Business

How Long Will it Take for an Online Business to Turn a Profit?

How Long Will it Take for an Online Business to Turn a Profit?
(Photo : Unsplash)

Thanks to the COVID-19 outbreak, millions of individuals are currently out of work. This has led to nearly untold levels of economic hardship across the globe. Unfortunately, it is not yet known when (and if) things will eventually return to a semblance of normalcy. This is also why many individuals have been considering an online business as a means to make financial ends meet. While there are many variables to take into account and countless questions to answer, perhaps the most common concern involves how long it will take for such a venture to succeed. This is a slightly loaded question, as time frames will naturally vary depending upon issues such as what it is that you plan to sell and how much capital you can initially invest. Let's still look at three parameters which will often have a massive impact.

The Type of Product or Service That You are Marketing

One of the first concepts to consider is what it is that you hope to market to the end user. A common mistake is to assume that a product will sell simply because you find it appealing. As opposed to relying upon personal intuition or gut instinct, it is best to perform research in order to discover which items are trending at the moment. If you are able to market these products to the correct target audience (more on this later), you will have a much better chance of turning a profit.

The Use of Robust E-Commerce Architecture

Success will likewise depend upon the type of e-commerce bundles are used in conjunction with your online presence. Some common traits which all reliable platforms have in common include:

  • A user-friendly design
  • Scalable architecture
  • The ability to customise your website
  • Secure and transparent point-of-sale options

Or, perhaps you are already working with a firm such as Magento. In this situation, it could be wise to consider a Magento to Shopify migration. Studies have shown that Shopify is one of the best ways to ensure a better return on investment within a shorter period of time.

The Audience You Intend to Target

Would you ever try to sell ice to an Eskimo? Is it a good idea to market sand to a Bedouin? Of course not. In the same respect, you will need to know the tastes of your audience in order to enjoy success within the online community. Where are they located? What are their spending habits? How often do they make purchases and what is their age group? Defining these and similar metrics will allow you to focus your efforts in the right direction as opposed to tossing enough "jam on the wall" in the hopes that some will stick. Specificity is critical when dealing with the online retail community.

Ultimately, the length of time required to enjoy success will largely depend upon your ability to implement the recommendations and suggestions mentioned above.