Thursday, June 30, 2011

What does it take to run an E-business

I've been mulling the idea of having some parts fabricated and sold online recently and got down to considering the challenges of logistics and putting together a small site to see what happens. It's more of an experiment than anything else but having sold some X-box's though E-bay before, I just thought: "how hard would it be to create an online store and be able to accept credit card payments for something."

Been looking around here and there but a cursory search indicates that one can open a merchant account for about $25/month through paypal and deal with them skimming off some of sales. Modeling selling things online is also quite fascinating and what I noticed is that sensitivity to profits is very high when margins are low. The most important thing is learning how to create a landing page and figure out how to drive traffic to a site to gague interest before starting.

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