When it comes to income there are different types and kinds out there. But in this post, I’m going to focus on the three types of income that can be generated from online-based sales.
There are so many ways of making money online these days. And one that has taken the market by storm is the e-commerce business model. This is basically where you sell products or services online and to date this has become a multi-billion dollar industry, producing a significant number of millionaires in the world.
Those who have decided to take advantage of this business model have seen significant rewards, and with a good implementation of the right strategies have secured solid businesses online and long term income generating assets.
What exactly are the opportunities available when it comes to the e-commerce industry? I’ve identified three categories that we can divide these e-commerce opportunities into. These three may be further broken down into different subgroups but for now, we’ll talk about them individually without breaking them down.
- Physical Products
The first is selling physical products. This refers to tangible goods that you sell online. This category requires you to have a source of inventory that you can deliver to your customers as per order or request.
This is a very broad category as it can include almost every physical product you can think of under the sun. Anything can be sold online as long as it can be delivered to clients after making a sale.
For a long time, this category had a high entry barrier and was reserved for big companies with large amounts of capital at their disposal. However, as the years have progressed and technology has advanced it’s shockingly easy to start a physical product online store without a huge amount of inventory.
What has been more of a game changer is the fact that now you don’t even have to buy inventory in advance or keep it on you. You can literally start your own online physical product store with little income. I’ve written two books on how you can do this in two of the most popular ways. You can get it from clicking here.
- Digital Products
Another way of carrying out the e-commerce business model is by selling digital products. Digital products are simply products that have no physical form and their value is virtual or online based.
This is one model that most professional bloggers have harnessed but that the rest of the world is still catching up to. This model is popular because it doesn’t require keeping physical products or handling the shipping to customers. In most cases, it requires access to a download for the purchased product to be delivered to the customer.
Digital products are a good way to make passive income online without putting in much work. You can make money in your sleep and you are not limited to geographical locations.
Some good examples of digital products are software, music, eBooks, courses, lists, guides, content, etc.
Last but not least is selling services as a form of e-commerce. While most people believe that you need to be a professional to sell certain services this is not always the case.
There are many types of services you can sell online including web design, graphic design, coaching, SEO auditing, virtual assistant services, and many others. While with most services you need to have an educational background, some can also be self-taught and then offered to others as a service. With this, having relevant experience is key so you know what you are talking about.
But there’s one secret way to enter this market without necessarily having learned the skill or having the experience, and that is to outsource the services and resell them at a marked up price. You can find a cheap supplier of the services you want to offer, put a markup on their prices and resell to your customers at a profit. When people order from you, you then order the service from your supplier with the customer’s requirements and deliver it to your clients. You then keep your profit and repeat.
An example is, you can source web design and logo design services from here and sell at a markup. You can also pick the business web design package here and have your own agency website designed for you to enable you to resell plus get a secret recommended supplier with your purchase.