How to Start a Ghost Commerce Side Hustle

As e-commerce evolves, new strategies emerge to challenge the conventions of traditional sales practices. One of these is ghost commerce, an up-and-coming business model that takes advantage of concepts from affiliate marketing and dropshipping. How does this work? How can you start a ghost commerce side hustle? We’re sharing a guide for beginners, so keep reading to learn more about this concept.

table of contents

• What Is Ghost Commerce?
• The Advantages of Ghost Commerce
• How to Find Ghost Commerce Opportunities
• Ghost Commerce Statistics
• Ghost Commerce Vs. Affiliate Marketing
• Ghost Commerce Vs. Dropshipping
• Steps to Starting a Ghost Commerce Side Hustle in the UK
• FAQs
• Final Thoughts
• Article Sources
  

In the simplest terms, ghost commerce is marketing and selling goods without having a physical store. A ghost seller uses only the internet to promote products, which typically aren’t theirs in the first place. The items are owned by another business, and the seller may simply serve as an affiliate. However, a ghost seller usually is more subtle about the promotions and marketing. They can position links and product recommendations as passing comments in a video, blog post, or social media post.

Here are some real life success stories of ghost commerce

• Uber; Despite being a transportation company, they don't actually own any cars.

• DoorDash; They provide food delivery services to millions of people, but they don't own any restaurants or grocery stores.

• Ghost kitchens; These are shared kitchens designed for delivery purposes allowing restaurants to grow without the need for physical storefronts.
  

In 2021, ghost commerce had a market size value of $56.71 billion globally. It is still expected to grow as more and more people join the movement and enjoy the benefits. These include:

Low Starting Cost

There is little investment needed to begin. You won’t need a storefront, a warehouse, or other physical structures. Instead, most of your resources will go to building an audience and creating marketing strategies. 

Maintain Anonymity

While you can use your personal brand for ghost commerce ventures, many of those in ghost commerce take advantage of pseudonyms or alternate identities to market a product. This strategy is beneficial for those who want to maintain privacy.

Diversified Income Streams

You can pick whichever niche you think makes the most profit. Then, you can explore other options as market trends shift. There is no need to settle with just one industry or product.

Key Takeaway

Ghost commerce offers low startup costs, the ability to maintain anonymity, and the flexibility for diversified income streams. With a market size of $56.71 billion in 2021, it's an increasingly viable option for entrepreneurs.

Once you have a grasp of the concept and workings of ghost commerce you can begin searching for opportunities. Here are some helpful tips;

Identify high demand niches

Determine which products people are buying. Which industries are experiencing growth. Platforms, like Google Trends and Amazon Best Sellers can assist you in identifying these sought after niches.

Conduct brand research

Once you have identified some niches, delve into researching brands that offer products within those niches. Look for brands with a presence and a favourable reputation.

Reach out to brands

After identifying brands that pique your interest, introduce yourself. Express your desire to promote their products as a ghost seller.

Participate in ghost commerce communities

Engaging with communities dedicated to ghost selling can be a way to expand your knowledge, about the industry and connect with fellow sellers.

Attend industry events

Industry specific events related to e-commerce, marketing and social media provide networking opportunities while keeping you informed about business prospects.

Utilise social media

Leveraging social media platforms is a means of connecting with brands and other ghost sellers who share interests.

To increase your chances of discovering ghost commerce opportunities consider following brands that pique your interest and engage with their content. Another effective approach is to utilise social media platforms to find communities and groups related to ghost commerce.

Networking with entrepreneurs can also prove beneficial

Engage in conversations with entrepreneurs who have experience in ghost commerce as they may offer advice and help you establish connections with relevant brands.

Here are some additional pointers for unearthing ghost commerce opportunities;

Look out for brands that offer affiliate programs

Many brands provide programs allowing you to earn a commission on the sales you generate.

Focus on brands that actively participate on media platforms

Brands that maintain a presence on social media are generally more open to collaborating with ghost sellers.

Seek out brands with a large/growing following

Brands boasting a large or growing audience can grant you exposure and reach. When approaching brands take the time to introduce yourself and express your interest in working with them. Additionally outline a plan detailing how you intend to promote their products which will benefit them.

Once you have identified ghost commerce opportunities, it's crucial to build strong relationships with with these brands in order to build your ghost commerce business. By delivering quality content and effectively promoting their products, you can establish yourself as a trusted partner and earn commissions based on the sales you generate.

Key Takeaway

To succeed in ghost commerce, start by identifying high-demand niches and reputable brands within those markets. Utilise social media and industry events for networking and staying informed. Building strong relationships with brands and delivering quality content is crucial for earning commissions and growing your business.

Let's check out some statistics to understand the growing prominence and lucrative potential of ghost commerce, especially in a global context that includes the UK.

According to the data:

• The market size of the ghost kitchen industry, which's a part of ghost commerce that specifically caters to food delivery, is projected to reach $1 trillion by 2030.
• Ghost commerce already accounts for 20% of all e-commerce sales in China.
• The average ghost commerce business has a profit margin of 25% (McKinsey & Company)
• 70% of consumers are aware of ghost commerce and 50% have made a purchase from a ghost commerce business (Statista)
• The most popular ghost commerce niches are fashion, beauty, and home goods. (GlobalWebIndex)

These figures underline the expansive growth and profitability of ghost commerce, signalling its viability as a compelling side hustle for entrepreneurs in the UK.

✅ Read our comprehensive guide on how to start affiliate marketing in the UK.

Ghost commerce and dropshipping do not need an inventory. However, dropshipping will require a seller to have a storefront online. In addition, dropshipping involves actual sales whereas ghost commerce focuses mostly on marketing and partnerships.

✅ Read our comprehensive guide on how to start a dropshipping business.

Considering ghost commerce as a side hustle? Here are some of the steps to take.

STEP 1: Find Your Niche

Choose an industry you are knowledgeable in or passionate about. 

STEP 2: Create Engaging Content

These can be YouTube videos, TikTok clips, Instagram posts, Tweets on X (formally Twitter) and blog posts.

STEP 3: Build Partnerships

Engage with and build your audience and collaborate with a brand before marketing a product or service.

STEP 4: Follow Laws

Ensure you comply with UK laws, especially with tax and consumer privacy laws.

STEP 5: Assess and Optimise

Track your sales and see how well you’re performing. That way, you know the strengths to leverage and areas you can improve.

E-commerce will continue to grow, so now is the best time to take advantage of business models like ghost commerce.

It’s easy to start and is highly diversifiable and scalable. Use our guide to begin your ghost commerce side hustle and start earning some extra income today.

https://nashwhetton.medium.com/ghost-commerce-what-is-it-actually-b3bec8581cf6

https://www.cjco.com.au/article/what-is-ghost-commerce/

https://www.shopify.com/ph/blog/affiliate-marketing

https://ghost-commerce.com/?lang=en

https://www.shopify.com/ph/blog/what-is-dropshipping

https://ecommerce-platforms.com/glossary/what-is-ghost-commerce

https://www.mckinsey.com/industries/technology-media-and-telecommunications/our-insights/ordering-in-the-rapid-evolution-of-food-delivery

https://www.statista.com/chart/23941/e-commerce-as-share-of-all-retail-commerce-selected-countries/