I have copied into this weeks post many things that stood out to me in our assigned readings, first concerning chosen a product and second drop shipping. One thing that frustrated me about this week is the fact that our case study seems a little to simplified. The group doesn't have solid goals in what they wish to achieve in this endeavor. In fact this week they were almost done with their meal before discussion of the business even started. Do they want a little side business to play around with, or do they want to understand all the complexities that go with an Internet business. Using drop shipping I feel they will receive the latter, which was a totally new concept to me. There are some items with drop shipping that have to be addressed and put in writing with the manufacturer, however once this is done then I think this is the way to go for the business. Now how does this relate to me…I am not at this moment looking to be that involved with a business. The demands on my time don't allow for that right now, with that said maybe in the future I will explore this avenue. I think that we have these classes to expose us to new ideas that the Lord can help us use in the future. That is what I feel about drop shipping, for my current situation affiliate marketing is the safe way to go. All I have to do is get people to the site and then have them purchase with who I affiliate with…I can be as aggressive as I want. I don't have to think about customer service issues, because the affiliate handles all this. Yes I am not going to make a lot of money but I have the potential to in the future if I stay at it. Now with that said there may come a time that I will become very involved with drop shipping because of the potential it holds as well.
Choosing Products to Sell
Choosing Products to Sell
Shari Waters
Not only should there be a demand for your
products, but it must be profitable and something you enjoy selling.
Marketability
Your product selection doesn't have to appeal
to all of the population but it should be something you can convince a large
percentage of shoppers they need.
Profit
Margin
The best selling products
won't ever earn any real money if your margin is too small.
Consumable
Choose a product with recurring sales value.
A consumable item that needs to be replaced on a regular basis is one way
a retailer can establish long term sales.
What’s
Popular
Learning to pick a hot product before it becomes hot is a valuable skill that
comes from knowing your market.
Quality
Product quality is extremely important when
your reputation is on the line.
The key to having a successful business is
to know your products and to believe in the merchandise that you are selling.
If you do not believe in the product yourself, then you probably won't be
successful at selling it.
How
to find a wholesale Distributor
Gregory
Go
If you're too small for them or they only sell
through established distribution channels, ask them for a list of distributors
you can contact.
Take the list of wholesale distributors you got
from the manufacturer, and start contacting each one. What you're looking for
are minimum order requirements and their wholesale unit prices.
Here how I would phrase a
first contact email to potential wholesalers:
Hello, I'm starting a small <insert product line> store.
What are your minimum order requirements and wholesale prices? Thanks for your
time! -Greg
Article on Entreprenuer.com
Drop Shipping Advantages
Manufacturer ships product
No cost for inventory
No left over inventory
Easy adding of products to your site
Things to remember
Set up drop shipping arrangements directly with the
manufacturer (cost, fees, terms, return options, customer service issues)
If manufacturer won’t drop ship for you you’ll have to find
a distributor (ask manufacture for recommendations)
Look into related trade magazines of the item you wish to
sell distributors listed at the back
When contacting a company ask to become a vendor this will
connect you with the right person
Questions for the company
1.
What’s the wholesale price for their product?
2.
Do they charge a handling fee for drop shipping?
If so, how much?
3.
How do they ship their product? (UPS, FedEx ask
for Tracking #’s)
4.
How do they bill? (credit card?, billing
cycle?,) if one ccard shipping and handling is usually added to the amount
5. How
do they deal with product returns? Make sure the companies you work with deal with
returns so that you don’t have to.
According to the website Taming the Beast.com things to
remember
Price points-shop around for the best wholesaler company
Fees and Charges-understand what they are and how the work
Shipping-what company do they use to ship merchandize
Account Terms- charge credit card or billing cycle
Support-Do they take care of support, returns and refunds
Chargebacks-Fraud screening
Credibility-How long have they been around, research the
company
Affiliate Program
Hosting:
LivingDot
RackSpace
Email Allows people
to connect with you and can get weekly newsletter from you
Affiliate with companies that go along with whatever you are
blogging about…gardening=gardening store, tools, seeds
Editorial Calendar-make list of things you would like to
talk about then schedule it out so that you have things to blog about week
after week, also use holidays to inspire you for article ideas.
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