Are you planning to start an e-commerce business? This is a wonderful idea! According to Upflip, around 70% of e-commerce businesses have survived which started in the last 5 years.
Moreover, e-commerce is a huge industry with over $6 trillion market cap globally. And this too has a potential to grow at a rapid pace in 2024.
Moreover, according to the survey shared by a research proposal writing service, 86% of e-commerce owners shared their satisfaction with the business and are happy to see the boom in the coming years.
Keeping all these stats in mind, I second your decision to start an e-commerce store in 2024. So, what are you waiting for? E-commerce business ideas?
Do you think it’s difficult to grab an idea and work on it in the challenging e-commerce world? Are you worried about the little investment you have and how to manage things to kickstart your very own business?
Well, there is nothing to worry about, this blog has got you covered. Here we are going to discuss 6 e-commerce business ideas with cost breakdowns that you can start with very little money in hand. So, join us in exploring the list of wonderful cost-effective ideas to start your e-commerce business.
1. Niche Product Store
The first thing that has made its way to my list is a niche product store. All you need to do is concentrate on selling products that fit into a specific niche and appeal to a specific group of people who have particular requirements or interests. It might incorporate eco-friendly items, pet supplies, gym accessories, or wellness gear.
Cost Breakdown
- Goods: Purchase small quantities of goods to begin testing the market. With a budget of $500 to $1,000, start with a variety of products in your niche.
- Website: Make use of affordable e-commerce solutions such as WooCommerce or Shopify. Budget between $500 and $1000 for the domain purchase, initial setup fees, and minimal customization.
- Marketing: Start with low-cost digital marketing strategies like content marketing, influencer relationships, and social media marketing. Spend anywhere from $300 to $500 on your initial marketing campaigns.
Total Estimated Cost: $1300 – $2500
2. Customized Products
Offering personalized or customizable goods like engraved jewelry, custom t-shirts, and monogrammed accessories is a great way to get started in the e-commerce industry. It doesn’t need a ton of finance, instead, you can begin with a small amount of savings.
Cost Breakdown
- Equipment: Invest in equipment for customization like engraving machines or heat press machines. Consider starting with used or refurbished equipment to save costs, budgeting around $1000-$2000.
- Website: Similar to the niche product store, opt for a user-friendly e-commerce platform. Estimate similar costs for website setup and customization.
- Marketing: Now its time to market your custom products to the ideal audience. You don’t have to work on it a lot. Since you are targeting local events, you will see a huge response simply by adding your products to social media and running some ads.
Total Estimated Cost: $2300 – $4500
3. Handmade Goods Marketplace
The previous 2 ideas include products that you own and sell. Now let’s look at a business model where you will be asking other people to sell their products on your platform. You can contact some craftspersons to showcase their products online on your platform. They will generate their revenue and you can earn a commission.
Cost Breakdown:
- Website Development: Invest in building a user-friendly marketplace platform where artisans can list their products. Consider using freelance developers or affordable website-building platforms. Estimate costs between $2000-$4000.
- Marketing: Focus on building a community around your marketplace through social media, content marketing, and partnerships with craft bloggers or influencers. The budget goes the same again of around $500.
- Customer Support: Factor in costs for providing customer support to artisans and buyers. Initially, this might be manageable with your own time or with part-time help, costing around $500-$1000.
Total Estimated Cost: $4500 – $8000
4. Secondhand or Vintage Marketplace
Do you have an interest in vintage collections and antique items? Building a platform for buying and selling secondhand or vintage items, including clothing, furniture, and collectibles.
Cost Breakdown:
- Website Development: Make an investment in creating a marketplace platform, like the handmade goods marketplace. Allocate comparable funds for the creation of websites.
- Inventory: Begin by locating antique or used goods at garage sales, thrift shops, and internet auctions. To keep expenses down, start with a little inventory, spending between $1000 and 2000.
- Marketing: To draw merchants and customers to your marketplace, make use of social media and focused internet advertising. Target specifically and sped around $1000 on various platforms to attract customers.
Total Estimated Cost: $4500 – $8000
5. Health and Wellness Products
Are you a health geek and fitness freak? Convert your passion into your e-commerce business idea. Selling health and wellness products such as vitamins, supplements, natural skincare, or organic foods.
Cost Breakdown:
Inventory: Invest in a diverse range of health and wellness products to cater to different customer needs. Start with a small inventory, spending approximately $1000-$2000.
Website: Your health website should be a really good one. But there is no need to hire custom developers. You can still work on available free themes. Opt for platforms like Shopify, Woocommerce and close the deal.
Marketing: When it comes to health and wellness products, you can still opt for digital marketing strategies. You can connect with some health influencers or bloggers to spread you voice along with implementing email marketing campaigns. Keep aside $500 to $1000 for this purpose.
Total Estimated Cost: $2500 – $5000.
6. Educational Products
You can use your knowledge, wisdom, and expertise to educate others as a business idea. Its very simple. All you need is to create an e-commerce store selling educational materials such as online courses, textbooks, or educational toys for children. A little bit of creativity and things will turn for you.
Cost Breakdown:
- Content Creation: Invest in creating high-quality educational content such as online courses or downloadable resources. Depending on the complexity and scope of your educational materials, budget between $1000-$3000 for content creation. You can create content yourself and can save this amount,
- Website: Similar to other e-commerce stores, opt for a user-friendly platform for your online store. Budget similar costs for website setup and customization.
- Marketing: Utilize digital marketing channels to target parents, educators, and students interested in educational products. Allocate a similar budget for marketing efforts as in previous ideas.
Total Estimated Cost: $3500 – $7000
Some Tips To Save Money As You Start Your E-Commerce Business
Now that we have gone through top ideas you can start with a little investment in hand, here are some tips for you to save more money.
a. Keep Things Simple
Cut back on wasteful spending first. Concentrate on the most important things, such as developing websites, keeping stock, and using marketing techniques that offer a high return on investment.
b. Look For Freebies
Email marketing, graphic designing (try Canva), and website creation can all be accomplished with free or inexpensive tools like Thunderbird, Canva, and Shopify respectively. Startups with limited funds will find these options to be ideal.
c. Simplify The Inventory
To effectively predict demand, you should use forecasting and data analytics techniques. Reduce the amount of money invested in surplus inventory and storage expenses.
d. Always Bargain
Speak with your suppliers and work out advantageous arrangements, including longer payment terms or discounts for large orders. Strive to establish trusting bonds with vendors that can ultimately help you save money.
e. Trim Shipping Expenses
Transportation and shipment are the major aspects of any business model. As we start a business, we often neglect these expenses. As your business includes more of a physical product, you should always consider shipment expenses. Research for the right service or person who can fulfill your transportation needs, negotiate with them, and take them on board.
f. Target Your Marketing Efforts
Your main focus should be reaching your targeted audience anyway. You may use different tactics for social media, emails, and search optimization. It will boost the impact of your marketing plan.
g. Outsource Wisely
Outsourcing is another way to delegate tasks to the right person. You can simply do everything on your own. You will need resources to assist you with your objectives. You can simply hire digital marketers for relevant jobs. Look for developers to create websites and the hunt goes on.
h. Keep An Eye On Expenses
In particular, consistently review your spending and how your business model is performing. Be flexible to change your strategies in order to spend in a more organized way.
With these simple tips, you can save a lot of money and start your very own e-commerce store without breaking the bank.
