Navigating Today’s E-commerce

Uncertain times confront worldwide commerce to a degree that has rarely been seen, undermining long-term strategies for wholesalers and retailers alike as they attempt to focus only on conventional business planning. With the global trade crisis brewing, merchants need clarity, something that seems not to be on the horizon.

E-commerce entities arguably have an accelerated reason to worry: they are both buyers and sellers hit with an ever-changing burden brought by a trade war. Until that resolves, it’s critical to follow sources suggesting coping strategies and workarounds.

That said, opportunities abound for merchants to experience security if they have the flexibility for change. And surprisingly, the landscape is open for new internet-based businesses to build a successful store.

Without the need for expensive infrastructure, new sellers face lower barriers to jump in. Knowing your challenges in advance allows for a defensive approach more likely to sustain tariff and trade obstacles.

Alternatives

If risk is not your thing, consider becoming a drop-shipper. New or established sellers can reduce risks by either starting or changing a business model.

Drop-shipping means no prior inventory costs. Payment is remitted only after sales are made. This trend has been stellar for smaller e-commerce merchants, and with the current chaos in global trade, your profit margin is likely to climb. A backlog of unsellable inventory is sustainable for more high-volume sellers; starting a fledgling store makes more sense if you begin with a drop-shipping model.

As always, there are tax implications with drop-shipping that will differ from straight sales. U.S. entities find the state-by-state tax laws to be frustrating, but not prohibitive. Be sure to consider all aspects before jumping in to a drop-shipping arrangement. Oberlo has some useful information on the pluses and minuses of this model.

Another consideration for an internet-based business is carefully selecting a product line less vulnerable to changing trade factors.

Categories recommended include:

·         Hand-made crafts and jewelry
Often a work-around for relying on tariffed goods, these products are easily located. among local markets and fairs.

·         Candles
Wax and wicks typically dodge a trade war obstacle

·         Bath bombs and other personal care items
As with candles and hand-crafted goods, the materials are widely available through domestic sellers.

With the right advice and creative thinking, your pursuit to become an ecommerce retailer is within reach. Once you iron out the essential rules, costs, and statistics, you may be in an advantageous position to weather a static climate in commerce.

Photo by Semiha Weber on Unsplash