Is Setting Up an Online Store a High-Risk Investment?

[Nurudeen]

Setting up an online store is one of the best decisions to make at this moment all over the world as more people are now putting their business on the internet. You can get started with this by designing a website an hire a Search Engine optimization professional to help.you rank the website for good sales

 

[Akinwale701]

I am thinking about setting an online store. You might ask, how much money I am investing? Here is the breakdown of the investment.
Domain: $13 (dot com from namecheap)
Hosting: $95 (VPS from namecheap
Content management: $384 (Shopify basic membership
Add on: $200 (approx)
Digital Marketing: $500 (approx)
I will need a total $1156 to setup an online store and promote the store on social media to generate sales. The cost does not include the price for product manufacturing or procurement. I will need an additional $1000 to either procure products or manufacture products. Will I actually make money from this store? There is no guarantee.
So, do you think setting an online store is also a high-risk investment?

Online store operating itself is a risk investment which has to be done with extremely carefulness. A lot of people will shopvon your e-commerce website with the intention to defraud you, many people will come to your website to give bad reviews, it's not that they have patronized you, it's just to degrade your business.

 

[Mika]

Thank you very much for your inputs. I understand when you start your online store its not like people will flock into your store and rush to buy products and make everything sold out. However, it is also true that you will not know what's gonna happen until you try. Amazon has grown big from a garage. However, that's not going to happen today because the market is very competitive.

 

[Neeta313]

I dont think the risk is high, there may be risk but not so high. Because all you need to do is to work hard to get traffick. Run ads, post your link on other social media platforms. Get the necessary traffick to your site, so the world can see it and with that your business will gradually grow and become successful.

 

[Aniwhyte]

I would advise you to kindly go ahead with your intentions of setting up an online store, you won't regret this. It is a very good investment, as you are fully assured that no one would hold you debt as it is always payment before delivery of items.

 

[Adventurer]

I am thinking about setting an online store. You might ask, how much money I am investing? Here is the breakdown of the investment.
Domain: $13 (dot com from namecheap)
Hosting: $95 (VPS from namecheap
Content management: $384 (Shopify basic membership
Add on: $200 (approx)
Digital Marketing: $500 (approx)
I will need a total $1156 to setup an online store and promote the store on social media to generate sales. The cost does not include the price for product manufacturing or procurement. I will need an additional $1000 to either procure products or manufacture products. Will I actually make money from this store? There is no guarantee.
So, do you think setting an online store is also a high-risk investment?

In my opinion it's not high risk, I don't know the kind of products you want to sell, but I can assure you, your target audience are right there on social media waiting to buy your products.
You can do a market analysis or run a poll asking people if they will buy what you intend selling.

 

[Eodine]

I am thinking about setting an online store. You might ask, how much money I am investing? Here is the breakdown of the investment.
Domain: $13 (dot com from namecheap)
Hosting: $95 (VPS from namecheap
Content management: $384 (Shopify basic membership
Add on: $200 (approx)
Digital Marketing: $500 (approx)
I will need a total $1156 to setup an online store and promote the store on social media to generate sales. The cost does not include the price for product manufacturing or procurement. I will need an additional $1000 to either procure products or manufacture products. Will I actually make money from this store? There is no guarantee.
So, do you think setting an online store is also a high-risk investment?

It depends. As you have rightly outlined you need to breakdown your expenses then run it against sales or income so that you would know how much variable, fixed cost you have and be able to derive your profit.

 

[Alexandoy]

A store is a good business whether online or offline. Just make sure that there is a demand for your products. For me, the ideal products for an online store are household items and personal accessories that the customer will buy from time to time. Just take note that it is not easy to promote an online store because the online store buyers are already purchasing in big e-commerce sites like Amazon. That will be your competitor.

 

[Seun4luv]

Entrepreneurs face multiple risks such as bankruptcy, financial risks, competitive risks, environmental risks, reputational risks, and political and economic risks. Entrepreneurs must plan wisely in terms of budgeting and show investors that they are considering risk by creating a realistic business plan.

 

[Edward2]

There is always a risk on starting every business, you cant avoid risk in fact . Well in your case that might be considered still a little amount to start, but if thing go well then you might take a big hig on that. Just remember that most of the time businesses are always end up in the good things if the risk they took is partnered with good business skills.

 

[Yasmin]

Set up your Ecwid store once to easily sync and sell across a website, social media, marketplaces like Amazon, and live in-person. Get started with one, or try them all.

 

[Sotherefore]

I don't think it is risky and it is expensive as you said what if I am a digital marketer and I can also design everything and go for my own advertisement ? what if I can design my own website? If I can do all this thing's then it will not be difficult as you just said.

Post automatically merged: Feb 7, 2021

I don't think it is risky and it is expensive as you said what if I am a digital marketer and I can also design everything and go for my own advertisement ? what if I can design my own website? If I can do all this thing's then it will not be difficult as you just said.

 

[Abigael]

Of course starting a business is a risky deal, but not high risk like investing in a site which might go scam anytime. With an online business, you can reduce risk by planning well and doing enough research before you start doing it. You should consult those who have done it and make risk assesment well so you know how to handle them.

 

[ahmedo24]

The possible risk I see in setting online stores is threat of attack otherwise it is very interesting and highly profitable especially if you engage in selling fast selling or hot selling products . It is very cheap compared to setting up offline stores .

 

[Veetos12]

Online store operating itself is a risk investment which has to be done with extremely carefulness. A lot of people will shopvon your e-commerce website with the intention to defraud you, many people will come to your website to give bad reviews, it's not that they have patronized you, it's just to degrade your business.

You are very right with your view about customers review on such an online store which in some cases are not true like you said. It is with that reason the business is open to risk. But the risk is still manageable if you pay a closer attention to your business growth.

 

[Ehizzy1]

I think you could actually start small to examine first and its not necessary you start with a $95 hosting and others , and the risk actually depends on the kind of product you are selling actually , because if you are selling products in high demands it won't be really risky i think

 

[btaliat]

Every investment is risk. But to determine whether the risk is big or not will depend on the nature of the business. Online businesses and investment usually minimize the risk of a business owner.

 

[Sunnytee]

Yes setting up an online business is at risk but almost all business has it own risk of doing it but nevertheless it can be done

 

[ronaldlorenzo01]

It is considered a high risk when the product you are selling is not in demand to the market. Because you could worry it could only stock up in your inventory. When you sell products make sure it is a needed by the consumer. Other you should worry is the bogus buyer.

 

[Akinwale701]

w TTYL 2bYou are very right with your view about customers review on such an online store which in some cases are not true like you said. It is with that reason the business is open to risk. But the risk is still manageable if you pay a closer attention to your business growth.

Yeah bro. If one pays a close attention to risks, one can manage them effectively in order to minimize loss and maximize profit as much as possible and the business will grow at a reasonably high pace. meanwhie one has to be careful of the kind of risks he exposes his business to, not all risks are worth taking