Is Worldwide Brands Worth It?

I got a nice comment from Jeanette on my post:How do I find real drop shippers. In case you didn’t get a chance to see it, here’s what she said:

Thank you for starting this blog! It’s an excellent resource for people just starting out in drop-shipping (like me).

I have to question, though, your bit of advice about Worldwide Brands. I’ve heard that there’s a glut of retailers on there, so you end up paying $300 to sell products that MANY someone else’s are already selling. It could end up being a good chunk of change right out the window.

Also, you may want to disclose that you’re earning affiliate income from promoting Worldwide, as well. Your affiliate code is attached to the link. Darren Rowse at ProBlogger suggests sites and services all the time, but is sure to disclose that he profits from any memberships purchased from click-throughs. It’s just an idea, if you want to keep up the integrity of the site.

Other than that, good luck, and thank you!

Thanks for the complement, Jeanette.  Let me see what I can do.

Is Worldwide Brands over used?

I can see where you are coming from with your concern about there being a glut of people using World Wide Brands. I think one thing that doesn’t get mentioned a lot is the incredible diversity of the suppliers that you will find.  It’s a matter of finding your nitch and using the suppliers that fall into it.  So, if you are wanting to sell electronics, sure, there will be tons of people to compete with.  But if you want to drop ship adhesives and sealants or automotive detail chemicals, you will find a supplier at World Wide Brands and you probably won’t have too many competitors with the same product.

Product selection is only half of the battle

Just because you have similar products to other stores doesn’t mean you can’t be successful.  Think about it this way: how many stores can you think of that sell Sony products?  Let’s see: Target, Wal-mart, Kmart, Best Buy, Circuit City, and probably thousands more.  How about when you see a commercial on TV and it says “available at these fine retailers”.  There are several stores listed.  The point here is that you don’t have to be the only store in the world selling Sony in order to be successful with Sony.  Each of the stores I’ve listed has their own customers, their own way of doing business, and their own advertising and selling strategy.  Who cares if other people are selling the same items from the same suppliers as you!  To be successful, you need to find your own way of doing business.

Worldwide Brands is worth it

It is my humble opinion that World Wide Brands IS worth the $300 price tag.  Yes, I personally use it.  Yes, it really was my first business purchase when I started my company.  And no, I don’t think I would have found all of the suppliers that I have without it.

Affiliate Links

I have great respect for Darren Rowse and have read his blog for several years now.  And yes, I do use some affiliate links.  I provide full disclosure on my about me page.  Blogging does take time and money so if I can make a little here and there, great!  If someone happens to click from my blog over to World Wide Brands and make a purchase, I would get a commission.  However, that has happened a grand total of zero times, so I don’t even know what I would get. 

Regardless of any of this, this blog is entirely my opinion.  It’s entirely authentic, and I will not take any funds from anyone who requires me to write positively about them.  If you want to pay me to look over a something and blog about it, fine.  But I might hate it, and if I do, that’s what I’ll write. .

I hope this clears the air and I hope some questions have been answered.

Always feel free to drop me an email with questions or comments.

Oh no, an item is on back order with my distributor, what do I do?

This is the worst.  You work so hard to get that sale, and once you have it you can’t deliver because your supplier is sold out.  Communication is the key.  When this happens to me, I take the following steps.

I communicate with the supplier

I first have a conversation with the supplier to see what has happened.  My goal is to get a good idea of when the item will be back in stock.  I want to make sure that the item really is coming back and isn’t discontinued.  I also check on alternatives.  What similar products are ready to ship immediately?

I communicate with the customer

Secondly I communicate with the customer.  I let them know that the item is currently unavailable and that we are truly sorry about the inconvenience.  I let them know when the item is expect and ask if they can wait.  I also offer them the alternatives.  Maybe they’d be just as happy with the same item in a different color.  This is a great way to save a sale.  A word of advice; it is better to suggest specific products as alternatives.  Just asking if there is something else they’d rather have will usually result in a “NO”.

Conclusion

It is my experience that most customers are satisfied if you simply let them know what is going on with their order in a timely manner.  In my business, 75% of the customers are willing to wait, 10% will take a different item, and 15% will want to cancel.  Not too bad in my opinion.  Even if you loose the sale and have to cancel, the excellent customer service you displayed by communicating with your customer will compel them to come back next time.

Tags: drop shipping, ecommerce, back orders

Manufacturers, Distributors, and Middlemen. Oh My!

What is the difference between a manufacturer and a distributor?

This issue can be a little confusing as companies can be one or the other, or both.

In general, a manufacturer is a company that designs and makes a product. Sometimes the actual making of the product is done in-house, sometimes it is outsourced. The underlying point is that they most likely own the patent/trademark for the item and move the product from an idea, to a live item. These companies spend a great deal of money on research and development, quality control, and improving the manufacturing process.

A distributor, by contrast, is a company that focuses on selling and delivering the product. They are experts on sales, marketing, inventory management, and public relations. Typically, a distributor will carry lines from many different manufacturers and use their relationships with retailers to get the products out into the marketplace.

So What is a Middleman?

For our purposes, a middleman is a company that tries to use their advertising and marketing knowledge to wedge themselves between you and the authorized distributor. These are the guys that come up when you do a web search for "drop shipping". Typically they add an extra layer of cost for you while giving little benefit in return.

By contrast, an authorized distributor or manufacturer that offers drop shipping will very rarely advertise this. Their primary business is in the bulk wholesale market. Drop shipping is a secondary service offering for them.

Why doesn’t the manufacturer just do it all?

Both sides of the business take money and expertise to be successful. In general, a manufacturer will prefer to spend their time and resources on developing new products. If a manufacturer does choose to distribute as well, it is typically in bulk formats. I would say that it’s pretty rare for a true manufacturer to offer drop shipping as selling one item at a time is really far out of their realm of abilities.

Who cares? Why is this important information for A Drop Ship Retailer?

In the drop ship world, there is lots of talk about find “real wholesalers”. My point in telling you this is that both manufacturers and authorized distributors can be real wholesalers. They simply play different roles in the chain. What you have to be careful of are the middlemen. I know it’s confusing because the middlemen are very good and positioning themselves as experts and "perfect solutions" to drop shipping.

Conslusion

The lesson to learn here is to ask lots of questions to be sure you understand who you are working with. Do you best not to confuse a distributor with a middleman, and visa versa.

Tags: drop shipping, wholesale, distributor

Are you ready for Cyber Monday?

Huh? In the world of retail, we all wait with baited breath for Thanksgiving. All of the work we’ve done all year long is hopefully about to pay off, big time. Many retailers don’t even enter the black for the year until the day after Thanksgiving (hence, Black Friday).

For us online drop shippers, we’ve actually got a few more days to wait. A few years ago, the industry coined a new phrase, Cyber Monday. This is the day that online retailers begin to reap the rewards. Why? Because people shop from work! In fact, so many American workers shop from their desk on Monday that we needed a new phrase.

So, this weekend is your last chance to get everything right with your website before Monday. Add any products you’ve been meaning to. Double check prices and promotions. Make sure any of your shopping services are connected and ready to go.

It all boils down to this. Good luck!

At What Point Should A Customer Be Charged?

What a terrible, terrible problem for the drop shipper. Unfortunately, there is no good or easy answer for this.

Background – In traditional stocked retail, a customer’s card is charged once the order is about to be put on the truck for shipment. This ensures that the customer isn’t paying for something that isn’t coming or delayed (i.e. unexpected backorders) and is, in my opinion, good appropriate customer service.

This can be difficult for the drop shipper. We almost always find out about a shipment after it has happened and is already out the door. It is very common for me to get shipping confirmations the following morning. So taking payment right before shipping is almost impossible. Paying late would be alright, but you are putting a whole lot of trust in your customer. I have had times where I approved a charge after the item was on its way, only to have the credit card declined. Now there is no way to stop the shipment. You’ve got to hope you can get a hold of the customer and get them to pay up; not a fun situation to be in.

My preferred method is to take payment at the time of the order. While this poses the least risk for you, the retailer, there are some key problems with it. First, customers simply don’t like it. They don’t want to pre-pay for goods and will often be upset if they’ve paid but not gotten their goods. This leads to problem two, if the item is back ordered or otherwise unavailable, you’ll often have to do some back-peddling. “Why did you charge my card if you didn’t have the product?” Again, not a fun conversation to have. Finally, if an item is unavailable, the order will often be canceled. This results in you having to refund the transaction and end up paying your discount rate twice.

So, what is the best scenario? I don’t know. Every situation will be different, but it is important to know what the risks are for which ever method you choose. When do you charge for the order?

Tags: drop ship, business

How Do I Find “Real” Drop Ship Suppliers?

Finding real, authentic wholesalers that are willing to drop ship orders for you is certainly one of the hardest tasks for your new drop ship business. Do a search online and you’ll get pages after pages of companies offering to drop ship products for you. So how do you find the good ones? Well, there are a couple of ways.

Method 1: You can use the internet search – The problem is which are legit, and which are not? I would be VERY careful before taking any too good to be true program that you found online.

Method 2: You can contact a manufacturer – If you know an exact brand that you want to carry, you can contact the manufacturer directly and inquire as to who might distribute their products.

Method 3: You can attend merchandise shows – These are industry events where manufacturers and distributors showcase their goods. You’ll have to prove that you are in the retail industry to get in as they are generally not open to the public. If you see something you like, inquire with the rep as to whether they have a drop ship program.

IMPORTANT NOTE: I do not recommend methods 1 or 2. 2 is too time consuming; 1 can be questionable. 3 can work, and has worked for me in the past, but can also take a long time and be expensive in travel to the different shows.

Method 4: Buy in to a wholesaler directory – I know, this seems a little scammy too, but I can tell you its not. The first thing I did after incorporating my business was to buy One Source from Worldwide Brands. There is a one time, lifetime fee that I totally feel is worth it. Among many other business services, what’s valuable for us drop shippers is the Drop Ship Directory. This is a comprehensive list of thousands of legitimate manufacturers and distributors of wholesale merchandise that are willing to drop ship your orders. I have found nearly all of my suppliers off of this directory and could not live without it. New suppliers are being added all the time.

I hope that gives you some insight. It’s certainly possible to find suppliers without using a directory, however the time savings is worth every penny. Has anyone used a different, but similar wholesaler directory? Would you recommend it?

Tags: drop ship, business, onesource, worldwide brands, wholesale suppliers

Should I Profit On Shipping?

Today’s online shopper is very savvy and will catch on to most things pretty quickly. Gone are the days where you can make a low margin on your products, then add on high shipping and handling fees to make it up. Your customer will notice and will move on to another store. In my opinion, shipping and handling should not be a profit center for your business. Most customers understand that S&H is a cost that they cover in order to receive their product. So you need to make it as fair as possible for them.

This starts with having a good understanding of what you will pay for shipping. Your drop ship vendor should give you full information as to how they calculate shipping to you so you can act accordingly. Your estimates will sometimes be good, and sometimes not. Some customers will overpay for shipping; some underpay. Your goal should be to get it as close as possible.

 With that being said, I do consider it alright to make a little profit on shipping. After all, you are in business to make money, and S&H is a service you are providing. As I mentioned before, just be sure to keep it fair. Maybe try to make 10-20% on shipping, not 50-60%. And remember, any shipping charges you take in over and above what you pay in shipping needs to be reported as income, and you will be taxed. So it’s not free money.

How do you feel about shipping and handling charges?

Tags: drop ship, business, retail, ecommerce

Things To Look For In A Drop Ship Vendor

With all the choices out there of different vendors and manufacturers who are willing to drop ship for you, how do you make the decision of which one(s) to use?

Do they have a product you really want? Especially starting out, make sure that they provide products that you really think you can sell. Do some research online to see where the same or very similar products are being sold. If the vendor’s products seem to be everywhere, and you’ll just be another fish in the pond, maybe you should move on to something else. Also remember, there is a fine line between the things you like, and things that may actually sell. Don’t get stuck with a store full of your favorite things, that no one else is interested in.

Do they seem put together? Do they have a page on their site that gives general information about their drop ship program? Are they able to send you detailed information to permit you to make an educated decision before using their services? If drop shipping seems to be an afterthought for them, and they are not prepared to give you details, then they might not be ready for your relationship. In order to succeed, you will need to depend heavily on your vendors. If they are unable to give you a good feeling in the beginning, chances are they may not be real dependable when the orders start rolling in.

Do they have any weird fees or rules? Make sure you fully understand all of the requirements and fees associated with your new account. It is my opinion that you should never have to pay an upfront fee to use a vendor. You are their customer, and they should be happy to have and help you. While I could be swayed, I’ve yet to see a vendor that requires a setup or maintenance fee to be worth it. They should also not restrict other areas of your business such as selling price (which actually is illegal), what other products you sell, or your terms/conditions. Make sure that you can live with any rules they may have, which shouldn’t be many.

Check out their customer service. While it’s certainly not a requirement, I do prefer to work with companies where I have a specific person to contact with a question or problem. Regular customer service is fine for the everyday questions, but if something really is amiss, I want to have a dependable person that understands my account and is ready to help.

What are they willing to give you to get started? Finally, a good vendor should be prepared to provide you with product information from the start. This should include product details (item numbers, options, price, weight, etc.) and web ready images. If they cannot give you these things, it could be very difficult for you to sell their goods. While this is not an all inclusive list, it is at least a staring point. Remember that as a business owner, you need to make the best decision for the business and keep your personal feelings out of it. Even if you really want to sell a certain manufacturer’s product, if they can’t meet the things we’ve talked about, the relationship may be doomed from the start. What things do you look for in a drop ship vendor?

Tags: drop ship, business, ecommerce, suppliers

The “Experts” say to start on EBay to get my feet wet. Should I?

Let me preface this post by saying that I am a big fan of eBay. I buy stuff there all the time. It’s the greatest marketplace in the world. There are several reasons that the experts say to start there. It’s easy; It gives you instant credibility; It’s inexpensive; It puts you in front of lots of customers. All of this is 100% true. And in some cases, with some products, eBay may be an excellent starting point. However, I do not recommend it for your new drop ship business.

The reason I don’t like it is because it’s just too easy. Often times, a new drop shipper will be all excited to get the products from their new agreement with a vendor up on eBay, only to see that 10 other people have already done the same thing. By drop shipping, we’ve already bypassed the hurdles of purchasing stock, warehousing, and shipping. And we already know that we are selling products that many others can also. It is important to differentiate ourselves in order to be successful in drop shipping. That can be done by site design, excellent service, or whatever else you come up with. EBay greatly levels the playing field, and puts you in the same bucket as everyone else. This can saturate eBay with drop ship products and the chances of anyone standing out are next to none.

 I prefer eBay for a company that has a unique product. Maybe it’s something you manufacture yourself, or have an exclusive deal with a manufacturer to offer a new product line. The point here is that unique items get noticed on eBay, not the same old stuff.

Unfortunately, with all the advantages of drop shipping, we have accepted that our goods will not be unique unto themselves. That’s why we have to do all these other things to be different and stand out. So, for a drop shipper to try to start a new business exclusively on eBay, I feel, is a mistake. It’s too competitive, and you’ll set yourself up for disappointment, and possible failure.

Tags: drop ship, business, ecommerce, eBay

The Importance Of Site Design

For a new retailer, one of the biggest decisions and expenses will be setting up the website. Nowadays, there are tons of places to purchase a domain name and a million different ways to get that web store built. It will be tempting to use the “free tools” included in some e-commerce packages. These will help you set up a very basic store, with very few, if any, bells and whistles.

When I started my first store, I decided not to go that route. My reasoning was, and still is to this day, that to obtain an order online requires someone to trust your store so much that they are willing to type in their credit card number. I feel that for someone to take that risk, the store needs to look professional. I never wanted to look like some guy in his garage running a web store, even if I was. This meant that I’d either have to learn web design real fast, or I’d have to hire a pro.

 To make a long story short, I hired a professional. But as far as you are concerned, whether you are talented enough to do it yourself, or you will be hiring also, make sure to put the time and money in to make the site as professional as possible. Remember, chances are you don’t have a print catalog, and you don’t have store front. The website is your only connection to the outside world. Make sure it’s done right the first time. Your business will 100% depend on it.

Tags: drop ship, business, ecommerce, site design, website