Posts Tagged ‘home business’

Product Sourcing And Home Business: Key Beginner Basics

Tuesday, July 13th, 2010

Is product sourcing for your home micro business a constant bother as it is for many others? There is no doubt that product sourcing is vital for any home business, and both you and the suppliers with whom you deal must give it proper respect. Part of the problem is not understanding the scope of the field. Many people, for example, think of product sourcing only in terms of wholesale suppliers and drop shipping. Moreover, many think of selling only on eBay without realizing that as big as eBay is, it is only one option out of many that exist within the ecommerce market.

Your product sourcing needs will be determined by your business. That may be obvious, but many people miss that point. The product you sell follows from your business plan, and your product, to some degree, will determine the logistics of supply. For example, if you selling mass market auto parts, then you will probably be relying on a conventional wholesale supplier who may or may not provide drop shipping for you. In that sense, your sourcing problem is handled, and if the supplier dropships, your means of delivery is handled as well. However, if you are selling items produced by local artisans, then the logistics of supply and deliver will be a bit different. There really isn’t a one-size-fits-all solution to product sourcing.

When we are dealing with online, retail ecommerce in the context of small home business, then product sourcing becomes even more important. That is, there is much less tolerance for error should there be supplier mistakes in inventory and delivery. The fact is, product sourcing involves more than just the relative cheapness of the product. Price is important, but if you only think in terms of price, you may suffer later on. Long term success will depend also on quality of goods, having inventory on hand to sell, and delivering your products in a timely manner.

When you engage in business, you are extending a promise of customer service to your potential buyers. When you advertise, you are essentially saying that you will provide your customer with a certain kind of experience, and when you exchange product for payment, you have made a kind of contract with the buyer. Part of that contract includes good customer service. You can have the best of intentions of keeping your promise, but if the products you sell are inferior, or if your supplier cannot get the items to either you or your buyers, then you will not be trusted, word will get around, and people won’t buy from you.

Most beginners run up against two basic problems. First, how to find products and figure out what products to sell. Second, how to find suppliers. These problems may seem insurmountable, but in reality they are not hard to solve. If you are at this stage, the first step to take is to make a business plan. It isn’t necessary to write a book, though some plans may turn into books. What you want to do try to answer some basic questions, such as, “who are your customers?” “What niche are you trying to satisfy?” and, “What business model do you want to use?” When you begin to answer these kinds of questions, the how and where of sourcing products will start to fall into place.

Once you have got an outline of a business plan under your belt, you will know what it is you want to sell, and you can start getting your products. Your first inclination may be to do an Internet search. While this can give you some good leads, there are a great many “middlemen” suppliers that are sometimes difficult to distinguish from real wholesalers. Try the Internet but do not stop there. The fact is, many legitimate wholesalers simply do not worry about search engine visibility because they do not rely on the Internet for business. One of the most reliable ways I know to find product suppliers is to contact the manufacturer of the item you want to sell, talk to a sales rep, and ask who their authorized distributors are. That works every time if you are professional and honest in how you approach the company.

Another solution available online are wholesale drop ship memberships. Salehoo, World Wide Brands, and Aid and Trade are three well-known examples, though you will find many others if you look. Such memberships claim to offer contact information to thousands of suppliers across many different product categories and often provide a means to network with other people engaged in ecommerce. Wholesale memberships can be helpful if they fit your business model. It is important to do your due diligence and remember that they are just one resource at your disposal. Keep in mind that successful product sourcing begins with your business plan.

Learn more more about product sourcing today!

Urbanload Review - Initial Impressions & Opinions

Wednesday, April 7th, 2010

Over the past while, I had been expressing an interest to my friends about wanting to get involved with dropshipping on ebay. My problem was I had no knowledge, so they suggested I check out Urbanload.. I soon found out that there was much to learn and discover here, and no doubt my visit to this interesting site would not be short

My first initial reaction was there was so much to read and research, I almost felt overwhelmed. Then by realizing that this was not just a skim through site, I became more relaxed. I was determined to walk through the site as they were directing.

Being a novice to ebay. the terms dropshipping and creating wholesale customized products were foreign to me. I wasn’t quite sure what this site was really offering. The one line I did understand though, was about making money at home without having to have an inventory. This is was convinced me to stay a little longer. Finally after scrolling down the page a bit, I found a very simplified answer that told me what Urbanload was all about. Now I could begin to understand the rest of the material on the site. Although there was a great deal of it.

I figured if I walked through the site following the links the way they were navigating me, I would be in a better position to absorb the information. So I started with the “learn more” link on the front page. I wasn’t sure to use this link or the “lets get started” link. In the end ,I discovered they both took me to the same page, so it didn’t matter.

At this location I was immediately being directed to another location. I chose to stay on this page as I felt like I was getting confused from all the navigation. For my personal needs this was the right move. This page answered all the questions that were running through my mind. It cleared up my confusion as to what this company was all about. It now gave me a very clear picture of what they have to offer. Now I was to the point where I could concentrate on the issues, instead of a where am I, sort of feeling.

I was now beginning to realize that there were some really good advantages to the type of business program they were promoting. More importantly, I had now begun to build a trust in them because everything was being explained step by step as to how to get involved, if I so chose to do so. I had to admit that in the beginning I felt that this was just a quick hit sales technique.

I really became intrigued when I saw their list of “how to” videos. I was now convinced that should I decide to get involved in selling ,I would definitely go through Urbanload. My decision was made on the feeling that I knew they would lend support every step of the way.

My conclusion was as I was ready to leave the site was to remember to thank my friends for sending me to such a informative site.

Thomas Griffin is the founder of Urbanload.com. Over 2000 resellers can’t be wrong. Make money on eBay with the #1 dropshipper. Choose only eBay certified dropshipping companies

Wholesale Dropshippers - Earn Profits As Soon As You Start Out

Friday, March 19th, 2010

Wholesale dropshippers enable you to sell the products without maintaining any stock. You have to sell the goods that are listed in the website of wholesale dropshippers. This is all you have to do. You have sell the product at a little higher rate than what the drop shipper is charging so as to earn profit. Wholesale dropshippers are very precious to the owners of eBay store. The entire process of the business is simplified which enables the entrepreneurs to make huge profits.

Customers never come to know that there is a presence of a third party because the goods received by the customers will have the label of the owner of the business, i.e. the retailer. The main feature of drop shipping is that it is almost risk free. By using facility of drop shipping companies, not a single penny is paid out until the payment of the customer has been received. This is an ideal business for new comers, as they require very less capital for this. The only thing required by an owner of a retail business is to invest time while doing drop shipping. Most of the time is invested in research, to find out ideal wholesale dropshippers who can provide good products. However it is not as easy as you think. To locate a reliable source may take hours.

Those manufacturers and distributors who are ready to work as direct associates with internet retailers are genuine wholesale dropshippers. These sources can be used by you to stock your store and to earn a good profit by it. Retail business owners require less money or no money. Care is also taken of the whole logistics that is involved in getting the product to your customer. It is true that like any other business, drop shipping business takes time to pick up. To secure partnerships with manufacturers, distributors, as well as wholesale dropshippers is the most difficult task faced in the dropship business. For a triumphant dropship business, these relationships are very important as this business will help you get connected with other people of the chain that already exists.

Drop shipping is the best way of providing products as well as services to the customer. In this the retailer sends the goods directly to the customer’s address. The retailer does not have to maintain any stock. Drop shipping also provides flexibility to the business. The retailer can deal in different kinds of goods at one given time. A lot of time is saved. Customer also gets benefited from this as he saves money on the costs of shipping. Those who are new comers or just starting out can also get involved in wholesale dropshipping business as less investment is required.

If done in an efficient way, huge profits can be earned, especially when selling on eBay. This is a great way of doing commerce.

Working with wholesale dropshippers is a great way to make good profits if you resell items on eBay or your own online store.

You Must Follow These Tips on Wholesale and Drop Shipping

Thursday, June 11th, 2009
by Thomas Griffin

1. Thorough market research is the foundation for success Meticulous market research doubles your chances of making a tidy profit from the wholesale goods you buy. Start off with a list of 5-10 different ideas. Then check completed listings searches on eBay to see what the item generally sells for and the sell-through rate for each one. Use Yahoo’s free keyword tool http://inventory.overture.com to find out how many people are searching Yahoo for your product per month. You can double this figure for Google. Add the numbers together. If there are ten thousand or more searches per month for an item, this indicates a healthy market.

2. Calculate the REAL cost of your item One big reason why people fail at the wholesale game is that they don’t do the numbers. In other words, they don’t treat wholesale like a real business. To accurately discover your true profit potential on an item, you need to add the shipping cost and insurance, eBay fees (or equivalent for other advertising), Paypal and/or credit card fees (these can be a real profit killer), packaging costs and labor involved packaging, and any storage costs to the cost of your item.

3. Verify ALL suppliers found on the Internet Getting caught out by scammers is a common stumbling block for people new to wholesale. If you are searching for suppliers off your own bat (rather than using a wholesale directory like SaleHoo), it is CRITICAL to check authenticity before making a purchase.

4. Chinese suppliers give the competitive edge Chinese suppliers are an essential source for anyone wishing to make money selling online. Manufacturing costs are currently extremely low in China, thus it is the secret to gaining a competitive edge. Dealing with China does have risks, but these can be alleviated if you place a small order first, use secure payment methods, get shipping insurance for 110% of the cost of the items, and use suppliers with a good reputation.

5. A common stumbling block for liquidation and closeout Always obtain the reasons for liquidation and closeout sales before you buy. Liquidation and Closeout sales can be a fantastic source for cheap products, but you usually have to buy by the pallet load and these can sometimes include broken or returned goods that aren’t in saleable condition. To be safe, ask specifically whether broken items and returns are included before you buy.

6. Negotiate on shipping and save Shipping economically is critical to importing success. Profits can easily get swamped in shipping costs, so take time to get a good deal on shipping. If possible, negotiate CIF (Cost, Insurance & Freight) or DDP (Delivery, duty paid) shipping terms with your supplier as this takes much of the risk - not to mention organization - off your shoulders. FOB (Freight on Board) is the most common shipping term, but don’t be afraid to negotiate for better.

7. Drop shipping - can you really afford it? Drop shipping sounds great in theory - someone taking care of packaging, wrapping and postage - but it can be difficult to profit from this method. Think about it, drop shipping can add another $2-10 to your costs - sometimes even 10% of the cost of the item. By the time you add in eBay fees and any other costs, you may find it is not worth it.

8. Warehouse storage checklist Asset management is the most important consideration when locating warehousing to store your items. Believe it or not, items can go missing while in storage, causing massive disruption for you. When comparing warehouses, ask questions specifically on how you will authorize the release of stock (by phone or fax?), what will happen if you need to cancel an order, frequency of damage claims, dust management, and whether there is an area you can use to photograph items.

9. Powerseller wealth It’s a fact - eBay powersellers are able to command higher prices for their items than ordinary eBay sellers. To get the best profits on your wholesale items, you need to aim to get and maintain powerseller status.

10. Growth with a website and eBay store The way to increase profits from wholesale is to build your own website and/or open an eBay store. This allows you to cross sell items plus it also makes it easier for people to find what they are looking for. For example, if you sell shoes, then customers can easily navigate to browse all black shoes in size 9 and so on. Always include a sentence at the bottom of your descriptions encouraging visitors to check out your other listings - most people will.

About the Author:

Great Wholesale and Dropshipping Tips To Implement

Tuesday, June 9th, 2009
by Thomas Griffin

1. Thorough market research is the foundation for success Meticulous market research doubles your chances of making a tidy profit from the wholesale goods you buy. Start off with a list of 5-10 different ideas. Then check completed listings searches on eBay to see what the item generally sells for and the sell-through rate for each one. Use Yahoo’s free keyword tool http://inventory.overture.com to find out how many people are searching Yahoo for your product per month. You can double this figure for Google. Add the numbers together. If there are ten thousand or more searches per month for an item, this indicates a healthy market.

2. Calculate the REAL cost of your item One big reason why people fail at the wholesale game is that they don’t do the numbers. In other words, they don’t treat wholesale like a real business. To accurately discover your true profit potential on an item, you need to add the shipping cost and insurance, eBay fees (or equivalent for other advertising), Paypal and/or credit card fees (these can be a real profit killer), packaging costs and labor involved packaging, and any storage costs to the cost of your item.

3. Verify ALL suppliers found on the Internet Getting caught out by scammers is a common stumbling block for people new to wholesale. If you are searching for suppliers off your own bat (rather than using a wholesale directory like SaleHoo), it is CRITICAL to check authenticity before making a purchase.

4. Chinese suppliers give the competitive edge Chinese suppliers are an essential source for anyone wishing to make money selling online. Manufacturing costs are currently extremely low in China, thus it is the secret to gaining a competitive edge. Dealing with China does have risks, but these can be alleviated if you place a small order first, use secure payment methods, get shipping insurance for 110% of the cost of the items, and use suppliers with a good reputation.

5. A common stumbling block for liquidation and closeout Always obtain the reasons for liquidation and closeout sales before you buy. Liquidation and Closeout sales can be a fantastic source for cheap products, but you usually have to buy by the pallet load and these can sometimes include broken or returned goods that aren’t in saleable condition. To be safe, ask specifically whether broken items and returns are included before you buy.

6. Negotiate on shipping and save Shipping economically is critical to importing success. Profits can easily get swamped in shipping costs, so take time to get a good deal on shipping. If possible, negotiate CIF (Cost, Insurance & Freight) or DDP (Delivery, duty paid) shipping terms with your supplier as this takes much of the risk - not to mention organization - off your shoulders. FOB (Freight on Board) is the most common shipping term, but don’t be afraid to negotiate for better.

7. Drop shipping - can you really afford it? Drop shipping sounds great in theory - someone taking care of packaging, wrapping and postage - but it can be difficult to profit from this method. Think about it, drop shipping can add another $2-10 to your costs - sometimes even 10% of the cost of the item. By the time you add in eBay fees and any other costs, you may find it is not worth it.

8. Warehouse storage checklist Asset management is the most important consideration when locating warehousing to store your items. Believe it or not, items can go missing while in storage, causing massive disruption for you. When comparing warehouses, ask questions specifically on how you will authorize the release of stock (by phone or fax?), what will happen if you need to cancel an order, frequency of damage claims, dust management, and whether there is an area you can use to photograph items.

9. Powerseller wealth It’s a fact - eBay powersellers are able to command higher prices for their items than ordinary eBay sellers. To get the best profits on your wholesale items, you need to aim to get and maintain powerseller status.

10. Growth with a website and eBay store The way to increase profits from wholesale is to build your own website and/or open an eBay store. This allows you to cross sell items plus it also makes it easier for people to find what they are looking for. For example, if you sell shoes, then customers can easily navigate to browse all black shoes in size 9 and so on. Always include a sentence at the bottom of your descriptions encouraging visitors to check out your other listings - most people will.

About the Author:

Items That Will Not Sell on Ebay- Home Business

Saturday, May 30th, 2009
by Thomas Griffin

1. Items under $10 It sounds like a great idea - after all, everyone likes a bargain don’t they? But items that sell for under $10 have one big problem: Shipping. It’s quite likely that the shipping for the item will cost more than the item itself and this can be very off-putting to buyers. For example, if the item costs $4.50 and shipping costs $6, the total cost for the item is $10.50. If the buyer can purchase the item at their local store for $8, then this suddenly becomes a much better deal. For small items and accessories, the way to get around this problem is by grouping the items together, such as sets of 6 golf-balls or 5 tea towels.

2. Products everyone else are selling Many sellers think that the best way to get started on eBay is to sell items that everyone else is selling. Surely those super hot items such as ipods, cell phones, psps and so on will be a quick route to riches? Well, no. The sellers who are already selling these items are not only more established on eBay - and thus familiar to and trusted by buyers - but they will be able to buy wholesale stock in larger bulks lots than you will, so their prices will always be better. Thus it will almost certainly be very difficult for you to make a profit in a market that is already well supplied.

3. Things you love…but no-one else does Hobbies can be a great way of making money, but only if plenty of other people are interested in them too. Another scenario is when you find a product that you think is absolutely wonderful and could be the next best thing…but no-one seems interested in buying it. Oh well you think, it’s only short term, eventually they’ll learn about my item and start flocking to buy it. Ah, no they won’t. It’s lonely work trying to educate people on the benefits of a product all on your own. As fabulous as the product might be, it’s nigh-on impossible to start a trend on your own. To make money from a trend, you need magazines and newspapers, word of mouth and television to do some of the work for you.

4. Difficult items to ship - e.g. fragile china and plants Now I’m not saying that these are bad items to sell altogether. Many sellers do very well from these items. But I don’t suggest you sell such difficult items when you are first starting out. Both these items have an above-average shipping risk, particularly if not packed properly. As a new seller, any negative feedback you receive at this early stage could be especially damaging to your career.

5. Very large items Thinking of starting with furniture or pianos? Unless you already have experience selling and shipping these items, then it might be wise to start with something smaller. Shipping such large items is a major operation. Not only that, these items will sell less often than mid-priced items as they won’t attract the same number of impulse buyers.

About the Author:

For Ebay Sellers - What Not To Sell On Ebay

Thursday, May 28th, 2009
by Thomas Griffin

1. Items under $10 It sounds like a great idea - after all, everyone likes a bargain don’t they? But items that sell for under $10 have one big problem: Shipping. It’s quite likely that the shipping for the item will cost more than the item itself and this can be very off-putting to buyers. For example, if the item costs $4.50 and shipping costs $6, the total cost for the item is $10.50. If the buyer can purchase the item at their local store for $8, then this suddenly becomes a much better deal. For small items and accessories, the way to get around this problem is by grouping the items together, such as sets of 6 golf-balls or 5 tea towels.

2. Products everyone else are selling Many sellers think that the best way to get started on eBay is to sell items that everyone else is selling. Surely those super hot items such as ipods, cell phones, psps and so on will be a quick route to riches? Well, no. The sellers who are already selling these items are not only more established on eBay - and thus familiar to and trusted by buyers - but they will be able to buy wholesale stock in larger bulks lots than you will, so their prices will always be better. Thus it will almost certainly be very difficult for you to make a profit in a market that is already well supplied.

3. Things you love…but no-one else does Hobbies can be a great way of making money, but only if plenty of other people are interested in them too. Another scenario is when you find a product that you think is absolutely wonderful and could be the next best thing…but no-one seems interested in buying it. Oh well you think, it’s only short term, eventually they’ll learn about my item and start flocking to buy it. Ah, no they won’t. It’s lonely work trying to educate people on the benefits of a product all on your own. As fabulous as the product might be, it’s nigh-on impossible to start a trend on your own. To make money from a trend, you need magazines and newspapers, word of mouth and television to do some of the work for you.

4. Difficult items to ship - e.g. fragile china and plants Now I’m not saying that these are bad items to sell altogether. Many sellers do very well from these items. But I don’t suggest you sell such difficult items when you are first starting out. Both these items have an above-average shipping risk, particularly if not packed properly. As a new seller, any negative feedback you receive at this early stage could be especially damaging to your career.

5. Very large items Thinking of starting with furniture or pianos? Unless you already have experience selling and shipping these items, then it might be wise to start with something smaller. Shipping such large items is a major operation. Not only that, these items will sell less often than mid-priced items as they won’t attract the same number of impulse buyers.

About the Author: