🧠 International Ecom Business with $1M Potential
The One Thing You Need to Be Successful & Why Mortgage Rates Matter Right Now
Todays estimated read time: 3 minutes 12 seconds
1. Business idea of the Week: International Ecommerce Aggregator
Everyday I speak with ecommerce sellers that are interested in selling their products internationally.
More people around the world are shopping online everyday, and there is big money to be made in selling to those consumers.
The problem? Selling in international marketplaces is time intensive, expensive, and hard to figure out.
It’s hard to understand the basics of taxes in the US. Now imagine navigating the tax system in a foreign country - it’s not easy.
Sellers want the opportunity to reach customers in foreign marketplaces without the headache of setting up international operations.
The idea: Create an international ecommerce aggregator that allows ecom companies to sell their products through you.
Let’s use Canada in this example. In this model, companies based outside of Canada will ship products to your facilities, and you will take care of all sales in Canada. For this service you can charge a fee such as 15% of all revenue.
Getting started: This business will require a fair amount of set up, since you will need to establish a legal entity in the country you choose. This will likely require you to work with a tax advisor, set up an office space, and live in the country you are setting up operations in.
You will also need to decide on what channels you will focus on. For example, will you sell their products through a site like Amazon, or will you just fulfill the orders that are purchased through their website? In this example we will assume you focus primarily on Amazon, and utilize Amazons FBA fulfillment centers to fulfill and ship the orders.
Once you’re set up, its time to find your customers. Your ideal customer for this business will be a fast growing ecommerce brand that is only selling in the US. You can start your search by finding small to medium sized brands selling on Amazon, that are not available in your market. Once you’ve identified one, you can use cold email or phone calls to pitch them your service.
This is not a small business idea, and will require a lot of set-up & research, but has the potential to generate big money. At a 15% fee you will need to generate around $7 million in order to make your first $1 million profit. This is very do-able in ecom.
Things I like about this business:
$0 inventory costs, as you are selling other brands products for a fee ✅
Potential to scale quickly by building a team and working with more brands 📈
Large demand in a growing market 🤑
Let me know what you think!
2. The One Thing You Need to Be Successful
The one thing you need to be successful is focus.
All successful people have killer focus, which allows them to become experts and execute.
When Steve Jobs was building Apple, he would often sleep under his desk at the office. His entire focus was on building Apple, and nothing could waiver his focus.
If Steve Jobs had decided to try to build another business while building Apple, we probably wouldn’t be using iPhones today, and I wouldn’t be writing this on a Macbook.
Whatever you focus on will grow.
So make sure you’re focusing on the thing that matters.
3. Why Mortgage Rates Matter Right Now
A Mortgage Rate is the amount you will pay to take out a loan, in order to buy a house.
In other words, the fee you pay to borrow the money.
The lower the interest rate = the lower fee.
A higher interest rate will result in a higher monthly payment.
This is why the recent increase in mortgage rates is a big deal.
If you borrow $500K at a 3.5% interest rate, your monthly payment will be around $2,245. But if you borrowed that same $500K at a 6% interest rate you’ll pay around $2,997 per month. Thats an additional $752 every month, or roughly $9k per year. All from a 2.5% increase.
What this really means is that people can afford less. Someone that can only pay $1,700 per month could afford a $400K loan when interest rates were at 3.5%, but that same person can only afford a $300k loan when interest rates are at 6%.
As of today, May 20th, a 30-year mortgage sits at 5.8%
Checkout this table that breaks down mortgage payments at different rates 👇
And heres is the historical chart of mortgage rates over the last two years 👇
So will the recent increase in mortgage rates tank the housing market?
We’ll have to wait and see…
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