How to Make Money With Ecommerce in 2024

Revenue in the ecommerce market is projected to hit $3.2 trillion in 2024 alone. That’s a huge piece of the global market, and there’s plenty of opportunity for entrepreneurs and small businesses of all kinds. Wondering how to get your slice of the pie? Let’s check out 11 ways to make money with ecommerce, whether it’s on your own online store or a third-party channel.

1. Print-on-Demand

Startup cost: $100–$500
Level of effort (LOE): Low
Income potential: Medium (despite perceptions of low profit margins, one report found the average PoD profit falls between 15% to 60%)
Best for: Risk-averse or budget-strapped designers, artists, and creators. Since the POD barrier-to-entry is low, competition is high, so an existing audience and search engine optimization (SEO) skills are helpful.

Print-on-demand (POD) is a business model where products are created by a third party as orders are received. It involves a design that is then printed on ready-to-customize products like T-shirts, mugs, mouse pads, and more.

Interested in pursuing this idea of how to make money with ecommerce sites? Check these resources:

2. Dropshipping

Startup cost: $100–$500
LOE: Low
Income potential: Profit margins average 15%–20%
Best for: Risk-averse or budget-strapped entrepreneurs, multipreneurs, brands with an existing audience, experimenting with new items, and selling trending products.

Dropshipping is another great way to make money with ecommerce without having to hold product inventory yourself. Essentially, you build the brand and make the sale—and the order is then sent to a third-party dropshipper for fulfillment on your behalf. This prevents the need for investing in and possessing inventory as well as takes the hassle of logistics out of your hands, though it does eat into profitability.

If you want to give dropshipping a shot, refer to these posts:

3. Subscriptions

Startup cost: $100–$1,000+
LOE: Moderate to high
Income potential: Variable
Best for: Involved entrepreneurs

A subscription-based business model involves recurring payments in exchange for products and/or services. You might offer a paid subscription to your exclusive podcast content, subscription boxes of curated products, or subscriptions to apparel rentals, for example. The possibilities are endless, and they can fit any startup budget depending on your idea. However, it does require consistently showing up for your customers, so it’s a high-commitment ecommerce business idea to pursue.

We’ve evaluated some tools for subscriptions and recurring payments:

4. Affiliate Marketing

Startup cost: $0–$200
LOE: Moderate
Income potential: Lower than other business ideas, however, large earnings are possible for great affiliate programs or high-ticket items
Best for: Bloggers and anyone with an existing loyal audience

Affiliate marketing involves promoting products or services and earning a commission for every sale made through your referral link. It’s a low-risk way to monetize your online presence, requiring minimal startup costs. However, success in affiliate marketing depends heavily on building trust with your audience and strategically selecting products that align with their interests.

If you want to give affiliate marketing a go, read this article first:

How to Start a Retail Affiliate Program in 2024

5. Private Labeling or White Labeling

Startup cost: $500–$2,000+
LOE: Moderate to high
Income potential: High
Best for: Entrepreneurs willing to invest in product development and branding; works particularly well in the cosmetics industry.

Private label or white label products are goods made by an outside manufacturer and sold under your brand name. You essentially add your branded private labels to the packaging when you sell the products to your customers.

While the startup costs are higher compared to other ecommerce models that don’t require purchasing inventory, private labeling offers greater control over your brand and potentially higher profit margins. However, it requires careful product selection, branding, and marketing efforts to stand out in the market.

6. Digital Products

Startup cost: $100–$200
LOE: Moderate
Income potential: High profit margins
Best for: Content creators, experts in a specific niche, and people with digital skills

If you’re not interested in selling physical products, you can create digital ones. Common digital products sold online include courses, workshops, templates, printouts, and more. You can create and sell digital products for just about every niche out there. The best part is they come with no holding or shipping costs—though you do have to make sure you update your digital products to keep them current.

7. Consulting Services

Startup cost: $0–$300
LOE: Moderate
Income potential: Variable but difficult to scale
Best for: Experts in a specific niche, industry, or field

Consulting services in ecommerce involve providing expertise, guidance, and solutions to businesses looking to improve their online presence, optimize operations, or increase sales. While the startup costs are minimal, establishing yourself as a credible consultant requires significant time and effort. However, successful consultants can charge high hourly rates or project fees, making it a lucrative venture if you have in-depth knowledge and experience in a very specific and in-demand field.

8. Selling on Amazon

Startup cost: $2,000–$5,000+
LOE: High
Income potential: High
Best for: Existing ecommerce businesses, people who want to sell physical products online, entrepreneurs not wanting to establish a brand

Amazon is the most visited online marketplace, with an average of over 2.4 billion monthly shoppers. Selling on the platform allows businesses to reach a vast audience around the world. Thanks to its record of highly accessible customer service and fast shipping, Amazon boasts established trust from shoppers as well as a large network of Prime subscribers. That said, competition is high on the platform, so maintaining exceptional customer reviews and expert-level SEO is crucial to success.

Fulfillment by Amazon (FBA) allows merchants to store products in Amazon’s own fulfillment centers, where Amazon handles storage, packing, shipping, and customer service on each merchant’s behalf. While the initial investment can be substantial due to inventory costs and Amazon fees, FBA offers scalability and access to Amazon’s massive customer base. Success requires effective product sourcing, marketing, and optimization.

Check out these other resources to get you acclimated to selling with Amazon:

9. Reselling or Retail Arbitrage

Startup cost: $500–$5,000+
LOE: High
Income potential: High
Best for: Researchers, people who can find a good deal, entrepreneurs who want to sell physical products without working with manufacturers

Retail arbitrage is when you buy discounted or clearance products and reselling them for a profit. While the startup costs can be low if you start small, scaling your reselling business may require significant investment in inventory. Success in reselling depends on your ability to identify profitable products, manage inventory, and adapt to market trends. With dedication and strategic sourcing, you can earn a substantial income this way.

We have more great posts for you to learn more about reselling and retail arbitrage as a means of starting a retail business:

10. App Development & Sales

Startup cost: $1,000+
LOE: High
Income potential: High
Best for: Technically savvy entrepreneurs, developers, programmers, coders, or people with access to others with these skills

Developing and selling mobile, web, and platform-specific apps can be a lucrative ecommerce venture if you have technical expertise. However, it requires a significant upfront investment in education, development costs, app store fees, and marketing efforts. But if you can create innovative, user-friendly apps that address specific needs or interests, you can generate passive income through app sales, in-app purchases, or subscription fees.

Startup cost: $200–$500
LOE: Moderate
Income potential: Medium
Best for: Businesses and brands with a large social audience

Social commerce, or selling directly through social media platforms, is a growing ecommerce trend. It involves selling directly to online shoppers through social media channels, rather than making them leave the social platform, visit your site, and go through your checkout experience. This reduces friction and brings your social media marketing efforts closer to the point of conversion. And, with the rise of shoppable posts and integrated checkout features, social commerce is a seamless experience for customers that provides lucrative opportunities for businesses to drive sales.

While the startup costs are relatively low, establishing a successful social commerce strategy requires building a loyal following, creating engaging content, and optimizing product listings for social platforms.

Here are some platform-specific guides to help you navigate social commerce:

Tips for Making Money With Ecommerce

Ready to cash in on the ecommerce opportunity? Keep the following tips and best practices in mind.

Choose the Right Niche

Select a niche that aligns with your interests, expertise, and target audience’s needs. Conduct thorough market research to identify profitable opportunities and potential competitors.

Make It Mobile

Ensure your website is optimized for mobile devices to provide a seamless shopping experience for customers browsing on smartphones and tablets.

Optimize Product Pages

Invest in professional product photography to showcase your products in the best possible light. High-quality images can increase conversions and build trust with customers

Write detailed and compelling product descriptions that highlight key features, benefits, and specifications. Use persuasive language to entice customers to make a purchase.

You can also optimize your website for search engines to improve visibility and attract organic traffic. Focus on relevant keywords, meta tags, and optimized content to rank higher in search engine results pages (SERPs).

Learn more: Guide to SEO for ecommerce

Mind the Checkout Experience

Provide customers with various payment options, including credit/debit cards, PayPal, Apple Pay, Google Pay, etc., to accommodate different preferences and increase conversion rates.

Ensure your checkout process is secure and user-friendly to build trust and confidence among customers. Use SSL certificates, encryption technologies, and trusted payment gateways to protect sensitive information

Develop a Marketing Strategy

It’s not enough to simply build a website or list your products. You need to have a marketing strategy to drive traffic to your online store, be it SEO, social media, email, paid ads, or something else.

Build an email list of subscribers and nurture relationships with personalized email campaigns. Send out promotional offers, product updates, and exclusive discounts to encourage repeat purchases and customer loyalty.

Provide Exceptional Customer Service

Prioritize customer satisfaction by offering responsive customer support, easy returns/exchanges, and timely order fulfillment. Positive reviews and word-of-mouth recommendations can significantly impact your ecommerce success.

Related: Retail Customer Service Tips

Analyze Data & Track Metrics

Monitor key performance indicators (KPIs) such as traffic, conversion rate, average order value (AOV), and customer lifetime value (CLV). Use analytics tools to gain insights into customer behavior and optimize your website for better results.

This applies to external data points too. Stay updated about the latest ecommerce trends, technology advancements, and consumer preferences. Adapt your strategies accordingly to stay competitive and maximize revenue opportunities

Keep reading: Retail Metrics: How to Drive Sales

Frequently Asked Questions (FAQs)

These are some of the most common questions we get about the ways to make money with ecommerce.

The best way to make money with ecommerce depends on your resources and goals. For those with capital to invest in inventory, the best way to sell physical goods may be to purchase stock and sell on Amazon or social media. With limited funding, dropshipping or print-on-demand services are ideal. In the digital space, offering consulting services or digital products like online courses can be lucrative.

It can take as little as a few hours to start making sales online. But if you want to build a sustainable business to make money with ecommerce, you’ll likely have to spend weeks or even months planning and building your business, marketing your products, and engaging customers.

Bottom Line

Whether you’re a creative entrepreneur, an experienced marketer, a tech enthusiast, or something in between, there’s an ecommerce niche for you. From print-on-demand and dropshipping to affiliate marketing and private labeling, each business model has its own advantages and challenges. By understanding your strengths, interests, and target audience, you can choose the right ecommerce strategy to build a successful online business.

As technology evolves and consumer behaviors continue to shift, staying adaptable and innovative will be key to success. It’s important to take calculated risks in your ecommerce business, in 2024 and beyond.