3 Incredible Ways Ecommerce Businesses Have Made It Easier To Make Money
What is an ecommerce business?
In simple terms, it’s a company that’s set up online and sells different products to a range of customers. Think Amazon or Asos; two titans of the online world that don’t have any physical store locations – they only sell things online.
In essence, this type of business model has spawned an entirely new industry as more and more individuals are riding the wave and opening ecommerce companies.
This has sent a ripple effect throughout the world, and it’s changing the way a lot of people make money. It’s something that you may not have thought about, but ecommerce businesses have made it much easier for different people to earn a lot of cash.
How? What’s so unique about this particular business model that means it’s had this impact? Well, here are just a few of the ways in which the ecommerce world has opened the door for money-making opportunities:
Low-Cost Business Model
Mainly, the ecommerce industry has made it far easier to make money by adopting a cheap business model. If you want to really break things down, then it can cost barely anything to start a company like this.
All you need are products, a website, and a way of getting your products to your customers. For many, this means starting a company from their bedroom or home office. This leads to barely any overhead costs in the initial startup phase of your business.
Along with this, as your business grows, so will the overheads. However, the money you generate from sales will already be covering these overheads, and you should make even more as you get bigger.
There are loads of massive expenses that you completely negate when you start an ecommerce business. For one, there’s no need for office space or an actual physical store.
Secondly, the demand for employees isn’t as high as you don’t really need loads of workers to man a shop floor, or anything like that. Finally, you don’t have to worry about purchasing loads of equipment or supplies as everything can be run from one computer.
Therefore, it’s far easier to make money as you don’t need a lot of money to start an ecommerce business. There are plenty of examples of companies that literally started out in someone’s home and grew to be a worldwide phenomenon.
There’s a video below that shows you an excellent case in Gymshark and how it started off small and became so big.
Unlocked Potential In Industrial Real Estate
This is where things get interesting as we see the impact of ecommerce on the wider world. While a lot of these businesses are very different from one another, they all share similar traits.
One of the most significant ones being that all these companies need a place to store their products before shipping them. Some start off storing everything in their home, but growth usually dictates more demand, which means they need a larger space to add more products.
Consequently, pretty much every ecommerce business will eventually need a warehouse. This has meant that loads of people are now very interested in the UK warehouse market for investing.
More and more companies need warehouses, so demand increases, and it’s now a genius way to make money. You invest in a warehouse, rent it out, and enjoy the rewards.
As such, ecommerce businesses have made it easier to make money through real estate investments by unlocking the potential in industrial real estate.
Increased Demand For Freelance Services
Another way that ecommerce businesses have made it easier for people to make money is by increasing the demand for freelance services.
Every online store needs a website, but how do you get this designed and filled with web copy? To decrease overheads, most people look for freelance service providers. The same goes for marketing a business; it’s often freelancers that are used as they’re more cost-effective.
Keeping that in mind, this means that individuals with specific talents now have more demand for their services. With so many ecommerce companies popping up and looking to avoid hiring full-time employees, it’s easier for freelancers to make money too!
It should be evident that this industry has had a knock-on effect in other sectors and markets. Aside from the businesses themselves being very cheap to start up, the industry as a whole has opened the door to many other money-making opportunities.
It’s unlocked the potential in the industrial real estate world, and it’s making it easier for freelancers to find work and get paid.
Latest posts by Poppy (see all)
- Prevention Is Better Than Cure In Your SME - December 18, 2018
- The PPI Deadline Looms: What Will 2019 Bring? - December 18, 2018
- Being Responsible With Your Business Borrowing 100% - December 17, 2018
- Building A Professional Image And Creating Trust As A GP - December 17, 2018