How to Start an Ecommerce Business as a Teenager

How advantageous it is for you to comprehend the individuals who are leading the way in influencer marketing and online social media sales!

The world is undergoing rapid change that even the older generation may hesitate to acknowledge, and it is the younger generation that has a keen understanding of the direction in which technology is heading.

Not only that, but it is also projected that ecommerce sales will nearly double within the next decade.

If you are a teenager searching for an excellent business idea, understand that you have a special opportunity to establish a highly lucrative ecommerce business while still in high school!

Why start a business as a young entrepreneur

Making mistakes is easier when you’re young

Launching a business always carries a level of risk, regardless of one’s age. However, when you are young and residing with your parents, the potential repercussions of failure are considerably diminished. Committing errors in the early stages allows for a substantial amount of time ahead to rectify and triumph.

You’ll never have this much free time again

With the multitude of school, sports, activities, and a thriving social life, your schedule may already seem packed. However, once adulthood arrives, your agenda can become even more hectic. As you have fewer obligations and expenses to tend to, seize the opportunity to put your idea into action.

You have a built-in audience for your idea

Utilize your classmates as an ideal platform to test a product idea, as their unique network within the school provides effortless word-of-mouth marketing opportunities. Leverage your childhood or teenage experiences to develop a solution or design a product specifically tailored for your peers.

You have access to a wealth of free resources and support

Once you finish high school, you will incur expenses not just for your education, but also for various other things. Almost everything, ranging from bus passes to entertainment, is likely to become more expensive. Several schools are now recognizing the importance of practical business skills for young entrepreneurs and are incorporating elective courses into their curriculum to cater to this need.

Also, take into account utilizing these school resources:

• Labs and tech equipment 
• Computers and software 
• Art studio and shop class tools
• Knowledge and feedback from teachers, guidance counselors, and fellow students

The skills you learn now will help you later 

Entrepreneurs, regardless of age, acquire a wealth of knowledge in their inaugural year of operating a small business. This stems from the fact that they often juggle multiple responsibilities including boosting sales, creating products, and overseeing customer service. The valuable skill set cultivated from starting a business can potentially enhance your college application, yielding positive results.

Make extra money for fun or college

Young people can consider turning their hobbies into profitable business ventures. For instance, they can transform their passion for animals into a small-scale dog walking service or use their sewing skills to establish an online clothing brand. By pursuing these entrepreneurial endeavors, they can not only earn additional income but also enjoy the activity they are already passionate about. Ultimately, this financial independence allows them to save for personal desires, such as buying a gaming system, or set aside funds for future academic pursuits like college.

How to Start an Ecommerce Business as a Teenager With No Upfront Investment 

1. Choose Your Business Model

If you want to start your online ecommerce business without spending any money upfront, your ideal options are either dropshipping or print on demand.

You can create and promote products that are not manufactured or do not even exist yet without having to invest in stock or inventory.

Dropshipping

Dropshipping involves the promotion of products on your own website that are produced and provided by a third party.

Once the customer finds a product they are interested in, they proceed to buy it on your website, and subsequently, the supplier is notified to dispatch the purchased product.

You earn profits by the margin between the selling price of the product and its cost from the supplier.

Take, for instance;

You are offered a pair of AirPods for $10 by a dropship company, and you proceed to list them on your online ecommerce store for $30.

You sell the items to the customer and forward the order, along with the payment of $10, to the supplier who then ships out the AirPods.

You can retain the remaining $20.

Your markup on the cost price of the product is referred to as that.

Since dropshipping is an uncomplicated approach to enter the e-commerce industry, it leads to intense competition.

In order to distinguish yourself from others, it is necessary to establish a robust brand and guarantee that you are exclusively offering products of high quality.

Print on Demand

When using print on demand, designs are created to be printed on products at the time of customer purchase.

As part of its product range, printful, a print on demand company, provides blank white mugs for instance.

You advertise the mugs showcasing your own designs.

Once the mug is purchased by the customer, printful takes care of printing it with your design and subsequently dispatches it to the customer.

Similar to dropshipping, purchasing the mug for $5 could result in you retaining an additional $10 when the customer pays $15.

Just like dropshipping, print on demand offers a simple way to enter the world of ecommerce. Therefore, to distinguish yourself, it is essential to have a strong brand and offer high-quality products and designs.

Now, let’s focus on the main point of starting an ecommerce business as a teenager and explore how to establish both these models within a few hours.

2. Build Your Own Ecommerce Website

Built with the intention of swiftly and effortlessly establishing an online store, Shopify is widely regarded as an outstanding ecommerce platform.

You have the opportunity to enjoy a complimentary trial period of 3 days and avail of 3 months for just $1 to establish your store and commence selling. Following this, the basic plan (which encompasses all your requirements) costs $29 per month.

The aim is to achieve your initial sales upon going live, just like Peter did, in order to comfortably cover the monthly fee of $29.

Making the process of finding suppliers and adding products to your store effortless is as simple as using the dropshipping app Spocket.

Setting up products on Shopify becomes effortless when opting for the print on demand route, as each company offers its own app that seamlessly integrates with the platform.

3. Find a Product/Create Your Brand

One recommended approach for selecting a product to sell involves utilizing Amazon to identify popular and highly sought-after items.

This is the way it is done;

1. Go to Amazon bestsellers – https://www.amazon.com/Best-Sellers/zgbs
2. Pick a niche/product line you like the look of
3. Search for products between $20 – $50, under 1lb in weight and a best seller rank of under 1000 (the lower the number the more popular the product)
4. Create a list of potential products to then start looking for suppliers and costs etc.

However, there are some things to consider.

1. Can you markup the product by at least 5 – 10x to ensure a good profit margin? (If it costs you $5, can you sell it for at least $25)
2. Is the product small, light, easy to ship with few moving pieces/breakable parts?
3. How can you differentiate yourself from others selling a similar product?

After choosing your amazing product, utilize a complimentary image creation tool such as Canva to design your logo and store images, then proceed to launch!

One advantage of employing Shopify is its seamless integration with Facebook and Instagram, enabling hassle-free selling on both platforms.

You can easily create a page/profile on both platforms and include them as options in the Shopify backend’s ‘sales channel’.

Begin posting on your social media stores after setting them up and utilize your strengths!

Getting your products in front of pre-existing audiences is one of the quickest methods to kickstart your ecommerce business or Instagram shopping.

Compile a roster of influential individuals in your specific field, who have established a considerable fan base. Proceed to send them direct messages, inquiring if they would be willing to review and discuss your product should they find it appealing.

They can also receive a small portion of the profits when their audience makes a purchase using a custom sales link provided to them.

Everyone benefits!

5. Tell the World Your Brand Exists!

Expand your following on platforms such as Instagram, TikTok, Pinterest, and even Discord if that’s where you prefer to spend your time.

Ongoing promotion is the most crucial aspect in establishing a thriving ecommerce business, despite its demanding nature.

You won’t initially have the funds to invest in advertising or sponsorship agreements, hence relying on traditional hustle becomes necessary!

No matter what you have to do, whether it’s creating videos, producing images, sharing stories, or reaching out to influencers, ensure that you promote your products and brand effectively.

As a teenager on your journey to learn how to start an ecommerce business, this part should be the most effortless for you!

As you gradually increase your sales, you will have the opportunity to invest in advertisements, thereby expanding your audience further.

How to start a business under 18

When young entrepreneurs embark on their journey, they often begin with simple endeavors like setting up a lemonade stand in their front yard or building a thriving babysitting business within their neighborhood. These initial ventures usually do not require significant initial investments. However, if you aspire to elevate your entrepreneurial aspirations, it becomes essential to seek the guidance and involvement of a parent or guardian.

Before you reach the age of 18, make sure to adhere to these five steps in order to commence your business with assistance from an adult.

1. Ask for permission

Ensure that you have the backing of a parent or guardian before embarking on tasks such as drafting a business plan or creating a logo. It is crucial as they will be required to co-sign any documents that involve contracts (legal papers, financial tools, your online store account). Moreover, if you are underage for particular platforms, your adult sponsor might need to join and oversee social accounts, requiring their consent.

2. Find and validate your idea

Have a grand vision! Concepts can emerge from various sources—be it a determination to address an issue affecting you and those around you, a novel perspective on an already existing product, or something completely original.

There are numerous business options for children, such as starting a lawn care service, selling products online, or establishing a nonprofit centered around a cause. When brainstorming ideas for your small enterprise, it is crucial to consider your target market, i.e., the individuals you wish to sell to. Involving this demographic in your concept will enable you to gather feedback and ascertain its feasibility.

3. Decide how you will fund your business

If young individuals receive assistance from their parents, they can effortlessly initiate a business endeavor. However, certain business concepts may necessitate initial capital. Have you managed to accumulate any personal savings from your allowances or earnings from babysitting? Are you able to obtain financial support from your parents?

After acquiring the necessary funds to initiate, seeking an adult’s assistance becomes essential in managing various financial aspects of the business. Engage in a conversation with your parents regarding the necessity of establishing a business bank account, with them serving as the authorized signer. Additionally, it is crucial to have a discussion with your parents about your individual responsibilities concerning business finance, encompassing tax payments, as you embark on your entrepreneurial journey.

4. Work with a parent or guardian to get set up

To emphasize once again, the active participation of a parent or guardian is vital when initiating a business venture before turning 18. Typically, individuals in this age group lack the capacity to engage in legally binding contracts or own a credit card under their own name. In both Canada and the US, individuals below the age of 18 are not permitted to independently sign agreements; however, their parents possess the authority to do so on their behalf.

Country and state regulations vary, but most financial, ecommerce, and social media products have minimum age restrictions. Local governments can provide guidance on these rules. The US Small Business Administration advises that parents seek the counsel of an accountant and an attorney.

Other tasks, such as, should also be completed with the assistance of a parent.

• Determining pricing. Look around at your competitors. What are they charging for the same product or service? If what you’re offering is of comparable value, price it accordingly. Have a parent or mentor assist you with pricing, or consult online resources.
• Setting up an online store. You’ll need to use a parent or guardian’s account to log in to a tool like Shopify, but the rest is up to you! Choose a theme and customize your design.
• Creating social media accounts. A parent may need to sign up for the account and monitor activity, but when it comes to social media, you’re the content expert. 

5. Market and sell your products or services

Now is the moment to generate income by catering to your target audience! Initiate the process of launching your website or online store, commence your marketing efforts, and anticipate the delightful sound of a cash register notification on your phone. Moreover, you have the option to investigate alternative sales avenues such as participating in local craft fairs or events hosted by your educational institution.

After receiving assistance from a parent to handle the necessary legal matters, you are all set to handle the daily business operations. Enjoy yourself, earn additional income, and acquire new skills that will be valuable in college and beyond!