Starting an eCommerce Online Store (part 1)

When I start making crafts, and I see how easy and simple some are to make, I inevitably wonder why I ever paid so much to buy the same finished item. This will usually cause a light to go on in my head and I wonder, "Maybe people could pay ME a ridiculous amount to buy this item that I can make from home and sell online! I'll be my own boss! Set my own hours!! Be FREE!!!" Um...not quite. :) Although there are many successful home-based online businesses, there are thousands, if not millions, that flop over and over again.

I've jotted down some thoughts and resources that I've come across in my searches that I hope will help fellow crafters and entrepreneurs alike.

Does anybody WANT what you can make?
Before you spend one cent, do your homework. Do a search on Google and eBay for your product and see what the competition is selling and at what price. Search around on Etsy for similar handmade products and see how many each Seller has actually sold. If you can't find many sellers for the same item that may be because no one is buying.

Next Millionaire...or dollar-naire?
So people want what you've got, but at what price? Figuring your costs will help you determine your asking price = can you really make money with this idea?

• How much does it cost you to make the product?
• How long does it take you to make the product? How much is that time worth?
• How will you ship the product and how much do those shipping items (boxes, tissue paper, etc.) cost?

Setting up Shop
Etsy, Cafepress and eBay make setting up an online store easy. But they have their limitations - and costs. Their fees can eat up your profits. I recommend at least starting with one of these, though, to test your market. They're free (or cost very little) to setup at least a basic shop and you can test the waters and see how many actual buyers you get. If you've got a hit, then you can always build your own website from there.

The first thing I recommend is to read this article from an eCommerce and eBay expert, Chris Malta. He covers what to sell, where to sell, how to buy what you're selling, how to price what you're selling, and so much more.

more to come...