Shipments Through a Supplier

When the supplier manages it and sends you the goods in the States, he completes all the paperwork of your goods. All the specifics of the items being sent and the process of shipment is his job. All that is required of you is to pay the custom bill.

Shipments Through Ownself

When you choose to be overseas yourself and transfer your goods to the States, all the paperwork has to be done by you. The process is complex in itself and on top of it the US Customs department makes it even more complicated for you. The offices in US make it way harder depending on how you approach them. This is where you need to learn the rules and strategies of the game.

Customs and Complications

When you send the goods yourself instead of having a supplier, you will face a lot more paperwork. The shipping company can help you do this paperwork and provide you with the guidance needed. You will have to fill in many bills of the goods to show what you have in the boxes that you are sending.

Importers undergo a process of unnecessary but unavoidable expenditure in terms of custom duties. There are large complicated tariffs that one will come across and good precision will need to handle them.  You will have to sort out each good as an item because the tariffs differ according to that.

There is a different amount of tariff on a box which might carry in cotton shirts than the tariff on a package which might has silk shirts instead. This establishes that you have to give details of each item you are dealing with and be very specific.

Custom Delays

If you are sending a box of spoons to take an example, then customs will delay your package because it did not mention and they do not know if they are silver spoons, wooden spoons or plastic spoons. Delays can also be caused if you do not mention the country of origin of the item.

Specify Details

Hence giving details of each item makes the process easy and quicker for the customs and the benefit is all yours. The technique is to be as specific as you can and to mention each and every detail. This way the tariffs will be as per your item and delays can be avoided.

It is important to remember that the custom department is highly specific; it makes no assumption if your spoons are silver, wood or plastic. In case you do not mention it yourself, the office may end up sending the paperwork back to you.

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Women and Handbags

You ask any woman, she will tell you how important her handbag is to her. It not only is a vital accessory but it is an extension of her arm, her personality. You can judge a lot about a woman from her handbag. It is a part of her wardrobe and defines her fashion sense.

Hence the market for selling and buying handbags is an extensive one that hardly ever decreases in demand. For this however, the supply and variety should be just as flourishing. Only that way, a good retailer or supplier will have an edge amongst its competitors.

Uses of a Handbag

A woman’s handbag serves a lot of different purposes. She has a different one to suit her every mood, outfit, occasion, season, people, place etc. Unlike men’s wallet, which are considered relatively dull and boring, women does not only have those few pieces of flamboyant colors. Rather a handbag is the one place where your folded piece of paper or business card goes when it does not fit your wallet.

Having said that, for a customer/retailer relation to be healthy, it is important for the supplier or retailer to keep in mind the different uses women buy handbags for. This will serve advantageously as every need of the females to buy a handbag will be catered.

Importance of Brand Name

Having a good variety of handbags means good business but it does not necessarily mean that they have to be designer or from some high end Beverly Hills shop. Becoming a retailer for some major designer is not an easy deal to begin with. It is a fairly large investment on the contrary. Thankfully that is not the sole decisive factor.

The handbags women flaunt on their arms are not always expensive and genuine.

They are indeed equally stylish, unique and experimental but are of varying price ranges. Some wholesalers get their varieties from India; this not only decreases their whole sale costs but also gives them a good markup. They are also easier to import/export as they do not weigh much and that way your shipping cost is not too unreasonable.

Customer Needs and Demands

Let’s get practical. The elegant maroon silk clutch that girl has from her grandmother is a timeless piece but will that go with her skinny jeans and abstract tops? No, instead she wants a bag from India/Thailand with native drawings and writings on them or with dangly stuff hanging from below. Maybe she wants one which is high on sequins and has dramatic eye drawings on them.

Now given that, it becomes very important for a seller, whether a retailer or a wholesaler, to be aware of the changing fashion and needs of the customers in this particular area. Handbags which do not meet customers’ demands will not be able to make a sale.

Variety in Handbags

You might find them made of knit, macramé, silk or even have coconut shells on them. They may be long and strappy but most importantly; they are distinctive. They are what you need if you want to stand out in a crowd or are having one of those days where you miss your school/college.

These bags are produced by small families back in India/Thailand hence their production cost is very low and there is hardly ever repetition, so every piece has its uniqueness. Knowing that they are pretty famous in the females, a retailer would be amplifying the sales if he manages to get one of these exclusive pieces. They can always be sold at a good profit margin.

The seasonal demand can ask for the hippie bags or leather ones. It is important for the retailer to cater to these different needs hence while sourcing handbags from wholesalers or suppliers, they should keep variety as an impertinent factor to consider.

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Therefore, there comes the concept of low pricing and how it affects the whole business.

Traditional wholesale re-sourcing:

The phenomenon of wholesale re-sourcing has many dimensions. While some wholesalers prefer working in a closed environment, others may not function in secrecy. Some will restrict themselves to their standard customers while others may transact with all sorts of buyers and consumers and are untraditionally more reachable.

Examples of such wholesale resources are local buying clubs and factory outlet stores. Wal-Mart, a multinational retail store is one such example where every day, products are bought and sold through online retailing at lowest ever prices. Wal-Mart has shown phenomenal success over the past years in lieu of its enterprising pricing technique.

Wal-Mart’s advantages:

Wal-Mart has a supreme advantage over other large and small retailers by paying the lowest prices to the wholesalers. This in itself is a complete turnaround in the way wholesale re-sourcing has been done in industries and businesses characteristic of any market system.

For wholesalers, pricing depends on the volume of products that is being purchased. Consequently, for any large retailer, the fraction of merchandize being bought will be relatively lesser when weighted against any small retailer. Hence, compared to the latter, large retailers pay wholesalers at a lesser price earning a unique competitive advantage and a strong market position.

Wal-Mart’s everyday low pricing:

Over the years, through its enterprising pricing strategies that have significantly impacted the industry structure as a whole, Wal-Mart has operated through its EDLP (everyday low pricing) technique to uphold its slogan of cheapest prices.

This value proposition has held true for direct, standard customers as well as industrial, commercial and business users.

The benefits for wholesalers:

Wholesalers have benefited hugely at the hands of Wal-Mart. By buying goods and products at cheap prices from Wal-Mart, they resell it online, set profitable margins and earn revenues.

The success and dominance of Wal-Mart over its competitors has also been dependent on its size, influence and penetration in the market. Through its low-pricing technique, Wal-Mart has won the market share of even the smallest retailers by selling its goods, products and items at even lower prices.

Large retailers vs. small retailers

An important point to understand is that while Wal-Mart has earned unparallel competitive advantage and growth though its low-price technique, not all retail companies are destined for the same kind of amplifying success.

Large retailers may find themselves facing a loss. That is if they deviate from their tradition method of pricing products and merchandise on the basis of volume of goods purchased. The low-price technique is exceptionally effective for small retailers and beginners with limited budget and poor backing.

This is proven by many entrepreneurs who have bought goods from Wal-Mart, Sam’s Club or Big Lots and sold them on eBay and earned remarkably high rewards.

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Merchant account providers hesitate to do business with those who they feel are risky because in the end it is these account providers who have to pay charge backs.  The merchants characterized as risky are those who newly initiate a business or those who begin their business in fraudulent places such as Africa etc.

PayPal

PayPal works like other merchant account provider but it is good for the new beginners of business because it is much lenient in its policies concerning whom it provides with an account as compared to other account providers.

While other merchant account providers check credit and business history before opening an account for a merchant, PayPal will open a checking account with a credit card for any merchant. After a few years in business, it is easy for merchants to find themselves a merchant account depending on the sort of business they do.

Disadvantages of PayPal

Even though it is good for the beginners to open an account with PayPal, to be with PayPal in the log run may not be beneficial. This is so because many merchants find PayPal to be chipped when it comes to fraud and other issues.

Credit Card Companies

There are two ways how a credit card company handles processing services. They can charge a specific amount or charge on the basis of a percentage of total sales. Any company which sells low cost products will want the latter that is to be charged as per percentage of the sales and not a fixed amount.

Whereas the large business which deal with high cost items such as televisions and computers etc. find it better to have a company which charges fixed transaction fees and not percentage cutting on sales. This way it is less expensive for them.

The most popular credit cards are VISA and MasterCard with the online businesses as most people use them to make purchases than any other card. American Express and Discover are costly for most of the small businesses because of the high processing rates. This is why American Express and Discover are less common in use with online businesses.

Conclusion

The service provider has to be in accordance with the sort of business, what product it gives out and who are the customers. For new and small business merchants PayPal is easiest means to open account and credit cards such as VISA and MasterCard are cheaper than any other business card when handling purchases.

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Taking it One Step Ahead

As the traffic is high you need to know the relevant tricks and key selling points to get to your desired customers. Since you are already handling an e-commerce website on your own, you are probably one step ahead of the many potential eBay sellers. To gain their loyalty and increase positive feedback you need to establish a dedicated team and provide them with shipping services.

Pictures Improve Presentations

Thanks to the ever growing technology, it is no longer hard to picture something beforehand. You may write the best description about your product but without a picture it is quite ineffective. You are competing out there with the many high-resolution pictures posted by your other drop ship suppliers. People like to have a sense of what they are ordering.

The more defined and specific a picture is the more interest it will generate. Different angles and perspectives help. In your listing titles include relevant search terms and also use the product detail information to your advantage.

Weigh Your Sales

To see how well you are doing against your competitors you can research the bidding process to see how your price points will go up. Start with testing on lower priced items to see how well your sales are being received on eBay. Then you can also calculate how some products affect your ratings.

Also don’t stop using your drop shipping methods to deliver to your customers. This will help you cut down cost on finding and implementing new shipping methods. This will automatically boost up your margins. Also you most probably are operating with a variety of payment options. You need to make these payment options available to your customers too.

PowerSeller

Positive feedback will lead to good ratings and more bids. To satisfy your customers in every way, make sure you establish a dedicated sales team to provide them with that extra bit of quality of service. This makes you look credible and legitimate and builds a trust factor between you and your consumers. If you achieve a 98% positive feedback rating then you possibly can qualify for PowerSeller status.

There are few additional policies you need to keep in mind to acquire the PowerSeller status. To become an active member for ninety days, maintain an average of $1000 in sales per month for three consecutive months. Also you should have an account in a good financial position with average four monthly listings for three months consecutively.

4% of clients achieve the PowerSeller status and if you happen to be one of them then you can expect a variety of perks and discounts as well as access to some special areas. These benefits can add to your company’s additional revenue account.

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The Con

Most of the people are unfamiliar with the legal and technical components of a whole sale contract. As a result often get caught in a whirl wind of deceit which eventually results in a heavy loss.

While some people do make the effort of thoroughly going through the contract and try to understand what the contract actually says, others prefer the recommendations of a salesperson, getting trapped in the sweet and smooth talking and therefore suffering the consequences.

Main Aspects

In reality there isn’t much to whole sale contracts save for two very important things; what the whole saler is providing you and what limitations does it put you in when you sign the contract.

Issues To Avoid

When buying something from the retailer you should make sure that the products come with a valid warranty. They are equipped with all the necessary accessories and more importantly all this information should be clearly stated in the contract.

It is when addressing the second issue, that most people encounter a multitude of complexities. Some companies confine other vendors from selling their products or branding them or advertising them. Such information, if ignored, may prove costly.

Most importantly, some whole sale contracts have arbitrary clauses inserted into them that are often skipped by the reader. They are easy to overlook, too. That might put the person signing the contract in bit of a predicament since it eliminates the right of suing the buying company.

Hence, this puts them completely at the mercy of the wholesale dealers who may embezzle them or cheat them. Moreover the arbitrary clause assigns a random person to resolve the case if any conflicts or disagreements arise between the buying and selling parties.

External Help

Even if it’s still not easy to understand the workings of the wholesale contract one can always hire help in the form of an attorney or simply ask a friend in the industry to help make the right decision.

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In the Beginning

The easier and hassle free way of locating a wholesale supplier can be attending trade-shows. Every industry has a trade show which one can attend to receive the required information. Electronic appliances, leisure goods, pet foods, automobiles are some of the real examples of tradeshows. The tradeshow convention allows wholesale suppliers, retailers, consumers and business owners all gather and convene the business dealings.

How to Make an Entrance?

It is a good way for a new entrant to inter-connect with different players in the business process.

A tradeshow named E3 held in Las Vegas has made plenty of head waves around different manufacturers for launching of new products. Tokyo and Los Angeles Motor Show are some of the automobile tradeshows where huge numbers of consumers and business companies gather to showcase and discuss the can-be improvements of new ideas.

Many of new business join their respective industry’s trade organization. This entitles them to different benefits which also help them in gaining first-hand working experience in their respective industry’s competitive environment. Almost every industry has a trade organization which indulges in different activities and displays from which new entrants in the market can wholly benefit from.

What to Search for?

Finding a trade show in any locality can be a tedious job. Easier way is to check the local listings where dates for such trade shows are displayed. Almost all the businesses indulge in checking the local listings process. It’s a cumbersome and time consuming way which should only be used if no other alternatives are viable.

Many trade show networks and organizations are built to cater the needs of businesses. They provide all the necessary materials and guidance and are catered to the demands of the consumers and the business owners. They also help with the connectivity where networking is made easy and different people can offer their services to businesses at different locations.

It can also help in exhibiting their manufactured products to different trade shows as well. This can be beneficial to the business owners as well as the administrations of those trade shows.

Where to Focus?

One’s sole focus should be in finding the right mix of wholesale suppliers. Finding multiple wholesale suppliers is recommended as it also addresses the individual risks associated with an individual supplier. If by some chance one is unable to attend the trade shows or the respective industry does not conduct a tradeshow, one should not fret about it.

Many other ways exist to find alternative suppliers that can provide what one feels are a necessity for the smooth running of a business. Looking into an online service is not a bad option. It will only help you connect with other wholesale suppliers. Following up the trade magazines of your respective industry is not a bad option at all

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Competition on eBay is inevitable and unlike the rules of business in the market, business on an auction-based website follows a slightly different pattern i.e to say that competition actually helps a business on a website like eBay if one works with it rather than against it.

Do Some Research

Before selling the item, you need to set a price for it and for that you need to search a little bit of history and do some research work. You need to know how much people usually pay for that kind of item and at what price the item is being sold currently.

When looking for prices the item was sold out in the past, you can go to the Advanced Setting option and search for closed bids by doing an advanced search. You will get a fair idea of how far the bidding goes for the kind of item you are selling.

Competiton Helps

On the other hand, you can also search for items that are put up for sale by other sellers and are being auctioned. This provides you an insight of how popular the item is with buyers and how things are moving presently. Competition thus can help in such cases.

Give An Irresistible Offer

Another important aspect of doing business anywhere is the unique feature you offer to provide the seller in order to attract their attention. For example, sellers on eBay have a tendency to include a ridiculous amount of shipping charges with the selling price of items which, a majority of the time, repels the buyer. By offering free shipping, you immediately garner a positive response from the buyer.

Time Your Sale

Timing is of great essence when auctioning a product on eBay since you don’t want to time the sale of your product at a time when there is a excess of similar kind of items being sold. Give your product a nice comfortable exposure time, say a week or more on the market so it has a greater probability of being seen by the people.

Also, you should avoid selling an item during Christmas, Easter and similar holidays as the market is filled with countless products and unique offers and thus there is little chance of your item ending on the first few pages as most people don’t really tend to go beyond the first two pages or so.

Finally

In conclusion, eBay is ideal for people who want to do their business from home and even small-scale businesses and projects can prosper if you know the basic know-how’s of eBay and know what is the ideal time when the product you’re selling will come into demand because that’s where you’ll start making money.

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Advantages of Business to Business Drop Shipping:

Firstly, a business can offer a larger number of products in the same period of time at better competitive prices from the wholesalers. This is so because in setting the price at the cost level, a variety of pricing schemes can be provided to the customers while earning good revenues at the same time.

The labor costs you incur can be decreased by persuading your customers to purchase products in bulk orders at reduced prices. In doing so, businesses prove to be more regular and stable to the customer. Hence, less manpower service and less point of sale interactions result in lower labor costs and increasing profits.

Lower Sales and Profit

Each sale is pertinent to a business in business to business bulk drop shipping. When conducting dealing with companies, you are going to undertake regular and recurring transactions. The constant to and fro flow of products will result in lesser sales calls required to attain the same volume which is a huge advantage.

In business to business drop shipping, the process of shipping is taken out of the supply chain. Consequently, this will lessen labor and other additional costs. The reduction in the total shipping costs for the product to arrive at the customer’s door step increases profits substantially.

Convincing the Customers

Customers will mostly be easily persuaded to take business to business drop shipping arrangement. They will be paid when the point of sale is being made along with making profitable returns in the business.

The use of minimum resources in effectively delivering your products to the end-user significantly multiplies profits. Business to business drop shipping reduces the costs and increases the return on each sale.

Significance in Today’s Complex Market

In today’s competitive world, it is important to have an organization that makes processes easier and smoother. The chain of command in businesses needs to be more flexible to prevent them from failing in this information centric world of ours. Business to business drop shipping arrangement is one such example of improving system productivity through reduced customer costs.

Stronger Position in Market

The advantages of providing consumers products at lower costs are that it prepares businesses to withstand economic pressures of inflation or deflation. The flexibility helps in foreseeing future prices and adjust them accordingly. By making use of the efficient business to business drop shipping arrangement, companies can strive to exercise a stronger, firmer control in the market.

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Shipping products from customer to customer:

Two easy ways of solving the concern is by implementing customer rerouting. The first means involves collecting a package and ensuring that it is unopened before shipping it to another customer that has a need for the same product.

The second approach is valuable in saving money on costs for restocking and redistribution by using chancy but useful return labels and sending the package to the subsequent customer. If the previous customer opened or used the product, it may lead to customer complaints and unsatisfied, negative customer response likely to increase costs even more though replacements.

Listing products at discounted prices:

An effective way of making more money is by redirecting items, especially those which have been used or opened and repacked, to your office to make listings on eBay or Craigslist or on personal site for sale at a lower price on items for customers who are fine with used products that have been restored and reinstated.

EBay’s Success:

Today, customers at eBay are prepared to pay prices that would run almost parallel to retail prices of some of the most popular products in market. EBay being well known for its wide assortment of distinctive and used products attracts willing customers towards a variety of prices reflective of the auction market.

Same is the case for other types of classified listings of products and services. The advantages are numerous in the sense that not only do reduced restocking costs are a direct result of this approach but surprisingly, the products sold at near retail prices may even generate more sales than expected of them through retail.

Personal Resale and Customer Requirements:

The option for personal resale is carried out on personal sites or retailing at reduced prices. Different consumers look at clearance prices differently. While to some, the option to purchase usable and functioning products at the cost of a few damages is acceptable as compared to others who would find even minor superficial flaws objectionable.

This is even truer for the highly demanded products. Most consumers do not hesitate from purchasing the items at clearance prices as long as they have no major functioning failings. It is beneficial to mention the shortcomings of each product on individual listings for used merchandise for the information of the customer in order to prelude recurring product returns.

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