BlogEcommerce Basics
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December 1, 2022
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8
min read
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Written by: 
Nikolaus Hilgenfeldt
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Category:
Ecommerce Basics

3 Tips to Start an Ecommerce Business with No Money in 2023

Have you ever questioned the possibility of launching an online storefront with zero initial capital?

And where do you even begin with an idea like that?

Starting an ecommerce online business requires careful planning.

First, you'll want to identify the types of business concepts that fall under the "easy-investment" umbrella.

Next, you must figure out how to establish your financial resources.

And, most of the time, all you need to start realizing such an idea is an entrepreneurial mindset — traits such as dedication, hard work, creativity, and a willingness to try new things.

Today, you'll learn how to start an ecommerce business with no money and what kinds of businesses make sense to launch as a first venture.

Stay tuned!

3 Tips to Start an Ecommerce Business with No Money

1. Discover Your Free Ecommerce Concept

There must be a starting point for any plan. If you know where you want to begin, the next steps in launching an ecommerce enterprise will fall into place naturally.

Dropshipping

Did you know that the dropshipping industry will reach $557.9 billion worth by 2025 and that businesses in this sector typically see a 10%-20% success rate?

Dropshipping is one of the most popular business models for launching a small business. It includes a 3-step-process:

  • Set up an online store 
  • Choose your dropshipping vendor
  • Start selling 
how-dropshipping-works

How does dropshipping work?

Your ecommerce platform sends the order details to your supplier upon a purchase. 

Then, depending on your dropshipping vendor, they handle picking, packing, and shipping the order to your customer.

Here are some dropshipping vendors to take into account when starting your ecommerce business that are budget-friendly and a solid middleman for the majority of heavy liftings:

💡 Oberlo — the best overall dropshipper, starting from $0/month.

💡 Doba —  offers most adaptable solutions, starting from $0/month

💡 Spocket — provides the best budget options, starting from $24/month.

💡 Worldwide brands — the most securable dropshipper, one-time payment of $299

💡 SaleHoo — best for beginners, starting from $22/month.

dropshipping-platforms-comparison-table

Dropshipping's best ability is that it allows you to start your ecommerce business with a very small budget. 

In addition, instead of buying inventory in advance and keeping it in a pricey warehouse, vendors will only charge you their fees once you sell your products.

Selling Your Skills

Selling your services is the most straightforward way to launch a business with no capital. 

You can start by focusing on the skill set that you possess that can be beneficial to others and that sets you apart from your competition. Here are some ideas to begin with:

💡 Freelance writing — write copywriting and content writing materials.

💡 Virtual assistant — providing administrative support to other businesses.

💡 Social media marketing — running social media accounts to promote company offerings.

💡 Maintenance services — drywall installation, fixture replacements, home repairs, etc.

💡 Computer programming — create new softwares, websites and applications.

You might be surprised to learn that 29% of those who started a small business did so because they were eager to work for themselves.

So why not start making investments in the skills you already have?

Print On Demand

Private labeling merchandise (like t-shirts, caps, or tote bags) and selling it on a per-order basis is known as print on demand. What’s more, there are no minimum order requirements for this type of service in most cases. 

In addition, this business model has low initial investment costs —  you only have to pay for inventory when a customer orders it.

how-dropshipping-works-process

At the same time, compared to wholesale/bulk orders, POD means:

  • Products are always in stock.
  • You can offer a broader range of products.
  • Fulfillers only make sold items.

With POD service, the entire process, from making an order to getting a shipment, is simplified and efficient thanks to current technology.

We recommend the following print-on-demand (POD) platforms for your ecommerce business project:

💡 Printify — Design basic mockups, add your designs and sell while they handle shipping, billing, and orders.

💡 Bonfire — Sell your designs and create custom apparel.

💡 Spring — A great solution for creators and artists to sell their designs on many products and make money.

💡 Sellfy — Allows you to sell ebooks, comics, designs, music, video, and any kind of digital files online through your storefront.

💡 Redbubble — Provides print-on-demand products that feature the work of various artists.

Online Sales Of Digital Products

Creating and selling digital products requires only an internet connection to launch an online business without any money. 

To get started, choose a topic where you are an expert. Next, conduct a little online research to discover locals' issues. 

And finally, develop a digital product based on your solution, such as:

  • Downloadable ebooks
  • Learning through the internet 
  • Templates and worksheets

Digital goods are scalable, which is one of their appeals. 

Gumroad, for instance, is an ecommerce platform where you can create and sell digital products. 

Among the items you can sell here are ebooks, memberships, courses, software with license keys, and more. In addition, increase the price of multiple versions by selling them separately.

You might also want to consider the Teachable ecommerce platform. 

It offers limitless video hosting and management, integrated payment processing, student management, lecture comments, and simple quizzes.

Now that we know how to start an ecommerce business with little to no money, let's look at the other requirements.

2. Mastermind Business Goals

Creating and sticking to a business plan is essential for success in any business venture. With a plan, it can be easier to make decisions on where to allocate resources or how to measure progress. 

However, with a clear plan in place, it becomes much easier to mastermind your business goals and lay out a path to success. 

A business plan, for example, is a tremendous and detailed outline of how you will expand your business. This includes what you will do, how you will do it, and who will be involved. 

Here are goals to have in mind when crafting your business plan:

Come Up With A Business Description

As a business owner, it's crucial to have a clear and concise description of your business. This will help you attract the right customers and partners and make it easier for others to understand what you do.

Think about what makes your business unique and how you can best describe it in a few sentences. 

Write down your thoughts, then refine them until you have a strong statement that captures the essence of your company.

Analyze The Market

Before you can begin to analyze the market, you need to understand what it is. The market is simply the collection of all buyers and sellers of a particular good or service. 

It is where demand and supply intersect.

And there are many ways to analyze the market. Of course, you can look at the price, quantity, quality, etc. 

But one of the most important ways to analyze the market is by looking at trends.

Trends can tell you a lot about what is happening in the market and help you

include typical characteristics of your targeted users. 

That includes what products your targeted buyers are searching for, how they prefer to purchase them, and how those products stand against the competition

Define Your Marketing Approach

There are many different ways to market a product or service. The approach you take will depend on your business goals and the resources you have available.

Some common marketing approaches include advertising, public relations, direct marketing, and online marketing. 

You may also use a combination of these approaches to create a customized marketing plan for your business.

Raise awareness about your company to reach your target audience, whether it be through email marketing, social media, or other channels.

Streamline Your Logistics and Operations

When it comes to logistics and operations, it's essential to mind your p's and q's. Ensure that your products are properly stored and shipped and that your operations run smoothly. 

By paying attention to the details, you can ensure that your business runs like a well-oiled machine.

Can you describe your distribution strategy for getting your product to the individuals who will ultimately buy it? 

This could be dropshipping vendors, outside logistics providers, or even your own label printing. Here are some tips for streamlining your small business:

💡 Keep your inventory organized and lined up.

💡 Use an efficient system for tracking your inventory levels.

💡 Stay on top of your order fulfillment and shipments.

💡 Keep your customer records organized and up-to-date.

💡 Use an efficient system for tracking customer communication and interactions.

You're almost set. The final step is to figure out how to fund your expanding company reliably. Let’s find out how to do that.

3. Create a Reliable Flow of Funds to Fuel Your Company's Expansion.

Did you know that statistics indicate that a lack of funding contributed to the failure of 29% of new businesses?

Most new ecommerce businesses fail because their financial breakdowns occur at the worst possible time.

If your company is looking to expand, it's mandatory to have a reliable flow of funds to fuel that growth

One way to ensure a steady funding stream is to set up a line of credit with a financial institution. 

This will give you access to the funds when you need them, giving you the flexibility to grow your business at your own pace.

Another option is to secure venture capital funding from investors. This can be a more difficult route, but if successful, it can provide a large influx of cash for your expansion plans.

However, it is important to remember that not all financing types are readily available, especially for startups, nor are they cheap.

Not to mention the potential pitfalls that may arise when requesting a loan:

  • extensive amounts of paperwork, 
  • undergoing intricate analyses of your business's reliability, and 
  • waiting around for a very long period before receiving an answer.

Still, there are ways to get a loan without putting too much effort into these complex procedures while still maintaining a cash conversion cycle. This type of financing is called an asset-based loan.

How does it work?

Asset-based lending also called "collateralized lending," is a type of loan that uses assets like inventory stocks, bonds, mutual funds, and exchange-traded funds (ETFs)

High-liquidity loans have increased loan-to-value ratios, lower interest rates, and more flexible repayment terms.

However, asset-based loans are never based on the asset's total market value. 

The margin is withheld to cover liquidation expenses, including discounts to accelerate sales and interest.

Myos, for instance, as an asset-based finance provider, that can offer capital loans over 10k£ - 2m£ with a monthly fee of 1-3% of the outstanding loan volume.

In addition, the repayment is completely flexible within 24 months.

example-of-financing-process

Myos's algorithm, which is based on AI and machine learning, looks at the data about the product and figures out how much it will cost to finance. 

This is done without any extra credit checks, personal risk, or guarantees.

Wrapping Up

Ideas are the lifeblood of businesses. Without fresh, innovative ideas, businesses would stagnate and eventually fail. 

So, if you want to start your business with no money, the first step is to come up with a great ecommerce concept.

Think about what products or services you could sell online. Even though there are endless possibilities, we mentioned briefly only a few of them. 

The key here is to be as creative as possible. 

The next step is to develop a robust business plan that will allow the company to continue operating profitably.

And finally, don’t forget the most vital part of your business — reliable cash flow.

This is where Myos can help you.

How does the Myos work?

Myos offers a convenient approach to merchants needing short-term working capital financing.

It makes risk-free growth possible, which includes: 

💡Financing more with less risk.

💡No personal obligation or promise.

💡Using only goods as collateral. 

💡Product-related risk analysis to reduce the costs of production and shipping.

And to assess the quality of your products, we use an AI system that takes the following into account:

  • Sales data going back 60 days.
  • Supply excellent for at least two years.
how-myos-works-process

What do you need to apply?

Myos has a straightforward application process:

  • Register
  • Define what you want to finance (stock, planned or existing orders)
  • Add products and specify how you will provide sales data
  • Add account data (company information and legitimation)
  • Confirm your request

The review of your project request usually takes 1-2 days. Once you get your offer, all you need to do is to accept it to get your funds.

Are you interested in funding with flexible repayment, lean document requirements, and 5 min application?

Get your first non-binding free offer today to roughly estimate and compare the expected costs.

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