There are many different ways that you can start a business online, but the first thing you have to think about is what do you sell. Services, or products? Go online, and you will see that there are a lot of things that you can sell online, from physical to digital products, from low ticket to high ticket items. Here we will discuss on the pros and cons, so that you can decide on the right product creation for you to succeed online.

1) Physical products

Pros:

Selling physical products online is very common, and is beneficial, as you can reach a very wide audience. You are not limited to your local audience, but to consumers worldwide if you are able to manage the cost efficiency of shipping to them. To allay fears of uncertainty about physical products, sellers often describe them in great details, with pictures to show consumers. The convenience of online shopping and increasing safety of online transactions have increased shopper numbers online.

Cons:

The main disadvantage is the price competition between different merchants. Consumers can easily browse between different merchants to compare prices quickly. The second disadvantage is the shipping costs. If you want to sell your products regionally, you need to negotiate a shipping cost that is manageable to attain your desire profit margin. Thirdly, if you are selling perishable products, you will need special storage or shipment for them. For example, probiotics supplements often require cold packs or cooler packs for shipment, adding to the total shipment costs. Lastly, you need a warehouse to store your goods, problematic if your goods are large in size.

2) Digital products

Pros:

The biggest advantage is the minimal storage for your digital product. If it's an e book, then all you need is 1-2 MB worth of space on your hard disk or thumb drive. Secondly, you save on shipping costs. All your consumers need to do is to download them. All these is done at their own convenience, 24 hours a day, without your intervention needed.

Cons:

Digital products need to be backed up. I have a friend who committed suicide after losing his life's research when the server in his laboratory crashed, destroying all the files on it. If your server is not stable, 24 hours sale by you is not possible. If you maintain the server yourself, pls do take into account the extra costs that goes along with it. Other costs that you have to take into account is payment to your internet service providers, website maintenance company, and domain names.

Be sure to understand completely the pros and cons of both physical and digital products. Weigh them, and ultimately include your preference into the decision made. The whole internet marketing game takes time to master, so learn from those who have been there to shorten your learning time, and avoid painful mistakes.