Who are Ecommerce Hosting Resellers and What do They Do?

A Home Business Article Contributed by Elizabeth Fox-Wise

What is an Ecommerce Hosting Reseller?

You may have heard of people who have made a lucrative business out of reselling ecommerce hosting, but do you really understand what they do?

As the term implies, an ecommerce hosting reseller provides hosting facilities to website owners. As an independent business owner, you buy space from a large ecommerce hosting company, and resell the ecommerce hosting space within your own packages and at your own set prices to other website owners.

Like all resellers you are service as a middle man to bring the ecommerce hosting service to the market place where it is needed.

Is Being an Ecommerce Hosting Reseller a Lucrative Business?

It can be very lucrative! If executed properly, reselling ecommerce site hosting and related services can be a very low-maintenance, high-profit way to build a successful online business. Ecommerce hosting reseller programs allow small businesses to lease servers, connections and bandwidth from established ecommerce hosting firms, and brand those products as their own.

Even some of the biggest ecommerce hosting companies are simply serving as ecommerce hosting resellers. They resell the products of bigger ecommerce hosting companies because it cuts down on their staffing and equipment expenses. In this regard, it has proven to be a more lucrative way for them to run an ecommerce hosting business.

Furthermore, since ecommerce hosting resellers can pick and choose their servers, are basically in a position to provide their customers with the best services available.

But is There Really Room for a Middle Man to Make Money on Ecommerce Hosting?

Well - let's look at some typical figures, a reseller can purchase around 1000 MB space from a major ecommerce host company for approximately $25 per month. This 1000 MB space that you now own can be resold to site owners who need space for uploading their site. Typically, a reseller can sell 25 MB space for $5 per month. If you sell 40 sites you will have generated $200 per month in sales. Deduct your $25 cost and you are clearing a monthly profit of $175.

Want to make more off of that same 1000 MB? Some ecommerce hosts will allow you to "oversell" the space without charging you extra as long as the combined usage does not exceed 1000MB. It has been demonstrated that a typical user will use less than half of the allotted web space. This means that you could probably safely sell 50 or maybe even 60 web sites instead of the previous example of selling only 40. If you sell 50 your monthly profit is now $250 on that same 1000 MB of space.

Sell 60 and now your profit has reached $275 month. You can see how this business could grow exponentially as you purchase more online space and expand your business.

Keep in mind too, that an ecommerce hosting reseller is building residual income as well. You do the work to sell the site once, and the customer pays the space month after month after month. While you may loose some customers and need to replace them with others, many of your customers will stay with you for years!