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Small Capital Business Inspiration Big Profits in Online Business

Life For Techno - Small Capital Business Inspiration Big Profits in Online Business, let's learn a little about first. Margin is a comparison of the price of capital that you spend on the product or service you provide with the price you charge to buyers.

Therefore it makes sense that we should have a business with our small capital so that we can get a bigger profit.

Basically, profit margin is like a basic rule in business. High margins can make your business have high profits. Margins that are too small can make your motivation disappear.

Just imagine, why do you wake up early and sleep late without any clear development?

Small Capital Business Inspiration Big Profits in Online Business

Small Capital Business Inspiration Big Profits in Online Business

But you also can't increase prices carelessly without looking at the ability to shop in the market. If the price is too high, there will be no sales.

Read : How to Start an Online Business for Abundant Turnover

So how do you become a successful online businessman? Well, the answer is simple, by having a business selling small capital products with high profit margins.

So what products have a small capital with for a big one? Before that you have to understand a little about a few things first.

When you look at the most successful online sellers who can get hundreds or even thousands of daily orders, this must have one thing that can be a factor in their success.

The factor is, they can choose the right product at the right time. Yes, it's that simple.

Of course luck is also a factor. But all online businesses know what to look for in the products they sell by conducting market research to validate their ideas.

It's clear enough right? A good business is a business that can provide high profits or profits. It's not as easy as selling your product at a higher price than the price you bought it at the supplier.

You also have to think about commissions, packaging, postage prices, budget for marketing, taxes, and most importantly the time you have spent.

Successful online sellers can immediately find out their operating prices and can directly calculate profit margins according to existing data.

Competition

So you've got the product you want to sell because it's trending in the market right now? Think about it again, because the products are already trendy, usually there are many other sellers who have entered the market. So you will have a lot of rivals.

The more popular the product, the more difficult it is for you to sell it, especially if you are new to the world of selling online.

You should choose a product that has less competition.

Another option is to sell products that are trending but have their own uniqueness or better. For example, boba milk tea is healthy and low in calories.

Price Point

Profitability is very important, but it's not everything. For example, if your capital to make boba milk tea is IDR 10,000 per glass and you sell it for IDR 15,000, then that is a pretty good profit margin.

But you have to sell a lot of boba milk tea every day to get a good income.

Therefore the price point or price point is important. You have to find a price point in the market that works for you. Each market has a different price point.

The most important thing is that you don't set the price point so high that your potential buyers are afraid to buy your product and don't put it so low that you can't get enough money.

Size and Weight

If you see a market for large items, you should also think about the logistics of being able to ship these items to your buyers. Especially if you get suppliers from other countries like China.

For example, if you get a table tennis supplier from China, you might think that you can make this a business with less capital and give you big profits.

But in reality, the logistics costs you incur may be greater than the price of the product you buy, thus making your capital higher.

We recommend that you choose a product that is small and light. Ideally, your product should be as big as a shoebox and weigh 2 kg. This is the perfect kind of product for dropship from China.

Durability

Another thing you need to think about is the durability of your product. Selling glassware online has a very high risk, especially if you sell it abroad.

Although it is possible that the market for glassware is very good, the risk of damage is very large. It is possible that the product may break in the middle of the road and disappoint the buyer.

I recommend looking for products that have a small risk. Products that are not easily damaged and do not have many complex components in them.

Sellability

This is also a very simple factor. Is the product difficult to sell? Does the market want your product? It's better to learn first from Google or it can also be from your competitors.

Seasonality

Some products are seasonal products. Such as Christmas tree, summer products, rainy season. Usually such products will sell better at a certain time.


Although these products can have high sales, it's better if you avoid seasonal products. Especially if you only sell the product on the marketplace.

Seasonal produce can be a great addition to an already-named store. But if you are new, you should choose a product that can be sold consistently. So it can make a more constant income.

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