Dropship Daemon

Dropshipping & Wholesaling tips , tricks and lessons

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.

While dropshipping and online affiliate programs may appear similar from the outside, both function very differently when operated by a company:

Affiliate Progam – Another company determines what your items will be sold for. In this way, your commission potential cannot be changed.
Dropship Program – Your company decides what a product will be sold for. In this way, your commission potential is unlimited and based only on how much merchandise can be sold.

Affiliate Program – When merchandise is sold, it is done so by the company sponsoring the affiliate program. This means you have little or no control over packaging labels and much less customer loyalty is maintained.

Dropship Program – When merchandise is sold, your company has complete control over billing and invoicing. Packagig can be customized according to your business brand. Optionally, your business may even privately label some merchandise and ship it using custom-print package material! This has a significant impact on customer loyalty.


Tons of Wholesale Dropshippers ,Just verified Dropshipping Wholesalers just @ DropshipDaemon.com

Q: I have a small, organic dog biscuit company, primarily wholesaling in the Bay Area. I’ve recently had interest from several companies doing Internet business, all of whom asked if we drop ship. I assumed they were asking if I would ship directly to their customers, and I said yes. Then they asked what my rates were. This was confusing to me because we do a fair amount of shipping, and we just charge the standard UPS rates. What do I need to know about drop shipping?

– Sonoma Startup

A: Drop shipping refers to a business model where a retailer maintains no inventory, and instead asks his or her suppliers to ship items directly to customers. This is a convenient strategy for retailers, because they don’t have to pay for warehouse space or invest in merchandise that may not sell quickly. And many online retailers — especially small, home-based businesses on eBay — work this way.

But it’s a less-attractive strategy for suppliers or manufacturers like you. You’re the one who will be stuck with packaging and shipping each individual order of dog biscuits. That’s time-consuming. And you’ll be going through this effort at your wholesale price, which is presumably less than your retail price.

“Many manufacturers don’t want to drop ship, especially individual units,” said Nicholas Scheel, publisher of the Drop Shipping News at www.drop-shipping-news.com. “They don’t want to bother with shipping onesies or twosies.”

If you do want to drop ship, consider charging more than your wholesale rate to cover the time you are going to spend processing and packing orders. So, if you typically charge a wholesale price that is 50 percent of your retail price, think about setting a slightly higher charge, such as 60 percent of retail, for drop-ship orders.

There’s no single formula for pricing drop-ship services, according to Scheel. Some suppliers of large, expensive items like furniture don’t charge anything extra to drop ship. Other drop shippers charge a rate that’s slightly higher than their usual wholesale rate, but includes the cost of UPS or other shippers. Still others charge a slightly higher wholesale rate and add the UPS fees on top of that.

Just make sure that whatever price you charge covers not only the UPS costs, but your own time and labor.

Some other thing to keep in mind with drop shipping, according to Scheel:

  • Some drop shippers require retailers to send them shipping labels with customer addresses, so the shipper doesn’t have to spend time addressing packages.
  • You may want to tailor your billing arrangements to the number of drop shipments you get from a retailer. For instance, if a retailer is sending you only two or three drop-ship orders per month, you could require payment up front for each order. But if a retailer is sending you dozens of orders each week — and if it is a reputable business that won’t leave you in the lurch — you may prefer to bill them at the end of the month.
  • Some retailers may ask you to sign an agreement promising not to steal their customers. This is a reasonable request. After all, you’re getting the names and addresses of their customers, and it would be easy for you to cut the retailers out and solicit their customers directly.

Q: Sixty years after my father’s untimely death from tuberculosis in war-torn Germany, we finally fulfilled his dream of having three of his completed and copyrighted musical compositions recorded by a 12-piece orchestra. For the first time, I heard my father’s wonderful music. Now I hope to share it with other aficionados of salon music (light chamber music for small ensembles).

How can we best market my father’s pieces online? And how can we go about getting them used as scores for Hollywood films, TV, commercials, etc.?

– Inspired in Alameda

A:The most fruitful route is probably to create a Web site for your father’s work, and promote the site directly to online and offline groups of classical music lovers.

Adrienne Albert is a classical composer in Los Angeles whose Web site is a good model (www.adriennealbert.com). Her site features partial scores and audio files of her compositions. But to download a complete composition, you need to purchase it through Paypal.

Make sure your Web designer knows how to tailor the site so search engines find it when people look for relevant phrases like “salon music.”

And do your own online searches to find Web sites, e-mail discussion groups, or blogs that might be interested in your father’s music. One such group is Orchestralist, an e-mail discussion group that includes many symphony directors. (See www.orchestralist.net.)

“I put information about my first orchestral work on Orchestralist, and within 24 hours I had requests from the Pittsburgh Symphony, Virginia Symphony and a symphony in Arkansas,” Albert said. “Two of those three ended up performing it.”

When it comes to placing your father’s music in movies or TV, the odds are against you. The Hollywood music industry is extremely competitive. And you’ve got the disadvantage of trying to sell a very small body of work from someone who is no longer around to promote himself.

“This is a networking business,” said Helene Blue, owner of Helene Blue Musique, a New York music publishing company. “They will be facing competition from real composers, who make their livelihood from composing, and who are known, relied upon and constantly used. Placing new (music) writers is the hardest thing in this business, and it gets harder every day, particularly for writers of serious works.”

Your best approach to Hollywood is through music supervisors, people who are hired by film producers to find and obtain music.

You can find names of music supervisors in directories such as the Music Business Registry. “You can’t just call one. You’ve got to call a lot,” said Blue. “Try to keep the contracts nonexclusive, so you can work with two or three.”

Q: I just landed a publishing contract for my first book, which is about plug-in hybrid cars. The publisher will allow me to buy copies at a steep discount, and I plan to sell the book at speaking events and through my Web site. Will I have to pay sales tax? On the full sale price, or the portion that’s my profit?

– S.F. Auto Author

A: Anyone who is engaged in business in California is required to pay sales tax on all retail sales of tangible personal property in the state, according to the California Board of Equalization.

If you hold one or two yard sales a year, you’re considered an occasional seller and don’t need to pay sales tax. Similarly, if you sell a few books to friends, you probably don’t need to pay sales tax.

But it sounds like you plan on doing more than occasional selling. That means you need to get a seller’s permit from the Board of Equalization and pay sales tax on the full sales price of your books.

“This person appears to be engaged in business and required to register with the board,” a spokesman said.

Note: You have to pay sales tax only on sales to customers in California. So if some auto executive in Detroit wants to learn about hybrids and orders your book over the Internet, you don’t have to pay sales tax on that purchase.

Want more info? See the Board of Equalization’s Web site at www.boe.ca.gov. Look for Publications 73, Your California Seller’s Permit; 107 , Do You Need a California Seller’s Permit; and 109, Are Your Internet Sales Taxable.

Source: San Francisco Chronicle

Not all dropshippers require a tax ID and business license, but some do.  Many companies require nothing more than a name, address, and credit card on file to do business with them.   However, if you want to deal with the best companies and get the best prices, you should get a tax ID and business license.

Having a tax ID number will allow you to purchase goods from a much broader range of wholesalers and perhaps even get you lower prices than you’re paying now with the dropshipper.

I am always amazed when people tell me they would do anything to have their own business then freak out when I tell them they should get a tax ID and business license.  The process for getting a tax ID and business license is very simple: you fill out a form and you pay a fee.  You do not have to turn over your first-born and it doesn’t cost an arm and a leg, nor does it invite the IRS to monitor your every move.

It’s up to you whether you want to do this as a hobby or as a business.  If it’s going to be a hobby, then you’re probably not going to make much money and you will lose interest quickly.

If you want this to be a real business, then treat it like one and do the things required to do business in a formal manner.

You build a business. You dabble with a hobby. Getting a tax ID is not a difficult task. To get a federal tax ID just go to the IRS website at http://www.irs.gov, click on “Forms and Publications” to download Form SS-4. Fill it out and either mail or fax it to the IRS office indicated in the form’s instructions. There is no fee.

Once the IRS issues you a number, you will have to get a tax ID number from each state in which you have a business address. Again, this is a simple process that just requires a few minutes of your time. You fill out a form and pay a small filing fee. That’s it.

For a list of state tax offices and their websites, from which you can obtain the appropriate form, go to http://www.taxsites.com and click on “State and Local Tax” link.

It typically takes two to three weeks for the IRS to mail your tax ID, but if you’re in a rush you can call the IRS and get a tax ID number assigned to you over the phone.

The toll-free number is (866) 816-2065. It helps to have a completed Form SS-4 in front of you since the agent will ask you many of the same questions.

If you do business with wholesalers you may experience minimum purchase requirements, but you should not run into minimum purchase requirements from reputable dropshippers.

Your goal should be to find a dropshipper that will ship items one at a time instead of requiring that you purchase a fixed minimum number of items each time (single-unit purchases vs. minimum-order purchases).

With this arrangement, you don’t have to invest your limited cash reserves in inventory that might not sell (and that sits in your garage for months).

In a word: NO! The wholesale and dropship industries are ripe with disreputable companies that concentrate more on stealing your money than supplying you with product.

You should always ask for references and check out the company with the Better Business Bureau before signing on as a reseller.

Ask for the names of some of their current customers and references. If they refuse to provide such references, find another company to do business with. Thanks to the Internet, you can also search Google for information on the company.

There are many forums and bulletin boards now that concentrate on the dropship industry. Do a search for these forums and read any reviews on the company you can find. Beware companies with numerous negative reviews.

Ultimately the only way to ensure that a dropshipper is reputable is by doing your homework. If you don’t , you can find them all at dropshipdaemon.com dropshipping wholesalers

You would be surprised at how many people don’t take the time to do this and end up regretting it later.

If you don’t invest the time it takes to ensure that a dropshipper is reputable, then don’t be surprised when bad things happen.

Some companies that claim to be dropshippers are really what’s called “middleman” companies. A middleman is someone who positions themselves
between a true dropshipper or distributor and you the seller of the product.

Middlemen pretend to be dropshippers but are not. Most often they get their products from a dropshipper that you could deal with directly. Middlemen will eat into your profits and usually don’t offer much in the way of customer support and service. Middlemen often come in the guise of buyer’s clubs or wholesale distributors.

Before doing business with a dropshipper make sure that they get their products directly from the manufacturer and not from another dropshipper.

and of course , dropshippers in Dropship Daemon are not middlemen

You are.

Remember, your customer doesn’t know that the product they purchased from you really comes from a dropshipper.

You are their point of contact, so if there is a problem, your customer will come back to you for resolution.

That’s why it is important to make sure that the dropshipper you use has a policy for resolving problems quickly.

Most dropshippers have websites where you can view the number of items they have in stock at any given time. Those that don’t have telephone hotlines you can call to check inventory. If a company does not have a mechanism in place that allows you to check inventory, don’t do business with that company.

Before you place an item for sale you should make sure that the dropshipper has a good supply on hand. If they have several hundred of an item you shouldn’t have to worry, but if they only show a dozen or so, you should either pick another product to sell or wait until their stock is replenished.