Starting an online retail business raises a lot of questions like:
Selling on Amazon – is it too late? Is it still worth it? Isn’t the market too saturated? What do I do about tariffs? I heard so much about hijackers. Do I even have a chance?
Maybe you have seen my name popping up in a few forums, giving free advice and encourage people. The above questions are asked daily.
These questions aren’t Amazon-specific. Every person that is thinking about to open a business got those questions.
Here is the long answer for you.
Yes, there is competition, of course, there is. No competition would mean no demand! If everybody wants to join, there must be something in it. Consequently, starting an online business, no matter what is the same as opening up a physical shop or business. Therefore, it requires the same work, the same business plan and of course persistence and willpower. The only big advantage of an online business is, that you can pretty much work from anywhere in the world and that you don’t need to pay rent.
To make it short, to enter the online market is much easier, but to be competitive and successful, it requires much more work.
I see a few big challenges:
- Founders Do-it -tomorrow attitude: They sleep in, work whenever they want.
- No business mindset: Failing to write a business plan is fatal.
- Lonely Ranger -Syndrome: to not be able to talk to anybody, to share problems or success can be very tough.
- Marketing Blindness: You have to be aware of marketing and your target group.
“The beginning is always NOW.”
― Roy T. Bennett
Of course, you can certainly master these challenges. Before you start, sit down and do the following.
Write a Business Plan!
- This should include:
- Potential niches – incl. target market and the reason behind it?
- Initial Startup – Investment
- Who are the people you can talk to
- What do you know about the business model
- What are the requirements to open your kind of business
- Do you know somebody that can help you in a professional way
- What if?… scenarios?
- What is your goal and when do you want to achieve it?
- Set milestones
- Review your Plan. Is your plan realistic? Adjust.
Finally, the online retail market is not even in Kindergarten yet. It’s a baby growing strongly. In 2018 only 14.3% of retail was online based in the US. Since the US is the most developed market, I can safely say that other markets are far behind.
In short, there is plenty of opportunities to start selling on amazon, NOW. It doesn’t necessarily mean go and buy products to sell, but start put your ideas into a plan and figure out the next steps. If you need help with that, check out the “newbie” post or book a call.