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The Product Development Process For Intenet Sellers
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There are several ways to make money on the Internet. One is to sell other people's products as an affiliate marketers. Some people are very successful at this, starting with nothing, and earning a good income. I do this but I've not been very successful at it.

Another way to is create and produce your own products and sell them on your own e-commerce site. This is a very good way to make a living on the Internet and you have control of your products. If you have already gone through the product development process and have your own storefront business, then you definietly should go to the Internet to expand that business. This is true even if you are selling only to a local market.

In this article I discuss a method that I have used for years. That is having products drop shipped to my customers after they order the products on one of my web sites. Here are the advantages:

No Product Inventory

You need no warehouse to stock your products. However, you may get a better deal from a manufacturer of vendor if you do. I never stock products. With one of my suppliers I would save exactly $5.00 on each order. I would lose the difference in what it cost for me to ship the product to my customer (after the supplier ships it to me) and to house the product--a big loss that I don't need. But if your supplier gives you extra discounts then it could be a different story.

No Handling of Product

If you don't stock products you need not handle them if your suppliers ship them directly to your customers. You have no handling cost unless the supplier has such cost which you must pass on to your customer.

Control of Your Customers

You have control of your customers. You should make sure that your suppliers don't take them away from you. You should have that in writing. If a supplier puts literature in your shipment to a customer that makes a special offer, you must make sure that you get the order, not the supplier. Actually the vendor should show the product coming from your address.

The disadvantages are:

Lack of Control of Your Products

Products change. The product cycle includes the following processes: developing the product, modifying the product, retiring the product. You must be aware of what is going on with your supplier. If the product is discontinued you must stop promoting it. If it is changed you must modify your description (and perhaps pricing). The supplier might also cut you off as a dealer for some reason or another.

Drop Shipping Scams

The drop shipping industry is full of scams. The Internet is full of lists of "manufacturers" and suppliers (really dealers) who provide drop shipping. Therefore I suggest that you find your own suppliers dealing with manufacturers directly if possible. There are two reputable "intermediates" who will process your orders for you. They take a small percentage on each order but you still are obtaining products at near wholesale. I use this one of these suppliers myself because it allows me to list many products on my web sites. Unlike affiliate marketing of products where the commissions are often too low to suit me, you can earn higher profits. There are plenty of products offered on Commission Junction and other such sites if you decide to go that way. I don't recommend it because I have never made much money with that process.

For Information on Drop Shipping

Even if you have your own product line or access to manufacturers, you can add more product to your "catalog" by using some drop shipping. Also, drop shipping is an easy way to get started in e-commerce. You will want to set up a website and add products to the site. You will need a way to collect payments. I have used PayPal for a long time and find them reasonable, helpful and efficient. You will need to drive traffic to your web site. No traffic, no sales. There are ways to do this such as article marketing and pay-per-click and site optimization.

Conclusion

Marketing on the Internet can be very rewarding. Using manufacturers who will drop ship products to your customers will allow you to buy at true wholesale and sell at retail or at a discounted price. Avoid drop shipping scams.

Fly Old Glory!


Street Talk

Great article John, Thanks!

Reply
  about 7 years ago
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