How To Start An E-Commerce Business Without Money

By definition, an e-commerce business is a company or individual whose business activities of buying and selling goods or services are done over the internet.

There is no doubt that e-commerce businesses are thriving and will continue to thrive.

Due to the increased use and easy access to the internet, this is a business model that is worth looking into.

An e-commerce business is one of the easiest models to start.

However, there is a myth that one can start an e-commerce business without money. This is not entirely true.

Some amount of money, though not much, is required to start an e-commerce business

Buhlebenkosi Mkwanazi

Now, because you don’t have much money you cannot start with extravagant, fancy websites.

It also means you cannot use over the top branding. What you need are simple tools that will get the job done and start you selling. Starting a business with little money is hard to do and that is why you have to keep your costs as low as possible. 

In this blog post I will give tips on how one can start an e-commerce business with little money and thrive. These tips are based on my personal experience as an entrepreneur and what worked for me.

1. Use Your Phone for Pictures and Videos

Because your shop is online, customers cannot see or touch the physical products.  You rely on advertising your products through pictures and videos. Your little budget doesn’t do you justice either.

So what do you do?

 The advancements in technology mean smart phones come with very good cameras installed. So instead of buying the latest camera equipment, use your phone to take pictures and videos of your products. Always experiment with different filters.

Make sure to have fun while at it.

2. Make the Most Use of Social Media

With social media, finding and communicating with customers is easier and cost effective. E-commerce business tools have been integrated into some of these platforms. This enables one to start selling as soon as they set-up their accounts. With an Instagram shop and Facebook marketplace, one can start selling almost immediately.

Social media messaging has made communication flexible. This means you can talk to your customers anywhere and at any time. 

Or, you can get a free email marketing account like MailChimp. This will enable communication with your customers through emails. It is also useful for keeping them up to date through newsletters.

3. DIY Branding

Every business needs a brand look, whether you have the budget for it or not. Working with a tight budget means cutting back on a lot of things. One of those is hiring costly professional branding companies.

Thanks to tools like Canva, you can create a brand look for your business and look professional for less. There are loads of templates to choose from. Get your creative juices flowing and bring your brand to life.

4. Accepting Payments

Every business needs a way to take payments from its customers. Because you sell online, eventually you will need a website with payment gateways. Setting up most of these gateways is free. However, creating and running a website needs money which you might not have at the moment. You can get started by using gateways like PayPal or Stripe among others. This is the most crucial aspect. Make sure you choose a platform that is secure. 

5. Keep Your Stock Low

If you plan on selling products, consider the drop shipping model. This is where your supplier sends the product directly to the customer on your behalf. At this point, you do not know which products are going to be popular. Do not fall for the  trap of keeping large stocks as you might end up being stuck with stock and your cash tied up. Remember, at this point you don’t have the money to overstock.

6. Take Advantage of Free Resources

Learn as much as you can about running a business. There are free courses on almost any topic or area these days.

Learn how to run ads for your business. People cannot buy from a business that they do not know exists.

Invest in marketing mini courses. Spend time trying out new things that will help in building your business. It is very crucial to learn to do things yourself because you cannot afford to outsource yet.

As good as this might be, always be open to the idea of hiring and outsourcing talent. As your business grows you will need to choose an area of focus and delegate the other processes.

7. Learn From Others

Nothing beats networking. Networking gives your business a head start with the least marketing. Talk about your e-commerce business and your uniqueness. Give out your business cards (the ones you created yourself on Canva).

As you network, you will learn from others. With the endless possibilities presented by the internet, you don’t have to leave your house for this. How cool is that? Network virtually by attending virtual business seminars. It is true that your network is your net worth.

Finally, keep in mind that starting an e-commerce business needs some money. Whether paying for the internet so you can post on your social media pages or the cost of hosting your website, you need some money. The bright side is that this is a business you can start even if you have little money. I hope you found these tips helpful and you are ready to start your e-commerce business.