Setting up and running an online business is easier than it’s ever been. With the vast array of e-commerce tools and web hosting companies that cater to online businesses only, one can open a web shop in a matter of days. Still, there are many misconceptions when it comes to operating a business online. Let’s explore the five biggest myths surrounding e-commerce.
You need a dedicated server to host an e-commerce site
Wrong! Unless you already have a customer base that equals the likes of Amazon, you can begin as most startups do by purchasing a shared web hosting plan. As your business grows you’ll be able to increase the size of your web hosting plan, and when you’re ready for a dedicated server or VPS, you can make the move at that time.
It’s easy to make money online
Not true! As countless Internet entrepreneurs will tell you, making money online takes a lot of hard work, a solid business plan and the drive to make it all happen. As an Internet business owner, you’ll need to do the following things:
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Find a reliable web hosting company to host your website.
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Buy a domain name.
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Design your website.
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Find a payment processor.
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Figure out how you’re going to advertise.
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Maintain your website.
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Find customers.
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Deal with customer service issues.
And that is just the tip of the iceberg. It takes more than just a good idea to make it online.
Doing business online is a waste of time
False. While brick and mortar stores give customers the opportunity to see and touch products for sale, as an Internet business owner you also have advantages.
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If your shop is open 24/7, you’ll be making money in your sleep.
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You won’t have to deal with renting or leasing an actual building.
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You can connect with a worldwide audience.
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Your overhead will be cheaper.
Accepting credit cards is too expensive for most startups
Absolutely untrue! As a new business, you have quite a few options for accepting credit cards that range from your local bank to using PayPal or 2Checkout. Because you’ll only be receiving money, most online credit card processing companies do not require you go through the hassle of a credit check.
Money earned online is tax-free
Untrue, and a mistake that can be costly! No matter what country you plan to do business from, you will be responsible for reporting your income to the government and paying all applicable taxes. Likewise, you’ll be able to claim expenses and deductions like:
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Web hosting fees.
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Computers.
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Printers.
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Paper.
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Postage.
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Office rental—even if you’re using a room in your own home.
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Telephone bills.
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Gas mileage.
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Business meals.
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Business lodging.
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Domain name purchases.
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Credit card processing fees.
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Business insurance.
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Business licenses.
It’s a fact that running an e-commerce website can be a fun, adventurous way to make a living. Learn as much as you can before jumping in and have fun!