Find a unique physical product to sell
Whether
you sell via eBay, Craigslist, Amazon, free classifieds, blogs, search engines,
or any other medium, I've found that the key to selling well on the Internet
is to offer a product that is either unique, or appeals to a unique group of
people. Also known as "niche marketing", specialty products have less
competition and are more likely to rank highly for online searches.
To find your own niche product(s), check out the SaleHoo's Wholesale Directory. SaleHoo is a very extensive "members-only" directory of thousands of products that you can purchase directly from wholesalers for resale. I suggest focusing on wholesalers that offer drop-shipping, so you can avoid inventory hassles and shipping delays.
If you plan to make money online by selling physical products, eBay is most likely the best place to start. The basic process is pretty self-explanatory, but you'll maximize your profit potential by refining your selling skills. Check out Auction Tips for the most up-to-date advice in this area.
Make money online by creating your own physical product
Designing and producing your own products provides much more pricing flexibility (profit potential) because you don't have to compete with other people selling the exact same merchandise. Utilizing your creativity to make money online with physical products creates legal risk for anyone who dares to copy you.
You might be saying, "My own product? That sounds like a big investment!". Not so! A new wave of "on demand" production systems make it possible to produce physical merchandise with almost zero overhead. Here are some examples:
- CafePress.com and Zazzle.com
These sites enable you to quickly create custom shirts, stickers, mugs, and more with your own artwork. A lot of people are making money online right now by creating products that appeal to coworkers, companies, local communities, and various niche groups. Targeting a specific type of customer can really simplify marketing efforts.
- CreateSpace.com and Lulu.com
If you have any ideas for a book, audio CD, or DVD product, check out Create Space (an Amazon company). Last month I wrote a book and recorded a CD about a subject that interests me; both now appear on Amazon.com. Even though I already offer the same information in downloadable MP3 and eBook formats via a website, giving people the option of purchasing a physical version increases my appearance of legitimacy, and gives me immediate access to the marketing potential of Amazon.
Create your own software for resale
You
don't need to be a programmer! I don't know a thing about C++ or Visual Basic
(aside from the fact that they're programming languages). However, I have also
made over $100k selling a software program that I developed for less than $200.
This is one of my favorite ways to make money online.
How did I develop software without being a programmer? I simply put my idea into words, and then posted it as a project on freelance websites like Rentacoder.com.
From my experience, creativity and necessity are the keys -- every piece of software that I've profited from was born of my own needs. By that I mean that I needed to perform a task, so I hired a programmer to create a software application to perform that task, and then discovered that other people were also in need of such software. I'm not saying that pure creativity won't inspire financially successful software ideas; I'm just saying that necessity has been the "mother of profit" for my own.
Tip: Don't limit yourself to PC applications. iPhone apps are getting super popular, and you can sell them directly on iTunes. Various websites, such as Facebook and MySpace can also run specialty applications.
Make money selling other people's stuff online
Garage
sales are a hassle, estate sales get relatively little exposure, and many people
don't have very good eBay skills. I smell opportunity...
Promote yourself as an expert eBay trader, and many people will gladly pay you a commission to sell their junk for them. Physical stores such as iSoldIt do this and take around 30-40% commission. You should be able to cut costs and increase profit margin a bit by operating from home.
Essential tools of the trade will be a digital camera, lightbox, and listing management software. I suggest increasing your credibility by getting Auction Tips, taking ExpertRating's eBay Marketing course, and/or becoming a certified eBay trading assistant.