The world of e-commerce is constantly evolving, and with so many conflicting resources, it's understandable if you feel you need more support. You might have searched how to make money in e-commerce on Google only to be overwhelmed by the 94 million or so results! Many of these articles and guides are created by content marketers and writers who have yet to establish a successful e-commerce business, making it hard for you to know what advice to trust. But don't worry; we have your back. We've gathered insights from 5 e-commerce entrepreneurs who have each built multimillion-dollar businesses from scratch. We have carefully curated 30 ways to make money in E-commerce that have been tried, tested, and verified in the world of e-commerce. So whether you're an industry veteran or just dipping your toes in, this guide is here to support you in achieving e-commerce success. Let's begin our journey toward e-commerce prosperity! E-commerce, short for electronic commerce, is all about buying and selling products and services online. It's like a virtual version of your favorite downtown shopping district or corner store, accessible from anywhere in the world. In fact, it's estimated that over 2.14 billion people worldwide now use e-commerce to shop for products and services, representing a significant shift in the modern retail landscape. E-commerce can take many forms, ranging from businesses that operate exclusively online to companies that use e-commerce as part of a broader retail strategy that includes physical storefronts and other distribution channels. One great example of this is Amazon, which boasts over 200 million Prime members worldwide.There is also global cross border eCommerce concept, where businesses sell products or services to customers in different countries. Now that we understand what e-commerce is, let’s dive into the different ways you can utilize it. Selling physical products online involves listing products and shipping them to customers. Listed below are some proven business ideas for selling physical products online: Dropshipping is becoming increasingly popular because it's so convenient and cheap. As a drop shipper, you don't need to invest in physical inventory, so you don't have to worry about handling or stocking products, which can end up saving a lot of money. Instead of holding products in your inventory, dropshipping involves listing products on your own website that are supplied by other manufacturers or wholesalers. When customers make a purchase, you forward the buyer’s information to a supplier, who then directly ships the product to the customer. This allows you to focus solely on creating product listings, marketing the products, and generating sales. Dropshippers earn profits by selling products they do not physically own. It is important to note that dropshipping is a business model that can be profitable for e-commerce entrepreneurs, but it comes with certain challenges as well. As an example, if you are relying on your supplier to ship the product, you may have difficulty managing customer service. However, careful planning and selecting a reliable supplier can reduce these challenges and help you run a successful dropshipping venture. Wholesaling is a business model that involves buying products in large quantities from manufacturers or distributors and reselling them at a discounted rate. Wholesalers act as middlemen between manufacturers and retailers, facilitating the purchase of bulk inventory at a discounted price without the retailers having to deal directly with the manufacturers. Wholesalers can bring together buyers and sellers for different types of goods, such as clothing, electronics, or automotive parts. They typically buy in bulk from suppliers, store inventory locally, and resell the items at a marked-up price to their customers. One of the major benefits of wholesaling is that you can get access to better prices for your products since you're buying in such large quantities. This means that you can save on costs like shipping and handling fees. However, this also requires making an upfront investment in inventory, which could be a risk depending on your industry. If you’re looking to break into the e-commerce business without taking on too much risk, wholesaling might be the right choice for you. By taking advantage of bulk discounts and strategic partnerships with suppliers, wholesalers have the chance to run a successful business while avoiding headaches associated with managing inventory yourself. Private labeling is a popular business model, particularly in e-commerce, which involves working with a manufacturer to produce branded versions of their products with your own logo or design. This allows you to take advantage of the manufacturer's expertise and resources while still being able to customize and brand the product for yourself. With private labeling, you can create unique products that aren't available anywhere else. You can select the materials and features of the item, decide on shipping methods and cost, as well as choose marketing strategies for selling your product online. One of the major benefits is that you don’t have to worry about making any upfront investments in manufacturing or production since it's outsourced to the company. Private labeling also has its downsides - it may require long lead times and lack flexibility when it comes to changes made during production. However, if you're careful in selecting suppliers and partners, private labeling can be a great way for businesses to launch unique products without having to invest heavily into creating them from scratch. Print-on-demand (POD) is a service that allows you to customize products with your own design or logo and have them printed, assembled, and shipped when someone orders them. It’s an ideal solution for businesses that want to start selling custom-made products without investing in large quantities of inventory or taking on the risk of stocking items that may not sell. When you use a print-on-demand service, you simply provide your artwork or design along with product specifications like sizes, colors, and materials. The supplier then handles the printing, packaging, and shipping of each order while you focus on marketing your products. You only pay for each piece when it’s sold so there’s no need to buy anything upfront - making it a risk-free option for entrepreneurs starting up their own e-commerce business. Print-on-demand is also great for testing out new product ideas or seasonally offering limited edition items without having to make any long-term commitments or investments. Handmade products are one-of-a-kind creations that have a unique story. Whether it’s a handmade necklace, an artisanal wooden cutting board, or a custom print, handmade goods can add character to any space and bring joy to their owner. Handmade products are often made with care and attention to detail that machine production just can't match. They come in all shapes, sizes, and materials from wood to fabric, stone to clay, and beyond - making them perfect for creating bespoke pieces tailored exactly to your customer’s needs. Buying handmade products also provides customers with the chance to support small creative businesses or independent makers. Shopping handmade allows customers to feel connected with the artist behind the piece as well since they’re getting something of superior quality compared to mass-produced items. Here are some proven business ideas for selling digital products: Creating eBooks is relatively simple and has plenty of options to maximize profits. Unlike physical products, digital books don’t require storage or shipping fees, which can help businesses save money while still reaching potential customers all around the world. With minimal investments, digital books offer an effective way for entrepreneurs to turn their ideas into profit-generating projects. Online courses are a popular form of digital products that many entrepreneurs are exploring as a way of diversifying their income streams. It offers the opportunity to share specialized knowledge with a global audience, creating a passive income source that can generate revenue for years to come. Selling online courses is ideal for subject matter experts in fields such as technology, business, and healthcare, but it can also be a great way for entrepreneurs looking to teach a new set of skills. For aspiring course creators, there are various tools and platforms that make it easier to create and distribute online courses, including plugins, website builders, and Learning Management Systems (LMS). However, success in selling digital products such as online courses requires strategy, marketing, and consistent refinements based on feedback from students. Selling software online is another popular option for entrepreneurs, and it comes in various forms such as desktop applications, mobile apps, or web applications. What makes the software a great digital product is its ability to solve specific problems and offer unique solutions like e.g. match prediction sites. Entrepreneurs can develop software that fills a gap in the market or a void in users' experiences. However, creating software is not easy, and it often requires significant resources in terms of time and funds. Entrepreneurs must conduct extensive research, develop solid plans and strategies, and execute effective marketing and testing tactics to ensure their product is successful. Continuous maintenance and updates are also necessary to meet customers' changing needs and expectations. Entrepreneurs who are photographers or videographers have a great opportunity to earn income by selling stock photos and videos to customers. They can opt to sell their products via third-party marketplaces or build their own platform to sell directly to consumers. Stock photos and videos are particularly beneficial for content creators who need visually engaging media to enhance their online presence. To achieve success in this competitive market, it's essential to provide high-quality images and videos that are unique and align with customers' needs. Thorough market research and an understanding of customer requirements can help entrepreneurs stand out from competitors and create valuable content. The digital age has seen an increased demand for exceptional-quality music and sound effects. As an individual product, selling these commodities can be quite a profitable business venture. Creating sound effects and music requires skill, creativity, and expertise, but having a well-detailed catalog of high-end content can bring in a steady revenue stream. Such products can be marketed towards filmmakers, podcasters, and game developers, among other content creators, ensuring that having a variety of music and sound effects readily available is imperative to make your product stand out from the rest. Affiliate marketing is a performance-based business model designed for online sales. Affiliates earn commissions when they promote a specific link or code to their audience. Once their audience clicks on the link or enters the code and makes a purchase, the affiliate receives a percentage of the sale price Upon successful enrollment as an affiliate, access to the dashboard for affiliates is granted, allowing individuals to configure payouts, monitor earnings, download promotional materials, and acquire tracking links for dissemination among their audience. The business usually sets the commission rate. This business model has proven to generate increased sales revenue for businesses while allowing affiliates to earn a passive income promoting products that match their audience's needs. Proper research and selection of product offerings can result in a profitable partnership between the business and the affiliate. Affiliate marketing can be a lucrative business if you know how to find profitable affiliate products. Here are a few tips to help you find the right products for your niche and audience. Research and analyze popular products in your niche Look for products with high demand and low competition Check the product's commission rates and payout structure Consider the product's quality and reliability Look for products that offer ongoing commissions and recurring payments Check if the product provides marketing materials and support Investigate the vendor's reputation and customer service By following these tips, you can choose the right affiliate products that will resonate with your audience and help you earn a substantial income. Here are a few ways to effectively promote your affiliate products. Write product reviews and comparisons on your blog or social media platforms Offer incentives like discounts or bonuses for customers who purchase through your affiliate links Share affiliate links in relevant forums, groups, and communities Use email marketing campaigns to promote affiliate products to your subscribers Create informative and engaging video reviews on YouTube or other platforms Use social media influencers to promote your affiliate products Leverage SEO techniques to rank your affiliate content in search engines Sponsored content is an effective way for e-commerce businesses to promote their products or services and increase their customer base. Collaborating with influencers, bloggers, or other publishers can help businesses tap into new audiences and increase sales. Sponsoring blog posts is a viable way to monetize your e-commerce site. Nowadays, with the growing popularity of content marketing, businesses are setting aside more funds to endorse blog content on related websites. This creates an avenue for your e-commerce enterprise to increase its revenue. Generating quality and captivating blog posts that align with your sponsor's interest should be your starting point. Ensure that you choose a relevant topic that resonates with your target audience. Once completed, the next step is pitching the blog post to potential sponsors. While pitching, it's crucial to emphasize the value to the sponsor. Highlight the website's traffic and audience demographics. At the end of the blog, the call-to-action should be distinct to encourage the audience to take action. Sponsoring blog posts can be a lucrative source of revenue for you. By creating excellent and relevant content and presenting it to potential sponsors, your revenue streams can increase as your business grows. Sponsored reviews are an excellent way to monetize your e-commerce store. In today's era, most buyers rely on online reviews, ratings, and feedback before making any purchase decision. Thus, having sponsored reviews for your online store can serve as a valuable asset, attracting more customers. To begin, one must identify relevant and suitable reviewers for their target audience. It's crucial to identify reviewers with a considerable following and who are engaged within your market niche. Once these reviewers are identified, it's time to pitch your product or services to them, and they can review it. While pitching the product, the seller must ensure that the relevant benefits of their product are highlighted, encouraging reviewers to provide honest opinions. According to a survey conducted by HubSpot, 54% of consumers want to see more video content from the brands they support. In fact, sponsored videos on social media have been shown to generate up to 11 times more ROI than traditional banner ads. Sponsored videos are a great way to make money in e-commerce. This can be achieved by partnering with brands or companies to produce video content for them. The idea is to create engaging and informative videos that promote the brand's products or services to your audience. To get started, you need to build a significant following on social media platforms such as YouTube, Instagram, or TikTok. This will enable you to attract sponsorships from companies that are interested in advertising their products to your followers. In the world of e-commerce, you need to learn how to leverage ads to generate more traffic, increase sales, and boost your brand's visibility online through advertising on different channels. If you own a website and are seeking a lucrative monetization strategy, Google AdSense may be the solution for you. Through this program, website owners can earn money by displaying ads on their websites. This is done by registering an account and sharing basic details about your website. Once approved, you can begin placing ads on your site, and AdSense will automatically generate ads in line with your website content. This elevates the chances that visitors will click on the ads, thus increasing revenue. Another popular way to advertise your e-commerce business is through Facebook Ads. With over 2.8 billion active users, Facebook offers a massive audience for businesses to connect with. To get started with Facebook Ads, you first need to create a Facebook Business Manager account and set up your ad account. From there, you can create your ad campaign, targeting specific demographics, interests, and behaviors. Facebook Ads also allows you to choose from a variety of ad formats, including images, videos, carousels, and more. One of the biggest advantages of Facebook Ads is that they offer precise targeting options, which can help you reach the right audience for your products. Additionally, Facebook Ads provide detailed analytics, allowing you to measure the success of your campaign and make adjustments accordingly. If you're looking to boost revenue for your e-commerce business, Instagram ads can be a game-changer. Instagram provides a vast range of advertising options, from sponsored posts to targeted ads, that can target your specific audience with laser-like precision. Creating effective Instagram ads means developing content that aligns with your target audience and speaks to their needs and interests. With the right ad strategy in place, you can drive visibility to your e-commerce site and increase conversions over time. Consider running Instagram ads that promote sales, special offers, or new product launches to encourage customers to check out your site. With Instagram's growing popularity as the go-to social platform for consumers, investing in Instagram ads can provide a strong return on investment for your e-commerce business. YouTube has a colossal audience of over 2 billion active users, which presents a vast pool of potential customers for businesses to target through ads. To suit different advertising goals, there are various YouTube ad formats, including in-stream ads, display ads, and bumper ads. Creating compelling video content is essential for the success of YouTube Ads, as it should capture viewers' attention and convey a clear message. Investing in YouTube Ads can increase brand recognition and drive traffic to your e-commerce site, taking advantage of the platform's tremendous potential. Keeping up with YouTube's audience growth and including YouTube Ads in your marketing strategy can help your e-commerce business remain competitive. A subscription-based service has revolutionized the way consumers access and consume products and services. Companies across a wide range of industries have adopted this model, including software, entertainment, and retail. Here are some ways to make money in e-commerce with subscriptions: Subscription boxes have really taken off in recent years, and it's easy to see why! Every month, you get a box full of goodies delivered right to your doorstep. They're a fantastic way to create a predictable income stream and build a loyal customer base. From beauty and skincare to yummy snacks and fun pet toys, there's a subscription box for almost any interest. If you're dipping your toes into the world of e-commerce, launching a subscription box service might just be your ticket to success. However, don't be fooled - it's not just a matter of picking a few products and sending them out. In order to thrive, you need to have a deep understanding of your niche and be able to find high-quality, appealing products that your customers will adore. And let's not forget about the importance of reliable, efficient shipping and fulfillment! Marketing and standing out in a crowded subscription box market can be tough, but don't let that discourage you. With a well-planned strategy and a commitment to providing real value to your customers, your subscription box adventure can be both profitable and fulfilling. Membership sites are another powerful way to generate recurring revenue in e-commerce. Simply put, a membership site is a website or online platform that offers exclusive content or resources to paying members. This content could range from courses and tutorials to private communities, webinars, and more. The beauty of membership sites is that they offer a way to monetize your expertise, skills, and knowledge while also providing real value to your customers. Memberships can be offered on a monthly or yearly basis, and depending on your niche, they can be really lucrative. However, like with any e-commerce venture, launching a membership site requires careful planning and execution. You'll need to find the right price point, create high-quality content and resources, and offer outstanding customer service to retain your members. Software as a Service (SaaS) is a popular model in the e-commerce space that enables businesses to access software and applications via the Internet. In SaaS, the software is hosted on cloud-based servers and delivered to users over the Internet, eliminating the need for businesses to install and maintain their own software applications. This model is cost-effective, scalable, and flexible, making it an attractive option for businesses of all sizes. When it comes to using SaaS in e-commerce, there are several avenues through which you can create a profitable income stream. These include: Offering consulting services based on SaaS to e-commerce businesses, helping them optimize their online presence to improve their marketing, sales, and customer engagement processes. Creating SaaS-based tools and services that automate and streamline e-commerce back-end operations like inventory management, order tracking, shipping, and analytics. Offering SaaS-based sales analytics and data visualization tools that help e-commerce businesses identify key insights into customer behavior, buying habits, and market trends. Let's explore some of the top services that e-commerce businesses can use to make money online. Web design and development is an exciting and lucrative way to build a career or a side hustle in the e-commerce space. With the right skills and tools, you can create a website that not only looks great but helps businesses attract new customers and drive more sales. To get started, it's essential to develop your skills. Luckily, many affordable online courses can teach you everything you need to know about web development - from basic HTML to advanced design concepts. Once you've honed your skills, it's time to start building your portfolio. Consider contributing your web design and development services to small businesses first. Take the time to fine-tune your craft and develop a reputation for delivering top-notch work. As you gain more experience, you'll be able to take on larger clients and command higher rates for your services. Another approach is to build websites for yourself and then monetize them through various channels. For example, you can develop an e-commerce store that sells products that you're passionate about to your audience across social media and other marketing channels. Similarly, you can construct websites for different clients and charge them a fee for your services. Copywriting is one of the most valuable services you can offer in e-commerce. Great copy can persuade people to buy what you're selling better than any other marketing tool. And once you know how to create persuasive copy, there's no limit to the amount of money you can make. To get started making money with copywriting, you need to develop your craft. There are many resources available online that offer tips and techniques for writing persuasive copy. You can also take online writing classes or seek guidance from established copywriters. Developing your skills and knowledge is the first step towards making money in the field of copywriting. Once you're confident in your abilities, start building your portfolio. You can do this by offering your services at a low rate to small businesses or startups. Developing a reputation for delivering exceptional work will help you attract more clients and charge higher rates. Another way to make money as a copywriter is to write sales copy for your own e-commerce business. When you're writing for yourself, you get to keep all the profits. Compose compelling product descriptions, blog content, and email newsletters (especially with relevant content like season round-up news) that convey your brand's unique message and inspire potential customers to make a purchase. You can also consider freelance writing gigs through platforms like Upwork and Fiverr. Many businesses turn to these platforms to find talented copywriters who can create compelling copy for their e-commerce stores. These platforms can provide you with a steady stream of clients and offer you more opportunities to hone your skills. SEO services are essential for any e-commerce business that wants to succeed online. With the right SEO techniques, your clients' websites can show up at the top of search engine rankings and attract more potential customers. If you're skilled at SEO, you can turn that talent into a lucrative income stream. To get started, it's essential to develop your skills in this complex field continually. You can take online courses, read up on the latest trends and techniques in SEO, and get certified to get ahead of the game. Once you've acquired these skills, start by building your portfolio. Consider approaching small businesses or startups and offering them your SEO services. This provides an opportunity to display your skills while delivering great results and building your reputation as a skilled SEO specialist. Over time, you can take on larger clients and set higher fees. You can also create your online e-commerce store and optimize it for search engines, using the same SEO techniques you offer your clients. By doing so, you'll not only showcase your skills but also earn direct revenue from your store's sales. From building a brand identity to engaging customers and generating leads, social media management is essential for any business that wants to succeed online. With this increased demand for social media services comes the immense potential for making money in e-commerce. To get started, you need to acquire a set of skills as a social media professional. Understanding the various platforms such as Facebook, Twitter, Instagram and more is crucial, as well as learning how to develop content strategies and execute campaigns. You can develop your skills by taking courses on the subject, reading up on the latest trends and techniques, or following influential figures in the industry. After you've acquired these skills, start by offering your services to small businesses or startups first. Creating your own monetized social media account is another great way to make money with digital marketing. Develop an account around a specific niche that appeals to followers who appreciate its quality content, then reach out to relevant brands that might be interested in working with you as an influencer or sponsored content creator. Monetizing social media accounts gives you direct profits that come from advertisement revenue or collaborations - all while showcasing your expertise in this field! As a virtual assistant, you can offer an extensive range of services to online business owners, including product listing, inventory management, customer support, social media management, website design, and development, and much more. What's great about working as a virtual assistant is that it allows you to work from home, on your own terms. This makes it an excellent option for those who want to earn extra income and enjoy a flexible schedule. Plus, virtual assistant services are in high demand, especially during peak shopping seasons such as holidays and sales events. But to succeed as a virtual assistant, you need to have specific skills and knowledge. You must be familiar with e-commerce platforms like Amazon, Shopify, or Magento and understand how to use their tools and interfaces. In addition, having excellent communication skills, and being well-organized, detail-oriented, and self-motivated is essential. If you have experience in e-commerce and enjoy working remotely, becoming a virtual assistant could be the perfect way to earn some extra income. Online Marketplaces connect sellers with millions of potential customers, making it easier than ever to sell products and services online. Let's discover some online marketplaces where you can grow your income and expand your business. This works also very well for B2B marketplaces such as TransportStake, Publicity Marketplace, FunctionalSourcing, EducationStake, and SmartMoneyMatch. If you are looking to make some extra cash or start an online business, Amazon is a great place to start. The platform is very user-friendly, and it's easy to get started selling your products. One of the great things about Amazon is that you can choose to sell anything from books to electronics, to handmade crafts. In fact, there are over 20 categories of products that you can sell on Amazon, which means that there’s a lot of potential for making money. According to a recent survey, over 2 million people worldwide are selling their products on Amazon, and many of them are making a decent income. In fact, some Amazon sellers make over $250,000 per year! To start selling on Amazon, you will need to create an account and set up your seller profile. Then, you can start listing your products and set your own prices. Amazon charges a commission on every sale, but this varies depending on the product category. Selling on Amazon does require some work, such as optimizing your product listings and managing your inventory. However, it is a great way to start a business with little capital, and the potential rewards can be significant. eBay is one of the largest online marketplaces, with over 180 million active buyers. That means there are a ton of opportunities to make money selling a wide variety of products. Whether you want to sell used clothes and books from your closet or source unique products to resell for a profit, eBay makes it easy to get started as an online seller. To make money on eBay, first, you'll need to create an account and set up your seller profile. Then, you can start listing items for sale. Once you start selling, the key to success is finding in-demand products, taking quality photos, writing detailed listings, and providing great customer service. While it does take some work, many people have built successful businesses selling on eBay. However, some sellers are much more successful and make a full-time living from their eBay business. One study found that nearly 50,000 eBay sellers make over $100,000 per year in revenue. Etsy is a popular online marketplace for unique and handcrafted goods. If you have creative skills like photography, woodworking, or crafting jewelry or decorations, you can open an Etsy shop to sell your products. Etsy has over 60 million unique visitors each month, so there's a built-in audience of people looking for special gifts and home decor. While the competition can be stiff, if you offer high-quality, unique products and provide great customer service, you have the potential to build a successful business on Etsy. With relatively low overhead costs, it's an affordable way to make money from your creativity and skills. Walmart Marketplace is Walmart's platform for third-party sellers. As a Walmart Marketplace seller, you can list your products to reach Walmart's huge customer base of over 265 million monthly visitors. Walmart doesn't charge monthly fees or inventory minimums, so the barrier to entry is low. However, Walmart does charge a commission of between 8-20% on each sale, and they have strict requirements around shipping speed, customer service, and returns. If you have unique, in-demand products and the ability to keep up with Walmart's performance metrics, the potential to make money is significant. Walmart Marketplace sellers have the opportunity to scale their business and reach more customers than would be possible on their own. Shopify is a popular e-commerce platform that allows you to easily create your own online store. With Shopify, you have more control over the look and feel of your store compared to marketplaces like Amazon or Etsy. You can sell both physical and digital products, and Shopify has lots of themes and tools to help you create a professional storefront. The costs to get started with Shopify are relatively low, but they do charge monthly fees ranging from $29 to $299 depending on the plan. Shopify also takes a percentage of each sale. However, many sellers find the fees reasonable given the features and support Shopify provides. If you're looking for an affordable way to launch your own independent e-commerce store and retain more control over your business, Shopify is a great option. With hard work and the right products, you can absolutely make money with your own Shopify store. E-commerce businesses have a plethora of opportunities to make money online. From advertising and marketing to selling on online marketplaces, there are many ways to increase revenue and grow your business. In this blog post, we've explored 30 different ways that e-commerce businesses can make money, including affiliate marketing, dropshipping, subscription-based, and more. By taking advantage of these opportunities and leveraging the power of e-commerce, businesses can succeed and thrive in the digital age. We hope this blog post has provided you with valuable insights and ideas for making money in e-commerce. If you found it useful, please consider sharing it with your friends, family, or colleagues who may also be interested in starting or growing an e-commerce business. Thanks for reading!What Is E-commerce?
Selling Physical Products
Dropshipping
Wholesale
Private Labeling
Print-on-demand
Handmade products
Selling Digital Products
Ebooks
Online courses
Software
Stock photos and videos
Music and sound effects
Affiliate Marketing
How affiliate marketing works
Finding profitable affiliate products
Promoting affiliate products
Sponsored Content
Sponsored blog posts
Sponsored reviews
Sponsored videos
Advertising
Google AdSense
Facebook Ads
Instagram Ads
YouTube Ads
Subscription-Based Services
Subscription boxes
Membership sites
Software as a Service (SaaS)
Services
Web design and development
Copywriting
SEO services
Social media management
Virtual assistant services
Online Marketplaces
Amazon
eBay
Etsy
Walmart Marketplace
Shopify
Conclusion