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Category Archives: how to start an ecommerce business

Reasons To Start An Ecommerce Business In The New Year

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Celebrate The New Year And Seize The Day

Happy New Year! 2015 has come and gone – How do you measure success of the past year? January is a time for reflection and resolutions. Spring cleaning is just around the corner. Perhaps you have been thinking about starting a business, learning a new skill or changing your career path – the first step is always the hardest!

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Consider these reasons for starting an ecommerce business in 2016:
  1. Consider these reasons for starting an ecommerce business in 2016: The growth potential for an ecommerce business is hard to ignore. Online retail sales experienced double-digit increases in 2015 over the previous year. Definition: Retail sales are finished goods and services sold to either consumers or businesses. The retailing industry is the distributor of these products. Retail sales statistics are an important economic indicator. According to AboutNews consumer spending is nearly 70% of total U.S. economic output. Definition: Consumer spending is the purchases made by households and individuals to fulfill everyday needs, wants and desires. Every one of us is a consumer. The things we buy every day create the demand that keeps companies profitable.
  2. An ecommerce business has lower startup costs versus a brick and mortar business. Initially, costs are limited to the purchase of a website (either a new or existing business), monthly hosting fees (which are typically less than $20/month), and little to no overhead costs if you choose to run the business from home.
  3. An ecommerce business can generate earnings 24 hours/day 7 days/week. Once your business is established you can sell anytime of the day or night – the store is always open! Ecommerce has changed the way consumers shop around the world. Internet Retailer predicted in October 2015 that 77.1% OF U.S. CONSUMERS with jobs would plan to go online from work to do some of their holiday shopping.
  4. An ecommerce business can provide independence and freedom that a typical 9 to 5 job will not. You are your own boss and can choose when to work; early morning before the rest of your family gets going or in the middle of the night while everyone sleeps. Having this type of flexibility cannot be quantified in terms of it’s value. You choose what works for you.
  5. An ecommerce business can provide you a tax advantage. By being based in your home your business can provide tax relief from mortgage payments, utility bills, computers, and even furniture, which may be deducted from your tax liability. Check with your accountant to find out more about how operating a home-based business will affect your taxes.
  6. An ecommerce business can provide stability in knowing that you can never be laid off. In these times of economic change and companies that continue to downsize, you can be certain to make your mark and manage your destiny.

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I hope these six reasons have helped you decide to start an ecommerce business in the New Year! NOW is the time to start setting your goals and begin to write your own story. At Pure-Ecommerce we pride ourselves in helping budding ecommerce entrepreneurs build their dreams! No matter if you are looking to fulfill your New Year’s resolution or simply want to start to rule your life by owning your own business. Find out how our team can help you start an ecommerce business in 2016 by going to www.Pure-Ecommerce.com. We do not only offer quality built ready-made internet business, but we also offer a 10 step instructional program along with 40 hours of step-by-step consulting to help you step into your own online business. Have questions post below or schedule a free phone consult to discuss how we can work together.

How to Buy an Online Business

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E-commerce, if you hadn’t noticed, is exploding. As the globe has become ever more reliant on the internet, and consumers now fully expect to do business online, there has been a predictable surge in established online businesses on the market.
 Technology and market research firm Forrester report that ecommerce in the U.S. will surpass the sales growth of brick-and-mortar stores over the next two years, reaching a total of $370 billion in annual sales by 2017.
Buying any business takes a lot of planning and research, but there are a few nuances that set the purchase of an online business apart from the process of acquiring a bricks and mortar enterprise.
Here are a few tips to help you on your way to buying a web-based business:

Research your chosen marketMagnified illustration with the word Market Research on white background.

You can never spend too much time researching your selected business area, and it’s never too soon to start gathering facts.
Gaining a secure knowledge of your market will involve identifying rival sites, tracking their performance over time and checking reviews. This will help you gain a feel for what common approaches your competitors adopt, what they do well, and where they are often found wanting.
You can search the web for sites that match your criteria and approach the owners with an offer, but this will be a lengthy process, so make the most of online directories like BusinessesforSale.com. There are also website specific marketplaces that enable you to compare sites based on revenue, traffic, age and niche.

 

Pie chart on a stock chart with a budgetThink about your budget

Online businesses usually sell for around what they would make, in revenue, in 1-2 years. So if an internet business brings in $100,000 annually, the asking price will probably be between $100,000 and $200,000.

 

 

Appraise analytics Analytics word cloud

When shopping for an online business, reviewing the analytics should be number one on your list.
 You should make absolutely sure that the full range of performance specs are produced – this is no time for highlights, or second-hand analysis, and nothing but a complete data set will do.
Google Analytics and other common packages will include details of the most-effective search keywords, traffic volumes, and also identify traffic sources. You should also explore backlinks to gain a complete understanding of the status and authority of your chosen site. This should also contribute to a clearer picture of where, and how, site business originates.
And with any business offered for sale, make sure you explore and understand its social-media profile. Plenty of positive feedback can be encouraging, but even negative comment can clarify what needs to be addressed, and possibly signpost ways to grow the business.

old-way-new-wayDon’t overlook the tech 

An internet business demands a subtle blend of marketing and technical skills, and keeping abreast of new innovations is a must. Make sure you know what the key software packages are, and whether they are ‘standard’ or custom variants. You should also be clear whether or not the business demands specific platforms and hardware.
If you lack expertise in these areas, then involve an expert who can give you some idea of what the task of maintaining the technical side will involve, and what the likely costs may be.

 

Avoid risk-prone businesses Hand with chalk is drawing Risk and reward balance scale on the chalkboard.

In some cases, even a well-funded business idea will struggle to succeed, and experience shows that certain types of business are best avoided. These include: delivery of goods where the profit margin is low (e.g. pet foods), wholesale purchasing in order to support large-volume retail sales, or absolutely anything where your main business rival is Amazon, or some similar mass-marketing entity.
Instead, consider goods or products you can distribute digitally, niche markets, or original products you manufacture or own.

 

Under construction design over blue background, vector illustrationPlan for maintenance

All internet businesses require have their own site maintenance routines. Find out how much time the current owner devotes to this and whether you can maintain the site entirely yourself.
If not, you’ll need to factor in the cost of employing someone to manage this side of the business.

 

 

Get your contract right contract

When you’ve settled on your ideal online business and its price, a contract will need to be drawn up to define buyer and seller obligations. This might be a good time to ask the seller to provide consulting services for an agreed time after the sale, to enable a smooth transfer.
Whilst some website marketplaces provide templates for agreements, if your deal is particularly complex, you’d be better off hiring an attorney to draw up the contract at this stage.
You’ll need to write in a ‘non-compete’ agreement from the seller, but be wary; these clauses can be tricky to enforce, particularly abroad. Make sure there are no loop-holes in this part of the deal.
Buying online business can be a little less straightforward than opting for a physical company, but the perks are the same in comparison to ‘starting-up’: instant customers, traffic and cash-flow. To avoid scam operations run by sellers trying to offload a worthless product, use a reputable online marketplace.
This article was contributed by BusinessesForSale.com, the market-leading directory of business opportunities from online media group Dynamis.

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