Far too many people make the mistake of trying to sell only
products that they like on their web sites. Others make the
mistake of trying to sell only the coolest and flashiest things
they can find.
The whole point of starting an Ecommerce web site is to make
money. That's something you must not lose sight of (no pun
intended!).
Our business is to show people where they can find products
to sell without investing a single penny in inventory. The
approach is called drop shipping. This is where a wholesale
distributor will ship a single item directly to your customer
from their warehouse, AFTER your customer pays you for it.
It's the perfect way to start in Internet business on a shoestring
budget.
The Directory we publish covers nearly half a million products,
from over a thousand well-known brand names, available from
dozens of REAL wholesalers who will drop ship.
So why does everyone who uses our Directory try to sell electronics?
Ok, I guess I did the same thing. When I opened my first
Internet store, I plastered the walls of that place with things
that I though were cool. Stereo equipment, DVD players, Computer
components. The shinier the better. I had the latest technology
up there. Some of the items cost thousands of dollars.
I think that in the back of my mind, I knew that I wasn't
going to sell much of it, but it LOOKED really cool. I could
show it to my friends and say, "Check it out
that's
MY store!" They were all suitable impressed, and I could
walk around feeling like I was pretty slick. Whenever any
of them asked me how much money I was making, I cleverly changed
the subject.
The truth was that no one was buying much. Come to think
of it, none of my friends bought anything, either. That should
have told me something right there.
Look, electronics are a fine product to sell on the Internet.
I only use them as an example because it's a situation I can
relate to. The problem is not the product; it's the COMPETITION.
Most of the people I've seen start an Internet store want
to know what the hottest sellers are on the 'Net, so they
can sell those products too. They're missing the point, as
I did. If you only sell the hottest sellers, you dilute your
available customer base, because everyone else is trying to
sell the hottest sellers, too! You also run into those bricks-and-mortar
popular-item superstores that have millions of dollars to
purchase tons of inventory at rock bottom prices.
People buy all kinds of products. They don't have to be cool
or shiny. They just have to be things that people will buy.
Here's an important ingredient for success on the 'Net: sell
those products that people use, but don't stumble over every
time they open a web browser.
When we build an Internet store, we do a little research
first. Since we build stores in Yahoo Shopping (http://store.yahoo.com),
we do our research in Yahoo Shopping. We know that at least
90% of our traffic is going to come from the millions of people
who surf through there with their purses and wallets flapping
in the breeze. So when we consider a new product line, we
start a search.
If we were considering selling DVD players, for example,
we would do a search on the term "DVD Player" in
Yahoo Shopping. As of the date of this article, such a search
turns up 7,813 DVD Players available from 496 stores.
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Do we want to become store number 497, add 20 or 30 products
to the nearly 8,000 that are already available, and hope we
sell something?
I think not.
Since we use our own Directory exclusively as a source of
product suppliers who drop ship, we go back to the Directory
and look around at some of the available product types. We
notice that one of the wholesalers we list carries a complete
line of Fiskars brand Yard and Garden tools. Will people buy
these products? Hmmm...people HAVE been known to work on their
yards and gardens, when they're not playing with their electronics.
Fiskars is a well known brand name, so our customers would
feel comfortable with it. It happens to be late spring, so
it's reasonable to assume that people will be buying garden
tools for some time still this year.
So let's check out the competition.
We want to know how many other people are selling Fiskars
products in Yahoo Shopping. So we search on "Fiskars".
Only 54 stores selling Fiskars products right now! That's
considerably better than 497 stores selling the electronics
we were considering.
Are these store devoted to selling ONLY Fiskars products?
Wow! not a single one! All the top search returns are stores
selling general merchandise.
When we build a store, we like to specialize in one product
line. There are many benefits to this; chiefly the fact that
customers feel more comfortable in a store that does one thing,
and does it well. It's also much easier to rank a single product
line in the major search engines than it is to rank a general
store with lots of unrelated products.
Ok, we have a product line that we feel will sell, and the
competition in the Fiskars brand name itself is minimal and
unfocused.
However, when people search for garden tools, they're going
to use search words like "Trowel", and "Pruning".
They're not going to search on the term "Fiskars"
very often, unless they're looking for scissors. So, we go
back to the Yahoo Shopping search engine.
We search on "Gardening Tools", and we find 113
stores carrying 324 products. Still not much competition.
Even better, NONE of these stores are focused on just gardening
tools. They are gift stores, general merchandise stores, etc.,
who just happen to have the word "Gardening" somewhere
in their product description. We know that we can put the
word "Gardening" in our very product names themselves
(ex.- "Gardening Trowel, Steel, 9 Inch"), and we
will show up right at the TOP of a search on the word "Gardening".
We search on the word "Pruning", and find 81 stores
carrying 418 products. Still not a problem, since the top
returns are BOOKS on pruning, and the rest are more unfocused
sites.
After a little more searching, we're convinced that we've
found a product line that will sell well for the rest of the
Spring and Summer. Since it only costs us $100 a month to
open another small Yahoo Store, we more than happy to do it.
In the Fall, sales will slack off, but we have other stores
that are geared toward Fall and Winter merchandise. They are
also small and focused, and no matter how many Yahoo Stores
we open, we know that each one of them will easily cover it's
$100 a month cost, and turn a profit of some kind all year
'round.
Of course, now that I've opened my mouth and told everyone
about Fiskars, we're going to have to scrap that idea and
go back to the drawing board! That's OK, though...we have
nearly half a million others to choose from.
Chris Malta WorldWide Brands, Inc.
www.DropShipSource.com
Chris Malta is a Microsoft Certified Systems Engineer
who has been
working on, teaching about, and spending way too much time
with
computer systems for 18 years. He and his partners at WorldWide
Brands, Inc., publish The Drop Ship Source Directory, which
lists
wholesale distributors of over 435,000 products from over
1,000
brand names who drop ship for web site owners. They use drop
shipping
exclusively to operate their own retail web sites as well.
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