Article by Mike Marsden

On the surface of it, internet trading, online shops etc, look like an easy route to work from home, and make a tidy income.

Do it right and you will be rewarded by regular sales for the minimal output, do it wrong and you'll just make hard work for yourself, increase your on-costs, and your new enterprise could fail. 

So how do you successfully go about it?

1. Products
   With the exception of those who manufacture their own goods for sale, many online shops source their products from 'drop-shipping' wholesalers. This is a mechanism where you don't actually buy any products from the wholesaler, but order the product after making a sale in your online store, and the wholesaler then ships the product directly to your buyer.
   Working at it's best, it's not difficult to have goods delivered your customer within 2-3 days of placing their order.

2. Product Pricing
   The internet is a fiercely competitive environment, and prices found in online shops are usually very much lower than found in the high street, and you have to be prepared to sell at very low profit margins. We know of one successful internet trader who actually retails his goods at the wholesale price, and earns a few pounds from their 'standard' shipping charges. 
   With sales numbering around 150 a day, he earns in the region of £2,500 a week.
   
   Setting up your online store

3. Find a domain name that reflects your business or trade
   If you plan to sell Greetings Cards for instance, then try to find a domain name with greeting cards in the name.    example: myonlinegreetingcardshop.co.uk
   99% of your business is going to come from search engines, and that's where having greeting cards in the name will pay big dividends because if someone types... 'online greeting card shop' into the search box.. Your website should list quite highly because all of those words are in the URL - Put the same words in the page title, and you will most probably get top listing. Find a Domain Name here
   

4. Get an e-commerce website hosting package for your new domain
   Zen Cart is a 'tidied up' version of osCommerce, and is an excellent e-commerce product having all of the 'bells and whistles' you will need top trade online.
   
   The standard storefront of CRE Loaded is pretty basic but there is a good range of templates available for 're-skinning' it, and making the storefront more attractive, and professional.
   
   Some website hosts like UKT net, will install and set up the ecommerce software for you if you buy a website hosting package from them.
   
   Not all web hosts are equal! So go for a host who will give you help and support when you need it - That rules out most of the big website hosting companies because you will struggle to get the support you need from them - Choose someone like UKT net who are a mid-sized host, specialising in hosting small business, and e-commerce sites.. The quality of their customer support is excellent.