Start An Ecommerce Retailing Business - Business Ideas

Updated: September 15th, 2022
Start An Ecommerce Retailing Business

Please note that the data provided in this article are estimates and may vary depending on various factors, and should not be considered as perfect or definitive.

Starting an ecommerce retailing business requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell ecommerce retailing, or selling ecommerce retailing online, you can use this page as a guide for everything you'll need to know.

Key Stats

revenue (monthly)
$54.4K
starting costs
$27.6K
gross margin
45%
avg product price
$20
time to build
240 days
growth
Pay Per Click Advertising
business model
E-Commerce
time investment
Side project

Startup Costs

Min Startup Costs Max Startup Costs

Office Space Expenses

$0

$7,000

Employee & Freelancer Expenses

$151

$352

Website Costs

$223

$7,215

Business Formation Fees

$5,600

$20,400

Inventory Expenses

$350

$14,750

Software Expenses

$162

$3,094

Advertising & Marketing Costs

$0

$2,250

Total Startup Costs

$6,486

$55,061

Successful Businesses

Business URL Rank

Coupang

coupang.com

268

Rakuten

rakuten.com

698

Gumroad

gumroad.com

4,891

Chain Store Age

chainstoreage.com

39,600

Swim University

swimuniversity.com

81,187

The Goulet Pen Company

gouletpens.com/

92,151

Retail Ecommerce Ventures

retailecommerceventures.com

107,488

ProjectorScreen.com

projectorscreen.com

165,274

InternetRetailing

internetretailing.net

169,186

ECommerce Times

ecommercetimes.com

172,954

RETAIL GLOBAL 2021

retailglobal.com.au

191,395

Pros & Cons

Pros Description

Flexibility

You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.

Ability to start your business from home

It's not necessary to have a physical storefront or office space to get your business started. You can do everything from the comfort of your own home, at least in the beginning!

Meaningful business connections

You never know who you will meet as a ecommerce retailing business. This could be the start of an incredible business opportunity!

High customer retention rates

Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your product or service becomes indispensable to your customer.

Unlimited income potential

With starting an ecommerce retailing business there is no cap as to how much income you can make. The stronger your business skills and the more energy/time you put into your career, the more you'll make.

Amazing perks and discounts

Working in the ecommerce retailing business comes with its perks! As a seller for these products/services, you typically also get to enjoy industry perks and discounts.

Cons Description

Low margins

The gross margins for your ecommerce retailing business are typically around 45%, which can make it more challenging to incur new expenses and maintain profitability.

Taxes

As a ecommerce retailing business, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.

You may need to charge sales tax

If you are selling your products in various states, you may be required to charge sales tax. Although this may not impact your financials specifically, it can be a headache to create a process and procedure for this. To learn more about sales tax, check out this article

Time commitment

With starting an ecommerce retailing business, all responsibilities and decisions are in your hands. Although this is not necessarily a negative thing, work life can take over at times. This can place a strain on friends and family and add to the pressure of launching a new business.

Complex development process.

The development process for a ecommerce retailing business can be quite complex, which may cause delays and challenges when launching and growing your product.

Complex maintenance

Your ecommerce retailing business will require a long-term investment due to the need for updates, bug fixes, and security vulnerabilities. It's important that you (or someone on your team) stays on top of this at all times.

Marketing Ideas

  • 1

    Word of mouth

    Word of mouth is when a consumers reflects their interest in a company’s product or service in their daily dialogues.

    Therefore, word of mouth advertising is essentially a free advertising triggered by the customers experience.

    According to Nielsen, 92% of people trust recommendations from friends and family.

    Therefore, in today’s hyper-connected world, a single recommendation through a word of mouth can have a huge impact to your business.

    Learn more about word of mouth ➜

  • 2

    Social Media Advertising

    Social media advertising is the use of social media platforms to connect with your audience with the objective to build your brand, increase sales, and drive website traffic.

    According to Oberlo, approximately 48% of the global population use social media, and the number is ever-growing.

    Therefore, social media allows brands access to cost-effective advertising by enabling them to interact with a large audience.

    Learn more about social media advertising ➜

  • 3

    Pay Per Click Advertising

    Pay-per-click (PPC) is a performance-based marketing method that allows you to show specific ads for services or products oriented to a very defined target, with the goal that the user visits your website or landing page.