What is Ghost Commerce and Is It A Good Side Hustle in The UK?

Last updated: 15/02/2024 Written by: Ruby Layram

Ghost commerce is a term that can be used to describe any online business that does not have a physical presence. Ghost commerce businesses use automation to sell goods to consumers online without ever owning a physical storefront.

The term ghost commerce covers a range of online businesses including drop shipping affiliate marketing businesses, websites, and digital product businesses. In this article, we will take a closer look at what is ghost commerce? and whether or not it is a good side hustle to start in the UK.

What exactly is ghost commerce?

Ghost commerce is a popular eCommerce side hustle idea through which business owners can sell goods to consumers without any physical presence. The term ‘ghost’ refers to the fact that these businesses do not exist in physical form. Instead, ghost commerce is facilitated by websites, social media, and eCommerce stores.

Another key feature of some ghost commerce businesses is that they do not sell physical products. Instead, these ghost commerce makes a profit digitally through ad revenue, affiliate marketing, sponsored digital content, paid subscriptions, and selling digital products.

Ghost commerce businesses that do sell physical products will use automation to take care of inventory, shipping and fulfillment. This reduces the need of any physical processes and allows the business to remain entirely digital. Examples of this kind of ghost commerce business include drop shipping and print on demand.

If the internet disappeared, ghost commerce businesses would disappear with it!

Key features of ghost commerce

A good way to better understand ghost commerce is to look at the key features which define the business model.

Automation

One of the most prominent features of any ghost commerce enterprise is the automation of processes such as inventory and fulfillment. Ghost commerce harnesses the power of technology to automate systems and reduce the need for physical intervention. Automation is crucial to ghost commerce efficiency and plays a pivotal role in enabling businesses to run without any physical presence.

Branding

Ghost commerce places significant emphasis on crafting a compelling and unforgettable brand identity. By employing meticulous design and storytelling techniques, businesses can establish strong emotional connections with their customers, building loyalty and trust that lasts.

Ghost commerce relies on branding to stand out in the crowded online space. In fact, we would go as far to say that branding is the key to a successful ghost commerce business.

Scalability

One of the remarkable advantages of ghost commerce is its inherent scalability. Leveraging cutting-edge technologies and flexible infrastructures, businesses can effortlessly expand their operations to meet surging demand and accommodate rapid growth in the ever-changing market.

Cybersecurity

In the realm of ghost commerce, cybersecurity takes center stage, prioritizing the protection of sensitive customer information and the integrity of online transactions. Encrypted networks, multifactor authentication, and regular audits work in tandem to fortify the platform against potential threats and ensure a safe shopping experience.

Social media marketing

Ghost commerce harnesses the power of social media marketing to its advantage. By utilizing the vast potential of social platforms, businesses can reach wider audiences, foster personalized engagement, and cultivate a vibrant online community. These efforts create meaningful interactions with consumers, bolstering brand awareness and driving growth in the digital landscape.

How does Ghost Commerce work?

Before taking a look at whether or not ghost commerce is a good side hustle idea in 2024, let’s dive into how it works.

It’s important to understand here that ghost commerce isn’t one size fits all. Some ghost commerce businesses, such as affiliate marketing businesses, operate through a simple process. On the other hand, some ghost commerce businesses use multiple systems and technologies to operate at a much more advanced level. Here is an overview of how an advanced ghost commerce business might work in 2024.

At its core, ghost commerce centers around the creation of virtual stores that are entirely digital and autonomous. These stores are designed with cutting-edge technologies, including artificial intelligence and machine learning algorithms, enabling them to analyze market trends, customer preferences, and purchasing behavior in real-time. Through this analysis, the virtual stores curate personalized shopping experiences for individual customers, showcasing products and services that align with their interests and needs.

Also read: Ghost Commerce vs Affiliate Marketing

Once a customer interacts with a ghost commerce store, a sophisticated chatbot interface comes into play. The chatbot acts as a virtual sales assistant, guiding customers through the shopping journey, addressing their inquiries, and making personalized product recommendations. The interaction is designed to mimic a human-to-human conversation, fostering a sense of familiarity and ease for the customers.

Behind the scenes, the fulfillment process is also automated to a great extent. Upon a successful purchase, the system orchestrates a seamless order processing workflow. From inventory management to shipping and delivery, ghost commerce strategy relies on smart logistics solutions to ensure efficient and timely order fulfillment.

To maintain customer engagement and retention, ghost commerce leverages the power of data analytics and machine learning. By continuously collecting and analyzing customer data, the system can predict future preferences, anticipate buying behavior, and optimize marketing strategies to deliver targeted and relevant promotional campaigns.

In the realm of ghost commerce, cybersecurity holds paramount importance. Robust encryption measures, multi-layered authentication protocols, and regular security audits are implemented to safeguard sensitive customer information and ensure the trust of the users in the platform.

The lack of physical effort that is required to run a ghost commerce business makes it one of the best passive side hustle ideas in 2024.

Is Ghost Commerce a good side hustle idea in 2024?

Ghost commerce is a very good side hustle to consider starting in 2024. This is because the phenomenon is relatively new which means that there is huge room for growth in the industry. Furthermore, there is a ghost commerce business for everyone whether you’re looking for a part-time side hustle or to start a small business.

Here at The Rich Girl Guide, we want to provide ambitious people with the resources that they need to generate streams of income. Therefore, we spent time researching whether or not ghost commerce is actually a good side hustle to start in 2024. Here’s what we found.

How to start Ghost Commerce in the UK 2024

Perhaps the most appealing aspect of ghost commerce as a side hustle is that it is possible to start a ghost commerce business without any money. This makes it a very appealing side hustle for beginners who are on a tight budget.

To start a ghost ecommerce side hustle with no money:

• Create a free website using WordPress.

• Focus on brand identity. Create a logo, social media pages and develop a clear brand voice.

• Choose your monetization strategy (drop shipping, print on demand, ads, affiliate marketing). Keep your brand at te forefront of everything you sell - this is the difference between ghost commerce and a regular affiliate marketing business, for example.

• Work on your website every day until you start to generate traffic/sales.

Remember, ghost commerce uses branding and automation. It is important to keep these features at the forefront of your business to remain under the ghost commerce umbrella.

As a side hustle, ghost commerce allows individuals to test their business ideas with lower financial risk. Since the initial investment can be next to nothing, aspiring entrepreneurs can gauge market response and viability before committing to a full-fledged venture.

Ghost commerce is passive

Another reason that ghost commerce could be a great side hustle to consider in 2024 is that income can be generated passively. Ghost commerce used automation to take care of processes. This means that it is possible to let your business run in the background of your day-to-day.

Of course, you need to put effort into ghost commerce during the initial stages to build your brand and attract customers. It is also important to continuously monitor the performance of your ghost commerce business to check for errors in the system.

However, the passive nature of ghost commerce makes it ideal for anyone who is looking for a side hustle that can fit around their day job or lifestyle.

Ghost commerce is scalable

While you may start your ghost commerce business as a side hustle, it is very possible to turn a ghost commerce enterprise into a full-time business. With the potential to reach a global audience, ghost commerce offers unparalleled scalability. Entrepreneurs can expand their customer base beyond geographical boundaries, tapping into diverse markets and increasing revenue potential.

Potential drawbacks of ghost ecommerce as a side hustle

While ghost commerce offers several advantages as a side hustle, it is essential to recognize the downsides and potential challenges that individuals may encounter:

1. Technical Expertise: Running a ghost commerce operation demands a certain level of technical expertise. Managing the virtual store, handling automated systems, and troubleshooting technical issues may be daunting for those without a background in e-commerce or technology.

2. Market Competition: The e-commerce landscape is highly competitive, and ghost commerce is no exception. Standing out among established online retailers and other innovative start-ups can be challenging, requiring creative branding, marketing, and customer engagement strategies.

3. Cybersecurity Risks: As with any online business, ghost commerce is susceptible to cyber threats and data breaches. Safeguarding customer information and ensuring a secure platform require continuous attention and investment in robust cybersecurity measures.

4. Marketing and Visibility: Promoting a ghost commerce store to attract customers can be a significant challenge. Creating effective marketing strategies and driving organic traffic to the virtual store may require considerable effort and expertise in digital marketing.

5. Customer Support: While chatbots can handle many customer inquiries, some issues may require human intervention. Providing timely and satisfactory customer support may be more challenging in a fully automated system, potentially leading to customer frustration.

Conclusion

In this article, we have taken an in-depth look at what is ghost commerce? Ghost commerce is an entirely digital business model that uses branding and automation to sell products and services. Ghost commerce is a good side hustle idea to consider in 2024 because it has low overhead costs, room for growth, and offers the potential to become passive.

Like all side hustles, making money from ghost commerce will take time. This isn’t a get rich quick scheme and you won’t become a millionaire overnight. However, it is very possible to make a steady income with ghost commerce if you follow the right process and spend time on your side hustle.