Introduction to e-commerce business for “novices”: If money is much, it is unlikely to win, office workers or moms do not expect part-time to make money.

The e-commerce market is increasingly exciting and becoming a lucrative piece of cake that any trader wants to win. How to make a profit from ecommerce products? What conditions are needed? Who will fit in?

Here are the basic points to note, shared by businessman Vu Minh Tra – Shoptida’s owner, who has had 6 years of experience in e-commerce. With a streamlined model, no shops, 10 employees, Shoptida used to earn 2 billion VND in revenue during the Covid-19 season, even growing by 30%.

How much advantage do you have?

E-commerce business does not simply create a store, put products up and then they will be sold. The difficulty is that you will have to compete with dozens or hundreds of other competitors.

To “make a living” on e-commerce marketplaces, you need to identify and take advantage of your advantages that other people do not have. According to Minh Tra, there are 9 conditions that determine whether you will succeed on e-commerce floor or not.

Firstly, the product is one of the most important factors , accounting for 20% – 30% of success. As soon as you think of e-commerce business, the first thing to determine is what to sell, not how to sell.

Do you have your own factory? Do you have an exclusive supply agreement from abroad? Or is it cheaper to import products at lower prices? All can become product advantages.

Secondly, if you want to get an order, you need “traffic”. Those who have this advantage, such as managing a large group of members from outside, should take advantage.

Thirdly, make good photos and videos . You should equip yourself with this skill to minimize outsourcing costs when starting out, which is thin.

Another factor, proactive a warehouse large enough from 200–1000 m2, convenient for packaging and transportation is essential. Unlike Facebook, the principle of selling on e-commerce platforms is to sell in large quantities, at reasonable prices, but still profitable. Therefore, it is necessary to store to avoid out of stock.

Fifth, brand . The market is becoming more and more competitive, and the sale of un-branded goods or unclear origins is also increasingly difficult. Therefore, those who have a brand and are protected will have a great advantage.

Friday is the personnel and operations factor . E-commerce business is associated with saving, but you also need to consult, pack, … If there is a trusted staff available from the business on Facebook, you can fully take advantage of this. However, when starting out, the order is small, just you or an additional partner, research, work and study is enough.

Another condition is equally important, concentration .

“In my opinion, the decision to do business on e-commerce floor must focus on it. There are people who want to sell e-commerce, both want to sell on Facebook and also retail, wholesale because it is difficult to overlap. together.

On e-commerce floor, because of competing with hundreds of people, the price needs to be reasonable and flexible according to each statistic, not the same as the price on Facebook. The system is similar, e-commerce only needs 5% advertising but Facebook is 20% – 30%, causing panic in cost control and inefficiency.

Like me, I left Facebook, just considered this channel to be “pulling traffic” only, Mr. Tra shared.

Even e-commerce business is very time-consuming and resource-hard to treat as a part-time job.

“I think it needs to be 100% focused on it. But some ads say that moms who need to spend a few hours a day can’t do it. It’s just that when you focus on building and operating the system well.” In the last 6-12 months, then I can have more hands-free time. Don’t tell me “I want to do e-commerce, but I still want to work as a bank, still go to the glitter office, not the warehouse”, it’s not good “

Eighth condition, knowledge of EC . Have you researched how selling on Tiki, Lazada, Shopee, … is different from selling on Facebook? Have you consulted experienced entrepreneurs? If not, learn now!

The last condition is money. In the first 6 months, when orders are low just enough to break even, you need some capital available to maintain your operation and team. However, instead of asking “Do I have 100 million or 200 million, can 500 million e-commerce business? ” Then consider the 8 factors first. Having money alone is not enough to guarantee success on e-commerce.

If you already own 3-4 of the above advantages, you can be confident to participate in the e-commerce market. If you own less, instead of rushing into business immediately, you should improve and upgrade more other resources.

Choose one or more floors?

According to Mr. Minh Tra, should take advantage of the business rather than just an e-commerce floor. For example, in the early stage, Shopee could only focus on developing, then gradually invading Lazada, Tiki and Sendo. This not only helps to increase revenue but also minimizes the risk if an e-commerce channel fails.

Only product selection criteria for beginners?

There are two main models on e-commerce exchanges: groceries or a specialized item.

A grocery sales model on Shopee

If you want to sell a specialized product, you need to have certain advantages and specificities over other competitors. Therefore, for beginners who do not have outstanding advantages, you can choose the grocery model because it is easy to have immediate orders to maintain and complete the process, as well as attract “traffic”. Once the store is stable, you can consider this as a “back-up” channel to open another specialized store.