Your own online business as a second pillar – not just in times of crisis

Your own online business as a second pillar – not just in times of crisis

2020 has shown that financial reserves and a diversified income can be necessary to protect yourself today. Where not every employment relationship is secure, everyone can do their own thing and start an online business with an Internet connection and a laptop .

Working from home is no longer a new work model, but is increasingly finding its way into people’s lives. Rightly, it offers the advantage of being able to reconcile everyday life and work more easily, to spend more time with the family and to do one’s work or to do one’s chores in peace and quiet without distraction. If you are currently in the home office and work a few extra hours every day on your side business, you may be able to jump out of the employment relationship in a few months.

Find the right online business

If you search for the right business ideas on Google, you will find many possibilities, but at the same time you are confronted with the question of which of these paths will really bring the hoped-for success. From affiliate marketing to surveys to your own eBooks, there are countless solutions to earn your own money online . Even if many of these possibilities are touted by various coaches as lucrative business models and certainly also have potential, you should objectively deal with each of these paths and research carefully.

The best way is to think about what is good for you, what you are interested in and what starting conditions (time, capital, etc.) you have. This makes the search easier and you can eliminate some possibilities right from the start. For example, if you don’t enjoy writing, having your own blog may not be the way to go, but you shouldn’t directly exclude eBooks, because you can also work with ghostwriters here

The best way to go in 2021?

What 2020 also showed in any case, online trade is booming and the demand is stronger than ever. Not only Amazon has written incredible sales figures , but also many domestic online shops and marketplaces were able to look forward to a number of new customers. A fact that is mainly attributable to the temporarily closed retail trade, but many will stick with it and the convenience of online shopping will become more and more prevalent.

Even before Corona, the trend was increasingly towards online trading and will continue to advance. New products, new marketplaces and always the opportunity for improvement make e-commerce an exciting and varied business world.

But how can you benefit from it and build a source of income yourself? The two biggest buzzwords in connection with e-commerce are probably Amazon FBA and dropshipping. Even if these terms dominate the market, there is only the basic business model of retail behind them. 

Both models offer and sell physical products online. In most cases, the products come from Asia, more precisely from China, as it is cheaper to manufacture there. The disadvantage is that the shipping time is a lot longer and orders can take a good 30 days to reach the customer. The quality of the products does not necessarily have to be worse than that of a German manufacturer. Many of the best-known brands produce in Asia. 

With dropshipping, you look for one or more interesting products that you can integrate into your own online shop. The next step is to find a suitable provider, since as a dropshipper you only act as a middleman and do not sell your own products. If someone orders a product through their own shop, the order is passed on to their dropshipping provider, who is usually the manufacturer and sends the product to the customer. You keep a small margin yourself. Even if this model seems risk-free, it is already associated with expenditure for marketing (visitors to the shop), accounting (sales tax) and the processing of orders.

In principle, however, you can start dropshipping with a small start-up capital of a few hundred euros for marketing, domains and themes. At best, you look for a supplier or manufacturer from Germany or Europe in order to keep delivery times as short as possible. Even if the research and the order processing become more complex, it is in the interests of the customers and thus also in the interests of business success. 

In contrast to the dropshipping model, Amazon FBA develops or at least labels its own physical products, has them manufactured and usually imports them from Asia to Germany, where the products are sold via Amazon. Even if this way requires more start-up capital, selling on Amazon is the more lucrative way in the long term. With the Amazon FBA program, the popularity of Amazon and the countless existing customers, the platform creates the best conditions for starting your own business.

In addition, you have greater influence on the properties and quality of the products, as these are improved and produced according to your own ideas. That sounds expensive at first, but with around € 2,500-3,500 start-up capital you can already sell your own product on Amazon and earn your first euros online. You then put the generated sales back into new products and goods and let the business grow before you start paying off yourself. 

With both models you can build a profitable business (part-time), even if each has its advantages and disadvantages. Of course, everyone has to decide for themselves which way to go. But if you intend to build up a company in online trading in the long term and want to make a living from it, you should deal more intensively with Amazon FBA.

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