Posts Tagged e-Business
Have you considered the benefits of e-business for wholesale sourcing products for your retail business? If you haven’t checked into this area yet to see how easy it can be to conduct your business electronically, then let’s do some in depth examination of the actual benefits to be gained by using e-business for wholesale sourcing and supply.
As more people gravitate toward doing business electronically, the first thing you’ll notice is how much easier it is to stay connected with customers and suppliers. You will soon be wanting to be utilizing the many time-cost saving benefits the internet provides for you, your customers, your suppliers, and even your staff, as much as you can. As a customer you may have already noticed that many wholesale suppliers and drop shippers have seen the potential for their business and have systems in place to take full advantage of the available communication method that lets them display current catalogs on line and make sure customers are aware of new product lines being introduced. One of the major benefits of e-business for wholesale sourcing is no longer having to wait for notification after you place your order to know when or if your order will be filled and then shipped out. No longer dealing with the usual paper trail that was required, the entire process is streamline and instantaneous because of the internet.
One great benefit of business via the internet is the opportunity to create a drop shipping agreement with your wholesale supplier, and then he would be handling packing and shipping requirements as needed on your behalf. What this means for you is whether you have a business location, small store, or you are running a home business, you no longer require your location to have a large stock room, stocking area, or even a separate large storage space .
A change like this can always have some impact on the way you are currently doing business, so take some issues into consideration before making a change to your operation.
You should be aware of the importance of your return policy wording on your site if you will be using a wholesale drop ship service. This is not saying you won’t accept returns, but you need to to make sure the policy you create for your business is in line with your supplier’s policies as well.
Building a return policy for my site would be easy as I would simply make sure to reflect the same policy rules as my supplier. Most wholesale suppliers have their return policy clearly displayed on their website, so it will be easy to make sure return policies match. Adjustment are allowed, if necessary, or you may use exactly the same terms and conditions.
You will find any potential problems are greatly outweighed by the benefits of e-business for wholesale. You will quickly see the time and money saved, the ease of doing business this way, and the many business benefits to come your way after sourcing and ordering your products as an e-business for wholesale.
People being scammed by dishonest companies that promise to help them make money only to take their money and give absolutely nothing, or at least nothing at all resembling what they have promised, has been a common theme lately in the news. This will certainly give you a reason, if you are a business owner, to question whether it is possible to find a legitimate dropship business online.
Using b2b model drop shipment makes doing business easy. What you do is find items that your wholesale drop shipper has in stock, advertise those items for sale, and sell them to your customers. Now you just need to pay the drop shipper what you agreed to pay them and they will ship directly to your customer. Your customer has absolutely no idea that you aren’t responsible for them receiving the item they purchased; by utilizing the b2b model drop shipment process you have made money and saved time.
You can see why so many people are attracted to doing business in this manner. You don’t need a lot of equipment or storage space, you get to work out of your own home, and there actually isn’t too much work involved. If you use the b2b model drop shipment, all that you will need to get started with your own successful online business is a computer with internet connectivity.
In fact, the hardest part is going to be finding a reliable, high quality supplier. Considering all the people who have stories about fake online companies offering their “services”, it’s only to be expected that you would ask yourself whether you would be able to find a legitimate dropship business online. There actually are online companies who are use drop shipping as a legitimate part of their wholesale supply business and not just as a way to make quick money off of people; these companies are able and dedicated to offering high quality services to their customers and, ultimately, to yours.
There should be good and open lines of communication between the retailer and wholesaler using the b2b model drop shipment; the respective roles should be clearly defined and understood by both parties. While expecting the wholesaler to drop everything else they have to do and make your retail order their priority is unreasonable, it is not at all unreasonable to expect them to package and deliver the items you order out to your customer in a timely and professional manner.
The responsibility of making sure that your wholesale supplier knows about the drop shipment that you need to have delivered is, however, entirely yours. You should notify your wholesale supplier and make payment for the items that you need shipped within 24 hours of your customer placing his or her order with you. If your customer complains of a lengthy wait for delivery, it is NOT the fault of the wholesale dropshipper that you failed to notify them in a timely manner of the transaction.
As long as you are aware of your responsibilities; the work actually required, and the necessity of good, clear communication, there is no reason that you cannot have a good relationship with a wholesale drop ship supplier.
There is no denying that the internet is now a dominant commercial force. As a brick and mortar retailer, it is hard to ignore the numerous EBusiness benefits. It may be time for you to take a hard look at making the change.
Your business might focus on objects for the home, like living room furniture, or throw pillows, or even candles and candlesticks. Nothing is more accommodating to the casual passerby or local patron than a brick and mortar outlet, but the ability to attract polite browsers does not begin to address the untold number of consumers in cyberspace.
The lack of defined limits on the internet can be quickly recognized once a physically limited retail outlet takes the leap into Ebusiness. Your ability to reach customers will be international, and customers who like to shop from the comforts of their immediate surroundings are accustomed to paying for shipping and associated EBusiness costs. In the case that you use a drop shipper for your merchandise, you can reduce or negate any downside risks attributable to stocking inventory. If your product is bigger in size or difficult to move, drop shipping is of increased benefit to your bottom line.
But the advantages of EBusiness don’t end there. Changing parts of your sales and marketing model is a snap when you can quickly make the alterations on your website. Making small additions to existing webpages, or even adding a new page, to announce a new product line to your customers is inexpensive and fast. Another way of increasing margins and reaching more customers is to look at using refurbished parts in your products, particularly if you sell electronics. While you cannot sell a product as “new” if it is made of partially refurbished products, you can adjust your price point downward to attract a much broader consumer base, and still keep your margins. There are still more reasons to consider an Ebusiness model over location specific retail. Eliminating fixed overhead costs associated with a brick and mortar outlet will be a welcome change to your balance sheet. Think how much you can bump your net margins by simply removing monthly rent payments, liability insurance, electricity and phone charges, as well as all other costs you incur from building out a retail location.
In comparison to your physical storefront, the amount of people that can access your products multiply indefinetely. Even when you are doing something else, your store is open for business. Consumers from everywhere on the planet can browse and buy every day of the year, on every day of the week. How would it feel to be making money while you were fast asleep? Try to do that in a brick and mortar outlet! For anyone seriously considering cutting overhead costs, while reaching a much larger consumer base, EBusiness is a great option to ponder. Maybe a large change of your business model is not the right step currently. Perhaps adding internet business capabilities to compliment your retail store is a good start for you. Like so many other retail outlets that have made the leap into EBusiness, you will be glad you did it once you see the benefits.
People who are searching for the perfect startup company they can handle from their house might be confronted with a real concern: are ecommerce websites sold on eBay legit? This concern is out there since there exist literally hundreds of tales regarding fake auctions and swindlers on eBay. A main issue is by doing business with someone you don’t know and can’t even see, you have no way of knowing if that person is on the up and up or just out to take your cash.
Instead of taking chances of learning whether are ecommerce websites sold on eBay legit with an unknown entity on the web, it might be better to find a verifiable online source of revenue. A fast-growing technique is to locate the best drop shipping business that services your state and take advantage of them to earn a steady paycheck right from your house.
Indeed, a lot of the best drop shipping companies have a link that you can post that will take you to their business site and decrease your workload even more in a field that is pretty effective as it is.
Your ecommerce company can be up and running on eBay in no time by accessing a wholesale business that provides a drop shipping component. You will operate your eBay company just as millions of other do, but unlike them you don’t have to maintain an inventory. The best way to look at a drop shipper is as an off site storage unit for your products that you use to create greater revenue.
It’s well-known that eBay sellers believe that the worst aspect of selling is shipping their products, but by employing the best drop shipping service available to you, you won’t have to be burdered with the drawn-out series of actions required to package, label, and mail your items once they sell.
If you blindly buy an ecommerce business directly from an eBay seller, you cannot verify that all aspects of starting an online business will be included in your package, which can seriously harm your startup company financially and logistically. Besides, the ecommerce package from an unknown source may not be individualized enough to fit into your company’s scheme and thus, might cause your company to falter or even fail due to many different things.
By employing a drop shipper, you can bypass a lot of those concerns. Since you don’t have inventory, you can stop fretting over a place to put it and concentrate on running the company via an online coneection. You won’t be expected to have a lot of capital to initially buy inventory and if your company expands, you won’t need to fret about locating additional space. Rather than continue to wonder are ecommerce websites sold on eBay legit, simply redirect your focus to locating the best drop shipping company available and get your business up and running right away. You could even have your company in place within 24 hours and might have a positive income shortly thereafter.
Many people are seeking additional revenue stream to help them pay the bills and resume their typical lifestyle since the recent economic troubles have cost them to lose their regular employment. The benefits of ecommerce on business, however, can help your own home business flourish by utilizing resources on the Internet.
People are discovering that by sourcing products and then reselling them at a higher cost is one of the best ways they can make an additional revenue stream. You can do this via mail order, Craigslist, through auction services provided by eBay or even classified ads, or your own personal website. You can utilize the benefits of ecommerce on business marketing and promotions mechanisms to help you cut costs while also spreading the word about your products to as many potential buyers as you can no matter which method you choose.
It’s important to locate a wholesale supplier to begin in this business. There are a plethora of wholesale suppliers to choose from; some will deal with many products from a variety of manufacturers, and others will only focus on one product. Additionally, you’ll notice there is a big variety in the methods these suppliers use to take order, some catering to the benefits of ecommerce on business and providing a website with an ordering system and complete electronic catalogue.
Since you are operating a small business, conducting business with a supplier that gives this kind of option will be conducive to your schedule; you will be able to take your time doing research on products you use since you can conduct business activities throughout the day at your convenience.
Therefore, whether your job takes up a small or large amount of your time, you can perform additional revenue stream business when it’s easiest for you to fit it into your schedule. It can often be problematic when you try to conduct this type of business within the confines of traditional business hours.
Electronic catalogues often showcase high quality photographs that provide details about the product you are about to purchase; when you have time to look through them, you can better assess the quality of the potential products available online. It’s also helpful that you can reuse these photographs and product descriptions provided in the electronic catalogue for your own marketing purposes.
You will be alerted by your wholesale supplier when new product lines hit the market, which is possibly one of the largest benefits of ecommerce on business. You can become knowledgeable about the latest trends so that your business can cater to these items sooner than your competitors know they’re available. This competitive advantage, in conjunction with excellent service and reasonable prices, will help you and your business succeed since customers will rely on you as a trusted provider of up-to-date and quality products.
Many people in today’s dwindling economy have started to look at the the possibility of starting their own online business to take advantage of the internet while they still can. With the cost of living on the rise, this can be a very good idea.
The internet has become so widely available that many people from all over the world have access to it. The internet has become a place where people can socialize with friends, look up information, or even go shopping. The internet is growing everyday, so why not take advantage of these potential customers by starting your own e-commerce business.
Most people on the internet are classified as customers, or users. These are the people that are using the services provided on the internet instead of providing services. There are thousands of ways to start an online business, from banks to shoe stores, the list is endless.
Your best option is to create an e-commerce business selling retail products. This means you are selling items based on the demand of what your customers want. A wholesale supplier is the most efficient way to source these items. There’s a wholesale supplier for almost everything, from clothes to automotive goods. This is the most important thing you should look at when starting an online business.
First, you should determine what kind of products you would like to sell in e-commerce. You should try to carve yourself a niche instead of just selling a wide range of wholesale products. For example, maybe you would like to sell pet goods. Before you get your pet goods online business going, you should always make sure that there is a market of potential customers who are going to buy your products. If you are offering cheap and high quality products, though, you can rest assured that there will probably be customers buying from you.
After you have thought about what you want to sell, your next step is to create your e-commerce website. There are a couple of options when doing this, whether you want to use a generic solution or create a store that is specifically designed to meet your needs. Both ways are perfectly fine, just as long as the customer can purchase your products with ease.
Unless you have set up an e-commerce website before, it might be helpful to hire someone to do it for you. As an alternative method, you could see if your wholesale supplier offers an e-commerce solution that you could use.
Once your website has been created and you are ready to sell products through your online business, it’s now time to find your customers. This is easier than it sounds so don’t let it deter you. All you need to do is market and advertise in the right places and you should have customers in no time at all. Your goal when running an online business is to make as much profit as possible while also doing as little work as possible. If you are looking for some extra money to come your way, starting an e-commerce online business is definitely a viable solution. While it may be hard work at first, it will certainly pay off later on.
One of the primary benefits of drop shipping that many newcomers fail to recognize, is that you can increase your product line with different drop shippers who offer different products, and often with different countries of origin. In this way, drop shipping can be a real boon. But it depends really on knowing your drop shipper, and going the extra mile in cultivating drop shipping relationships, whether they are local or international in origin.
And therein lies the negative in drop shipping for the online retailer. You have to make the effort to cultivate those drop shipping relationships–there’s really a lot more to it than just signing up online and picking products from a catalog. If you simply drop ship with someone based solely on the convenience factor, you might find yourself without product or even worse, you might find yourself without a drop shipper at all. This happens as a result of one of two things. First, if you are without product for a long period due to production delays (which will happen regardless of source, by the way), it means your drop shipping source didn’t tell you he was running low, or you didn’t make the effort to inquire as to his projected inventory or production that would affect your product lines. If you cultivate those relationships, drop shippers will tell you in advance when things are getting dicey, and they might even tell you without your inquiry. Always keep up to date on your product. Always.
Second, and even more importantly, drop shippers who have cultivated relationships with you might tell you if they are going out of business. Think of the drop shipper as your friend: a friend will tell you before he goes out of business when things are out of control, whereas the general public will not get notice until the business is already liquidated and gone. When you cultivate these overseas or local relationships, you can save a lot of headache for your business, and you can keep your product and cash flow running smoothly because you know what is coming down the road that others might not get wind of until it is too late to do anything.
Seeing the hurricane and watching the weather reports can save a world of pain long before the hurricane ever comes ashore. Take it from someone who has seen the hurricane and prepared, and from someone who didn’t plan for the coming storm and paid the price many times over.
If you’re in the business of wholesaling or an integral part of the e-commerce industry, then you’ve likely shown your face at a few tradeshows far and wide. Despite the type of product that you’re manufacturing or selling, there is almost definitely a tradeshow devoted to showcasing and highlighting your spin on an otherwise “common” product. From furniture to area rugs to tools, cookware, lighting and everything in between, many manufacturers and wholesalers set up shop in a dedicated showroom several times each year to demonstrate the value and versatility of their particular product offering.
Because product communities gather to market their updated lines and new additions a mere handful of times each year (generally quarterly), it can be a pivotal time for wholesalers and retailers alike to be caught up to speed in regard to product categories that are likely to experience significant growth trends. By attending tradeshows, you allow yourself to pick and choose from the best of the best in order to seek out a selection of products that will likely propel your overall business sales.
In addition to viewing fresh product first-hand, tradeshow attendance allows you to network with other industry professionals. Here is where you can not only catch a glimpse of product designs and ideas, but where you can also converse with experts and gain insight into styles and patterns that can positively influence your current or future product offering. These perks alone will enable you to effectively determine what is and what isn’t working for your target audience, and then allow you to capitalize on ways to capture potentially lost sales. Perhaps a particular manufacturer has designed a product that could work with a few modifications – use this opportunity as a chance to revitalize your product offering so that you can garner the interest and attention of a particular sector of your audience.
Further, tradeshow attendance can be instrumental when it comes to branding. Getting your name out there in markets that are generally already quite saturated can help your cause significantly. Introduce yourself to prominent market players and try to solidify partnerships that boast the potential to drastically assist your brand or your goals. Showing legitimate interest in your business and in your competitors can help you to stand apart from the rest. Respect your competitors and allow their successes to aid yours. Don’t be short-sighted, look at how past mistakes have affected both your business and the industry as a whole, and work to remedy these issues.
Tradeshow attendance is critical to the overall success of a given market. These venues help to spark new ideas, new partnerships, and new market players. Wholesalers are generally looking for credible retailers to help them with their sales while retailers are seeking the same benefit. It’s this type of mutualistic relationship that enables product markets to effectively and efficiently continue to grow and develop over time.
While the business of wholesaling can result in tremendous profits, there are a number of factors to consider prior to simply beginning your company. From surveying and understanding your potential market to weighing cost factors and margins to finding a product niche that suits you and your competitive needs, there are a plethora of elements to analyze as you get started.
With so many product markets seemingly becoming increasingly over-saturated, it can be challenging to find a niche that has the bandwidth to accompany yet another fresh, new idea. However, this shouldn’t deter up and coming wholesalers from overcoming potential obstacles. Do your research and get a firm grasp on your competitive landscape. Closely monitor what competitors are doing, including concepts that have worked as well as those that have not. See if you can modify any of the less successful ideas and transform them into top-selling products. Investigate ways that will enable your line of products to stand apart from the rest. Understand what your target audience is looking for and how you may be able to modify existing products so that they more effectively appeal to your consumer base.
Does a particular product category boast more potential in terms of margin, revenues, and profits? If you’re fortunate enough to have the option to choose among several various product categories, then profit margin is what you should use as your determining factor. Because it can be difficult to differentiate your product offering from those of competitors, you’ll want to ensure that you’re earning money with the items that you’re able to sell – particularly with those items that virtually sell themselves. Further, ensure that your total costs are significantly less than the amount of which you can realistically sell a high volume of product.
While you may not be able to create a totally unique product, it’s important that your offering boasts distinct features unique to your mission. Find products that can be and distributors that are willing to drop ship so that you can reduce your overhead costs. Moreover, ensure that there is substantial demand for your products and services. If there isn’t a distinct market need for what you’re hoping to sell, then cut your losses immediately, and develop an alternative business plan. Adding a new facet to a standard, convenient product can add to its resale value.
Despite your specific financial goals, it’s important to understand your market before you move forward with developing your business plan and just jumping into a product category. Make sure that you can identify potential pitfalls and drawbacks and immediately strategize ways to prevent these issues from affecting your future successes. Perhaps most importantly, refrain from spreading your resources too thin. While you may see potential in selling a vast variety of products, it’s best to start with one targeted niche and to work on expanding from there.
Drop shipping has garnered quite a lot of attention over the past few years, presenting an easy way to become an Internet retailer. Is it just another get-rich-quick scheme? Multi-level pyramid deal? Flash in the pan? Not really. Like anything, you do have to put some energy into it. When you first consider the concept of drop shipping, it seems remarkably simple. You don’t have to carry any inventory, and you don’t have to do any shipping. You just put up a web site, send the orders to the drop shipper, and collect the checks.
Well, it’s not really that easy, folks. Successful drop shipping involves successfully doing two things: Making a good product selection, and marketing. On the product selection front, it’s easy to just load up everything the drop shipper has to offer into your virtual catalog, but a more effective method is to create a niche for yourself—specializing in one particular area. Don’t try to be everything to everybody, because the customer will just get lost. Specialize in one area and position yourself as the expert in that area. On the second front, marketing—again, it’s easy to just put up a web site, but will anybody see it? How many web sites are out there today? With no marketing, again, it will get completely lost.
That said, drop shipping can be an effective management technique, especially for handling inventory.
Drop shipping, for the uninitiated, is a form of inventory control whereby the retailer sells his items to the customer, but instead of having a supply of the item on his shelves for immediate delivery, the retailer orders his items directly from the manufacturer or the wholesaler, who then ships them directly to the retailer’s customer. In this way, there is no need for the burden of carrying inventory. The retailer still retains his profit margin as a difference between the wholesaler’s or manufacturer’s price and that of the retailer.
Often, the final customer never knows that the retailer is drop shipping his merchandise because the retailer chooses not to disclose this up front, thereby hiding his inventory control from view. There are several ways to hide the drop shipping from customers. The best way to do this is to have the manufacturer or wholesaler ship the product with the retailer’s name and logo on the packaging slip.
The benefits are obvious: no inventory means less cost can be passed on the retail customer, and the retailer retains positive cash flow throughout the entire process. The potential downside is that it may take longer for the customer order to be fulfilled, since it’s going through a third party, there may be a backorder that the retailer is unaware of, and the retailer’s markup will not be as high as if they were sourcing, warehousing, and shipping the product direct.
In part two of this article, I will explain a few of the positives and negatives of drop shipping in more detail, and how the retailer who drop ships can benefit in the end. To be sure, there are negatives to the drop shipping idea, but they are manageable if you know how to navigate the drop shipping maze.