Simon Yeoman, CEO at Fasthosts, discusses the three factors to consider when expanding a side hustle into an ecommerce offering.
Side hustle culture is alive and well. Whether it’s dog-sitting, cleaning, interior designing, delivering parcels or renting out a spare room, 44 per cent of people in the UK now supplement their main income with a side hustle. In fact, Gen Z is leading the charge with 68 per cent making money this way[i].
With minimal overheads, low risk and 24/7 accessibility, hustlers are turning to the digital marketplace to make their hobbies, interests and skills into an extra income stream, which runs anytime and anywhere.
This influx of new online options has had a ripple effect on consumer behaviour. With 89 per cent of consumers now using search engines for purchase decisions[ii], ecommerce is experiencing explosive growth. But, besides allowing businesses to have their ‘shop doors’ open around the clock, what’s driving this popularity beyond just extended hours?
Rise of the side hustle
The beauty of ecommerce is its inclusivity. Forget the high costs and limitations of traditional storefronts, online marketplaces offer a virtual ‘stall’ for every niche imaginable, allowing anyone to turn their passion into a business.
And this shift isn’t just about convenience for consumers. Ecommerce empowers a new generation of entrepreneurs. With the rising cost of living and a stagnant economy, people are not only looking for new ways to boost their income, but also how to spend more thoughtfully.
This digital transition removes expenses such as heating and rent, which allows for budgets to be redirected towards marketing and development efforts. In addition, an online presence opens businesses up to a new audience of customers – potentially globally. And with great reach comes an even greater potential for profits. In fact, it’s estimated that the average Etsy business, ranging from those that sell thousands of items every year to one-off product sellers, make around £35,000 a year[iii].
Unlocking: ecommerce expansion pack
For side hustlers looking to expand into an ecommerce offering, we believe there are three key factors to consider.
Firstly, choosing the right ecommerce platform is crucial. The best one will be equipped with tools that match the unique needs of the business, which may include inventory management, customer experience support and design assistance.
These elements improve the shopping experience and site appearance to create customer trust and develop loyalty. For some, an existing marketplace such as Fiverrr and Etsy will fit the bill as existing audiences and payment processes are already in place. However, establishing profiles on these types of platforms can be costly. Users might also find themselves dependent on their rules and changes, sacrificing some of their independence for the convenience they offer.
Therefore, a simple-to-use ecommerce site builder that includes SEO-friendly features to improve the website’s visibility on search engines can be more appealing. Side hustlers should think twice about the big, one-size-fits-all platforms, which might not offer the necessary flexibility or could come with higher costs. Instead, options such as WooCommerce, which integrates seamlessly with WordPress for small to medium businesses, and Magento, ideal for larger ecommerce operations, are worth considering.
This satisfies a desire for autonomy, while simultaneously simplifying the setup process by providing step-by-step guidance on connecting a custom site to platforms like Instagram, Amazon and Facebook. A website builder goes beyond just getting the site started, offering features that help a website evolve with the business’s needs.
Next, the digital habits of the target customer come to the fore. Side hustlers must continually learn who might pop their head round their virtual shop door. At this point, it’s key to know who the target demographics are and any associated shopping habits, as well as online behaviours and preferred purchasing platforms.
For example, 52 per cent of millennials are reported to like impulse purchases, which is higher than any other generation[iv]. In line with this, online sellers targeting this demographic might opt to include a roundup of recommended items at the online checkout to encourage last minute shopping.
Now more than ever, consumers demand a smooth and connected shopping experience. Therefore, during this research phase, side hustlers should consider whether their ecommerce offering needs to be omnichannel and if so, which ones do they need to include. For instance, with 68 per cent of millennials active on social media, a side hustler should use these channels to direct potential customers to their online shop.
Lastly, moving into ecommerce brings with it security, data and compliance considerations, such as abiding with new GDPR directives and the DPDI bill. To establish trust among customers and meet regulatory guidelines, online sellers must embed protective building blocks that retain high performance levels 24/7 into their platforms. Failing to meet these standards could jeopardise customer safety and loyalty, as well as incur significant financial and reputational damage.
A digital marketplace for all
The side hustle culture is booming, and the ecommerce marketplace is perfectly positioned to help it flourish. While the online world offers exciting opportunities for sellers, remember success requires preparation.
Side hustlers thinking about setting up an ecommerce presence need to pick the right platform, understand their customers’ online habits, and make sure they protect customer data. By following these steps, side hustlers can use the power of ecommerce and turn their passions into profitable ventures.