My plan to set up an ecommerce business - need help

14 replies
  • ECOMMERCE
  • |
Hi there everyone, this is my first post on the forum having just signed up.. i have been reading here constantly the past couple of weeks and finally feel as tho i have enough knowledge to start up my own business..

However i have a few questions that i could do with the answers too.. if i was too set up a website where i wanted to sell hats/caps would i need to order a bulk amount of them? Or could i wait till i receive orders then order them to customers? As of right now I'm not financially stable enough to invest in large quantities of items, so what will be the best way of getting around this problem?

Also, with drop shippers, is it advised to simply email the company asking for a 'partnership' or do people mostly get there deals from phone calls?

Cheers Warriors!
#business #ecommerce #plan #set
  • Profile picture of the author Herberto
    Hi Rhys,

    I am by no means a retail expert having mainly dealt with digital products but I can offer the following advice. Your supply channels need to be established prior to opening for business. You don't want to get a bunch of orders and be unable to fill them. That is one way of getting a bad reputation quickly, which can be hard to come back from, particularly if you are a new start-up. If you are low on funds initially I would definitely look into going the dropshipping route, provided there is a reputable supplier offering the products you need. It's always best to test the service out yourself by making an order with the company for a unit. That way you can get a feel for the level of service they supply (delivery times) and the quality of the product they offer. It's also worth sending them a few emails about the products and see how responsive they are. You want to be in business with someone who is going to reply quickly, not someone who takes a week to reply. If you can't find any drop shippers for your niche, eBay sellers are often willing to do dropship, so just find a seller with good feedback offering the products you need and send them a message telling them about your business and ask if they would be interested in working out a deal (I've done this before). These are better options than investing all your start up money in just one or two product lines that may or may not sell - as then you won't have any money to invest if something good does come along!

    Hope this helps
    {{ DiscussionBoard.errors[7756722].message }}
  • Profile picture of the author artshark1104
    Since you are new to start a business, it would be better to start from dropshipping, there are lost of wholesalers offering this service. In this way, you don't have to invest too much money. We are oil painting wholesaler in China, we dropshipping for many ebay sellers and even famous online art galleries. Most of them join our dropshipping program via emails.
    {{ DiscussionBoard.errors[7756945].message }}
  • Profile picture of the author kurtbai
    Hi there are loads of apparel dropshippers, usually you can join their dropship programs from their website, some even approves applications instantly. You just need to look further and dig deeper.

    Dropshipping is always the best way to start when you don't have sufficient funds. But keep in mind that if you are selling to the US, you need to find a dropshipper also located in the US, so that your customers won't be pissed off by the shipping time, hope that helps.
    {{ DiscussionBoard.errors[7757727].message }}
  • Profile picture of the author nyjayla
    I really like this WSO and I think its what your looking for:

    http://www.warriorforum.com/warrior-...highlight=hour
    {{ DiscussionBoard.errors[7775097].message }}
  • Profile picture of the author nyjayla
    Woops I copied the wrong one.... here:

    http://www.warriorforum.com/warrior-...highlight=hour
    {{ DiscussionBoard.errors[7775100].message }}
  • Profile picture of the author ronrule
    Not to do a 'self plug' here, but I have a ton of information on this subject on my blog. I'd start here:

    E-Commerce Myths and Truths
    Signature

    -
    Ron Rule
    http://ronrule.com

    {{ DiscussionBoard.errors[7775156].message }}
    • Profile picture of the author OnlineStoreHelp
      Really there are multi factors into choosing whether you do drop shipping or take inventory. Most of my sites are dropship but I do have one site that I took inventory and ship from Hawaii. From Hawaii is important since it needs to be able to go by USPS since Fed Ex and UPS are to expensive from the islands.

      • Cost and Budget. How much does inventory cost you. One site I had, I was buying products at 50 cents a piece. I invested 400 bucks and got 750 items (50 dollar shipping to Hawaii, ugg). Sometimes the discount is big enough to make it worthwhile.
      • Storage, warehousing and shipping: The same site I bought, I could store all 750 pieces in a part of my second bedroom closet. It wasn't taking a lot of room. It was so small, less than 13 ounces, I could ship it USPS first class.
      • Local Supplier: Here in Hawaii there is a local apparal company I can go in and buy 1 or 10 pieces. This is a hybrid between drop shipping and warehousing.
      • Hybrid approach - Many successful drop shippers buy a little bit of inventory, or the easy to ship stuff, and then back fill with drop shippers on the more expensive stuff.
      • Fulfillment. Test the waters with drop shipping and then if it works for you, buy inventory and have a fulfillment company handle it. Heck you can even do this with Amazon Fulfillment and get their reduced shipping rates. All they charge you is a storage fee for product sitting in the warehouse and then pick and pack plus postage.
      I hope that gives you a better insight on what option works best for you.


      Chris
      {{ DiscussionBoard.errors[7778571].message }}
  • Profile picture of the author andyredsox
    - For starters, dropshipping is the best way to start a business, eventhough you have no stable amount for the business. Just to make sure that wherever your location is, find a dropshipper in your place, so that your clients will not be disappointed in your shipping time.
    {{ DiscussionBoard.errors[7783494].message }}
    • Profile picture of the author ronrule
      Originally Posted by andyredsox View Post

      - For starters, dropshipping is the best way to start a business, eventhough you have no stable amount for the business. Just to make sure that wherever your location is, find a dropshipper in your place, so that your clients will not be disappointed in your shipping time.
      Eh, sort of ... it's the fastest way to get up and running, but tough to convert. The problem is that so many people have dropship inventory that it's super price competitive and the products can be found everywhere. Search any of the SKU's offered by a drop shipper and you'll find the web and eBay full of them with tiny markups, all using the same pictures and information.

      A model I've used successfully in the past is to find a retail partner. You find a local shop (stable business) that doesn't do eCommerce currently, but is willing to ship the products. Get their inventory into an Excel sheet with the price they're willing to sell to you for, build the entire site under your own name, and when orders come in you pay them your agreed price and they ship the product. That way you can get unique items, with your own original photos, that people aren't finding from drop shippers.
      Signature

      -
      Ron Rule
      http://ronrule.com

      {{ DiscussionBoard.errors[7784139].message }}
      • Profile picture of the author york
        I would say the best way is to drop ship, and have a very large offering, then you can always sell something to somebody, this would require multiple stores, so you would need a shopping cart that can do that, I would say prestashop would work. You want to have one dropshipper per multi-store, that way the shipping is calculated from just one place per store, and each order is filled by one dropshipper only.

        You can then offer thousands of products for sale, and beat Amazon's prices, and then you can also start buying pallets and shipping some items from your house, then you build up customers, and move to your own warehouse.
        {{ DiscussionBoard.errors[7784263].message }}
      • Profile picture of the author OnlineStoreHelp
        Originally Posted by ronrule View Post

        Eh, sort of ... it's the fastest way to get up and running, but tough to convert. The problem is that so many people have dropship inventory that it's super price competitive and the products can be found everywhere. Search any of the SKU's offered by a drop shipper and you'll find the web and eBay full of them with tiny markups, all using the same pictures and information.

        A model I've used successfully in the past is to find a retail partner. You find a local shop (stable business) that doesn't do eCommerce currently, but is willing to ship the products. Get their inventory into an Excel sheet with the price they're willing to sell to you for, build the entire site under your own name, and when orders come in you pay them your agreed price and they ship the product. That way you can get unique items, with your own original photos, that people aren't finding from drop shippers.
        This works especially well when a company refuses to drop ship or need annual buying targets. I looked at one online store and had a perfect niche and when I talked to the rep, they outright told me, we won't sell to anyone online unless they can guarantee 25,000 a year in business.
        {{ DiscussionBoard.errors[7786356].message }}
  • Profile picture of the author warrioradam
    Hello-

    Have you looked into opening a Zazzle store? You don't have to have any physical inventory and all you have to do is handle the promotion and design.

    Zazzle | Custom T-Shirts, Personalized Gifts, Posters, Art, and more
    {{ DiscussionBoard.errors[7787083].message }}
  • Profile picture of the author infoway
    Drop shipping does provide an easy way to get started and the ability to leverage other people's capital without having to invest thousands of your own.

    Once you're properly established, you can start contacting drop shipping suppliers.

    If you already know what products you'd like to drop ship, contacting the original manufacturer is the easiest way to find qualified distributors. Not all distributors will be willing to drop ship, but it will give you a list to follow up with.

    Butdrop shipping is not the only path to overnight ecommerce success. As with any successful online store, you'll need to invest over time in a quality website, marketing, and customer service.
    {{ DiscussionBoard.errors[7824493].message }}

Trending Topics