How to invest your money in trade (6 distinct types of trade for 2024)
How to invest your money in trading?
The answer to this question does not just provide you with information, but rather opens up a huge world of success and profits for you.
Trade represents a vast, vast world of opportunities created for intelligent capital.
We use the term “smart capital” here because trade in itself is not profitable, but rather profit comes from investing in it intelligently while using previously proven methods and ideas.
In this article, we present to you a collection of the best ideas that have been tried and tested over time and have proven successful.
Some of these methods may be suitable for you and your budget, while others may not.
Therefore, determining the most appropriate trading method remains your responsibility.
Now let’s start with…
1- Profit from investing in electronic commerce
E-commerce is the most active type of commerce in this period.
Perhaps because of the convenience it offers to the consumer or the ease of access to many products without the need to move a lot between stores.
What is called electronic commerce is a combination between the idea of commerce itself, which consists of buying goods at a low price and then reselling them at a higher price, and the electronic world.
Therefore, it is a trade that takes place over the Internet.
This trade has many forms, such as:
- Selling on social media platforms (Instagram – Facebook – Snapchat – etc.).
- Selling on international stores (Amazon, eBay, Jumia, etc.).
- You can also create your own online store and sell through it.
Online sales have evolved to the point where you have many solutions and alternatives that you can start with without incurring the hassle of using a large portion of your capital in preparation.
But the most important thing now is to do….
- Building an audience of loyal customers for your brand.
- To remain in front of the eyes of your followers or audience at all times.
- Maintain an excellent appearance for your products in terms of photography, design, and even their marketing content.
- Don’t forget to look for new products that are not widely available.
Profit from e-commerce depends more on how you do everything than on doing the thing itself!!!!
So read the tips below carefully before starting
Tips when investing in e-commerce
The most important advice in commerce in general and e-commerce in particular is:
Focus on building customers before focusing on profit, especially when dealing for the first time.
If you focus on building a customer base, you will be able to gain 3,000 customers during the year.
The average customer requested from you 3 times a year, which means that you will achieve 9,000 transactions per year.
If you make a profit of $5 per sale, you can make a net profit of $45,000 annually.
There are many other tips that you may find useful:
- Study the market well, focus on what people are actually looking for, and thus you will not have to make a great effort to convince consumers of the product itself as long as it is in demand.
- The time of selling the item is also important. Make sure to choose the appropriate times (selling lanterns only in Ramadan, summer clothes in the summer, and so on).
- If you can avoid competition, your business has become global, but if this is a little difficult, be sure to study and analyze competitors in terms of (prices – their advertisements – shipping – where they market)
- Make sure that the prices are excellent (lower or at the same level as others, not higher).
- Establish good relationships with buyers, ask them about their opinions on the products, and sometimes give them gifts.
2- Profit from investing in retail trade
Retail trade means that you sell directly to consumers any good, service, or group of goods and services.
Supermarkets, restaurants, and libraries that provide educational services and materials to students are all examples of retail.
Retail needs a deep understanding of how this model works so that you can invest in it and profit
Retail is the most widespread type of trade on the ground.
This is mainly due to the possibility of undertaking these projects with small or large capital.
Now, some steps and tips in this trade…
Tips when investing in retail trade
There are many tips that I strongly advise you to start with before putting any money into your trading, but the most important of these tips are…
- Know what people need?
The most important thing in dealing with a buyer directly is knowing what he needs.
Whether you intend to start in a popular area or an upscale area in a village or city, always know the needs of that area in which you live.
Knowing this is the first indicator to ensure the success of your trade and achieve some profit.
- Estimate the market size
Suppose you are in a city and this city has 3,000 residents.
But at the same time, it has more than 20 stores that do the same business as you?
In this case, if you open a store and you are number 21, you will most likely achieve very little sales.
But what if you thought about an activity that does not already exist, provided that this activity has sufficient demand to guarantee sustainable profit.
This is often the second indicator of the success of your retail business.
- Look for rotating merchandise
You should consider purchasing merchandise that has a very fast turnover rate.
Because capital turnover is an excellent way to get a monthly or daily return on your investments
The most important of these products are:
- Food
- And crackers
- And toasters.
- Cleaning products.
There are a lot of revolving goods, just search your area well.
- Provide a product that suits all categories of consumers
The financial condition always varies from one person to another, so providing different types and sizes of the same commodity to suit different financial categories is an excellent step to increase your sales by satisfying all buyers.
3- Investing in wholesale trade
The third way to profit from trade is to invest in wholesale trade.
When we talk about wholesale trade, it is all about planning, organizing and studying well before starting to take any practical step.
Here, unlike the previous method, you need huge capital to do so.
Therefore, if you have a small capital, perhaps you should stay away from this trade and look at some projects with a small capital that you can do in Egypt.
Tips when investing in wholesale business
- Start with small-sized merchandise
Small goods do not take up much storage space and do not incur transportation costs.
As for large goods, they require a large space for storage and cost a lot of transport vehicles.
This point is very important because through it you can improve the return on capital and reduce the cost.
- The place of trade is as important as the product
The closer your location is to both consumers and suppliers and the more there is a good transportation road network, the more this will improve the functioning of your merchants.
Not only that, but it will also reduce your transportation costs and thus increase the profits of your business.
The location of trade is also determined by the volume of demand for your product. The closer you are to an area with greater demand, the more this will contribute to expanding your trade.
- Learn to negotiate with suppliers
If you can get discounts when you increase your orders, then you will get one of two things:
Increase your profits, or provide offers and discounts at the same rate to your customers. In both cases, you were able to increase your profits.
- Selling products to a buyer who will not sell them again
When you sell milk or meat to restaurants, it is different from supermarkets, because supermarkets compete with each other on prices, while restaurants compete with each other on quality.
Therefore, the restaurant is sensitive to the quality of the product, and a slightly higher price does not pose a major problem for it, unlike the supermarket.
Another example:
Selling printing papers to companies is more profitable than selling them to libraries.
Because companies will not focus on the price difference, but rather will focus on the quality of the papers and the quality of the services you provide to them. This will allow you to grow your business, and avoid you from entering into fierce competition over price.
Competition on price, in most cases, the novice trader will be the biggest loser because there are those who buy very large quantities through which they can obtain a better price than you.
- Has facilities for buyers
Mostly in trade, merchants need some facilities in payment and other matters.
If you can, offer some of these facilities, but with limits and certainly with planning and documented guarantees.
4- Trade in imported products
Another idea for investing your money in trade is to focus on imported goods.
You must study the local market well and search for goods that consumers will benefit from, even if they are new and they know nothing about them at all.
You can focus on a commodity that does not have a specific or known price, such as:
- Kids Games
- Or new shapes of Ramadan lanterns
These things do not have a set price and hence you can make a huge profit margin.
All you have to do is:
- Select the product you wish to trade.
- Communicate with the foreign manufacturer or producer of this commodity and find out its cost.
- Make a good study to know the price at which these goods will be sold.
- Then do marketing on your own Facebook page or create an online store.
In order to achieve profit from importing, you must follow a set of tips, as usual…
Tips when investing in importing
- Best product choice
A good product is useful to the buyer, with a good price and excellent quality. This is what you should think about. If you want more, perhaps you should read our topic about the characteristics of the product.
- Consult a legal office or customs clearance
You need to know the legal and customs relations between the countries from which you import and Egypt (or your country in which you reside).
It is preferable to import goods that will not cost you a lot of customs, as you can offer them to the consumer at a good price in the end.
- Buying a new product that has no counterpart in the market
This is so as not to compete on price and thus weaken the profit margin.
The new product does not have to be a non-existent product. You can import an old product, but some modifications and improvements have been added to it.
You must consult the Egyptian Customs Authority or any of the concerned authorities to ensure that the product that you are going to import does not have any warnings and does not require any special approval, so that it does not come in and then get stuck waiting for its customs release.
Seeing foreign user reviews of the product you are going to import is necessary before purchasing, because user evaluation is the primary indicator of the quality of the product.
5- Trade through export
You can invest your money in trading as well, but in a different way than the one above.
Here you can start:
- Search for distinctive products in your surrounding environment (in your country)
- Then you have to look for the need of people in foreign countries for these products.
- You deal with people abroad and start exporting to them.
Here you can profit in more than one way, such as:
- Profit from the price difference.
- Profit from the growth of the price of the dollar against the Egyptian pound or against all currencies in the world.
This trade also opens the door for you to deal with many foreign importers in foreign countries, thus opening your financial future with a great opportunity for growth and profits.
Tips when investing in export
- Make sure to export very high quality products
The abundance of products is not the basis of export, but the quality of the products is the basis in this business.
Because this enhances your chances of success when communicating with foreign importers.
- You must have a huge network of suppliers
This is simply so that you can meet requests at all times.
Your knowledge is not limited to only one or two suppliers, which may make you unable to commit to importers at a certain time.
- Study your competitors well
Exporting requires a good study of your competitors who export the same product to the same country, as well as foreigners in some countries of the world who export the same product to the country you are exporting to.
- Study the economics and costs
Know the differences in currency rates between these countries and the cost of international shipping so that you can make the right decision. Although this process seems complicated, the final conversation will be a very good profit.
This type of trade and the type before it are definitely worth it.
But to be sure, this is considered one of the most dangerous types of trade because it requires a high level of skill and scientific awareness.
6- Investing in commercial agencies
One of the best ideas for profit from trade is commercial agencies.
The difference between this idea and all other ideas is that the agency will make you limited to a set of products and you will not be able to deal in competing products.
Where you can obtain an agent for some companies, whether local or international, to sell these products.
In this case, profit is made in two ways:
- Profit from the price difference between the purchase price (of the product) and the selling price.
- The second form is the profit from obtaining incentives from this company as a result of the growth in sales volume, market share, and brand achieved for them, which is reflected in their sales operations.
This method requires a good choice of the company for which you will be an agent, and you must focus on the company that provides you with the maximum financial, moral, commercial and marketing support.
Because in return, you will not be able to market the products competing with this company, and therefore these must be in exchange for many advantages that you obtain, whether material advantages or moral advantages.
Your success in obtaining the commercial power of attorney and its good management will lead to you obtaining other powers of attorney if they conflict with the first power of attorney.
Have you now learned how to invest your money in trading?
What trade do you like the most?
If you have any previous experience in trading and would like to add to us, certainly wait for your experience in the comments.
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