Small Business Q & A: Cut Start-Up Costs By Using a Dropshipper

Written by Tim Knox


Q: I'm starting an online specialty shop that sells gifts and home accessories. I want to be able to have items dropshipped to customers through my site. I already have a Web site and a domain reserved, but I don't have a lot of money to get this going. Can you offer any insight?

A: Setting up relationships with companies who will ship merchandise directly to your customers for you-- dropshippers, as they're called --is an excellent way to start your e-business and, if done properly, doesn't have to be a costly endeavor. There are literally hundreds of companies out there that will dropship products for you, everything from gifts and housewares to power tools and furniture.

In a nutshell, here's how dropshipping works. You set up an account with a dropshipper (or multiple dropshippers who offer different kinds of products) who provides merchandise that you can sell on your Web site. The dropshipper typically supplies you with images and product descriptions that you can use to build your online store or feature on static HTML Web pages.

You can locate dropshippers withrepparttar new e-book The 2003 Guide to repparttar 104822 Top 400 Dropship & Wholesale Companies. YOu will find it at: http://www.dropshipwholesale.net op400.asp.

When a customer places an order forrepparttar 104823 product on your site, he or she pays you forrepparttar 104824 product. You, in turn, placerepparttar 104825 order withrepparttar 104826 dropshipper and pay them forrepparttar 104827 product. The dropshipper then shipsrepparttar 104828 item directly to your customer under your company name. To your customer's knowledge,repparttar 104829 product was shipped by you.

Dropshipping offers many advantages torepparttar 104830 shoestring online start-up. You don't have to pay for an item until it sells, and your customer pays you, so your personal cash outlay forrepparttar 104831 product is zero. You never have to handle or warehouserepparttar 104832 merchandise, as order fulfillment is handled byrepparttar 104833 dropshipper. You can also offer a wide variety of items from multiple dropshippers, and your end customer is nonerepparttar 104834 wiser.

Dropshipping does have its downsides. Since you do not actually stockrepparttar 104835 products featured on your site, you have no control over inventory management, product availability, order fulfillment, shipping processes and so on. Still, if you do your homework and establish a good relationship with a reputable dropshipper,repparttar 104836 problems you experience should be few.

Small Business Q & A: Business Lessons Learned At The Mall

Written by Tim Knox


Normally in this column I dispense highly-intelligent small business advice in response to thought-provoking questions submitted by future and fellow entrepreneurs. This week, however, I have a couple of questions for myself, one of which makes me wonder how truly intelligent I really am.

Q: Dear Me, I recently took my teenage daughter shopping atrepparttar mall. The experience raised two questions. (1) What business lessons might be learned from such a foray into teen commerce; and (2) Whatrepparttar 104821 heck was I thinking? -- Sincerely, Me

A: Dear Me, great questions! Let me answer them in reverse order sincerepparttar 104822 second question is probablyrepparttar 104823 one causing yourepparttar 104824 most concern.

What was I thinking? Onlyrepparttar 104825 good Lord knows. I vaguely recall complaining that my fifteen-year-old daughter, who we'll call "Chelsea" (because that's her name), didn't spend enough time with her dear old dad anymore. It's a complaint that every dad of a teenage girl formerly known as "my baby" has made at one time or another. I also recall my insightful wife telling me that if I wanted to spend time with Chelsea now that she was a teenager I would have to do it in her element, which happens to be any large structure withrepparttar 104826 word "Mall" onrepparttar 104827 side. A fitting analogy would be that if you want to spend time with a moody tiger you have to go intorepparttar 104828 jungle to do it.

No offense to my mall merchant brothers and sisters, but a trip into repparttar 104829 deepest jungle is more appealing to me than a trip torepparttar 104830 mall. I get no joy out of trudging from store to store, attempting to communicate with salespeople from other planets, browsing discount racks of last season's dollar merchandise and peering into windows at mannequins that seem to be in some sort of inanimate pain (why can't they make a happy mannequin?).

Bottom line: I'm a guy. It is programmed deep within my genetic code to hold such things in high disregard. But so strong is my love for my daughter that I pushed my true feelings aside and off we went torepparttar 104831 mall last Saturday morning. I called it, "Driving repparttar 104832 green mile…"

I was perfectly fine walking through Sears (a real man's store). I held my own when we cruised through Spencer's Gifts (I foundrepparttar 104833 Ozzy Osborne bobble-head doll to be quite life-like). But when we walked into one of those stores that specialize in clothing and accessories forrepparttar 104834 younger generation my psyche all but shutdown. Within minutes I found myself standing atrepparttar 104835 back ofrepparttar 104836 store holding my daughter's purse while she tried on small swatches of material thatrepparttar 104837 store was trying to pass off as clothing. It was there, standing amongrepparttar 104838 mopey mannequins and teeny-tiny underwear and designer nose rings, that I realized I was witnessing good old American commerce at work.

This leads us back torepparttar 104839 first question: are there business lessons to be learned from a trip torepparttar 104840 mall? Asrepparttar 104841 young folks would say, "Dude, definitely!"

The following observations can be applied to most businesses, not just to retailers that cater to Generation Why.

Know Thy Customer Well Not just from a demographic standpoint, but up close and personal. Even from my limited vantage point behindrepparttar 104842 rack of neon tube tops it was easy to identifyrepparttar 104843 store's typical customer: young, hip females; ages mid-teens to mid-twenties. They wandered through in groups of twos and threes. I suppose that going torepparttar 104844 restroom in public and shopping arerepparttar 104845 two things females must do in groups. It makes perfect sense when you realize that for teenage girls (and many grown women, I'm told) shopping is a social activity, an excursion to be taken with friends. The smart retailers know this and design their stores to be as much a social hot spot as a retail establishment. Fromrepparttar 104846 hip/cool music blaring fromrepparttar 104847 overhead speakers torepparttar 104848 hip/cool young sales dudes torepparttar 104849 hip/cool posters onrepparttar 104850 walls torepparttar 104851 hip/cool selection of merchandise, this store was a teenage girl's retail heaven on earth.

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