The Product

This can be anything you can sell and deliver. The big difference here is that you have to deliver the good. There are types of products that I think are better for selling online. First, if you can resell high margin products that are small and easy to ship like expensive watches, jewelry or fashion items. Second is something you make. This could be holiday candy, knitted hats, or a product that you figure out how to manufacture.  The key is to sell products with significant margins and a market available that can move them. How You Make Money

You make money when a product is sold. The amount of money you make is dependent upon many variables that are common to running a store, but hopefully the listing fees are less than a store's rent.Challenges

Retailing is challenging. It can be extremely difficult to become a wholesaleor of brandname products online. If you do get the product, then you have to pay for the inventory. When you take on inventory, you take on risk if you can actually sell the products. Some manufacturers will give you credit, but you still have to sell the products. Then. You have to deal with returns, customers and in many cases stiff competition on price. Internet shoppers love to find the lowest price. But, the lowest price can eat away all the profits for a small seller. Why I like it

I believe that there is huge opportunity for small retailers online and it's perhaps the easiest way to make money online. You can simply go into your house. Find five items that are worth over $25 and list them for free on Craigslist. I bet that you will sell at least one of those items in a few days. When you sell things, Craigslist is a great way to be part of a marketplace for free. There is no other marketplace in the world that has high quaility buyers and costs nothing to put up your goods for sale. Craigslist is great for many types of items, but not all. However, eBay, Amazon and having your own online store fill the gaps, although they cost more to list. For people that can get access to high margin products, or make their own goods with great margins, then selling online could be just the ticket for you.