I need to let you in on some very important information. Not only will this information save you lots money, or possibly the life of your entire business, but it will allow you to increase your profits through multiple businesses.
First off, operating an online store is a fabulous and lucrative pastime, so kudos on making that decision. But before getting into the thick of it, heed my warning, you do not want to make this same mistake: only maintain one distributor for each of your online stores. Two if you MUST.
I know what you might be thinking right now, "But the more products I have, the bigger the selection will be and I'll end up selling more -- therefore I'll be making more profit!" And that's exactly what I thought at one point, too. But unless you are charging sky-high prices or maintaining an inventory of your entire stock, then this thought is only half true.
It is true that you may end up selling more, but the reality of the situation will quickly appear and you will be losing money with nearly every sale. And this is all centered around one simple, and easily glossed-over factor: shipping.
Let me tell you a true story. Many years ago for one of my businesses, I had this grand idea of creating a recreation room super store. So I found four distributors for billiard equipment and recreation room accessories, one for board games, one for pewter products and one for candles and other neat decoration items. It sure seemed like a good idea at the time; I would be able to sell people everything a person would want and need to setup a recreation room with one shopping cart. I could virtually feel my wallet getting fatter. Then reality hit when I sold my very first order.
The customer's order consisted of 1 or 2 small products from nearly every distributor I had. Through the online store's software, I had it setup to charge shipping based on the customers final price. When all of the items were tallied up, the customer was charged about $9.00 shipping, which was reasonable for the size of the order. But when I turned around to order the products from my distributors, I needed to pay $5.00 shipping at this one, $3.00 at that one, $4.00 here and there, and $3.50 at a couple others. My shipping costs totalled nearly $20! That amount was way too much to pass on to my customer when they were just ordering a few small items. They would have cancelled their order and moved on to one of my competitors.
After that fiasco, I quickly reconsidered the direction of my business.
So if you've got great idea that would involve more distributors, try opening a second online store. There isn't any rule that says you can't run 2, 3, or more online stores! In fact, you might want to do that anyways -- having multiple streams of income is a proven way of making the big bucks.
Even if your stores are selling basically the same products, you will be able to better corner the market at Yahoo! Shopping, or whatever place you are selling.
Having multiple business will also give you the opportunity to test advertising with one store and see if sales grow or shrink in relation to the others. You could even provide links to your other stores and advertise them as "sister sites." If your customers trust one of your stores, they'll automatically trust your "sister sites."
Do you see why you should have only 1 or 2 distributors per online store? It is very important to keep this in mind for the long term success of your business. Not only that, but it gives you a valuable opportunity to create multiple income streams.
Copyright © 2003 by Palyn Peterson
About The Author
Sign up for Palyn Peterson's FREE 13 day intensive email course and discover the 16 necessary basics and 5 advanced internet marketing techniques. You'll also receive a free $gift$. http://FutureInternetMarketing.com/guide.htm
This article is free to publish with resource box. If using this article, please send a brief message to palyn@futureinternetmarketing.com
|
|
|
|
|
|
|
|
|
|
|


The web and ways to market on the web continue... Read More
When I first started my internet home business, I realized... Read More
It is a purely shocking statistic, that only 4 in... Read More
When it comes to your marketing message, the little things... Read More
When you offer your products via an email campaign to... Read More
Web commerce is all about courtship, not salesmanship. In life,... Read More
If you've been utilizing the Internet for any length of... Read More
The Gobbledygook Competitor Analysis TipWhen typing cap can tell you... Read More
Cross promotion is, without doubt, a powerful technique used by... Read More
Do you know the secret or internet marketing strategy behind... Read More
I know what your thinking, "what the heck does starting... Read More
As well you should. New business is what makes the... Read More
Why is it some people are incredibly successful at utilizing... Read More
There are lots of ads for lots of product out... Read More
Online shopping continues to grow at leaps and bounds. Depending... Read More
Whether you are now looking for opportunities to start your... Read More
For four years I worked in the editorial department of... Read More
They hang around your web site. Not buying, just lurking.... Read More
Choosing your words will be the ultimate make or break... Read More
A lot of people and companies have websites. They also... Read More
Google has released another valuable. The tool, "Sitemaps", allows you... Read More
No I am not talking about the classic board game,... Read More
Free can set you free...The powerful word "FREE" is an... Read More
If you read my first article titled BUILDING A BUSINESS... Read More
When first starting out in internet marketing, I was afraid... Read More
Are you considering working from home. I have been self-teaching... Read More
That is a great question!We all know by now that... Read More
Hoo boy, I am sticking my neck out here! Ready... Read More
During a saxophone lesson the other day I realized how... Read More
Okay, so you're looking for new ways to grow your... Read More
If you are new to the Internet Marketing arena, or... Read More
Is internet marketing something for you? Do you dream about... Read More
Ever see a new product and say to yourself, "Why... Read More


"It's a labor of love." That's how I've always described... Read More
You've probably know many answers to this question: a good... Read More
On Wednesday, the first day of June, I received the... Read More
After years of gut wrenching work and stress the home... Read More
Zig Ziglar the famous self help guru was once quoted... Read More
A Cautionary Tale for the Internet Marketing NewbieIn an attempt... Read More
Every new generation of a Web site brings the hope... Read More
I'm sure everybody has received an email from a company... Read More
There are lots of ads for lots of product out... Read More
Today, the internet is an excellent media to reach out... Read More
Psychology is the engine that drives human behavior.You can't make... Read More
A synopsis of Philippa Gamse's Presentation to the National Speakers... Read More
The phenomenal growth of ecommerce lures more and more people... Read More
Creating mini-sites that grab your browsers and prime them into... Read More
When you make the decision to start an Internet business... Read More
More and more people are realizing that the Internet offers... Read More
You can attract 1,000's of prospects to you. You only... Read More
The concept of residual income or passive income is probably... Read More
Just like the infamous thank you page that a buyer... Read More
While we are well into the 21st century too many... Read More
Attracting More Orders! Jump Starting Sales! Sky-Rocketing Profits! Whatever you... Read More
GoDaddy made a calculated decision to nationally "brand" their name... Read More
How does a 74-year-old newbie break into the world of... Read More
Joint Ventures (JVs) are one of the most powerfull techniques... Read More
Like the Internet itself, online marketing resources such as blogs,... Read More
Do you remember as a child having to do something... Read More
For all those who still think internet marketing is rocket... Read More
Do classified ads really work? Should you include an email... Read More
For several years now, enterprising individuals like you have been... Read More
There is a misconception that you can come online set... Read More
Hint: don't send send your online advertising traffic to your... Read More
I have been working on the Internet since 1998 and... Read More
Thank you for stopping by part 3 of the article... Read More
Internet Marketing |