The expansion of e-commerce in recent years has launched many new companies that provide opportunities for conducting business online. According to the U.S. Census Bureau, e-commerce sales in the first quarter of 2021 alone were estimated at $215 billion.1
E-commerce businesses have helped to shape and create new ways to make money online. Many entrepreneurs, freelancers, and small business owners use popular e-commerce sites like Amazon and Etsy to generate income, although there are many other options to consider if you’re looking for ways to make money online.
How To Make Money Online
Making money online means that you don’t need to open up a shop or necessarily consider lining up storage space for inventory in order to operate a business. There are many online platforms that offer a simple sign-up process for many kinds of other small business owners to start making money right away.
Tips for Getting Started
Like any startup business, there are a few steps you’ll need to take to get started. Different industries have different requirements. Here are a few general tips for new businesses:
- Find your niche
- Make a business plan and stay organized
- Register your business and/or complete any necessary paperwork, contracts and licenses
- Network and expand your social media channels
- Conduct research for search engine optimization (SEO) and potential competition
- Determine your rate or fees, if freelancing
- Consider branding and intellectual property needs
Amazon
One of the most popular ways to make money online is by opening a virtual shop on Amazon. Amazon is a huge platform for sellers, with $386 billion in net sales in 2020.2
With options like Fulfillment by Amazon (FBA), which allows sellers to store their inventory in one of Amazon’s fulfillment centers, Amazon makes it easy for sellers to make money. There are two plans sellers can choose from: the professional plan at $39.99 a month plus fees and the individual plan, which onl