from being on the platform to possibly have them ship the item for you. This means that you need to think about losing that much money from each item you sell. If you are ok with this then go ahead and jump on here, but your margins are going to be lower and you are going to have to account for sending those items as well.
I lost money sending my first item on eBay. I didn't' take into account the 13% cost of the platform and credit card cost. I also didn't think about shipping supplies and then the actual cost of sending the item with USPS. I lost a few bucks on my first sale and it made me really mad. But I learned a lot from this and learned that I needed to source the best and cheapest shipping supplies that I could. This was a huge revelation for me and it has been something that I have helped many companies do. They simply buy on amazon or another big box store and lose 10-50% of the cost of that packaging on each item they sell. This could have been spent on inventory or even marketing. That is a ton of money to lose, so instead of taking the quick and easy route you know, find the best one instead.
Online packaging companies that specialize in this can give you much better deals than Amazon or a big box store. There is no losing 10-20% from buying on amazon or the upcharge for a retailer. You are buying from the source in many cases and you are not dealing with a middleman. It is a huge thing to think about and super awesome to know. If you can save 50% on your packaging and even get better packaging in the process that is what you need to do.
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