The Best Online Business for Entrepreneurs in 2023
It's Brian Zabierek, one of the two Zab twins, and today, I want to help turn your skills and passion into a lucrative business. So, this article is about choosing the best e-commerce business model in 2022! But if you're new to our blog, here's a little something about me:
Arek and I are professional e-commerce coaches helping aspiring entrepreneurs like you build a successful businesses and unlock financial freedom with a proven business model. We've helped hundreds of students scale e-commerce brands with tried and tested tactics.
According to research, the number of digital shoppers hit 2.14 billion in 2021- over 27% of all the people worldwide! Furthermore, the U.S. market will hit 300 million online buyers in 2023, accounting for 91% of the country. As more consumers shift to online shopping, the number of e-commerce businesses is also increasing. Therefore, now's the perfect time to transform your creative ideas into a profitable brand.
One problem: there's a massive number of online businesses to choose from. How do you know which one is perfect for you? That's where I step in! I will give you my honest experience with various business ideas and which one I recommend the most. You can also click on this video, where I share my e-commerce journey and tips for finding your ideal brand.
The Number One Online Business to Start in 2023
In 2021, the number of digital shoppers increased by a whopping 900 million, indicating a 4.4% YOY growth. It presents the perfect opportunity for would-be entrepreneurs to run an online business and achieve financial independence.
To help you kick-start the process of creating and scaling a successful and sustainable brand, I've created a list of the four tried and tested business ideas. I'll share the pros and cons of each business idea and which one I recommend the most. Ready to become your boss and transform your dreams of being an entrepreneur into a reality? Let's jump in!
Learning The Triple P Formula
Before diving into my four online business ideas, I want to share my magic recipe for finding the perfect e-commerce brand. If implemented effectively, the Triple P Formula can help you- as it helped me- create a robust income stream and unlock financial independence.
Here's what this secret strategy entails:
- Passive- Juggling a side hustle with your 9-to-5 can be tricky. So, ensure you choose a business model that initially requires less money and time investment
- Profitable- Look for a business idea that helps create a positive ROI and promises a steady cash flow
- Part-time- You can't quit your job the second you build an online business. Aim to strike a balance between your 9-to-5, side hustle, and self-care
Ideally, the perfect online business allows you to uncover financial stability and security without requiring too much time and money. Once you build wealth, you can quit your 9-to-5 and focus on creating your online brand.
Top 4 Online Business Ideas You Can Start Today
With the immense growth of the internet and technology, countless people have found the courage to leap into entrepreneurship. And regardless of your business experience and knowledge, you can do this too!
Wondering which business idea is perfect for you? Here are four online businesses that I tried and their pros and cons:
Dropshipping is a powerful e-commerce business model that allows you to sell products without owning or storing them in your house/warehouse. Instead of shipping items from your inventory, dropshippers forward the order as a request to the manufacturer or supplier.
The vendor handles the logistics, including sending the item to the customer with your branding and paying you directly. Here's what the process looks like:
- Your customer places an order
- You forward the order to your vendor
- Your supplier ships and fulfills the order
But it's not that straightforward! Let's take a deeper look at its pros and cons:
Here are several pros of dropshipping:
- Comparatively fewer start-up costs
- Low inventory and order fulfillment costs
- Ability to sell and test products with less risk
Here's why I don't recommend dropshipping:
- Razor-thin margins
- Less profit and sustainability
- Poor customer service
- Little to no control over fulfillment and lead times
- Complexities with shipping, including long delivery times
Self-publishing on Amazon is a fantastic way of staying in control of your creative work and building passive income. Amazon's publishing service Kindle Direct Publishing allows aspiring authors to publish their books and skip writing a query letter, hunting a qualified agent, and negotiating the terms and fees.
Here's what I did: I hired a ghostwriter to help finish the manuscript, worked on branding and marketing, and got my books out to the public within days! But during this process, I learned a few pros and cons of self-publishing on Kindle.
Self-publishing has its benefits, such as:
- Creative control of your book
- Quick production
- High royalties (up to 70%)!
Here's why self-publishing is not a sustainable business idea:
- Highly-competitive marketplace
- Having to do all of the work yourself
- Limited reach and limited income
- Having to win Amazon's algorithm + get trending to make a profit
Affiliate marketing is a performance-based business model where marketers generate revenue by promoting a product or service. The affiliate earns a fixed commission every time they accomplish a qualified action, such as making a sale or capturing a lead.
Businesses that use affiliate marketing to increase sales use a range of Cost Per Action pricing models. As a result, this business model helps you earn a passive income.
You guessed it: I've tried affiliate marketing as well! So, let's dive into its pros and cons:
Here are the advantages of affiliate marketing:
- Little to no investment
- Easy to start
- No expertise is needed (you learn as you work!)
Affiliate marketing has a ton of cons, such as:
- Uncertainty of organic results
- No control over customer base and competition
- Zero guarantees of revenue and poor sustainability
- It needs a lot of patience, time, and dedication
Amazon FBA, i.e., Fulfillment by Amazon, is a business that allows online sellers to exploit Amazon's massive warehouses to stock and distribute products to their customer base.
Once you enroll in the Amazon FBA program, Amazon will handle all the storing, packaging, and shipping (returns and refunds included!). This business model stands out because it's an easy, efficient, and effective method of building passive income without spending thousands of dollars.
Here's what the process looks like:
- You ship your inventory to Amazon's warehouse
- Amazon stocks your goods in its inventory
- You receive an order and allow Amazon to handle the whole process
- Amazon transfers your revenue into your bank within two weeks
Here's a closer look at Amazon FBA:
Here are its pros:
- Tap into an already engaged and diverse customer base
- Access to high buyer intent to increase sales
- Acquire the opportunity to deliver swift operations
- Earn a positive ROI while investing minimal time and money
- Provide free shipping to increase ranking and popularity
- Amazon FBA fees
- Sales tax
Why We Chose Amazon FBA (And Why We Recommend It to Create a Profitable Business)?
After dabbling with four business models, here's what I learned: only Amazon FBA fits the Triple P formula! Not only did Amazon help me build a profitable passive income, but it also provided the convenience and flexibility to continue working my 9-to-5 job.
But that's not the only reason I recommend Amazon FBA. Here's what makes this business model stand out:
- No technical skills required
- No educational or business background is necessary
- No massive amount of investment is needed
Therefore, Amazon FBA makes it easy to test different strategies and tactics to tailor a blueprint that works for you.
Once you launch your first product, you can rinse and repeat the same process to diversify your product line and grow your profits. Ultimately, you can build customer loyalty, quit your 9-to-5, and build your very own website!
The best part? You don't need to be a one-man army! You can take advantage of revolutionary Amazon tools. With tools like Helium 10, you can find winning products, optimize your listings, and get insights into different marketplaces.
The Bottom Line
There are so many e-commerce channels to choose from- dropshipping, self-publishing, ghostwriting- that finding the best way to grow your online business can be challenging. But with the Triple P formula, you can kick-start your e-commerce brand without feeling burnt out.
If you want to create and scale a successful online business, I recommend getting started on Amazon FBA. You can even take advantage of my discount code "THEZABTWINS6M20" or "THEZABTWINS10" to get access to a 20% discount for six months or a 10% off every month on Helium 10!
If you're hesitant to set up your Amazon FBA business, you can book a free call with Arek and me. Check out my blog and YouTube channel if you want to learn more about Amazon before investing time and money!