The owners tips to sell online and in the online marketplaces successfully
I will get rid of the 800 pound gorilla right from the beginning, I am not going to ask you for money or a credit card at any point through this. I am not going to leave you clueless in the end and tell you I will only give you the details that will actually help you after you pay me some money. The following is my genuine advice geared to help you be successful, after all thats the point of you being on my website in the first place, I am 100% sure you didn't come to my site to lose money.
I have had this conversation in different parts with so many customers each and every day. I felt if I write it all down so all my customers can read it at once, I would have much more time to concentrate on making the site better and better with more and more tools to make your job easy and profitable. I sat down and decided to write from the things I have have learned over the years (so it may get long), as I have hit every brick wall you can imagine trying to figure it out. So if you take the time to read this, you may find it very beneficial in your quest to make money drop shipping.
My name is Larry and I am the owner of Novatech Wholesale. I had about 15 years of experience selling on my own websites, ebay, amazon etc before I started Novatech Wholesale. I have had years of experience on both sides of the fence as a dropshipper and as a wholesaler stocking products in a warehouse. Both have there own pros and cons, which I will go over later.
I have talked to many of you, and if I haven't I probably will at some point if you have any questions or run into any problems. I am available to speak with by phone or email if you would like to personally discuss strategies that might work for you (although I am hoping the info on this page will solve that). My goal is to make selling online easy and profitable for you. I am not charging you for this information, but I don't like to work for free anymore than you do. Yes I plan on making money off of you. But I am not just going to ask you to hand it over for nothing, my job and goal is to get you selling products so that we both can make money (fair is fair right?)
Obviously you are reading this and here because you want to make money. I won't sugar coat it, it won't be easy. If you think this is a get rich quick type of business it is not. But if you put in hours of work and dedication we do have everything you need to make a decent income.
We seem to attract two types of customers. The first type are those that are looking to pick up a bit of extra cash as you probably already have a full time job/career, maybe for a family vacation. Holidays, savings, home repairs or just for a new toy, of course I can go on and on with a ton more reasons why we may need extra money.
The second type of customer are those that are looking to make a living, support a family, and be able to pay for those things we need in life like a roof over our heads, food, clothes, furniture, appliances, a vehicle, insurance for medical, car, life, home etc. This type of customer is here to make as much money as they possibly can.
Fortunately we have everything you need regardless of which customer group you fit into.
Here's the thing, As I mentioned earlier. I have talked to a lot of you. Some of you are like talking to a wall and quite frankly it wastes both of our time, and honestly if you aren't willing to try new things that are different than what you are used to (and in most cases not working for you) what do you expect? (if you do the exact same thing over and over how can you possibly expect different results? There is a word for that, can you guess what it is?)
However, it isn't all doom and gloom. Some of you have actually tried my recommendations and have done very well from it and continue to do well. Some of you have been with me since I started the website and we are very grateful to have you.
So I decided to sit down and write what I would tell you on the phone anyway. Now it will be in writing and you won't forget half of it before we are even off the phone. If you try my way I guarantee you will see results. Since we have customers that have never sold online or had their own business in their life I am going to start from the beginning.
A successful business isn't something you just throw together in a couple of hours, and be ready to retire by next Friday. Woudln't that be a perfect world. Since our company mainly focusses on dropshipping, websites and online marketplaces such as ebay. amazon etc I will just focus on what you need to do to be successful in these areas.
The following is not for those of you just looking to make pocket money to take your girlfriend/boyfriend to the movies one Saturday night a month. Although we welcome you on our site and we will be happy to answer any questions you may have.I recommend for those customers, use the free lister tool we offer, pick a handful of good products, set it and forget it. I assure you that you will easily make pocket money. But for those of you that want to build a successful business then keep reading.
The first thing you need to do is figure out if you want to just be a niche business or not, Do you want to sell just electronics, household goods, phones only, phone accessories only, just knives and swords, or if you want to offer as many types of products as you possibly can.
Pros of a niche site
easier to market
Pros of an everything store
More products = More sales
The next thing you need to do if you haven't already is come up with a catchy business name. Here is why, if you come up with some long, hard to spell, or complicated name it will be very hard for your customers to remember you (without spending millions of dollars on professional advertising), or remember how to find you. This will be important for branding. Once you start a business you have to build your brand it so that customers willl come to recognize you as a trusted name just by your name or logo, this will consist of your logo design, colors you choose, your policies, the type of items you will sell etc. Try to come up with something unique. You can check by putting your business name in a google search, or with .com after it to see if it is available.
Determine if you want to stock or dropship the products that you sell.
Stocking Products Pros
You can usually get cheaper pricing
Never worry about the product being out of stock
Easier to manage your inventory since you have it in your possession
Stocking Products Cons
Warehouse space is expensive
Maintaining a warehouse is expensive
Employees are expensive
packing and shipping is a huge pain
You usually end up eating your returns
Drop shipping Pros
You can run a superstore from your bedroom
You don't have to have a lot of space
No packing and shipping
low overhead and startup costs
Your returns are sent directly back to your supplier
Drop Shipping Cons
Product prices are usually higher than buying in bulk as it is more expensive for the warehouse to handle each product individually compared to handling them in bulk
You are at the mercy of your drop shipper for when the product will be shipped
Trying to manage inventory between you and your supplier
Since most of you that are reading this are here to drop ship, I will focus on that. Drop shipping can be very profitable if done right. But, before I get into that let me put an end to a few popular misconceptions.
1. Profit vs Pricing - No, you don't have to have the lowest price on the internet to make a sale. Think about it, how would it be possible for so many companies to exist profitably if that was the case? If only the cheapest seller could make a sale there would only be one seller in the world per product, since there can only be one "cheapest" company. You are in business to make money, too many companies fail because they try to be cheaper than everyone else and then they find that they weren't making enough money to survive. Don't be afraid to price your items to make profit even if that means you won't be the cheapest.
2. Latest and Greatest products - Many think that only the latest and greatest popular products will sell and make money. Actually the opposite is true. There is rarely any profit in just released hot items, these are the items that bring customers to your store, but not the items that make you profit. Everybody that can is selling those items, but mainly the only ones making profit on these is the manufacturer, since they regulate the price.
3. Rate of sales - Many customers that come here are used to buying in bulk and watching that item sell 50x a day, a week, a month etc. Then when they dropship they expect those same kind of results. Its just not going to happen like that, There are three ways to make good money drop shipping.
A. List as many products as you can on as many channels (ebay, amazon, website, bonanza, sears marketplace, rakuten, best buy marketplace etc) as you possibly can. Simply put: The more products you have and the more places you have them the more sales you will make. The problem with that is it is very hard and/or expensive to manage thousands of listings. This is where we come in with our premium tools that make it easy for you, and that will take all the complicated parts out of it. We have many customers that gross over 100k per month selling our product on the marketplaces like ebay and/or amazon.
B. Be more creative than your competition. Create bundles that no one else has, this is the one thing you can do to truly be unique with your items. So instead of offering one product per sale. Offer, 3 or 4. You can create like type bundles of items that all compliment each other (example, tablet, tablet case, bluetooth keyboard, and bluetooth speaker bundle) . Or you can do random bundles (example curling iron, hair dryer, electric shaver and an electric toothbrush)
C. Find a manufacturer that will give you an exclusive contract for one or several of their products if you are able to give them the volume that makes that worthwhile for them. (this is possible to do, but I am sure many of you will find that it will be very difficult)
D. When drop shipping it is pointless wasting your time to try and research every product you post. This is something you do if you are getting ready to purchase inventory and have your funds tied up. But when you drop ship there is no inventory to purchase and no funds tied up invested in inventory, so get everything you can online as fast as you can,
Write your company policies, You want to write these policies to keep your losses to a minimum. Its one thing to have a customer that buys products from you and you make profit, vs having a customer buying products from you where you are always taking a loss.
Now that you know what direction you are going to go it is time to get your products online. We have several premium tools to help with that, or you can use your own tools/methods. Either way you have to get the products live in front of eyeballs wherever it is you are going to be selling your products.
Customer Service. This is one of the most important factors in running any business. If your customers aren't happy word is going to travel fast and before you know it you won't have any. But if they are happy, word will also travel fast and before you know it you will have more customers that you can handle. So when your customers have questions, don't wait 2-3 days to answer them, When they have an order, don't wait around a week before getting their order on their way to them. When they have a problem with an order don't ignore them. When you talk to them, make them feel like they are part of your family. Another words treat your customers as if that customer is yourself and how you want to be treated when you spend your hard earned money on something, or as if your customer is a very close and loved family member.
Get a website - whether you get a website from us or somewhere else, having a website is very important in brand building, and has an endless amount fo benefits.
1. Brand building
2. Lower cost to sell
3. Build your own customer base
4. You get to set your own rules and policies
Marketing - This is a very important step. Don't rely on or wait for everyone else to bring customers to you, Get the word out there about your business, now that you have a brand, website etc, it will be much easier to do.
1. Get an account on as many social sites as you can. Write posts about your company, your products etc, all with a link to your website and/or product pages. Go to blogs, forums etc and get links out there to your website in as many places you can.
2. If you purchase a website elsewhere, make sure your website is up to date with all the latest techniques for the search engines. To do this you may need to hire a professional SEO company. But be wary of the ones that are really cheap, these will generally hurt you more than help you. (our websites already come with all the advanced SEO work done, so you can actually skip this step by going with one of our websites)
3. Don't be afraid to spend money to make money, use google adwords and other PPC (pay per click) methods. Especially if your site is new and doesn't get much traffic. This doesn't have to cost you fortunes, Just what you can afford, even if its just a dollar a day. At least its targeted marketing, which means the traffic it does send will already be looking for something you have for sale.
Following these things will help you build a strong business, but there are also other parts not mentioned in detail here that you will have to figure out yourself, such as
1. bookkeeping. - you will need to have a way to track/manage your money. You will want to know what your profits are. (usually quickbooks is popular for this, but there are quite a few accounting software programs out there to choose from.
2, time budgeting - as you begin to grow this will become very important as you will not be able to do everything yourself. So don't be afraid to delegate some of the work to others that can help you reach your goals.
I hope this helps some of you to reach your goals, and build a successful business. If so, drop me a line some day and tell me about how it helped. If you made it this far I am sure you are driven and that you will be very successful. If any of you have any questions about anything in here please do not hesitate to contact me and I will be happy to clarify (and update this page so that it helps others)
Good luck to all