Cons of ghost commerce

• Depending on third parties: As a ghost commerce seller, your business will rely on suppliers and shipping partners, which can be stressful if stock or pricing changes unexpectedly, for example.

• Lower profit margins: Profit margins can be lower due to the commissions element of being an affiliate seller or supplier costs.

• Regulatory considerations: Depending on where you're located-and the business models you choose to implement-you might run into specific regulations pertaining to advertising, affiliate marketing disclosures, and consumer protection laws.

• Limited control over products: With less control over the quality of your products, shipping times, and customer service, your customer satisfaction might take a hit and force you to find new suppliers.

Ghost commerce is likely a better fit if you have an established brand or feel confident in your marketing capabilities, or if you want to limit your investment in your online store.

Starting a ghost commerce business involves several steps, but once you're on a roll, you'll be good to go. Here's a brief guide to get you started.

1. Choose your niche

Before diving into the logistics of starting a ghost commerce business, identify a niche that interests you and has a viable market. Since ghost commerce depends heavily on branding and marketing, consider a niche where you have experience or an existing audience. From there, research potential products and suppliers, and analyze your target audience.

2. Select a realistic business model

Decide whether you want to focus on affiliate marketing, dropshipping, white labeling or wholesaling. Each model has its own set of advantages and challenges, so choose one that aligns with your goals and resources.

For example, if you're a content creator, affiliate marketing may be a good way to earn money from your content since you already have a following who trusts your point of view. If you want to build up your own ecommerce brand, dropshipping or white labeling might make sense.

3. Build your platform

Create a website or choose an ecommerce platform that will ultimately host your products. Make sure your website is user-friendly, optimized for mobile, and visually appealing.

Consider what potential customers will want to see to trust you and your brand. For example, an online clothing store might need photos of people wearing the products or a skincare brand might benefit from sharing more about ingredients. For affiliate marketers, it's more about ensuring your website makes it easy to find the products you're pointing your audience to.

4. Source products

If you're opting for dropshipping or white labeling, find reliable suppliers you can work with. For affiliate marketing, sign up for affiliate programs that offer products that are relevant to your niche.

Test out the products you'd get from suppliers or brands before stocking or recommending them if possible. This gives you an opportunity to see what the buying process is like from the customer side and make a more informed decision. Your customers' experience is key to building your brand's reputation, so it's worth spending some time on this.

5. Develop a marketing strategy

Invest your time, energy, and resources in building a strong online presence through social media, content marketing, email marketing, and SEO. Your goal is to attract and engage your target audience.

It's OK to start small-try one blog post per month and one social media platform to start. Narrow it down by focusing on where your target audience is most likely to spend their time online and start by engaging there.

Read our guide to creating a marketing strategy

6. Build credibility and trust

Establishing trust is crucial in the world of ghost commerce. Provide valuable content, honest reviews, and transparent information about the products you're selling. It's also important to engage with your audience through social media or newsletters. Putting a human voice behind the brand or content builds trust, which translates into trust in what you're selling.

7. Monitor and optimize

Track your performance using analytics tools. Monitor sales, website traffic, and customer feedback to optimize your strategy and improve your sales.

Sales and feedback or reviews naturally tell you a lot about what your customers want. But site traffic or engagements on social media can too. For example, if customers tend to look at a page and exit without buying or get through to checkout and then exit without buying, that can indicate that your pricing or shipping costs are too high. If you get more engagement on a type of social media content, consider leaning into that in your marketing plans.

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