How to Make Money Through Online Selling

Online selling skyrocketed in popularity in the mid-1990s, with Amazon becoming the frontrunner in connecting buyers and sellers online. Three decades later, online shopping (and online selling, for that matter) is now an integral part of everyone's life. With the tremendous convenience it brings, more and more businesses are shifting online to sell their products and services to reach more and more customers and earn money online.

Whether you're still starting or have been in the industry for quite a while, it is important to know the various pros and cons of online selling, as well as the strategies to grow your own online store. In this article, let's tackle the advantages and disadvantages of online retailing, and what marketing strategies you need to be doing to grow your online business.

Advantages of online selling

Online marketplaces are both the present and future of consumer shopping. With more and more customers preferring the convenience and reliability of online stores, online retailers can take advantage of this trend. With online selling, there is/are:

1. Cheaper operational costs

A purely online business means owners don't need to have a physical store to sell their products, which means they are likely to pay for a physical establishment to rent. But even if you have your own website, operational costs are still cheaper when retailing online.

2. 24/7 business operation

Physical stores have store hours — online shops don't. This means your customers can visit, inquire, and make a purchase on your online store even outside typical business hours. As the owner, you also have this flexibility. If you have a full-time office job, you can still fulfill your duties as an online retailer just by using your smartphone to answer customer queries.

3. International customers

Besides making money online with local buyers as your main target customers, you can expand your reach and sell your products to international buyers. This means more online sales and increased revenue.

4. Lucrative income

Online retailing proves to be lucrative for many online businesses. Alongside all other factors that make online selling click, physical store owners can augment their income by having an online shop to promote and sell their products. With consistency and diligence, online sellers can build their wealth through online selling.

Disadvantages of online selling

The profitability of online selling notwithstanding, it has its fair share of disadvantages that make it challenging for both buyers and sellers. These disadvantages are the following:

1. Rampancy of scams

The internet is a massive source of scams that target vulnerable individuals who click on malware-carrying hyperlinks that will access their personal information and steal money online. These are rampant, and many people are avoiding or at least minimizing internet use for these very reasons. And yes, online sellers are not off the hook from these evil scams too, where experienced hackers gain access to computer systems and perform their digital thievery.

2. Delayed delivery upsets customers

Rather than shipping companies, retailers often bear the brunt of customer frustration over the late delivery of parcels. This adversely impacts brand trust and leads to revenue loss. One key to alleviating customer frustration over shipping delays is consistent communication. Make sure to be impartial about their parcel's cause of delay, and how you are doing your part to get it squared away and for it not to happen again in the future.

3. Misleading product

Another cause of customer frustration is buying promising products that disappoint them by the time they unbox their parcel. Online shoppers are often drawn to cheap offers online, only to be massively dismayed if the product they bought turns out to be a scam in the form of misleading product descriptions and visualization. This is a recipe for garnering bad reviews, so make sure only to sell quality products at a justifiable price.

4. Tight competition

As a result of online shoppers tremendously growing also comes the influx of online sellers to compete with. If your products are very common, such as clothing and beauty products, you are in tight competition with others who are also persistent in their marketing efforts. To foster an edge, refer to these helpful marketing tips below.

What you need to do to grow your online business

It's a competitive market, and there are things you need to be doing to thrive in this virtual environment. For you and your online business to be successful, you need to:

1. Invest in equipment

While online retailing does not require a physical store to display your product offerings, online business owners like you can thrive with the help of digital equipment to showcase your services. This means investing in a smartphone, laptop or computer, camera, ring light, and a stable internet connection. This investment in equipment will help you market your products better. To learn the ins and outs of e-commerce, consider enrolling in online courses that offer this type of upskilling.

2. Maximize your social media presence

If you already have a shop in Shoppee or Lazada, you can optimize your online business by also building a strong presence on your social media accounts, such as Facebook and Instagram. These two social media platforms are also effective in driving traffic to your online shops, and are good marketplaces to sell your products as well.

3. Consider paying for ads to reach your target market

You can always rely upon organic reaching, which is a strategy to gain more prospects online without resorting to paid advertisements. Be that as it may, making use of paid ads is extremely helpful in reaching your intended audience and in actually producing sales.

4. Post user-generated content on your social media accounts

User-generated content is any published post, such as images, videos, reviews, or testimonial responses from online surveys produced by customers. If you see a customer post a selfie wearing your clothing brand, you can ask permission to have it published on your own business page as an indirect endorsement of customers promoting your brand. What is more, you can post screenshots of positive reviews on your online shop to show your new and prospective buyers about what many others who bought on your online store are saying.

5. Offer good deals to increase customer retention

Unforeseen circumstances such as delayed deliveries can be redeemed by offering services to ease customer upset. Delayed deliveries, especially for those that have really caused inconvenience, must be met with free shipping offers. To drive more online sales, offer products in bundles at a discounted price. For loyal customers, offer freebies for patronizing your shop. These good deals will definitely be appreciated by your customers. In return, they will continue purchasing at your store for this kind of customer-first marketing.

There's no denying the lucrativeness of online selling for business owners. So, if you still have doubts, we encourage you to start making money online and launch your online business! With the right online marketing strategies and an optimistic mindset, you can even abandon your office-based job and focus on your online retail. The next thing you know, you have accumulated enough savings to fund an affordable house and lot for sale.

With Lumina Homes, your earnings that will be spent to fund your dream house and lot in the Philippines are worth the property purchase. For more than a decade, Lumina Homes managed to maintain a legacy of providing an affordable house and lot without sacrificing quality and convenience. A real estate investment with Lumina Homes is perfect for business owners who make money online and, just like a smart consumer's mindset, prefer a quality brand without spending double the amount of money that they're willing to pay.

Book your home reservation online today and experience the premier perks and amenities of being a Lumina homeowner anywhere from over 50 key locations in the country!