|Ðð©'§ Internet Marketing Information Library|
How I Shot Myself In the Foot.. No, Wallet!
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 email@example.com
The Relation Between Internet Marketing Education and Profits
Many people join internet business opportunities online blindly. By this I mean they join everything that promises them fast bucks and then one to two years later are dejected and unhappy at their dismal returns online with regards to their capital outlay in terms of time and money. Thus the most important thing you need to do today is to get a proper education in internet marketing. The co-relation is clear the internet is all about information and by learning how to package information online you will make more profits from your internet business no matter what you are promoting.
The Vital Tools To Marketing Success
Special Article Report: Theses Keys Work!
10 Marketing Tips for Entrepreneurs
Nothing happens in business until a sale is made. Marketing is simply about getting new customers and keeping them. If you're not doing something everyday to market and promote your business, your competitors are. Here are ten easy-to-implement tips to effectively market and grow your business:
Profiting from Articles - A Step-by-step Guide
"Content is King" - that's a given, there's no debate. But how do you get content? Like most projects, breaking into bite-size, easily digestable chunks makes the process realistically achievable. By creating articles, you build and develop that content. So how do you profit from articles? I, personally, find the best way to approach the 'process' of making mony from articles is to work backwards! That is, to determine what your ultimate goal is and then figure out each preceeding step that leads to it.
5 Ways To Treat Your Website Like An Employee And Reap The Rewards
People often come to me in a state of crisis and say their website isn't working. Usually they're in a cold sweat:
My 7-Step Secret Formula For Cashing In On Content!
Copyright 2005 Kurma Group
Internet Marketing - A Leap Of Faith
Do you remember as a child having to do something you really didn't want to do because it was difficult?
Flat Tires, Slow Leaks, and Online Marketing
Does your online marketing campaign have a flat tire? Or is it more like a slow leak?
What Does Success Look Like?
While we are well into the 21st century too many are still thinking about their business as they did in the 1990's.
Online Paid Survey
Bring Spirit Into Your Online Business
For people who have decided to strike out on their own entrepreneurial careers, the currency of choice for lasting and meaningful compensation?and the primary reason they left the "rat race" is?spiritual fulfillment.
Tracking Google and Googlebot Using PHP
Many people work for hours and hours, days and days to make sure the Web site they have is ready for Google and it's Googlebot whenever it might come for a visit.
If you get an email with a title like 'Don't Ever Trust Me Again!' and continues along the lines of '... then you don't have to take my advice ever again!'
Website Sales: 10 Magical Awesome Tactics To Multiply Your Orders
Do you want to open the floodgate of orders at your website?
Niche Marketing: Tactics to Use To Make Money With Niche Marketing
Niche marketing has always been a key any success in marketing but lately it has become quite a prominent force in the online marketing world. Many books, manuals, courses, and web sites have been developed that focus on niche marketing. It is easy to find solid resources on the Internet that can teach you how to make money with niche marketing.
Milk Your Winners, Drop Your Losers
In my previous article How To Be 100% Sure That Your New Product Is A Winner We have discussed dropping losers.
Create Your Own Online Marketing TV Station
It will happen! TV and the Internet will eventually merge into one giant multi-media "melting pot" that includes everything from live footage and old reruns to garage videos posted by your next door neighbor's kid. Just like cable TV fractured network TV, the Internet will enable everyone with a voice, a video camera, and something to say to fracture cable TV even more. But the real TV revolution on the Internet will only happen when marketers stop trying to copy TV, with its commercials and outdated modes of revenue generation, and start copying the "pay-per-view" and "infomercial" models.
10 Scorching Ways To Heat Up Your Sales
1. Email each visitor a satisfaction questionnaire after they purchase. This will allow you to improve your order system, customer service, site, etc.
Six Lesser-Known Online Marketing Ideas
Uniqueness is what separates each business, its services and its products. The difference gives buyers and on-line visitors a way of measuring this against that. It also makes the difference on their decision to buy.
Marketing Your Networking Group
Several months ago I went on the cruise from hell. It wasn't advertised as a cruise from hell, but instead as an opportunity to check out a networking club, to have fun, to see what this particular group had to offer . . . but make no mistake, it was the cruise from hell.
|Home | Site Map|
|Copyright © 2005-2007 - Ðð©'§ pcMedix Computer Group Help Sites. All Rights Reserved.|