If you can’t make a profit out of selling products online, that is probably because of the hidden costs. Read and discover all hidden costs (fixed and variable) behind selling online.
Planning to launch a business online? Already selling products online for a few months now? Regardless of what your situation is, you have come to the right place as there are some very important things you should know about. All of these things are related to costs and how they affect our businesses.
If you are a business owner and you are running your own online store you probably have noticed that there are months when you can’t make a profit. Why is that, you wonder?
Well, in most cases, it is because of the hidden costs. A lot of people don’t make a profit because they try to run before they can actually crawl. What does it mean exactly?
- Crawling – Before you start selling online, you need to determine how much business you think you would do. In other words, you need a plan. If you have a plan, that’ great, but regardless of your situation, you can’t rash and make quick decisions. You need to keep in mind that you are just crawling and you aren’t smart enough to make big steps.
- Walking – After crawling we all know what follows. Yes, that is right. You start to walk. This is the point where you can make more important business decisions, be faster when making those decisions, take actions, and be responsible for them. You need to do your own research and analyze how to get rid of the costs you don’t really need to pay. For instance, if you are using an expensive hosting and you are paying for features or tools you don’t really need any more, try to find another hosting service provider. If you are using a premium template for your ecommerce store, you can try and find free and yet high-quality ecommerce theme.
- Running – This is the point where you are ready to take full responsibility for yourself and for your business. This is the point where you have enough experience, can depend on your knowledge and skills and can make decisions that will help your business move forward in the corporate world.
Selling products online is not easy and you probably know it. The competition is huge and if you notice that you aren’t making a profit, it is probably because of the hidden costs (fixed and variable) behind selling products online.
Do your own research for payment gateways, hosting services, technical support and determine what is important for your business and what is not. Usually, the hidden costs come with merchant services, payment gateways, and online payment services. There are initial set up fees, monthly or yearly fees, and per transaction fees included in these services and we highly recommend you to compare the costs before you get everything set up on your ecommerce site.
Setting up your own online store from the start is really important as it will give you enough power to solve problems and be prepared for the obstacles on the way. It definitely pays to learn how to crawl before you discover that you pay hundreds and hundreds of dollars per transaction or per month just to get your online business off the ground. In order to succeed in the corporate world, one must play smart and avoiding the hidden costs is definitely a smart move.
We hope this article was helpful for you. Remember, it goes crawling, walking, and then running. Don’t miss the steps.