Today I’m going to explain why building an e-commerce business is a top choice for those seeking financial freedom.
With the right skills, you can establish a business that benefits both you and your family.
Unfortunately, many people choose the familiar path of regular jobs over pursuing their own dreams.
A study suggested that 95% of Shopify Businesses fail within two years. It’s wrong and irrelevant.
I’ve worked with hundreds of e-commerce businesses and started several of my own.
Here’s why it’s a great business model for a large majority of people.
- Humans understand selling products. We’ve been merchants for thousands of years.
- There are many different e-commerce models to choose from.
- There are thousands of success stories to model yourself on and inspire you.
- You can choose a niche you have passion for.
- It allows you to generate cashflow and build an asset.
- They are easily configured to help you live autonomously.
Let’s dig in.
#1 Humans are wired to sell
People have always understood the idea of buying and selling; it’s a timeless concept.
In contrast, mastering newer online strategies like affiliate marketing or funnel building can be challenging.
A straightforward business model like e-commerce is one that’s easy to understand and it simplifies the process of starting a your own business.
#2 There are many e-commerce models to choose from.
They can be categorised as follows:
By customer – Business to Consumer, Business to Business, Business to Government
By value delivery method – White label, private label, wholesaling, subscription or drop shipping
By product type – Physical, digital or services
Regardless of your work experience or background, there is bound to be a suitable business model for you.
#3 Inspiring success stories are everywhere.
Sometimes, all it takes for someone to get started in a business is to see someone like them succeeding in the thing they want to do.
Fortunately, in e-commerce, there are many thousands of success stories to inspire you.
Find any decent e-commerce podcast, look at the entrepreneurs they profile, and listen to their stories.
You may find inspiration in their journey and ideas for products and markets.
#4 You get to choose a niche you are passionate about
It’s a given that you have to work hard to succeed in any business.
Many people start their e-commerce journey only to throw it in at the first sign of trouble.
It helps if you have a love for the product or niche.
Passion for something is often what will get you through the hard times and to go above and beyond when things are tough.
E-commerce gives you the opportunity to build a business around something you love or are passionate about.
It’s surprising how this simple fact is often the key between success and failure.
#5 You generate cashflow and build a salable asset
Many people start businesses that provide a living but don’t build a saleable asset.
A good example is the thousands of tiny digital marketing agencies.
Most of these are one-person businesses with small outsourced teams.
When the owner stops working, the cashflow stops.
At the end of the day, what is there to sell?
If you don’t have something unique, in limited supply, or aren’t one of the top three in your market, then you don’t have much pricing power.
E-commerce businesses not only bring in money but also have valuable things like unique products, a special brand, email lists, physical assets, and market share.
The business itself is distinct from you, the owner and has value in and of itself.
When you decide you don’t want to run the business anymore, then at least you have an asset to sell.
#6 E-commerce businesses are ideal for autonomous living
Many people promote the image of a digital nomad, working on their laptop, as the perfect independent lifestyle.
Work where you want and when you want.
To me, that’s a fallacy.
You’re still answerable to someone. You still need to turn up to make a living, even if the location is pretty.
E-commerce businesses allow you to run a business where you own your calendar. You don’t answer to anyone.
Your efforts and skills drive the success of your business.
You turn up when you want.
You choose how to set up the business.
Don’t want to deal with inventory? Then do drop shipping or use a third-party logistics provider.
Do you enjoy the process of making things yourself? Then, bring production in-house rather than outsourcing it.
The point is that you decide.
You can structure a business that is as flexible as you want.
People value different things. and an e-commerce business is a great way to build a business that supports what you value.
