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Profit margins: Does the product offer sufficient margins to make it a viable, sustainable business? Take into account all the costs that you can readily identify and add a certain percentage to it to estimate your profit margin. Remember you can only be better off when youve planned and prepared for a worst case scenario.
Product supply: Can you ensure regular supply of the product? Which suppliers would you like to source your products from?
Logistics and fulfillment: Does the product you intend to supply involve high shipping and handling costs? Does it require significant level of customer support and other specialist resources? What is the likelihood of product returns and how much should you factor in your estimations?
Once you have addressed all these questions to base your decision on the choice of the product(s) to sell, you would have laid a reasonably strong foundation for your online store. Moreover, this research will enable you to formulate strategies in building your website and its marketing. The next step is to build on that strong foundation and begin executing on the strategies youve drawn up, which I will cover in a subsequent article.
About Author:
Chris Packer is a successful Internet entrepreneur having built and run several online retail and e-commerce businesses. He shares his accumulated knowledge on www.Internet-Retailer.com, a treasure trove of tips and useful resources for the aspiring Internet businessman. Everything you need to successfully set up and run an Internet retail store can be found on the site, absolutely FREE! For those preferring to read a printed-out book, the comprehensive guide is also available for purchase on the site.
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