Dropship Daemon

Dropshipping & Wholesaling tips , tricks and lessons

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Reputable dropshippers will have refund and return policies posted clearly on their website or in their reseller agreement. However, when problems arise you must be proactive since the customer will look to you the seller as the responsible party.

Reassure your customer that you are personally taking care of the problem and will make things right. Then contact the dropshipper and work out the resolution with them.

Welcome to the wonderful world of online selling. You may have heard that fortunes are being made by people who are working out of their basements with only a computer, a fax, and a telephone. This is sometimes true. There are, however, also very large companies who are conducting complex business operations and who are also making a reasonable profit. Both ends of that spectrum often use the services of a dropshipper.

Wholesaler Dropshippers who work with internet vendors often carry impressive product lines that can contain almost any product you can think of. One online dropshipping company advertises a product line of over 50,000 items separated into virtual warehouses based on type, cost, etc. In order to gain access to these warehouses, a vendor must pay a very small monthly or annual fee to this wholesaler. The wholesaler, however, will sell his products to the vendor at wholesale rates.

It’s a simple fact that inventory in any sales venture can be a huge investment. Not only does the vendor have to deal with tying up his capital to purchase the inventory, he also must pay for warehouse space and insurance for whatever he is storing. By using the services of a wholesale dropshipping company, the vendor can avoid all of those costs. At the same time, the vendor can enjoy the advantages of having an entire inventory, packing, and shipping mechanism at the other end of a fax.

The dropship process is fairly simple. It has been around for a long time and has been used for decades by major retailers. You may have even purchased an item from a catalog. When the item was sent to you, it may or may not have come directly from the retailer whose name was on the box. Unlike a regular shipment from a wholesale warehouse, a dropshipment is a shipment of specific goods shipped directly to a single customer who ordered and paid for them in advance. Dropshipping is a huge benefit to the vendor who never actually purchases the items until he has already been paid for them.

The best-kept secret to selling consumer electronics is to niche it.

You may have stars in your eyes to think you can build a consumer electronics business like Amazon.com. As a one or two-person entrepreneur, sole proprietorship, or partnership, how can you compare to the Amazon.com organization that spent millions and millions to build the online business that took 6 or 7 years to come into the black with a profit? They obtained their operating and advertising money from capital investors and did a great selling job convincing the investors to pour in money year after year.

If you’re a small business and you want to sell consumer electronics you need to concentrate on selling the items with which you can capture a percentage of the market and make a decent profit margin.

You need to research your products for your supplier price and availability, and the market price that you can sell at, then calculate your profit margin. Many retailers of consumer electronics pick popular items and cut their prices to the bone to compete head to head with the big guys like Best Buy, Amazon.com and Circuit City.

A better track to run on is choosing higher end products that better informed customers might prefer and build a value-added mini-market around those special pieces. Provide the consumer electronics product, specialized accessories and related items making a profit center. Choose one central product like Home Entertainment, Racing Electronics or CB Radios and build around that theme every other
product that goes with them. You will find most of the related products at your wholesale suppliers and distributors.

Or provide a service center around one product type, like a camcorder battery replacement service for every type of camcorder on the market. With the right wholesale supplier you can have easy access to the camcorder replacement battery grid and they will drop ship to your customer their particular camcorder battery.

A value added product you can add to most any electronics sold are warranties. You can bundle these with your electronics sales and increase your profit margin. There are product replacement and service plans available from your wholesale distributor.

I did very well with items like Photo Printer Paper for the Canon CP-100 Photo Printer. There were four varieties and each had a profit margin of 40-60%. I had two very good drop ship suppliers that always carried these items and either one of them or both always had them in stock.

Another secret is to set up your web page for these items with maximum search engine optimization. Use the brand and the item number with description, like Canon KP-36IP Photo Paper for the Canon CP-100 Photo Printer.

This utilizes these keyword phrase combinations for a total of 1406 hits. Canon Photo Paper had 1096 searches in July 2004 on Overture. Canon KP-36IP had 107 and KP-36IP had 161. Canon CP100 had 42.

Go to Overture Keyword Tool and Google Keyword Tool to check out the best keywords to use in your description, limiting the keyword phrases to two for optimizing your shopping cart page.

Use the keyword phrase in the page title, meta tag description, meta tag keywords, in a Heading Title – H1 through H3 – on the page, and again in the product description.

Then use the same keyword phrase and description in your Adwords or Overture ad campaigns.

With these strategies you will be able to maintain high positions in the Search Engines and have many profitable sales.

“What Should I Sell on my Site?”
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 three quarters of a million products, from over two thousand well-known brand names, available from more than a hundred 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 suitably 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.
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.

Where else can you start a business that doesn’t require a fortune? What other types of businesses can you make money from that reaches across the globe without you having to change out of your pajamas at all? What other types of businesses allow you to make money online even if you didn’t have a single product or service to sell or promote?

The answer…NONE!

The beauty of an online business is that you can start an online business anywhere, anytime with very little startup capital. In fact, some opportunities will even allow you to make money online without having to come up with a single cent at all! For instance, making money online through affiliate programs or selling products through a dropshipper at online auction sites. You can even make money online writing your own books or information products and selling them online. There’s lots of money to be made online! That’s precisely why many people quit their day jobs and start their own online businesses and make a very nice income working from the comfort of their homes.

It’s not all hype, for sure, because thousands and thousands of people are making an income online (if not a fortune), why not you? Why not your next door neighbor? Why not your sister? Anyone can make money online.

However, there’s a need to debunk all the hype and miraculous opportunities that many people try to lead vulnerable people to believe. Like, have you ever seen ads that go something like this:


As an Internet Marketer, it’s my job to tell you that it’s hard for anyone to make that kind of money in 3 days. There are exceptions to that rule, I know several internet marketing gurus who have made more than that in 24 hours, but that kind of success didn’t happen overnight most of the people in this caliber have been working online for years and years to get to this point. The truth is that YES, you can make money online and you can even get insanely rich! But it takes time. It takes effort. It takes patience. It takes perseverance. In actual fact, I can tell you from personal experience that it’s not very different from any other types of ‘conventional’ businesses. There’s no miracle formula and there’s no magic wand to wave. However, just like with anything in life, you’ll probably have to work very hard at your business before you start to make money online.

With that said, I will now tell you that it is POSSIBLE to make money online…..very possible and once you learn the ropes, you can duplicate that system and make more and more money online quite effortlessly and easily. With the kind of information and resources available online, to make money from an online business is not only possible, it’s almost a sure thing as long as you pick a legitimate opportunity and stick with it.

You won’t be rolling in money in three days but you can and will make money online from your online business if you are prepared to learn, to work at the business and be persistent and bull-headed about the success of your online business!

I say GO FOR IT!

How to Ruin a Perfectly Good Product Market”
Those of us who own retail Ecommerce sites are always looking for wholesale pricing from the suppliers of the products we want to sell.

Unfortunately, many people don’t know what a wholesale price IS, or even what to DO with it when they find one.
By definition (Merriam-Webster’s Dictionary), the word “Wholesale” means “the sale of commodities in quantity, usually for resale (as by a retail merchant)”. That definition has been around since the 15th century.
It does NOT mean “the absolute rock-bottom most dirt cheap price ever so that you can beat everyone else’s prices no matter what”.
There are some very good wholesale suppliers of brand name products out there. We publish a Directory of those who are willing to Drop Ship those products directly to your customer from the warehouse, one at a time, at wholesale. It’s an excellent way to do business without spending a ton of money on stocking an inventory. However, to be successful in business, you need to understand what “Wholesale” really means.
A Wholesale distributor is a company that owns their own warehouse (no middlemen) and supplies you with products at prices that are significantly lower than Manufacturer’s Suggested Retail Price (MSRP). That’s what wholesale means.
So why do you sometimes find wholesale prices on some products that may be very close to the RETAIL prices for that same product on the Internet? So close, in fact, that there is not enough of a profit margin to make it worth selling?
Here’s one very big reason:
Chopper Bob has opened a store on the Internet. He thinks he’s come up with an original idea. He’s going to chop prices right to the bone on the products he sells. He thinks that because his prices will be so low, EVERYBODY will buy from him, and he’ll make lots of money by selling large numbers of products. All those small profits will add up to a lot. Chop, Bob, Chop! See Bob Chop!
Chopper Bob is essentially chopping his own throat, although he does not see that yet.
Chopper Bob finds his first product to sell. It’s a brand name VCR. This VCR has a Manufacturer’s Suggested Retail Price of $149. This is the retail price that the manufacturer suggests it be sold at in order to make a good profit.
Chopper Bob has found that the wholesale price on this VCR is $69. At that wholesale price, the profit margin to be made by selling it at MSRP (Manufacturer’s Suggested Retail Price) is 54%, which comes out to an $80 profit on each sale. That manufacturer has made a pretty good suggestion, wouldn’t you say?
However, Chopper Bob believes that he is the first human being in history who has decided to sell at dirt-cheap prices and make money on volume sales. Because he is Chopper Bob, he’s going to Chop the price on that VCR on HIS web site all the way down to a mere $79.
People are going to flock to his web site, and buy thousands of VCRs for $79. Chopper Bob is sure that he will get rich from all those $10 profits, once they begin to add up. Internet Retailers will tell stories of his success for years to come.
Pretty soon, some people DO start to come to his site, and they start ordering VCRs for $79. Chopper Bob is happy. He was right!
However, people who want to order VCRs are not the ONLY people coming to his site. There are also people coming to his site who want to SELL VCRs.
You see, Chopper Joe has also decided that he is going to undercut everyone else and make big money on volume sales. Surprising? Not at all. Most people who decide to open a business entertain this idea at least once.
Chopper Joe searches the Internet for the absolute lowest-priced competitor, and finds Chopper Bob selling the VCR for $79. Chopper Joe puts it on HIS site for $78.98.
Now, along comes Chopper Jane, also searching for the lowest priced competitor. She finds that it’s Chopper Joe, and SHE starts selling the VCR for $78.88.
Pretty soon, this turns into a feeding frenzy that would scare a Great White Shark.
The result of all this? The market price of the VCR (the price that it’s generally available for sale at) plummets from the MSRP of $149 all the way down to about $78.
Suddenly the original genius, Chopper Bob, finds himself undercut at every turn, and everybody is selling the VCR dirt-cheap. Now that there is so much competition at that same price level, nobody is making any money.
As long as you’re dealing with a genuine distributor, like the ones we list, you will always find a good margin between Wholesale and MSRP. It’s the fact that some people drive down the market prices on certain products that causes the problem.
The manufacturer and the wholesale distributors of the VCR don’t care about this. They are still selling the VCR at their wholesale price of $69, and now a LOT of them are being sold, because of all the price-choppers who are killing the market price of the VCR, and their own businesses along with it. In a few months, the manufacturer will change the color of the VCR, slap a new model number on it, and the whole cycle will start all over again.
Please don’t make the mistake of thinking that YOU can’t sell that VCR for a higher price than Chopper Bob. You can. What you have to realize is this:
The Internet is a very big place. Not everyone is going to FIND Chopper Bob’s site. In fact, the vast majority of shoppers WON’T find it.
Most shoppers are very leery of sites like Chopper Bob’s. People who get themselves involved in pricing wars tend to spend all of their time being mad at their competition, and to forget about customer service. You and I both know that we have paid a little more to purchase a product at a store we trust, rather than just going for the absolute rock-bottom price.
Thankfully, I see this type of situation mostly in just one area right now…consumer electronics. There are hundreds of thousands of other products that can be sold at very good profit margins without running into Chopper Bob and his buddies.
However, that does not mean that you can’t sell consumer electronics. You can sell anything you want to, no matter what the competition’s prices.
Sales is a bit of an art form. If selling something were simply a matter of the absolute lowest prices, Wal-Mart would be the only store on the face of the Earth.
Without going into too much detail, sales is a mixture of choosing the right product, or combination of products, for your web site. It’s presenting a clean, attractive, focused site. It’s giving the customer some little value-added bonus at your site. It’s providing the absolute best customer service that you can. All these things help a customer to trust you, and when they trust you they are willing to buy from you, even if in some cases, some of your prices are a bit more than they find on other sites.
We never sell the products on our Ecommerce sites at the lowest price, and we do just fine.
If you feel that you must Chop something, Chop your customer service response time. Chop a few kilobytes off your graphics, so your pages will load faster. Chop the “dead wood” out of your site by getting rid of products that are overexposed on the ‘Net.
Leave the price chopping to Bob and his buddies…they’re only hurting themselves, not you.

So how do you eliminate your competition without bloodshed?

To compete with other businesses nowadays (especially online) you need something that nobody else can copy. A one of a kind so to speak!

You must distinguish yourself from your competition. Distinction is something that clearly makes your business different from all of your competitors and sets you apart.

In order to effectively distinguish yourself from your competitors you must know who your competitors are and the niche they market to.

That means you must identify your exact target audience?

If you can’t do that, you will have little or no success in to creating any kind of distinction.

The easiest way to create distinction is to think like your target audience or customers. Know their exact needs, wants, goals, problems and interests and improve on them by adding distinction!

Use your brainpower. Ask yourself questions like: How can I set myself apart from my competition? What could I offer my niche that my competition can’t? What can I do to put my business at the top of the pile?

If you keep asking these questions your mind will eventually start shooting out more ideas than you can handle. One of those ideas might provide you with the distinction you’re searching for.

If you can’t find something that your competitors aren’t already doing don’t panic. Pick a service that you mutually offer and improve on it.

Here Are A Few Ways To make yourself Distinct & Outsell Your Competition

The keys to outselling your competition are to compare your product to theirs.

When you find the differences between products, use your findings to improve your product. Below are 12 things you can compare and improve upon to outsell your competition.

Price – Can you offer a lower price? Can you offer a higher price and increase the perceived value of your product? Do you offer easier payment options than your competition?

Packaging – Can you package your product more attractively? Do the colors of your package relate to your product? Can you package your product into a smaller or larger package?

Delivery – Can you offering cheaper shipping? Do you have a high enough profit margin to offer free shipping? Can you ship your products faster?

Benefits – Can you offer more benefits than your competition? Are your benefits stronger? Do you have believable proof that supports your claims?

Quality – Is your product built and tested to last longer than your competition? Can you improve the overall quality of your product?

Performance – Can you make your product faster at solving your customer’s problem? Is your product easier to use than your competitions?

Features – Can you offer more product features than your competition? Do your features support the benefits you offer?

Availability – Is your product always available or does your have to backorder it? Can your product suppliers drop ship to your customers?

Extras – Do you provided free bonuses when your customers buy your product? Are your bonuses more valuable than your competitions?

Service – Do you offer your customers free 24 hour customer service? Can you provide free product repair? Does your competition make their customers talk to a machine?

Proof – Can you provide more proof than your competition that your product is reliable? Can you provide stronger testimonials or endorsements?

Guarantees – Do you have a stronger guarantee than your competition? Do you offer warranties with your product? Do you provide an easier return policy?

1. Sell your products at a wholesale price to retail web sites. You could sell them individually or in bulk.

2. Set up joint ventures with other businesses to sell your product to new customers. They can introduce it to their customers for a set price.

3. Allow other web sites to sell your product for a set commission. They can take a percentage of the sale and send you the rest of the order to drop ship.

4. Sell your product through an affiliate program. You just pay people a set commission for each of their sales or click throughs.

5. Sell people the rights to reproduce your product. You could sell them straight out for one price or collect royalty payments from each sale they make.

6. Set up a cross promotion deal with another web business. Allow them to sell your product as a back end product to their existing customers base.

7. Sell your product in a package deal with other web businesses. You can both advertise it and split the profits.

8. Rent your products out for a set period of time. It’s like selling but, you get the products back to rent again.

9. Allow people to subscribe to your products. It works best when selling info products, services or memberships.

10. Allow people to lease your products. It’s like renting them but they have the option of buying at the end of the lease.

Tip 1 – Sell only one product or product line on a specific website

  • Pretty much every successful internet marketer will tell you that one of the biggest, if not the biggest, mistake people make in starting an online business is selling dis-similar products on the same website
  • Selling only one product or one product line will allow targeted marketing
  • Selling only one product or one product line will prevent you from being dragged down in search engines rankings. If you sell items that do not make sense with each other, they will not make sense to the search engines either, and this will bury your site in the search engine listings.
  • Selling only one product or one product line allows you to build a customer base to which you can continue to market. You will know they have a specific need, and if you provide them a quality product at a fair price, they will continue to come back to you.
  • The average internet shopper comes online to buy a specific item, they do not come online to fill their shopping cart with stuff they can buy down the street at Wal-Mart (not that there’s anything wrong with Wal-Mart, that’s where I buy a lot of my pet food – great prices on the premium non-veterinary brands)

Think about what you look for when you come online… is it for a generic birdhouse you could buy at Wal-Mart, or is it for a unique item you cant find in your hometown or that is too much of a hassle or too expensive to buy where you live? I will use my book buying habits as an example. I live in a metropolitan area with about a half million other people. We have the Barnes & Nobles and B. Dalton’s and Borders stores lining the city streets, but most of the books in which I am interested need to be ordered and are not kept stocked in a regular bookstore. I can order them by going down to Borders and telling them what I want, then go back and pick it up when it arrives 3 days later. Or I can just go over to Amazon.com, or a specialty bookstore online (abe.com is my favorite directory for hard to find books) and order it to be shipped straight to my house.

How to find that product

Tip 2 – Research

  • Find a market that has a problem, then solve that problem for the market
  • In other words – Identify the market and the problem FIRST – then choose the solution (your product/service)
  • Research the product that you are selling
  • Is it a niche product?
  • Ideally find a solution that you can monopolize, but that is not necessary to create success online
  • What do your competitors do?
  • What do you offer that stands out from the rest?

Tip 3 – Dropship

  • If you end up selling a physical product, this is my favorite business method
  • Costs you little or nothing up-front
  • You do not have to worry about shipping & stocking (or returns sometimes)
  • You simply sell the product, collect the money and then tell the distributor where to send it

Tip 4 – Become involved in an affiliate program

This is the next big marketing venture that is flourishing on the internet. What this means is that a big website pays people to drive business to it’s website. In return, the affiliate makes a commission off of the purchases made by the the person they referred. It costs the big website nothing unless a sale is made, and it allows them to have hundreds, even thousands of people going around online doing their advertising. It allows the affiliate to make an income without ever having to worry about product orders or running the overall business. This type of program ends up being a win-win proposition for both entities.

Also – do not pay to join an affiliate program. Those type-at-home sites that you see promoted everywhere are basically just affiliate programs you pay to join. You can join legitimate affiliate programs where your income potential is much higher and you join for free.

Here is an affiliate program you can join for free and earn up to $165 per sale, and you continue to earn residual income for every purchase that customer ever makes – even if it takes them 3 years to make that first purchase. This program also allows you to sign up affiliates under you and have them advertise and earn you a commission for their work. It is by far one of the best affiliate program in which I am personally involved.

Tip 5 – Sell Information

This goes hand in hand with Tip #8 where you give something away for free. Find a topic with which you are familiar, or one in which you have an interest – write an informational article and sell it online. This is pure income. It costs you nothing to produce, it costs you nothing to ship. It is downloaded instantly as soon as your buyer pays for it online.

When building your website

Whether you decide to use an internet marketing expert, or build your own web presence, here are some keys you must make sure you use in your website:

Tip 6 – Have your own domain name

  • Absolutely do not have your site hosted on a free site
  • Free sites are sometimes even refused inclusion in search engines
  • Free sites look cheap, like you do not really care about your business
  • Having your own domain name looks more professional and lets your buyers know that you are serious about providing them valuable information or a valuable service/product.
  • The domain name does not need to be perfect, but it needs to show that you are serious enough about your business to get one for yourself.
  • Domain names can be bought for $20 a year or less, there is no excuse to not have your own name.

Tip 7 – Allow online ordering

  • You must be able to accept credit cards
  • Get a merchant account or at least PayPal/Stormpay/2checkout, etc – some way of accepting credit cards online
  • Approximately 80% of internet sales are done by credit card
  • Using credit cards allows your customer to have fraud protection from their credit card company

Tip 8 – Free – Use the word “FREE”

  • Free sells
  • Give something away free
  • Free Shipping/Handling
  • Free e-book, newsletter, tips for growing tomatoes, tips for keeping stains from setting in carpet – whatever may be of value for your customers – this costs you basically nothing and allows you to continue to follow up with your customers

Tip 9 – Keyword phrase

You must select a keyword phrase and place it in the title and then mention it 4 times in your opening paragraph. This is a trigger for many search engines and something that must be present if you want your site to move up in search engine rankings. Develop this keyword phrase based on the research you did in Tip number 2.

Tip 10 – You must have links

If you do not have at least 30 external links on your page, you will be buried in the search engines. Reciprocally, you will need at least 30 links to your page in order to show up anywhere up in the search listings – having your own affiliate program can provide immense help in this area. The fact is, if you do not show up in the first 2-3 pages in results of a search engine, most people are not going to find your site. (If you use overture or findwhat you can end up at the top of the first page for your selected market within a matter of days – shortcut to the top)

Once your website has been built:

The key is to market to your specific audience. You could have 10,000 visitors come to your site that sells fishing lures, but if those people do not want to buy fishing lures, you are not going to make a single sale. You must market to the people who are wanting to buy fishing lures. This sounds simple but look around at all the websites that are selling “hits” and “visits” and promise targeted marketing to nothing more than broad categories – and these sites make good money. Why? Because most people do not understand how to market online effectively!

Most people start a business on the internet and look at it as a gamble. It should not be a gamble. There is a way that you can know that you will be successful on the internet. Over 94% of small businesses online are currently losing money. Dont let that scare you. Just think, if so many people are doing it wrong, your market to which you can do it right is huge! Placing your product in front of your targeted market is the only way that you can be assured of your online success. You can know that you will succeed.

Tip 11 – Market to the targeted market in search engines

  • Overture (formerly goto.com) pay-per-click search engine that allows you to bid on keywords – this is the way you can be #1 on Yahoo in a couple of days. Overture has contracted with some of the largest search engines and directories (Yahoo, MSN, Lycos…) to provide top of the list results for keywords. They then sell those keywords to you, so you can be the number one search result on Yahoo for literally 10 cents. Overture has an excellent keyword tool that allows you to see what people have typed into search engines in the past month – this way you can find out exactly which words on which to bid.
  • Findwhat.com is a pay-per-click that has a large search engine market (dogpile, ) but costs less than Overture. At this time they are still selling clicks for .01 cent. In September 2003 this cost will increased to .05 cents, but if you buy your bids before that time, you can lock in a lower price.
  • Roar/Pageseeker.com 3rd largest pay-per-click
  • Google WordAds – the small ads to the right side of the search results – allows for very targeted, inexpensive marketing

Tip 12 – Use vertical portals

  • Vertical portals are an inch wide but a mile deep
  • This is where your target market can be found
  • Vertical portal are entrypoints to the internet where a specific subject is the main focus – they are like a “Yahoo” for a certain subject, like fishing, dogs or needlepoint
  • In vertical portals you can utilize newgroups, targeted ads, speciality search engines/directories and many other outreaches:
  1. Newsgroups – become active, choose groups where ads aren’t allowed, then put url (uniform resource locator – loosely meaning your domain name) in your signature line
  2. Inexpensive banner/website/newsletter ads to the targeted market
  3. Free classified ads – available everywhere, use ads that are on specialty sites. If you sell hunting knives, place classified ads on hunting and fishing websites.
  4. Paid classified ads – are a low cost option that may produce even higher results.
  5. Newsletters – paid or free. Write an article for a newletter, or start your own newsletter to get that targeted market.
  6. Specialty search engines – if you sell dog food, get listed in doginfo.com – find the search engines and directories that your target market uses

Tip 13 – Do not use a search engine submission service – except for…

  • Search engine submitters often harm your search engine ranking more than they help
  • This article by Corey Rudl explains why search engine submitters can hurt your business and why he endorses only one submission product (and for a long time he didn’t endorse any… until he saw this one)

Tip 14 – Market where your customers are, but your competitors are not

  • If you sell hunting knives on a website, look for where else your customers also would be going
  • Do people that go hunting drive trucks? Yes, many of them. Then go to a truck directory and add your link or take out an inexpensive banner ad (just an example that is off the top of my head)
  • Do people that buy hunting knives always hunt? Do people that buy hunting knives buy them as gifts for their boyfriends, husbands or fathers? Then go where those people are – a man’s gift guide for example.
  • Be careful though – Do not waste marketing efforts at an audience that will have no interest in the product/service

Do Not Limit Yourself

Tip 15 – Multiple Streams of Income

This is a phrase you will hear over and over from successful internet marketers. What this simply means is that you will have several different ways to make money on the internet. One stream of income could be selling stuffed animals on auction sites, another could be selling car wax on a specific site targeted directly at that market, another could be selling fishing lures on a site targeted towards fisherman, and another site could be simply linking to your affiliate pages (but DO NOT put 25 of those links on your front page – you might look like you’re trying to make a fast buck and haven’t really researched the quality of the product you are promoting).

Thanks for showing your initiative to create success online by choosing to read this far on the page! Has this article been all-inclusive? No, but it gives you a good start. Does it cover everything you’ll need to know to do business online? It covers many of the major points, but there are other guides out there that go really in depth. The one name that keeps popping up in all of my searches for online business information is Corey Rudl. He has actually been around the internet even longer than me. I have seen some of his products and they look good. If you would like to spend the money on them they will help you immensely. I say this for one reason… his name pops up EVERYWHERE. Which means that what he is doing works. He has built his system so that he does not do much of his own marketing anymore, he has it automated and has other people to do it for him. I will explain that more later when I write about affiliates. When you have a chance, take the time to look at some of his material:

Insider Secrets to Marketing Your Business on the InternetThe Insider Secrets to Marketing Your Business on the Internet – Learn from the best. The author of this site, Corey Rudl gets over 1.8 million visitors to his websites monthly, does 6.6 million dollars in sales online each year (yes, that is $6,600,000), and personally makes hundreds of thousands of dollars from his online businesses… all from his one small office. So listen to what he has to say as he knows what he is talking about when it comes to starting and promoting a business on the Internet.

There are many different methods used to effectively promote dropshipped items. Following are just a few:

  • Online Storefronts
  • Internet Auctions
  • Message Boards
  • Newsgroups
  • Banner Advertising
  • Search Engine Promotion
  • Physical Retail Storefronts (with sample quantities)
  • Mail Order Catalogs
  • Flea Markets
  • Saturday & “Farmers” Markets
  • Trade Shows
  • Bazaars
  • Fund Raisers
  • House-Warming Parties
  • Personal Hand-Out Catalogs
  • “Freebie” Promotions
  • Radio & Television

When you sell an item to a customer, you will log onto you supplier’s website and create an actual order. When they receive payment from you, the item will be pulled and dropshipped directly to your customer. The label on the package will be a BLIND LABEL, meaning it will not have a FROM name, just a Fulfillment Center address. Also, some dropship distributors include a custom packing slip with your contact information included.

As a Dropship Reseller, the most effective methods of product promotion are the following: online storefronts,
internet auctions, retail storefronts, and printed catalogs.