Watch Out for a Refundable Deposit!

May 7th, 2009

Watch out for a Refundable Deposit!

Review the fees your wholesaler says they must charge you.  If you hear ‘refundable deposit’ be on the alert.  There are fees a real wholesaler will never charge.   An Account Set Up Fee and a monthly account maintenance fee, for example, are certain warnings that you are talking with a wholesale scammer, NOT a genuine wholesale supplier.

Some legitimate wholesalers may charge you a small refundable DEPOSIT on opening an account for you.  Typically this deposit gets refunded when you place your first order.  The important word here is ‘refundable’.  A one hundred dollar deposit charged when setting up your account should get refunded to you when you place your first order of at least $100 of product.

The deposit is actually a valid charge.  The wholesaler uses it as a deterent to online sellers who are not really serious about buying from the wholesaler.  Online sellers are building a reputation for being ‘Wholesale Tire Kickers’.  Many eCommerce sellers set up free accounts with multiple wholesalers BEFORE they’ve even decided what they want to sell.  Too often, online sellers never return to buy anything.  It costs the wholesaler money to open these accounts.  The deposit covers their set up costs.  Online Sellers who are not serious typically avoid opening an account that requires a deposit.  

The wholesaler isn’t pricing to make money this way.  It is merely a deterrent.   You must check that the deposit is refundable.  Typically only a Scammer requires a non-refundable account set-up fee.  Beware.  This is not a real wholesaler!

Click to review more of Chris Malta’s “Wholesale Tips”

3 Critical Dangers of Drop Shipping (Plus a Free Gift)

May 1st, 2009

Using Drop Shippers to send products directly to your EBiz Customers from the wholesale warehouses is an extremely popular way to sell online, since there’s virtually no cost to get started. However, there are three critical dangers in Drop Shipping that will ruin your business, and you really need to know what you’re doing if you’re going to use Drop Shippers.

I’m going to give you the solutions to avoiding these and LOTS of other dangerous Drop Shipping issues absolutely FREE & I’m going to give you Drop Ship Focus for Free.

Critical Danger #1: The wholesale price of Drop Shipped products is higher than buying them in bulk (several at a time). This is because the Drop Shipper does most of the work for you (packing, shipping, etc.) and charges for that extra work. You need to learn how to price Drop Shipped products competitively in the right markets; otherwise you won’t make any sales.

Critical Danger #2: You should only be using ONE Drop Shipper per web site. If you use multiple Drop Ship suppliers on your web site, you run the very real risk of your Customers ordering products from different Drop Shippers in the same order. The danger here is that since your Customer’s products are coming from different Drop Ship wholesalers, they (or YOU) will be charged for shipping several times over. If this happens, you WILL lose the sale.

Critical Danger #3: Drop Shipping is a low cost ENTRY POINT into a successful online business, but is not meant to be a permanent solution. Most people don’t realize this, and don’t use Drop Shipping correctly in order to advance their business to more profitable stages.

So, those are three of the Critical Dangers of using Drop Shippers. There are others. Don’t despair, though; there IS hope, and plenty of it!  I’m going to show you how to avoid those dangers and many more so that you can make YOUR EBiz as profitable as possible, and put the most cash in your pocket. AND, I’m going to do it for FREE.

WorldwideBrands.com has been teaching people how to use Drop Shippers for ten years, and is considered the best in the industry. Our product “Drop Ship Focus” contains a video series about dropshipping and over 20 hours of audio interviews with experts in the eCommerce and wholesale industry.   We’ve sold it in the past for $97, but now we’re giving it away FREE.

Through this special link, for a LIMITED TIME, you can have Drop Ship Focus ABSOLUTELY FREE!

Click Here Now to get your FREE copy while you can!

DON’T FORGET – WE LOVE FEEDBACK!!!  Tell us what you think
about Drop Ship Focus or ask your drop shipping questions here!

PLEASE SHARE THE GIFT WITH FRIENDS AND COWORKERS

Wholesale Prices are for Retailers NOT the Public

April 30th, 2009

Worldwidebrands.com’s customer support desk is frequently asked:   Can you help me see the wholesale supplier’s prices BEFORE I decide to apply for an account with them?!’ 

Wholesale prices are for Retailers NOT the Public.  Here are the two main reasons why:

  1. Wholesale suppliers compete.  They only expose their prices to people who have been approved for an account with them.   
  2. If consumers can easily determine the wholesale prices for products, they will try to squeeze retailers for unreasonable discounts.  Both the wholesaler and the retailer must make a fair profit to stay in business.   By keeping their wholesale prices confidential, wholesalers protect their retailers.  

This helps you understand why wholesalers require you to to prove that you’re a legitimate retail business, with a Sales Tax ID, to set up an account with them BEFORE they release  a Confidential Dealer Price List.

Click to review more of Chris Malta’s “Wholesale Tips”

Keep Your Suppliers as YOUR Secret

April 27th, 2009

 

Be careful to keep the wholesale suppliers for your stores as your ‘secret.’  The more success you achieve selling online, the more likely other online sellers will want to copy what you do.   They will try to copy your layout, branding style and marketing techniques.   To compete in your successful space they will certainly want to offer the same product lines – especially when you are a successful niche seller.    They are likely to do everything they can to identify your wholesale suppliers.   Don’t make the mistakes that most eBiz owners make.  You can give away your secrets without even realizing it. 

Use a different Model Number in your online store than your wholesaler’s Model Number otherwise you’re disclosing your secret!  Let’s say your wholesaler uses “Model Number: 12345,” you should create a different Model Number in your store.  Any search on that number will always take your competitor directly back to your store.

The new number should make sense to you.  Don’t pick something complicated.   You will need to maintain a cross reference list (or spreadsheet) so that you can look up the wholesaler’s model number when ordering from the wholesaler.

It’s different if you’re  selling popular products, for example, consumer electronics.  Internet users (and competitors)will search by model number to find the product and its suppliers.  You want Traffic to your store only.   Most successful online sellers select products within a product niche.  The very popular products are sold on large retailer sites and quickly become overstaurated because Beginner Sellers make the mistake of trying to compete with big box sellers at cheaper prizes and end up going out of business.  

 The trick of using different model numbers is very effective for eBiz Sellers specializing in niche product lines.

Click to review more of Chris Malta’s “Wholesale Tips”

Before You Contact A Wholesale Supplier

April 24th, 2009

There is something very important you need to do before you contact a wholesale supplier.  You should view the chapters in Worldwidebrands.com’s education series, The Whole Sale, that explains how wholesalers operate and how they make money.  Don’t assume that all wholesale suppliers will be willing to work with online retailers.  You might think that because they want to sell products, they will welcome you as a new sales channel. 

Factory-authorized wholesalers have good reasons why they prefer not to work with online sellers:

  1. Online retailers are typically small accounts.   Real wholesalers – especially the large wholesalers – look for volume business.  They spend most of their time dealing with retailers like Target, Wal-Mart, Office Depot and Home Depot who place large, frequent orders for products.   With the small volumes from online retailers, a wholesaler actually spends as much time time processing a small order as they do on the ‘big box’ retailer’s order.  As the revenues are much lower, their profit per order is lower.   Unfortunately, beginner online retailers typically apply for many wholesale accounts – especially Drop Ship accounts  – and  then purchase very little.   Wholesaler’s recognize that online retailers require a lot of support for very little return. 
  2. Wholesalers have to pay commissioned sale representatives to support each approved retail account.  Reps earn less commission from Internet retailers than their bigger box customers.  Reps like to spend more time where they can generate larger earnings. 
  3. Some manufacturers prevent their authorized wholesalers  from selling to online retailers.   This is typical of the highly recognized brands.  You have to be an authorized dealer with large volume purchases.  They do this to maintain a perception of their brand as a high value brand.    Beginner online retailers often enter markets by slashing prices to be the lowest price on the web.  Online sellers have very little overhead so can often offer products at lower prices than brick-and-mortar retailers.  Once product prices plunge, brands become devalued.  If the physical retailer (the largest source of revenue for wholesalers) cannot sell profitably, they will stop carrying that brand.  Everybody loses.

These are just a few of the many reasons why a wholesaler may be reluctant to open an account for you as an online retailer.  If you approach the wholesaler correctly, you can succeed in your application for an account on your first contact with a wholesaler:

  1. Only call the wholesaler when you are a registered business.  Quickly let them know you are a valid business before asking about their products and prices.  (“Hello, I am Chris Malta, CEO of  Worldwide Brands, Inc, in Orlando, Florida.”).   The wholesale rep is thinking:  “WIFM.”  (What’s In it For Me?)  Help them understand you’re a RETAILER on a path to sell their products in volume.  Quote your Sales Tax ID up front.  This confirms that you are professional.   Rehearse your call before calling.  Make your introduction quickly and get to the point. 
  2. Ask what the wholesale rep needs from YOU to set up an account.  Come across as attending to the rep’s needs before launching into your own needs.  [If you come across as high-maintenance, or a low-value account with no plan for growth, the wholesaler is likely to decline you for an account. 
  3. List their requirements, thank them and hang up.  Focus on determining their requirements, presenting yourself professionally and securing the wholesale account set up. 
  4. The FIRST contact should be brief.  Be prepared and professional.  You want to secure that wholesale account, instead of  “No, thanks.”

Click to review more of Chris Malta”s Wholesale Tips.

Interacting with a Wholesaler and Dropshipper

April 23rd, 2009

Interacting with a Wholesaler and Dropshipper
When selling online, to make the most profit per sale, you need to source products at real wholesale prices.  A wholesale supplier, especially a dropshipper, will only work with retailers.   You must be established as a legitimate, legal business before they will set up an account for you.

A Sales Tax ID
A wholesale supplier needs  a Sales Tax ID for each Account they open.  You must you must be a legally established business to obtain a Sales Tax ID before you can sell their products.  If a wholesaler tells you that they don’t require a Sales Tax ID to set up an account for you, they are porbably a true, factory-authorized wholesaler.  Search engine queries often lead you to middlemen.  Paid middlemen adverts in the search engines often lead you ‘pretend’ wholesalers.  They buy from the REAL wholesalers.  They mark up the wholesaler’s price and squeeze your ability to make sufficient profit.

Home Business is Still Business
Many propsective online sellers avoid doing the  ‘legal paperwork.’  However it is so easy and inexpensive these days.  Don’t let a few sign-ups prevent you from earning suitable margins in your online business.

Click here to see more Wholesale Tips.

Payment Processing Webinars – Recordings Now Available!

April 15th, 2009

The Recent Webinars about Payment Processing were recorded and are now available to watch. Here’s a quick summary of what they cover. Let us know what you think and please feel free to share:

Understanding Merchant Accounts (For Beginners)

Worldwidebrands.com’s President, Colette Marshall and Paul Levine, President of Superior Bankcard Service, an Intuit Company, discussed the basics of processing payments online and answered key questions asked by webinar attendees. The session covers:

  • • Understanding the payment process
  • • Questions to ask when talking with a potential Merchant Account provider
  • • Understanding of the application process when seeking a Merchant Account
  • • Avoiding Merchant Account mistakes
  • • Avoiding Charge Backs

Watch the free webinar recording here

Payment Processing (For Experienced Sellers & Wholesale Suppliers)

Worldwidebrands.com’s Director of Operations, Tisha Rogers and Paul Levine, President of Superior Bankcard Service, an Intuit Company, discussed what online retailers and wholesale suppliers, with existing Merchant Accounts, can do to reduce their current costs of processing. The session covered:

  • • What is a fair price to pay for processing?
  • • How to negotiate a better deal with your current provider
  • • How to explore and examine your options
  • • Going through a Gateway or going direct
  • • What are the main differences between payment processers?
  • • Understanding and avoiding charge backs

Watch the free webinar recording here

Making money online the old fashioned way

April 13th, 2009

We always get asked the questions:  How do you make money online?   Well our media team a few months ago made this funny quick tip … Watch , Enjoy, Comment and Share!

Tip of the Day: Typing Good Content

April 3rd, 2009

Have you ever sat staring at your computer screen waiting
endlessly for good content to pour out of your fingertips?

We all know that content is king. Writing relevant titles
and descriptions is a major element of selling your
products online. You need to describe your product in
a way that your customer desires it even though they
can not physically touch it. You also have to create the
sales copy that goes around it and the articles with
keywords that help drive the traffic to your site
or auction listings.

If you’re anything like me, writing does not come naturally.
For some people it flows out of their fingertips like
Niagra Falls. For others, that cursor just Keeps Blinking.

You always have options:
1) You can hire someone to do it for you (elance.com or guru.com)
or 2) You do it yourself.

Option 2 seems like the best option when you’re just
starting out. But where do you start?

I personally follow John Carlton on his blog for
content writing tips. He has a really easy – straight forward
simple writing system that I use to help me out.

Check out his blog

Happy typing!

Colette Marshall
President
WorldwideBrands.com

Follow me on Twitter: www.Twitter.com/ColetteMarshall

The critical parts of Merchant Accounts (Plus Sign up for a Webinar)

March 26th, 2009

Your Product Sourcing Newsletter is ready!

Make sure to check out:

– Featured Article about Merchant Account Processing
Sign up for one of our WEBINARS! Details under eBiz Solutions
– Upcoming Trade Show information
– Spotlighted Wholesale Supplier ready to work with you.
– …and more…

Click Here to Open the Product Sourcing Newsletter