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How I Started An E-commerce Business Without Having Any Money Or Products - Business - Nairaland

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How I Started An E-commerce Business Without Having Any Money Or Products by Ideasplusbiznez(m): 12:36am On May 01, 2016
Joachim went through the first three steps of the viral business formula: Ideas generation, market research and successfully testing for the demand of his idea. And then proceeded to the next stages of validating his idea and product delivery by doing the following:

#1. He bought the domain name vinhacker.dk and also a hosting plan with a hosting company.

This is the only step where he spent some money. And very little if I might add. You can buy a domain name for as low as $9 per year. And you can buy a hosting plan from as low as $2 per month. That is $24 in a year.

The total amount he would have sent on his domain name and hosting plan for a year is $33. Lets say plus some miscellaneous overhead cost, he would have spent less than $50 in total cost for a year.

#2. He installed a WordPress CMS on his hosting plan with a free launch theme which has a built-in viral sign up functionality.

I want to assume that he has a little technical knowledge in WordPress which he deployed successfully in this case. Since he is trying to minimize his expenses, he went for good free themes that will serve his purpose.

#3. He installed a free email subscription plugin on his WordPress theme.

This will enable him to collect the emails of his target customers which will help him a great deal in validating his business idea. In used a free Mail Chimp account.

#4. He briefly described himself and his concept of business.

He crafted a simple copy that is as simple and descriptive as: Pre-arrival orders of wine at cheap and transparent prices on his landing page.

A landing page is simply a page on your website that you direct you leads (target customers) to.

#5. He started collecting emails.

He started with his family and friends by sending them personal emails asking for their support and help. After this, he posted his messages on relevant Facebook communities.

#6. He launched a competition as a sales bait” to generate interests.

This will greatly improve his chances of making his business go viral. He offered 5 winners a case of wine (30 bottles) and then set a deadline of 45 days after which the winner will be selected.

As people spread the message, they also increase their chances of winning.

The result he got is terrific. After 45 days, he had 600 people on his email list. He sent them all an offer of a nice red wine from his winemaker.

Two days later, he sold a full pallet of 600 bottles without having any wine.

#7. He collected the money and paid his winemaker.

He then used the profit to rent a simple storage facility and cover some other expenses.

He got the bottles of wine after two weeks from his winemaker and most of his customers picked up their order themselves. Only one out of them had requested for home delivery.

He is in full business and 17 months after, he had imported wines from 23 different wineries in Denmark. For Joachim, business is moving forward.

This can be replicated in any part of the world even in Nigeria.

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Re: How I Started An E-commerce Business Without Having Any Money Or Products by Darkchocolate(f): 8:56am On May 01, 2016
Love it. Love it. Love it. However, I think this might face a few challenges in Nigeria especially if you are ordering things from outside the country. Delivery on the outside is very reliable and can be predicted. Wouldn't it harm your bugging business if you collect money from Nigerians (they are pretty skeptical about paying without receiving the goods anyway), if it takes you up to 3 weeks to deliver items ordered. I would genuinely like to know how this can be overcome.
Re: How I Started An E-commerce Business Without Having Any Money Or Products by Ideasplusbiznez(m): 2:24pm On May 02, 2016
Darkchocolate:
Love it. Love it. Love it. However, I think this might face a few challenges in Nigeria especially if you are ordering things from outside the country. Delivery on the outside is very reliable and can be predicted. Wouldn't it harm your bugging business if you collect money from Nigerians (they are pretty skeptical about paying without receiving the goods anyway), if it takes you up to 3 weeks to deliver items ordered. I would genuinely like to know how this can be overcome.

We now have a lot of guys here in Nigeria who are reliable when it comes to delivery. It is just a matter of asking around if you are truly interested.

Then, about paying for the goods upfront, that might be scary. However, since the emergence of the e-commerce industry in Nigeria, more and more Nigerians are beginning to overcome their fear of paying for goods upfront before they receive it physically.

For a small business owner, you don't need to start with unknown faces. You can start with your family and friends. At least, these people will trust you enough not to scam them.Then as time goes on, you expand and scale things up.

Realistically, this is the only way to do this genuinely without raising any alarms.

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