There’s lots of conversation out there in the world of website investing and eCommerce – in fact, any business model that leverages labour significantly is looking pretty hot right now.
BUT
Is it worth starting an eCommerce business right now?
It’s definitely worth growing, expanding and investing in your existing eCommerce business – that’s for sure.
Multiples of monthly profit are drastically increasing, and business valuations are growing at an ever increasing rate.
It’s also therefore worth thinking about grabbing some serious cash on a business exit whilst aggregators like Thras.io are gobbling up every Amazon eCommerce business in the market.
But what about opening an eCommerce store right now? What about starting from scratch with a new brand?
Personally I think the answer depends on the entrepreneur.
If this is your first eCommerce business – or “first rodeo” so to speak – you’re in an environment that’s got a LOT of money floating around and you’re likely to get beaten on budget and maybe even innovation whilst you play catch up in learning the business model AS WELL as the nuances of your specific vertical.
If however the entrepreneur is starting another eCommerce or FBA Business – that’s a completely different story.
You’ve got a HUGE head start – and can avoid the pitfalls that a “newbie” might fall headfirst into.
Is it worth starting another eCommerce business if you already have one?
My thinking here is that the advice would be specific to the entrepreneur AND the market you operate in.
If the reason you’re starting another eCommerce business is to escape a struggling market with an existing brand – then you could be repurposing your skills or “monetising your intellectual assets”
If however you’re starting another eCommerce business because you’re just bored of your current brand – maybe now is the time to double down on systemising your business and moving into the “investor quadrant” and focus on growth.
There are plenty of discussions going on around the internet with varying opinions – this thread from Reddit is one that’s been going for a WHILE! But it gets a fresh viewpoint frequently – bringing the discussion bang up to date. Have a read!
Can you really make money with ecommerce?
Is e commerce still profitable 2020?
Is starting an ecommerce business worth it?
How much does the average ecommerce site make?
