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Today, it's easier than ever to start a business. That's according to the president of Shopify, Harley Finkelstein, whose company has seen a surge of new merchants on its platform this year — many of whom have taken their physical retail stores digital during the pandemic.
"The barrier to entry and the cost of failure for entrepreneurship is as low as it's ever been," Finkelstein told Insider. "Anyone with a laptop can walk into a coffee shop or go to the kitchen table and start a business right now. That wasn't possible even 10 years ago."
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Whether you're starting a new business, setting up your very first ecommerce site, or expanding your services through new channels, now is the time to reach your customers where they're spending most of their time — online. This holiday season, online sales are expected to be 50% higher than in 2019, according to Axios.
Not all platforms are designed for every entrepreneur, so it's key to find the one (or ones) that fulfills your needs and caters to your audience. That's why we've broken business owners into four categories, based on what and how they sell: retailers, resellers, makers, and content creators.
AdvertisementA new crop of tools is emerging for service providers, who can also take advantage of several platforms in the other categories. We've noted where service providers might benefit from what these platforms offer.
Here are the best platforms to use based on the type of entrepreneur you are and the type of market you want to reach. We also highlight the top features you can expect and what it costs to get started.
AdvertisementUse this ecommerce platform if you have a unique product or service you want to sell directly to your customers, and don't want to built out a website from scratch. Shopify powers more than one million ecommerce merchants globally, so it has the support, efficiency, and tools you need to match the retail experiences of companies like Allbirds and PepsiCo. Service providers can also add online orders through Shopify.
Shopify also offers a built-in drop shipping service so you can start a business without having any inventory. This can be helpful for first-time entrepreneurs who want to dip their toes into running a small business, or it can be a way for established businesses to test new products with a minimal financial commitment.
An additional feature to note is Shopify's recently added point-of-sale system which syncs from your brick and mortar shop to your online storefront.
Cost: Monthly plans start at $29, which include website hosting, marketing tools, resources, and app integrations. Prices for additional features like domain names and website themes vary.
This social media app is quickly evolving into a shopping experience, making it more than just a marketing tool for your business. Instagram is common among direct-to-consumer brands that prioritize creative and engaging visuals just as much as the actual products. It's also a prime spot to reach young shoppers, as it's popular among Millennials and GenZers.
Cost: It's free to set up a business account, which gives you access to engagement metrics and customer insights. Ads and boosted posts can cost as little as $0.70 per click and exceed $5 per click, depending on time, placement, and category, according to Hubspot.
Alibaba connects manufacturers and retailers who are looking to do larger volume transactions, including international trade. It launched an online wholesale marketplace for US businesses last year and has since doubled the number of transactions in this market. Rather than taking a commission of each sale, Alibaba only charges a fixed membership fee.
Cost: Basic plans currently start at $2,399 per year.
There is simply no larger customer base than Amazon. If your business needs online reach, it likely needs to be on Amazon. There are a dizzying array of options for individual use-cases ranging from larger manufacturers to custom shops, which we detail in our ultimate guide to getting started on the platform.
Cost: Pro seller plans cost $40 per month, and most sales are subject to a 15% commission. Additional costs can quickly add up, with advertising fees and fulfillment charges necessary to compete in the crowded marketplace.
Ecwid is ideal for a retailer who is new to ecommerce and needs a solution to quickly set up multiple sales channels, as it syncs to social media and ecommerce platforms such Instagram and Amazon. According to the company, thousands of brands use Ecwid globally and account sign-ups doubled from March to April as more businesses went online during the pandemic.
Cost: Free to set up an online store. Monthly plans starting at $15 will sync your store to your social media accounts and additional marketplaces.
AdvertisementEbay is streamlining its small business user experience with a new Seller Hub for US sellers, but the 25-year-old marketplace generally remains the same. From electronics to fashion accessories to collectibles, the platform connects bargain-minded buyers and sellers around the world.
Cost: Free to list, 10% transaction fee on all sales.
If you're reselling brand-name clothing, accessories, and home goods, Poshmark is the place to be. The popular marketplace app also functions as a resale community and rewards sellers who engage with customers, participate in virtual shopping events, and promote other's listings. Once you've built up a loyal customer base and following, sellers can scale through Poshmark's wholesale channel.
Cost: Free to use and set up your shop. Poshmark takes a 20% commission on sales $15 or more. For sales under $15, Poshmark charges a flat rate of $2.95.
Depop is one of the more fashion-forward resale sites on the internet, which is not a reputation it's earned by accident. Depop caters to a young, hip crowd of buyers and sellers, and the site deliberately casts its resellers as curators.
Stylish users can turn their sense of taste into a lucrative side-hustle by establishing a unique aesthetic and then owning that niche. Depop is a great resource for anyone trying to sell used clothing, but for aspiring tastemakers it should be their home page.
Cost: There is no fee to list an item, but Depop takes 10% of sales.
Although Facebook can be a useful tool to market any business, Facebook Marketplace functions as an ecommerce channel that caters well to resale items such as used furniture or thrift finds. Since customers can search for products based on their location, the platform gives sellers access to local communities to further bolster their customer base.
Cost: Free to list items. Prices to promote listings and increase exposure vary based on time and location, among other factors.
AdvertisementIf you're a creative entrepreneur, Etsy is the powerhouse of marketplaces with nearly five million active buyers. It can be your homebase for selling your products, or it can serve as an additional sales channel.
Cost: Free to get started. Etsy charges 20 cents per product listing.
Faire is a marketplace that connects independent designers with local shops to curate unique products that can't be bought elsewhere. If you make more of a product than you can sell on your own, Faire can help you reach retailers who are interested in hard-to-find items that they can't get anywhere else.
Cost: 25% commission on first-time orders, 15% for follow-up orders sourced through the platform. Existing relationships that you bring to the platform are not subject to commission. Transactions are subject to a 3% processing fee.
Wix is expanding from its original role as a portfolio website host to a more full-featured ecommerce platform. Now, the platform used by creatives and designers of all kinds is available for entrepreneurs offering a broader array of products and services. If your business needs a turnkey solution to get online, Wix is a convenient place to start.
Cost: Business plans start at $23/month and go all the way to $500/month for enterprise-grade support.
Big Cartel is a marketplace for entrepreneurs to sell their work, build an online store, or run a business. The company launched in 2005 and has helped creators sell more than $2.5 billion of their work. What's more, Big Cartel doesn't take a cut of sales and only charges a monthly subscription plan.
Cost: Big Cartel doesn't charge entrepreneurs who are selling five goods or less. After that, monthly plans start at $9.99 per month for 50 products and go as high as $29.99 a month for 500 items.
AdvertisementYouTube is practically an industry of its own, and the opportunities for content creators to earn revenue are quite diverse. From advertising to memberships to merch, YouTube partners who meet certain eligibility criteria stand to make substantial revenues from posting engaging videos to the platform.
Cost: Free to start uploading videos and growing an audience, but it can take a considerable investment of time and money before your channel is eligible for monetization. Commissions and fees on revenues vary based on a multitude of factors.
Whether you're already creating content or you're looking for an additional income stream, Patreon is designed to monetize your work outside of click- and ad-based models. Freelancers, entertainers, and creatives establish their own subscription levels based on what they offer, giving them direct access to their followers.
Cost: Free to get started. Once you begin earning money, Patreon takes a 5-12% commission depending on the membership plan you choose. It also charges a standard payment processing fee per transaction.
Where YouTube generally represents an ever-growing archive of videos, Amazon's Twitch is all about the real-time stream of live entertainment. Esport streamers in particular can generate large numbers of paying subscribers, who have propelled some creators to earn tens of thousands of dollars each month.
Cost: Free to get started, subscription fees are generally split 50-50 between the streamer and Twitch.
Writers are finding success monetizing their work through newsletters published on Substack. Like other platforms, it's free to get started, and the hard work of building an audience can take a considerable investment of time and money. Top writers on the platform boast tens of thousands of subscribers, with monthly subscriptions ranging from $5 to $49 each.
Cost: 10% commissions, but only after you decide to start charging for subscriptions, and a payment fee of about 3%.
If you provide a service such as online courses, webinars, downloads, or memberships Podia gives you a platform to sell them. Whether you own a yoga studio and want to stream classes to members' homes, or you're an artist teaching DIY craft lessons, your YouTube Live and Zoom recordings integrate with your Podia storefront. You can also use a tiered membership model to give one member group exclusive access to certain products.
Cost: Monthly plans are $39 and $79, depending on the level of services you need.
Described both as "an Instagram for NSFW images" and "the paywall of porn," OnlyFans has become a cultural touchstone in the years since its creation. The premise is simple: Creators make content, put it behind a paywall, and then charge customers monthly subscriptions for access to their material. Most subscriptions run between $5 to $20 a month.
Due to OnlyFans' lax content guidelines, the platform has become a critical resource for adult entertainers, who earn more money by monetizing their content on OnlyFans than they do by uploading it for free to ad-supported porn sites.
OnlyFans also features content from workers such as fitness gurus, chefs, and video entertainers.
Cost: Creators can make channels for free, but OnlyFans takes a 20% cut of all revenue.
Fiverr is a resource for freelancers and anyone looking to hire a freelancer. It solves a key pain point for many businesses: the lack of a centralized forum for freelancers.
By bringing both parties to the same platform, Fiverr simplifies the transactional process between those seeking and those offering creative services.
The site is divided into sections based on types of content, such as graphics and design, writing and editing, and programming and tech.
Cost: All purchases are subject to a service fee of $2 on purchases up to and including $40, and 5% on purchases above $40.
AdvertisementDumpling is a startup that enables people start their own independent grocery-delivery businesses. Unlike Instacart and Fresh Direct, business owners have more control over their marketing and can build up their own clientele. Clients can download your personalized app, build their shopping lists, and place orders for your service.
The company provides the apps to manage your business and for clients to place orders, a website to promote your business, a credit card to use for shopping orders, and coaching resources.
Cost: $19.99 one-time fee to get started. A starter membership with all basic features is free, a pro membership costs $49 per month, and a tycoon membership costs $99 per month.
MindBody is a platform and app that boasts 1.3 million monthly active users, serving gyms, fitness studios, salons, spas, and other service-oriented businesses in the health and wellness industries. The software enables businesses to schedule appointments and offer on-demand and live-streaming services. It also integrates with other apps and marketing tools like ClassPass and Constant Contact.
Cost: Plans options vary by industry, starting at $129 per month, with tiered memberships up to $599 per month.
Turo is a peer-to-peer car rental service allowing vehicle owners to compete with corporate rental companies, like Budget or Enterprise. The app started as a side hustle for those who owned underutilized cars and wanted to make some money off their car's availability. Now, the app has turned into a full-fledged entrepreneurship opportunity as some Turo rentees have built a collection of 20 vehicles to rent out. The North American car-sharing market is expected to exceed $4.8 billion by 2024, making personal car rentals a profitable option for both side-hustlers and serial entrepreneurs.
Cost: It is free to sign up as a Turo host, but you're required to pay for car insurance and annual maintenance checks and repairs. Hosts choose the daily rate, as well as any fees associated with the trip. Depending on the type of host plan, hosts will earn between 60%–92.5% of the trip price.
