Entries Tagged 'ecommerce' ↓

Copyright 2005 Log Cabin Rustics

For small Internet retailers, drop-shipping is one of the best innovations since sliced bread. How else can a start-up offer a wide variety of products and convince customers that they have a fully-stocked warehouse—while investing virtually nothing in inventory or warehousing? Before you jump right onto the drop-shipping bandwagon, however, there are some pitfalls to avoid.

While a quality drop-shipper is truly a dream come true for the Internet retailer, there are plenty of painful pitfalls to avoid. Things can get embarrassing and costly in a hurry when a drop-shipper:

• sends products out late
• forgets to process your orders
• sends out poorly packaged products
• double-bills your credit card for orders on a regular basis
• provides cheaply made products and/or shoddy workmanship

A Matter of Credibility

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Originally posted 2005-09-30 14:23:52. Republished by Old Post Promoter

Author: Heidi Richards, MS

In 2004, Enquiro.com conducted a study of the search behaviors of men vs. women. They found that women spend more time in their searches and at specific sites. The study also revealed that women tend to be more deliberate in reading search results, linger longer at sites and have a greater satisfaction in the overall shopping experience. Another study conducted by iProspect.com revealed that women are more apt to click the paid search advertising because they find it more relevant to their searches than do men (WebProNews – July 14, 2004).

What does this mean? It means that if we understand the searching and shopping patterns of our target audience we are better able to create marketing strategies to effectively drive traffic to our sites. Don’t yet have a website?

Electronic commerce or ecommerce is used to describe doing business over the Internet. Selling products and services to customers over the Internet can be accomplished a number of ways and various levels of sophistication.

The first thing you need is a professional Web site with its own domain name. You need to design and promote a Web site. You’ll need access to expertise that can regularly design and maintain this Web site for you. A good website which gets visitors to return is constantly evolving and therefore, require ongoing attention. There are thousands of resources available for you to take advantage of, many of which are free. You can surf the Internet for what you need or you can simply visit www.WECAI.org to see the many resources we have listed. We have resources for guests and if you are a member we have even more resources to help you get started. In fact, you can search our domain registry and purchase your own unique domain name at www.wecaidomains.com.

Developing a business over the Internet requires many of the same major activities as starting any other business. You need a business plan, something to sell such as a product or service; you need customers and you may even need financial backing to get started. In addition, you need to market products to your customers, exceptional customer service practices and many other resources just as you do with traditional bricks and mortar enterprises. They may include inventory, fulfillment, shipping banking relationships and more.

Your store will need a “merchant” account, or the ability to process your customers’ credit card transactions over the Internet. This includes needing a “secure server,” (security certificate such as Versign or Geotrust) so that thieves cannot gain access to your customers credit information. Your merchant processing can be as simple as accepting payments through PayPal or as complex as a custom designed shopping cart system you pay for.

Getting a Merchant Account – If you have a good relationship with your bank and they don’t require a security deposit this may be your best option for setting up a merchant account. Alternatives to getting a merchant account through your bank are to go through a broker, a fulfillment house, or using third-party billing.

For more information on establishing an ecommerce presence check out the e-book entitled: Show Her the Money – The Woman’s ECommerce Handbook for Online Transactions (www.showherthemoney.com). If you are, or become a member of WECAI – www.wecai.org, this resource is yours with your membership.

© 2005 – Heidi Richards

About the author: Heidi Richards is the author of The PMS Principles, Powerful Marketing Strategies to Grow Your Business and 7 other books. She is also the Founder & CEO of the Women’s ECommerce Association, International www.WECAI.org (pronounced wee-kī) – an Internet organization that “Helps Women Do Business on the WEB.” Basic Membership is FREE. Ms. Richards can be reached at Heidi@speakingwithspirit.com or heidi@wecai.org.

Originally posted 2005-05-12 14:55:55. Republished by Old Post Promoter

Copyright 2005 Keith Gloster

You’ve heard about it many times in recent months. Being the business-minded person that you are, you most probably got curious and did some research of your own. But resources seem to be few, and what meager data you’ve found made you wonder even more…

Is drop shipping a fact or a myth?

I can’t blame you. There are quite a lot of reasons why information about drop shipping hasn’t fully invaded the internet marketing scene. The few sites that promise to teach you about this novel concept are usually full of crap. Often, they don’t even know the difference between a drop ship and a mother ship. They’d rather capitalize on the growing curiosity about the subject, and make a quick buck at your expense. But don’t let this discourage you.

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Originally posted 2005-09-30 14:29:00. Republished by Old Post Promoter

Author: Ray Yee

Choosing a carefully pinpointed niche market should be one of the first steps that an internet business owner has to take. A very common way of describing a niche market is ‘a targeted group of individuals with very specific and similar needs or interests.’ These people engage in similar activities and hence they would most probably demand the same goods or services to cater to their needs. Online businesses that drop ship their products to their customers would thrive by focusing on a specifically targeted niche market. In this article, I would focus on the advantages a niche market can bring to an online Drop Ship business. This article also provides you with practical steps for you to select your niche market.

By focusing on a specific niche market, Drop Ship businesses gain an edge because they are like ‘monopolies’ for that particular niche. The ‘monopoly’ for that niche would be able to provide a much wider range of products and better services for that market, enabling it to dominate. Because there is a very large number of niche markets on the internet, most Drop Ship businesses are able to survive and thrive online by selecting a niche that no major competitor is targeting, and directing their marketing efforts to their respective niches. With limited resources, a small Drop Ship business just starting out cannot hope to sell ‘mainstream’ products that are also supplied by huge competitors like Wal-Mart.

It is critical to first establish a market with an unfulfilled need and then develop products or services to meet these needs. Most online ventures fail by first selecting a good product, and then looking for the market for that particular product. They fail when the product’s demand is insufficient, or when the product already has a strong competitor supplying to the market.

The internet is not the only medium where niche marketing dominates. In our corporate world, the majority of the successful companies also selects a niche market and develops products or services that cater to their specific niche. Microsoft develops software as operating systems and platforms for computers. Nike offers shoes and footwear targeted at the sporting population. This illustrates the importance of first selecting a niche market for your business to focus on.

There are a few simple stages in the selection of a niche market:

1) Brainstorm for niche markets that are related to your area of interest or expertise. It is simply easier to succeed if you focus on an area that you are passionate about and have the most expertise in. This way, along the learning curve of starting an online business, the frustrations that you face along the way will be reduced because whatever you are doing feels more like fun instead of work.

2) Research the market in detail. This involves producing a detailed profile of your market, including the estimated demand for your products, the products in the niche likely to have the highest demand, and where these prospects normally congregate online.

You can use the free Overture search term suggestion tool to gauge the market size for the products you have in mind. It is available at http://inventory.overture.com/d/searchinventory/suggestion/. Simply type in the product keywords and this tool can suggest more specific keywords, and also the number of times this word has been searched over a period of time.

Chat rooms, forums and newsgroups are where your target market normally congregates online. By monitoring these discussion boards, you should be able to determine the evolving needs of your target market, and what new product is likely to be in high demand soon. Forums can also be a good source of ideas for your products. Google Groups is a good place for you to start finding newsgroups or forums for your niche market. It is available at http://groups.google.com.

3) Select a niche market that has a need not currently being adequately met instead of targeting a niche whose need a competitor can fulfill very well. From the newsgroups, discussion boards and forums, you can get valuable information about business opportunities. For example, if consumers voice out their dissatisfaction about any unfulfilled need, you can quickly find and offer any product as a new solution to their problem. This fills a ‘gap’ in the market and your business is established.

4) For the niche markets that do not have their needs adequately met, conduct research on the major businesses in that field. If there are no major competitors, you can congratulate yourself on finding a suitable niche market for your Drop Ship business. If there are several major market players, you have to either develop a Unique Selling Proposition (USP) to differentiate your products from your competitors, or you can narrow down the definition of your niche market to a more specific level. For example, if your niche market is the group of individuals passionate about oil paintings, you can narrow down your focus to abstract oil paintings by Rembrandt or Renoir.

If you want to be a retailer of Rembrandt oil paintings, for example, note that your competitors are not the websites selling oil paintings from all artists, but the websites that focus only on Rembrandt oil paintings. All things being equal, an online shopper will certainly choose a website focusing only on Rembrandt oil paintings, instead of a website selling paintings from all the famous artists. This is the edge that a niche market can give to a small Drop Ship business.

You can use the free Overture ‘View Bids Tool’ available at http://uv.bidtool.overture.com/d/search/tools/bidtool/ to gauge the competition for your products. Overture is a Pay-Per-Click search engine, which provides search results ranked in order of how much businesses are paying for every click-through to the business websites. This tool lists the amount that each business is paying for every click by visitors. The higher the bid for the keyword, the more popular the keyword, thus the stronger the competition you face for your products.

5) Test your market. Once you have confirmed your niche market, you must test your products for that market. Start off your business by selecting a few of the most popular products and placing them in your catalogue. Next, you announce your products to newsgroups and discussion boards and gauge their response to your products. Observe how well the individuals are reacting to the introduction of your products. If you did your research properly and fulfilled a need well, most probably you would receive a very warm response from forums and newsgroups.

Finally, as the online retailer for your niche market, you should aim to be the best online resource for the market. Articles, strategies and guides should be included on your website to provide your niche market with valuable information. For example, you can write your own guides on how to properly use tools for magician tricks if that is what you are selling. However, it is not advisable to start off by selling an enormous catalogue of products. You should first establish your credibility by supplying your market with useful know-how for the products, and recommending them a few popular products. As your business stabilizes, you can slowly expand your business catalogue to include other products.

Selecting a niche market is one of the most important steps for setting up a Drop Ship business. It lays the foundation for how your business will develop in future. Thus, spend some time carefully deciding on your niche market before taking the plunge into your business.

You are welcome to reprint this article as long as you include the Author’s resource box with the article and the entire article remains unchanged.

About the author: About the Author: Ray Yee is the founder and president of Dropshipperscentral, a website which provides a wealth of informative articles, tips and resources on everything you’ll ever need to know about setting up a Drop Ship Business and marketing it. Click here for the Wholesale Drop Ship Directory from http://www.dropshipperscentral.com

Originally posted 2005-05-12 14:49:49. Republished by Old Post Promoter

Author: Ray Yee

Thanks to the ubiquity of the internet, online virtual businesses have become very popular business opportunities. Online retail stores are gradually playing a more important role in our lives than the traditional ‘brick-and-mortar’ retail shops. Over the last few years, a new concept called ‘Drop Shipping’ has emerged with the coming of the internet. Drop Shippers are basically wholesalers who are willing to ship their products directly to your customers. This article aims to provide readers with an introduction to the current state of the E-commerce industry, Drop Shipping and its benefits, and the promise it holds for the online retail community.

Online Drop Ship businesses are now very popular home-based business opportunities. According to a Forrester Inc. report, online retail sales will grow at a 25% annual growth rate over the next five years. Online retail sales will reach nearly $230 billion and account for 10% of total US retail sales by 2008. On Ebay, more than 430,000 people are making a full- or part-time living from the auction site. Many of them use Drop Shippers to auction their products. Hence, with such strong statistics, the internet entrepreneur can hope to start a retail business now and still claim a portion of the ever-growing market share.

The Drop Ship model offers many unique advantages over the Wholesale model:

1) You do not have to spend a fortune on the huge inventory of wholesale stocks before you start a retail business. This translates into a very low business startup cost. There is no risk of purchasing large quantities of stock, and finding that you cannot sell off your goods because they have become obsolete among consumers. Therefore, with the variety of products offered by your Drop Shipper, it becomes feasible to test which products have a strong demand over the internet without losing a fortune on each test.

2) Another prime advantage of a Drop Ship business is that there is no need to worry about shipping your products to your customers. You do not have to provide storage space for your goods, nor do you have to incur warehouse costs. Your Drop Shipper will take care of all the logistics and shipping of your Drop Ship business. In fact, most Drop Shippers are willing to label their products with your company name on it, so it will appear as if you are the one who shipped the products to your customers. The shipping cost for each product is also reduced, because your Drop Shipper can ship your products directly to your customers. A higher profit margin is achieved because of the reduction in unnecessary shipping costs.

3) Drop Shipping is also unique in that it allows you to ‘sell high, then buy low’, instead of ‘buy low, then sell high’. Your risk involved in your retail business is dramatically lowered as you get paid up front for your products, making a profit on each sale.

4) There is no minimum quantity restriction on your orders. From your website catalogue, you can sell as much of your products as you want, and you can leave the indenting of stocks to your Drop Shipper. The quantity of products which you can sell over your website is only limited to your market demand, and your marketing efforts.

The process of setting up a Drop Ship business can be distilled into a few simple steps. First, you do some research over the internet over the niche market that you would like to target. Once, a strong demand for your products has been established, you contact the Drop Shipper of your choice and set up your business as the retailer of the products you want to sell. Next, you design a website complete with product catalogue and credit-card-accepting functions. The product descriptions and images can be obtained from the Drop Shipper, in most cases. After which, you need to drive large volumes of traffic to your website through internet marketing. Some visitors to your website will be converted to customers if they find your offers attractive enough. They place orders at your website and they pay you the retail prices, up front. You email the orders to your Drop Shipper, who will ship the products to your customers directly. Of course, the retail price will have to be marked up to include shipping costs as well. Since the Drop Shipper charges you the wholesale price for their products, the profit margin you earn is simply the difference between the retail and wholesale price. Internet businesses, in general, have also many strong advantages over ‘brick-and-mortar’ businesses. Startup costs are generally very low, and this is well suited for those aspiring entrepreneurs working on a shoestring budget. The costs for conducting a Drop Ship business will be mainly software for setting up and marketing your business. Some examples will include shopping cart software, email marketing software, search engine promotion software, and so on. Other costs would include the web-hosting fee and also the wholesale costs of the products. In most cases, the Drop Shipper will require you to pay them a small deposit to signify your commitment and to prevent fraud.

With the low startup costs for a virtual business, you can keep trying different forms of business or different marketing methods over the internet without losing a fortune on your efforts. You can ‘lose little’ over many unsuccessful endeavors, but ‘win big’ on the few business models which you get right.

Perhaps the most attractive aspect of an online business is the ability to automate it and let it generate income on its own. This is largely possible due to software to automate the business process, like shopping cart software and email autoresponder software. Thus, Drop Ship businesses can run 24/7 without you being present physically to run it. Imagine having the freedom to do whatever you want without being an ‘employee’ for your business! All you need to do is to get the basics of the business up and running, like the website design and product catalogue. After which, you consistently market your website over the internet to get a recurring volume of traffic to your website. This will bring you recurring sales and allow you to make a decent living over the internet. You can repeat this process again and again with other markets of your choice. In the long run, this will bring you multiple streams of income. Online Drop Ship businesses are thus strong examples of assets that generate passive income.

In conclusion, the e-commerce industry is still very promising despite the dot-com bust a few years back. With the introduction of Drop Shipping, the hassles of conducting a retail business over the internet have been dramatically reduced. As the industry is still relatively young, entrepreneurs should get in the e-commerce game early to establish themselves as strong market players of the future.

About the author: Ray Yee is the founder and president of Dropshipperscentral, a website which provides a wealth of informative articles, tips and resources on everything you’ll ever need to know about setting up a Drop Ship Business and marketing it. Click here for the Wholesale Drop Ship Directory from http://www.dropshipperscentral.com

Originally posted 2005-05-07 14:51:55. Republished by Old Post Promoter

Yahoo Store: The Best E-commerce Platform for SEO

Author: Scott Smigler

If you’re a small business with a goal of doing between $500,000 and $15 million in annual e-commerce sales, you need to learn more about Yahoo Merchant Solutions. And to answer your first question… no, Exclusive Concepts, Inc is not in any way affiliated with Yahoo. I’ve simply been persuaded over the past 6 years that Yahoo provides the most powerful and scaleable e-commerce solution for the small business that cares about search engine placement. Why should you care about search engine placement? Search engines are the single most powerful and cost-effective mechanism for driving qualified traffic to your site. What good is a great online store if customers can’t find you?

First things first – What is Yahoo Merchant Solutions (a.k.a. “Yahoo Store”)

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Originally posted 2005-06-01 11:42:38. Republished by Old Post Promoter

Author: Anthony Ellis

There are many systems that can lock your software or document, allowing you to control access to that file. But the problem arises with assuming that this will stop all theft. A well thought out, thorough protection system can deter theft, but it cannot stop it 100%.

An “unbreakable” protection system simply does not, and will never exist. If someone really wants your information, they can get it, even if it takes years of work.

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Author: Dave Davies

The purpose of any business website is to promote a product or service online. The purpose of an ecommerce website is to take it one step further and to allow your visitors to purchase your products or services directly from your website. This model has many great advantages over the non-ecommerce website in that it allows for the generation of revenue with little-or-no time spent in selling past the cost to have the website designed and maintained, and it does not require the visitor to call you during business hours thus helping secure the sale to an impulse buyer. If your website provides all the information that the buyer would want, you can save significant money in sales time spent in that the visitor can find all the information they need to decide to buy from you without taking up your time or that of one of your sales staff. But ecommerce sites have a serious drawback as well; very few of them can be properly indexed by search engine spiders and thus will fail to rank highly.

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Why Our Site Was Removed from the Open Directory Project

Author: K.D. Wiseman

Our website,www.bestofthehome.com has been listed in the Open Directory Project for over a year. Recently, I conducted a search of the ODP for my site, to update it, and found that it was no longer listed in any category.

I went to the ODP forums http://resource-zone.com to try to obtain information as to why this had happened. The editors and moderators of the forum informed me that websites that sell products via the drop-ship method do not get listed in the ODP, “because the content of these websites are not unique and the sites are just “order takers” for the wholesalers.” ODP will gladly list the wholesalers if they meet the ODP guidelines.

The guidelines for a site to be listed in the ODP Shopping/Home and Garden/Furniture Category are listed below:

“Submission guidelines include that the web site itself actually be a means of selling the Furniture products. Thus, appropriate product images and descriptions, specific product pricing and a means of ordering from the web site itself are required to qualify as a “Shopping” site.”

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Author: Heidi Richards, MS

In Part One we talked a little bit about what Ecommerce is, getting a domain name and setting up a merchant account. Ecommerce is more than that, much more. To have a really good online presence that gets people to stop and shop you need a strategy for success. Your strategy must include your USP or Unique Selling Position in the marketplace. What makes you stand out from all the other online entrepreneurs looking for the same type of customers as you? Can you stand out from the competition based on quality, price or benefits? Once you know your USP, you can begin the monumental task of telling the world about your site. A really unique selling position will give you an advantage over all the competition – well that and a lot of planning and investing of your time and money.

FOCUS

Emphasize the benefits and the results the customer will get from purchasing from you and using your product or service. You can discover the benefits by listing all the features and then converting them to benefits. List everything your product or service offers. For each feature list a relative advantage from the customer’s perspective. You can discover the customer’s perspectives when they buy. Simply ask them, “ Why did you place an order today or use our service?” BE very specific when creating your benefit statements. An example of this is, “You will save $100.00 sells better than “you will save money.” “You will loose 20 pounds in 10 days” sounds better than “you will loose weight.” Rank your benefits in order of importance to the customer. If you have enough of them, use bullet points for emphasis.

Emotion sells. People make most buying decisions with their heart and not their head. Paint a picture of the results the customer will get when they purchase from you. “ You will look 20 years younger.” “You will be $100 richer.”

Make sure you include a call to action. Want them to make a buying decision today? Give them a reason to do so. Offer a bribe (discount, bonus, something for nothing).

Your website must load quickly and function easily. If your site loads slowly people will get impatient and go elsewhere. Do all your links work? Have you tested your order page by running sample orders? Have you tested load time using different connection speeds? You can get a fr*ee analysis by visiting Submitplus.com.

Make your website easy to look at and read. I find dark background tend to be more difficult to read than do pale backgrounds. The overall look of your site should be clean and professional. When we were first creating the Women’s ECommerce Association, International we did everything in-house. Not being truly adept at HTML coding we thought we could just use a simple program to create a professional site. It was okay, but the one we now have is so much better. Why? Because we hired a professional. You can create a website with a good template program. We are using ECommerce Templates to create our new look for WUN Publications. It is simple to use and relatively inexpensive.

When it comes to graphics, be conservative. Sites that are laden with graphics and flash tend to take longer to load. If your site takes more than 3 seconds to do so, you will loose many visitors and potential buyers. If you must use graphics, make sure the files sizes used have been reduced as much as your image editing/compression software will allow.

View your site using as many different browsers as possible. In addition to Internet Explorer and Netscape, there is Opera, Mozilla, Lynx and those are just the ones that run on Microsoft Windows. WebMonkey has a chart of those supported by Macintosh, Unix/Linux and others. Also, many people will surf with their browser’s graphics switched off. Make sure you know what your site looks like without the graphics and that it is still easy for visitors to surf.

One last thought Make sure all your important information is above the fold. If you know that visitors are looking for something specific and you make them scroll down to find it, chances are they won’t.

© 2005 – Heidi Richards

About the author: Heidi Richards is the author of The PMS Principles, Powerful Marketing Strategies to Grow Your Business and 7 other books. She is also the Founder & CEO of the Women’s ECommerce Association, International www.WECAI.org (pronounced wee-kī) – an Internet organization that “Helps Women Do Business on the WEB.” Basic Membership is FREE. Ms. Richards can be reached at Heidi@speakingwithspirit.com or heidi@wecai.org.