"Building
a Sustainable Future by Digital Empowerment”
Unlocking Economic Opportunities for Passive Income
Through Community Online Store
Highlights
- Project Introduction
- Assumption of the model
- Objective
- Online selling versus traditional selling
- Benefits of online selling
- Statistics of individuals earning from the online store
- Case Studies of Passive Income from Online Selling in India
- Community Online Store
- Features of an Online Selling Store/Website?
- Significance of Community Own Selling Store
- International Brands for selling community products
a. Project Introduction
Microcredit can be a useful tool for poverty reduction,
hence is not a silver bullet solution. To effectively reduce poverty, a more
comprehensive approach is needed. This approach must address the systemic
issues that contribute to poverty and provide individuals and communities with
the resources they need to succeed in the right direction.
The biggest bottleneck to poverty for a small entrepreneur is
the role of “Middlemen”, who always played a negative role in efforts to reduce
poverty. Here are some reasons,
- The exploitation of small producers: Middlemen often buy products from small producers at a low price and sell them at a higher price to consumers. This can result in small producers receiving only a small fraction of the final sale price, while the middlemen pocket the rest of the profits.
- Lack of transparency: Middlemen often operate in an opaque manner, making it difficult for small producers to know the true value of their products and the prices they can expect to receive for them.
- Limited market access: Middlemen may control access to markets, making it difficult for small producers to sell their products directly to consumers. This can result in limited income for small producers and the perpetuation of poverty.
- Dependence on middlemen: Small producers may become dependent on middlemen for access to markets and financing. This can result in a lack of independence and control over their own businesses, further perpetuating poverty.
The negative role of middlemen in the economy is making it
more difficult to reduce poverty. To address this, efforts should be made to
promote transparency, increase market access for small producers, and support
initiatives that empower small producers to market and sell their products
directly to consumers. The current proposal of “Community Own Store” will not only
address all these issues, but also offer numerous benefits to small producers,
including increased reach, lower costs, direct access to customers,
flexibility, better data collection, and increased brand exposure. These
benefits can help small producers grow their businesses and compete more
effectively in the marketplace.
b.
Assumption of the model
This model is presented under the following
assumptions.
- All the Rural Support Programs (RSPs) in Pakistan are linked to a strong and integrated system of Local Support Organizations (LSOs), which have deep-rooted Community Organizations (COs) organized at the village level.
- At the grass root level, the entire Rural Support Programs (RSPs) are running a fully functional Micro Credit program, which may provide Micro Credit Access to the small enterprise to produce bulk items for online selling.
- There are hundreds of people under the jurisdiction of the LSO who are earning their living in handicraft or small cottage industries.
- The majority of people do not know the complexities of marketing related to their manufactured goods, and they are not able to get fair compensation for their hard work. All this is done by middlemen, who buy from them at cheap prices and sell them in the market at high prices.
- If the LSOs create their own online store for the online sale of handicrafts made by their COs, and sell their products in the global market, then a common artisan can earn thousands of $ in a single month.
- The community will use two types of platforms for online selling,
- Community Own Online Store
- International Brand of Online Selling
- To manage each Online Store, merely one person at each UC is needed.
- After completing one-month training, he/she will be with equipped the basic fundamentals needed to run an Online Store successfully.
c. Objective
The objective of a Community Online Store is to support
local businesses within the community for Passive Income.
d.
Online selling versus
traditional selling
Online selling and traditional selling are two different
approaches to selling products, and online selling may prove a better option as
compared to traditional selling. Here are a few glimpses.
|
Online Selling |
Traditional Selling |
|
Expanded Reach: As mentioned before, online selling allows
businesses to reach customers from all over the world, which can increase
their customer base and revenue potential. |
Limited Reach: Traditional selling is often limited to a
specific geographic area, which can limit a business's customer base and
revenue potential. |
|
Lower Costs: Online selling is often less expensive than
traditional selling, as it eliminates the need for rent, utilities, and other
expenses associated with maintaining a physical location. |
Higher Costs: Traditional selling often requires rent,
utilities, and other expenses associated with maintaining a physical
location, which can be more expensive than online selling. |
|
Increased Flexibility: Online selling allows businesses to
operate 24/7, providing customers with the ability to shop at any time. |
Limited Flexibility: Traditional selling often requires
businesses to operate during specific hours, which can limit customers'
ability to shop. |
|
Data Analytics: Online selling provides businesses with valuable
data and analytics that can be used to optimize their sales strategies and
improve their products. |
Not such facility |
|
One significant advantage of online selling is the ability to
leverage technology to provide a personalized and efficient customer
experience. For example, businesses can use data analytics to track customer
preferences and offer personalized recommendations, or use chatbots to
provide immediate customer support. Online selling also offers the advantage
of lower overhead costs and increased flexibility, making it an appealing
option for small businesses and startups. |
Not such facility |
e.
Benefits of online selling
Online selling can provide businesses with numerous
benefits, including increased revenue potential, lower costs, and improved
customer experiences. There are numerous benefits to selling products online,
including:
- Expanded Reach: Online selling allows businesses to reach customers from all over the world, which can increase their customer base and revenue potential.
- Lower Costs: Setting up an online store is often less expensive than establishing a physical storefront, as it eliminates the need for rent, utilities, and other expenses associated with maintaining a physical location.
- Convenience: Customers can easily browse and purchase products from the comfort of their own homes, which is often more convenient than visiting a physical store.
- Increased Flexibility: Online selling allows businesses to operate 24/7, providing customers with the ability to shop at any time.
- Increased Data and Analytics: Online selling provides businesses with valuable data and analytics that can be used to optimize their sales strategies and improve their products.
- Improved Customer Experience: Online selling provides businesses with the ability to offer personalized customer experiences, such as customized product recommendations and targeted promotions.
f.
Statistics of individuals
earning from the online store
According to recent studies and surveys, the number of
online stores and e-commerce businesses is rapidly growing worldwide. For
example, a report by Statista in 2021 found that global e-commerce sales are
projected to reach $4.9 trillion in 2021 and are expected to continue to grow
in the coming years. The report also noted that Asia is the largest e-commerce
market, followed by North America and Europe.
A survey by BigCommerce in 2020 found that 96% of Americans
have made an online purchase at least once in their lives, with 43% making
purchases online at least once a month. This suggests that there is a
significant market for online stores and e-commerce businesses.
Another report by eMarketer in 2020 estimated that global
e-commerce sales would reach $4.2 trillion by the end of the year. The report
also noted that the COVID-19 pandemic had a significant impact on e-commerce
sales, with many consumers turning to online shopping as a safer alternative to
in-person shopping.
A study by Shopify in 2021 found that the average gross
revenue for Shopify stores in 2020 was $1.5 million, with the top 10% of stores
earning an average of $10.5 million. This suggests that there is significant
potential for individuals to earn a substantial income from running an online
store.
g.
Case studies of Passive
Income from Online Selling in India
Here are some case studies of individuals and businesses in
India earning passive income from online selling. These case studies
demonstrate that individuals and businesses in India can earn significant
passive income from online selling through a variety of channels, including
affiliate marketing, advertising, and digital products.
1.
Kulwant Nagi
Kulwant is the founder of Blogging Cage, a blog and online
course teaching people how to start and grow successful blogs. He earns passive
income from his blog through affiliate marketing, advertising, and sponsored
content. In addition, he earns revenue from his online courses and coaching
programs, which teach others how to succeed in the blogging world. Kulwant has
been able to earn over $20,000 per month in passive income from his online
business.
2.
Ankur Aggarwal
Ankur is the founder of Income Boy, a blog and YouTube
channel focused on teaching people how to make money online. He earns passive
income from his blog and YouTube channel through affiliate marketing,
advertising, and sponsorships. In addition, he sells his own digital products,
such as ebooks and online courses, which provide additional streams of passive
income. Ankur has been able to earn over $15,000 per month in passive income
from his online business.
3.
Harsh Agrawal
Harsh is the founder of ShoutMeLoud, a blog and online
course teaching people how to start and grow successful blogs. He earns passive
income from his blog through affiliate marketing, advertising, and sponsored
content. He also earns revenue from his online courses and coaching programs,
which teach others how to succeed in the blogging world. Harsh has been able to
earn over $50,000 per month in passive income from his online business.
4.
Nishant Bhardwaj
Nishant is the founder of Affiliate Guy, a blog and online
course teaching people how to make money through affiliate marketing. He earns
passive income from his blog through affiliate marketing, advertising, and
sponsorships. He also earns revenue from his online courses, which provide
additional streams of passive income. Nishant has been able to earn over
$10,000 per month in passive income from his online business.
5.
Jitendra Vaswani
Jitendra is a digital marketer and founder of Bloggers Ideas,
a blog focused on helping people succeed in the online business world. He earns
passive income through affiliate marketing, where he promotes products and
services to his audience and earns a commission on sales. In addition, he earns
revenue through his online courses, coaching programs, and sponsored content.
Jitendra has been able to earn over $10,000 per month in passive income from
his online business.
6.
Abhinav Jain
Abhinav is the founder of Rusty Blogger, a blog and YouTube
channel focused on helping people start and grow successful blogs. He earns
passive income through affiliate marketing, advertising, and sponsored content.
He also sells his own digital products, such as ebooks and online courses,
which provide additional streams of passive income. Abhinav has been able to
earn over $5,000 per month in passive income from his online business.
7.
Pradeep Kumar
Pradeep is the founder of Hell Bound Bloggers, a blog and
online community focused on helping people succeed in the online business
world. He earns passive income through advertising, sponsorships, and affiliate
marketing. He also sells his own digital products, such as ebooks and online courses,
which provide additional streams of passive income. Pradeep has been able to
earn over $15,000 per month in passive income from his online business.
8.
Amit Mishra
Amit is a digital marketer and founder of Tryootech, a blog, and YouTube channel focused on helping people make money online. He earns
passive income through affiliate marketing, advertising, and sponsored content.
In addition, he sells his own digital products, such as ebooks and online
courses, which provide additional streams of passive income. Amit has been able
to earn over $20,000 per month in passive income from his online business.
9.
Siddharth Rajsekar
Siddharth is an online business coach and founder of the
Freedom Business Model, a program that teaches people how to build profitable
online businesses. He earns passive income through his online courses, coaching
programs, and affiliate marketing. In addition, he earns revenue through his
podcast, speaking engagements, and book sales. Siddharth has been able to earn
over $30,000 per month in passive income from his online business.
10. Anil Agarwal
Anil is a blogger and founder of Bloggers Passion, a blog
focused on helping people start and grow successful blogs. He earns passive
income through affiliate marketing, advertising, and sponsored content. In
addition, he sells his own digital products, such as ebooks and online courses,
which provide additional streams of passive income. Anil has been able to earn
over $10,000 per month in passive income from his online business.
11. Harsh AgrawalHarsh
Harsh AgrawalHarsh is a blogger and founder of Shout Me Loud,
a blog focused on helping people start and grow successful blogs. He earns
passive income through affiliate marketing, advertising, and sponsored content.
In addition, he sells his own digital products, such as ebooks and online
courses, which provide additional streams of passive income. Harsh has been
able to earn over $20,000 per month in passive income from his online business.
These case studies demonstrate that individuals in India can
earn significant passive income from online sources, such as affiliate
marketing, advertising, and digital products. However, as with any online
business, success requires hard work, dedication, and a willingness to learn
and adapt to changing market conditions.
h.
Community Online Store
A Community Online Store is an e-commerce platform that
allows members of a community or a group to sell their products or services
online. These stores are typically created and managed by a community
organization or a group of individuals who want to support local businesses and
entrepreneurs.
In a Community Online Store, sellers can create their own
product listings, set their own prices, and manage their inventory and orders.
The platform provides a centralized location for customers to browse and
purchase products from multiple sellers within the community. The store may
also offer features like customer reviews, secure payment processing, and
shipping options.
i.
Features of an Online
Selling Store/Website?
A selling website is a website designed for the purpose of
selling products or services online. It is essentially an e-commerce platform
that allows businesses to showcase their products or services, process
transactions, and manage orders, inventory, and shipping.
A selling website typically includes features such as a
product catalog with detailed descriptions, pricing, and shipping information, a
shopping cart for customers to add items to their orders, a secure checkout
process for payment, and order management tools for businesses to track and
fulfill orders.
Some examples of popular selling websites include Amazon,
eBay, Etsy, and Shopify. However, many businesses also choose to create their
own custom selling website to have more control over the design, features, and
branding of their online store.
j.
Significance of Community
Own Selling Store
Having your own selling store can offer greater control,
flexibility, and cost-effectiveness, while also improving the customer
experience and providing valuable data and analytics for your business. Here
are some benefits of having your own selling website:
1.
Increased control
When you have your own selling website, you have full
control over the design, functionality, and branding of the site. This allows
you to create a unique and personalized online shopping experience for your
customers.
2.
Greater flexibility
With your own selling website, you can customize the
features and functionality to meet the specific needs of your business. You can
also make changes and updates quickly and easily as needed.
3.
Lower costs
While there may be some initial setup costs for creating
your own selling website, in the long run, it can be more cost-effective than
selling on third-party platforms that charge fees and commissions.
4.
Improved customer
experience
With your own selling website, you can create a more
streamlined and personalized shopping experience for your customers. This can
lead to increased customer satisfaction and loyalty.
5.
Direct communication with
customers
Having your own selling website allows you to communicate
directly with your customers, which can help build stronger relationships and
increase sales.
6.
Better analytics and data
tracking
With your own selling website, you can track and analyze
customer data and behavior, which can help you make better business decisions
and improve your marketing efforts.
k.
International Brands for selling
community products
Along with having its own selling website, the community will
be enabled to sell its products on the following selling platforms. These are
ten popular online platforms for selling products:
1.
Amazon
One of the largest e-commerce platforms, Amazon offers a vast
array of products for sale and has a large customer base.
2.
eBay
A well-established online marketplace that allows
individuals and businesses to sell new and used goods.
3.
Shopify
A popular e-commerce platform that enables businesses to
create their own online stores and sell products directly to customers.
4.
Etsy
A platform focused on handmade and unique items, Etsy allows
artisans and craftspeople to sell their wares online.
5.
Walmart Marketplace
A platform for third-party sellers to offer their products
on Walmart's online store.
6.
Facebook Marketplace
A social media platform that allows users to buy and sell
items locally.
7.
Mercari
A mobile app-based platform that enables individuals to sell
and buy items locally.
8.
Poshmark
A platform focused on fashion and clothing, Poshmark enables
individuals to sell and buy secondhand clothing items.
9.
Alibaba
A global e-commerce platform that connects buyers and
sellers from around the world.
10. Newegg
A platform focused on technology and electronics, Newegg enables businesses to sell computer hardware, software, and other tech-related products.
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