How to Start a Successful Ecommerce Business from your Home

Making money from your home has never been easier. Ambitious readers can start a successful ecommerce business in just a few days thanks to technological advancements and a variety of wholesale opportunities.

Whether you’re interested in selling Juul e-cigarettes or exercise equipment,  this article will help readers interested in starting a business from home to launch an ecommerce business built to go the distance.

 

Dropship products to avoid having to warehouse them

This year over $460 million will be generated in ecommerce revenue in the United States alone. Since ecommerce is becoming a primary way in which people shop, manufacturers have become increasingly amenable to dropshipping products.

Dropshipping refers to a practice whereby a wholesaler ships items directly to the end consumer. This means that the retailer does not need to purchase items up-front nor does the retailer need to warehouse and ship items.

Instead, the retailer simply notifies the wholesaler when an order is placed, and the wholesaler takes care of the shipment.

Ecommerce business owners operating out of their home can avoid costly overhead or having to store items at home by working with dropshippers instead.

 Outsource technical work to a freelancer

The success of your ecommerce business will be determined by your ability to create a website that efficiently converts visitors to customers. The better the conversion rate between visitor to customer, the more you can invest in generating qualified website traffic through content marketing, or digital marketing (among other channels).

But simply because your ecommerce website needs to be well-designed and well-built doesn’t mean you need to be the one to do the technical work. Instead, ecommerce business owners should consider outsourcing work to a freelancer via platforms like Upwork.

Freelancing has become so popular (the majority of Americans are expected to become freelancers in the next decade) that finding a talented technical freelancer to help you build or edit your ecommerce website should take no time at all.

 Constantly measure CAC and CLTV

According to an article in Entrepreneur, It costs Priceline $7 to acquire a new customer, while Sprint pays $315 to acquire a new customer.

So is this acquisition cost good or bad?

The answer lies in the relationship between customer acquisition cost and customer lifetime value.

When it comes to running a healthy ecommerce business, few metrics are more important to measure than customer acquisition cost (CAC) and customer lifetime value (CLTV). By constantly reviewing these two metrics, ecommerce business owners will be able to create a go-to-market strategy to will produce a profitable business.

Knowing your customer acquisition cost in relation to your customer lifetime value will help you understand your breakeven point. This makes it easy to know whether you can invest money in digital advertising (and if so, how much you can spend) or if your business is better suited to obtaining customers through organic channels, like organic search.

 Invest in organic search early

In instances where customer lifetime value is low, ecommerce business owners may have little choice but to invest in organic channels like search engine marketing. That’s because these channels are less costly than digital advertising.

After all, business owners can create and optimize website content themselves, and search engines will distribute well-optimized content to thousands of monthly searchers at no cost.

In other cases, building a strong organic search presence can be an effective way to make an already profitable business more so by making the most of a low-cost channel.

But ecommerce business owners must invest in organic search marketing early. Developing a strong organic search presence will take time. Search engine algorithms value websites with a variety of authority signals like URL age and earned external links. Amassing valuable links, and creating well-optimized content can take months if not years to perfect.

Plus, the world of organic search is growing more competitive. One study found that the average number of organic search results on Google has gone down from 10 to only 8.5. With less real estate available, ecommerce business owners will need to spend even more time mastering that art and science of SEO.

 Conclusion

Whether you’re interested in selling movies like People You May Know online or creating one-of-a-kind children’s clothing in an online boutique, readers can start a successful ecommerce store from home more easily than ever before. Ecommerce platforms like Shopify and BigCommerce make it easy for entrepreneurs who are working from home to launch a store with just a few clicks.

Once live, the secret to maintaining a successful ecommerce business lies in being able to offer customers a delightful experience, while carefully controlling costs.

What kind of ecommerce business are you thinking of starting? Let us know in the comments below!