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.
NOTE: The
numbers mentioned regarding search results were at the time
of the writing of this article, and will have changed. The point
remains the same!
Chris Malta
WorldWide Brands, Inc.
For more information, visit http://www.YouCanDropship.com.
About
the Author...
Chris
Malta is a Microsoft Certified Systems Engineer. He has worked
with computer Systems for 18 years. He's been involved in eCommerce
systems, networking and site design for more than 6 years. He's
taught college-level computer courses in Western NY. He developed
The Drop Ship Source Directory, and he and his partners at Worldwide
Brands, Inc., publish the Directory and run eCommerce sites of
their own using Drop Shipping as their only business method.