Product creation vs eCommerce? I'm interested in both but don't know which one i should pursue....

6 replies
Hi warriors.... I'm about to get very serious with this, the main two business models i'm interested in is - Product creation and eCommerce but don't know which one i should pursue and having a hard time chosen one....

I was wondering if any of you guys with experience in either one of these business models could tell me what are the "Pros and cons" of each business model and also which business models has the best return in investment( time and money ) and longevity ?.... I'm also open to hearing any advice you have for me.
#creation #ecommerce #interested #product #pursue
  • Profile picture of the author Tim Fuhrman
    I will try and give you my pros and cons for each.

    E-Commerce Pros:
    Quick and relatively easy to get going
    No customer service
    No Product Quality Issues (for you personally)
    Huge inventory of products/service you can offer
    Easy to change offering if something not working

    E-Commerce Cons
    No control over product quality
    No control over things like shipping etc that lead to customer satisfaction
    Margins can be low due to high competition
    Usually prices are controlled by someone else
    Not branding yourself

    Product Creaton Pros
    Total control over things like product and price
    Margins- You get all the profit
    Sales-Get other selling for you
    Build your own brand

    Product Creation Cons
    Usually only 1 product to start with
    May or may not be good
    May not sell very well
    Responsible for everything including product creation, marketing, sales, delivery, and service
    Need to recruit "sales people" or affiliates
    Responsible for customer satisfaction
    Dealing with returns

    Both are good models to make money online but they are in completely different areas so in my opinion you really have to think about what you want to do first. That's a big decision and no one but you can say what is best or right for you. I hope this helps.
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    • Profile picture of the author imagoodguy
      Originally Posted by Tim Fuhrman View Post

      I will try and give you my pros and cons for each.

      E-Commerce Pros:
      Quick and relatively easy to get going
      No customer service
      No Product Quality Issues (for you personally)
      Huge inventory of products/service you can offer
      Easy to change offering if something not working

      E-Commerce Cons
      No control over product quality
      No control over things like shipping etc that lead to customer satisfaction
      Margins can be low due to high competition
      Usually prices are controlled by someone else
      Not branding yourself

      Product Creaton Pros
      Total control over things like product and price
      Margins- You get all the profit
      Sales-Get other selling for you
      Build your own brand

      Product Creation Cons
      Usually only 1 product to start with
      May or may not be good
      May not sell very well
      Responsible for everything including product creation, marketing, sales, delivery, and service
      Need to recruit "sales people" or affiliates
      Responsible for customer satisfaction
      Dealing with returns

      Both are good models to make money online but they are in completely different areas so in my opinion you really have to think about what you want to do first. That's a big decision and no one but you can say what is best or right for you. I hope this helps.
      Thank you so much for the list and thanks for the great advice.... I'm definitely the only one who can decide on this.
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  • Profile picture of the author NicheService
    Product creation is easier, cheaper (most often, free, too), and faster to do than eCommerce. I think eCommerce requires more resources such as technical skills and finances. In terms of return in investment, just one product can make millions of dollars in profits. I think the late, great Corey Rudl made millions of dollars on just his ebook about cars alone.
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  • Profile picture of the author absolutelee
    Product creation hands down. You build the asset. You control the whole thing. Then you get affiliates to sell for you. Leverage!
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    • Profile picture of the author Jeff Gilbert
      In the long run, you want to be in charge of your assets, and you want to be able to control how you make money. As others have said here, product creation is the way to go. Although it's slow going at first, eventually you look back and you have a whole collection of things you can sell, resell, have as a bonus. The possibilities are much better when you're selling your own products.
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  • Profile picture of the author imagoodguy
    Thanks for all the feedback guys...
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