Eventually the thirteen year old grew into a full adult
and continued his entrepreneurship spirit. He opened a solar panel installation
company that rapidly developed across three states. He was moderately successful
however fast approaching mid thirties. Trevor Chapman then decided to make a foray
into online commerce.
He spent $200 launching a site LDSman.com an online store
offering a varied assortment of items. The quirky items where sourced from
China and sold to customers worldwide.
Within three months working two hours a week on his site
had generated $1 million dollars in sales. He did not have to put 12 hours daily
prior on his solar installation business. Chapman had just experienced the power of
eCommerce.
Trevor Chapman |
He had to figure out a way to earn passive income online.
There are two ways people earn passive income either through an eCommerce site
or a blog.
He chooses eCommerce because marketing and sales are
close to his constituency and experience. Global retail business in recent
times saw a 25% percent growth attaining $3 trillion in 2016. Chapman spent
only a few hours a day building the site.
Domain
Name
The first step was to buy a domain name. He bought one
for $2.99 a year with a host provider. Domain names are web address where visitors
visit.
There are different domain extensions but premium domains
are .com. So to follow his foot steps buy a .com domain name. If you have a niche-then
include a keyword in the domain name.
Purchase
a Host Plan
The next step he took was to purchase a host plan. Since
his focus was on eCommerce your best bet is to open a Shopify account.
The reason Shopify is ideal is they provide everything
you need to setup an online store. You don’t need any technical training to
establish the store.
You can setup a Shopify account and store free for 14
days. However their payment plans include basic Shopify $29 a month, shopify $79
and advanced Shopify $299.
The basic is for starting a new business, the middle package
growing the business and advance to scale up the business. The basic features
unlimited number of products, unlimited files storage 24/7 support. Other features
are manual order creation, discount codes, free SSL certificate and a
transaction fee of 2%.
What would make or break your eCommerce store is the
product. You need to choose the right product to succeed. You need to sell
compelling items to drive traffic to your store.
The product should be intriguing and interesting to
attract attention. Chapman started by selling Mormon art which did not do well
and switch to products like handout bags, mini wifi surveillance DVR and
portable projectors.
Where
to Find the Products
The best place to source your products is China. You get
a huge choice of items at relatively low price.
Chapman’s strategy was to buy low and sell high. He
searched found and purchased products for $4.99 and resold for $59.99. To avoid
stocking inventory he used dropshipping arrangements with his Chinese contact.
Drop shipment offers the eCommerce site a simple solution
to shipping and inventory management. To avoid risk of cost and inventory he
setup arrangement with suppliers. This was facilitated through WeChat.
The eCommerce site contacts the supplier and provides the
address of buyer. The cost of supply is low due to a program initiated by the
US government to aid eCommerce solutions. The program is called ePacket and
works with lightweight shipment under $400.
the top places to find products are aliexpress.com and alibaba.com
the top places to find products are aliexpress.com and alibaba.com
Driving
Traffic to the Site
Without high engaging traffic the eCommerce store will
fail. Chapman used a simple solution known to the big online stores
advertisement.
He leveraged on the power of social media and advertised
on Facebook. He spent a whooping $100 a day on Facebook advertising. He started
making money from day 2 and two weeks later had his first $10,000 day.
He used part of the earnings to hire consumer customer
service work team in the Philippines. He paid each team member $700 a month. He then increased Facebook budget focusing on
adverts that attracted the best engagement.
Although he had a few problems on quality control by 92
days the site had generated $1 million dollars. The site presently makes about $350,000
a month in sales.
The business is now on track to make its first 10 million
dollars, amazing feat for a simple eCommerce site that started with $200.
How
to turn $200 into $1 million in 90 Days Online
- Buy a domain name
- Build an eCommerce store
- Contact the suppliers
- Use drop shipping solutions
- Advertise on Facebook
- Hire staff
- How to Build an Online Store on Shopify
- 10 Ways to Drive Traffic to Your Amazon Store
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