How to Start an Online Business Without a Large Capital

Thanks to today’s technological advancements, you can now start an online business without needing a large amount of capital. How is that possible? Let’s explore everything you need to know about running an online business on a budget.

What Is an Online Business?

An online business involves selling products or services using the internet. Every aspect of the transaction, including ordering, payment, and delivery, is handled online. Online purchases can typically be shipped to various regions across Indonesia.

This type of business can be done by anyone and is considered relatively easy to run from anywhere. You can manage your inventory and monitor sales using just a smartphone or a computer.

How to Start an Online Business

You can start by looking for a reliable supplier. Then, create an account to sell your products online. There are many online shopping platforms available, and you can choose to sell on one or all of them to increase visibility and generate income from multiple sources.

After that, promote your products on digital platforms such as WhatsApp, Instagram, or Facebook. Since many people, adults and even children, now use social media, it’s important to make the most of the opportunities these platforms offer.

1. Finding a Supplier

You can look for suppliers among people you know or via social media. While many sellers offer low prices, make sure to pay attention to product quality.

Product quality significantly affects your business’s reputation and operations. Choosing the wrong supplier could disrupt your sales and business flow.

2. Becoming a Reseller

In the online business world, the term reseller is quite common. If you want access to cheaper products, becoming a reseller for an online shop could be the answer.

However, this often requires some capital, as you may need to meet a minimum order to access reseller pricing. This also carries the risk that the products might not sell quickly or at all.

Additionally, you’ll likely need to stock more than just one type of item to earn the trust of potential buyers and show that your store is legitimate.

3. The Dropshipping System

What’s the difference between a reseller and a dropshipper? Quite a lot.

As a reseller, you need to purchase products in advance and keep inventory. But with dropshipping, you simply sell someone else’s products without needing to buy or stock anything.

See Video on How to Easily Send Money Abroad with Transfez

This makes dropshipping a great option for starting an online business without large capital. You only market the product and wait for orders to come in. Once an order is placed, you purchase the item from the supplier and have it shipped directly to the customer.

You also get to set your own profit margin. Just be sure to keep it reasonable; if your markup is too high, customers may be discouraged from shopping at your store.

Digital Media You Can Use

You can use any digital media platform you’re familiar with, such as social media, online marketplaces, and so on. These platforms can be used to sell or promote your products and services. It’s a good idea to create a dedicated account for your online shop.

When used effectively, digital media can help spread the word about your business, even without any advertising budget. You can also offer special promotions for loyal customers or first-time buyers to encourage repeat purchases.

Just make sure your business name is unique. If your shop shares a name with another, you may be held accountable by the original business owner.

Payment Methods

Payment processes in online businesses vary. Some sellers prefer bank transfers, while others may request customers to top up a digital wallet.

Typically, the buyer sends payment that includes the product price, shipping fee, and sometimes extra packaging costs for fragile items. These details usually depend on the buyer’s preferences.

Download Transfez App

Transfez App can help you transfer money abroad more quickly and efficiently. Jack Finance can also help your business in making transactions abroad. For those of you who want to send money to relatives who are abroad because they are studying, working, or traveling, Transfez will be ready to help. This app is available on Android as well as iOS.