Many people when starting to sell online make the mistake by developing their product first and then find their niche market. This is the wrong process. Your first step should be finding your profitable niche market first. A profitable niche is basically a market where there are already people spending money buying products.

You will waste your time and money if you develop a product which doesn?t have a market.

Myth #1: Internet retailers can only compete on price

There are many competitive advantages that internet retailers enjoy other than just lower operating costs. For instance, customers in other states are not subject to sales tax - this in many times more than offsets shipping costs.

Probably the most obvious advantage that an internet retailer has is audience.