It’s 2019. The internet is nearly everywhere, and more people are shopping online than ever before. eCommerce can not only get you in on the game but has a low barrier of entry to get started. Due to those reasons, eCommerce is considered one of the best business opportunity today. So, what are you waiting for?
Let’s check some numbers. In America, a person living out in remote, rural farmland typically spends five hours per week shopping online. Think for a moment. In America’s most far-out, disconnected, small towns, people are browsing online stores for almost an hour each weekday.
Parents – too busy taking care of children to go out shopping—are the most active online customers. Nearly half of parents in America shop online on a weekly or even daily basis – spending, on average, seven hours a week shopping online. Why do you think even grocery stores are getting in on the eCom game? Life as a parent is much easier when all daily shopping needs are accomplished at home.
In Europe, Mastercard ran a survey and found nearly half of United Kingdom citizens shopped online at least once a week, and 1 in 10 Europeans shop daily.
Moving further east, about 600 million people in China shopped online in 2018. That’s nearly half the population of that country! How about this? 1.92 billion people are going to make online purchases in 2019. That is 1 out of every 4 humans on the planet. And that number will only go up next year and years after.
The key is the technology. It is changing the way we live our lives and shopping habits are not any exception. Computers and smart phones are not only working and communication devices, but more and more shopping devices.
For people who live in small, isolated communities, it gives them a freedom that opens up their lives to the rest of the world. A girl in rural America can buy candy from Japan for her friends with a simple click on the phone. A man in Eastern Europe can purchase clothing from small designers in Argentina while having a coffee break. How amazing is that?
The first step to having a successful business is understanding how people shop. In today’s world, more and more customers are turning to the internet to spend money. Since the millennials are entering the eCommerce industry, that is not a surprise at all. Not only that they have money to spend, but their shopping habits are adjusted to new shopping era.
If more than 50% of baby boomers and generation X still buy things in brick and mortar stores, more than 67% millennials spend money online. That’s why it is not hard to believe that till 2040, around 95% of all purchases will be done via eCommerce (at the moment only 11,5 %).
A successful eCom business takes notice of those numbers and trends above and uses people’s online behavior as a critical key to making revenue.
That being said, what kind of numbers are we looking at for successful eCom business?
According to 2015 eCommerce growth benchmark, the average online store makes $63,000 in monthly revenue after three months of business. After one year? Over $120,000. That was in 2015. The average annual revenue per store in 2018 increased by more than double to $275,000.
That’s just the average. High performing sites have been known to make significantly more. For example, the guys from PuraVida bracelet are in eCommerce business from late 2010, and today they generate more than a million USD in revenue per month.
Even better, you don’t have to take a massive loan from the bank to jump into the business. The initial cost of getting started can sometimes be as low as $1,000 – $5,000. That’s a pretty low barrier of entry for such high potential gain.
A few years ago, when my brother and I build our first Shopify store, we invested ca. $10,000 and with that money store generated almost $60,000 in 30 days. I think that was an excellent ROI!
And yet eCommerce still has much more room to grow. Comparing to global retails sales, eCommerce is more than eight times smaller and covers only 11.5% of global retail (offline) sales! Think of all that potential!
With over $3 trillion being spent on eCom in 2019, now is the best time to get involved.
You don’t have to take my word for it, though. Check out some of these eCom success stories to see how much you could be making with your own products.
If you are on social media at all, you have probably seen Allbirds ads. In 2014 Tim Brown and Joey Zwillinger came together to make what Time Magazine has called the world’s most comfortable shoe.
Their official launch was in 2016 after they gained an initial online foothold through a Kickstarter campaign. They have been so successful that their eCom site alone generates $1.3 million in revenue.
Their early success is due in large part to their eCommerce model. According to Zwillinger,
“Retailers are struggling. eCommerce has changed the way consumers interact with products and retailers, and so we wanted to do something direct-to-consumer and make it different and try to break through the noise with a great, comfortable product and do it only through our own website and our own stores,” (Source: footwearnews.com)
There you go. Straight from the CEO’s mouth, retailers are struggling, and eCom is the future. That was Allbirds key to success at the beginning.
That could be you.
One reason many businesses do not consider eCommerce for their products and services is that their target market is local. They are not interested in reaching a global audience. Well, meet PRESS, king of cold-pressed juice and diet subscriptions in the UK. Their eCommerce store generates $43,600 in revenue per month.
PRESS uses the power of eCom to provide healthy cold-pressed juice subscriptions to their 60,000 customers each month. And here’s the thing, PRESS doesn’t use their online platform to try to reach a global audience, but they stick with UK-only customer base.
Yet founders Georgie Reames and Ed Foy immediately saw the value in using an online service for their product. That’s what understanding your customers’ behavior can do for you.
One of the best things about eCommerce is that you can run your online business from just about anywhere in the world. From Tokio to the Bahamas, as long as you have an internet connection and electricity, you can manage your online presence and earn money no matter where you are.
That is where Nomad, the last company I’ll talk about here, comes in. Nomad specializes in products that help you keep devices powered and protected on the go, anywhere in the world.
Another company that began as a Kickstarter campaign, Nomad’s first product was the ChargeCard – a USB charger the size of a credit card. After raising three times the requested amount of funding for the first product, Nomad has been making minimalist, durable, lightweight, and easily portable charging hubs, cables, and cases for devices.
Thanks to the power of eCom and Shopify, Nomad has been able to generate over $350,000 per month through their online store.
Having an eCommerce presence allows Nomad to sell their products in a way that fits their business philosophy and lets them interact directly with their customer base.
eCommerce is a booming industry, no doubt about it. There are thousands of companies, all just like the ones above, who have successfully used eCommerce to boost their bottom dollar.
Sure, there are other ways to make a living. You can have a regular 9 to 5 job, freelance, or even get involved in affiliate marketing. These are all great and proven options, but eCom has some benefits that these other avenues do not provide.
Freelancing can be great, but it often does not earn the type of income that comes with eCommerce. Many freelancing gigs require you to perform a service in exchange for getting paid. The more you work, the more you get paid – you are essentially trading your time for money. The downside is that you can only do so much work in a day, so income is limited.
One of the greatest things about eCom is that your site is always trying to earn you money. When you freelance, you can’t work 24/7, but your online store certainly can. And instead of trading time for money, you are trading products for money – and it’s a lot easier to get more product than getting more time. That’s why eCommerce can bring in so much more revenue than freelancing.
eCommerce has more income potential than freelancing, but what about affiliate marketing—the king of “passive income” techniques?
Sites like Amazon have a great affiliate program where you can advertise other people’s products on your website and earn money by generating traffic. But here’s the critical part—you’re promoting other people’s products. That is a big deal because you can’t create a brand through affiliate marketing.
As an affiliate marketer, you limit yourself to helping other people pursue their business dreams. What about your own?
Yes, you can make a couple of extra dollars plugging links for other businesses. But there is a reason why Allbirds is an 8-figures eCom business and quickly becoming a household name. Besides, how many affiliate marketers have you heard in the news, seen ads for online, or have seen featured in FORBES magazine?
If you think that you are in the wrong business, you don’t have to worry at all. Whether you are a photographer, painter, crafter, whatever your passion, you can turn it into eCommerce.
The founders of PRESS started as two people passionate about healthy living. Tim Brown of Allbirds just wanted to save the planet while wearing a more comfortable pair of shoes. There’s no telling where your interests could take you, let eCommerce enhance the trip.
Is eCommerce the best business opportunity today? Well, despite all success stories and promising prospects, make no mistake, eCom can be difficult. Knowing which platform to use, how to set things up, and navigating technical hurdles that inherently come with online business is only the beginning and the easiest part.
That is probably why more than 90% startups fail, despite the potential gains. If you do not know what you are doing, trying to run an eCom business on top of an already stressful life, can do more harm than good.
Luckily, there are eCom experts and mentors, who can help you, give you the advice and guide you through many traps. With experienced and skilled mentors, you can decrease the risk level and avoid failure. Don’t jump blindly into the business as many out there do. With professional help, there is a considerable chance that you can skyrocket your eCommerce business into a 21st-century money-making machine.
If you want to learn more about eCom, sign up for my free eCom BootCamp, and we will get you started with the next step towards your dreams.
Yes, the future of business is in eCommerce. Don’t let you or your company get left behind. We live in incredible times, so take this chance and make the best business opportunity today be your winning ticket to a better life and bright future.
What do you think about an eCommerce business? Is it the best business opportunity today? Let me know what do you think or what are your experiences in the comments below.