[GET] Provensourcing (Profitable inventory on Amazon, eBay...)

[Speculator]

(08-11-2014 12:34 AM)scraigwake Wrote:  Thanks for the info. I sell drop ship items on Amazon with over 40,000 SKUs. All of these are outsourced through various dropship vendors. Naturally not all of the SKUs end up in the buy box because of the slim profit margins on Amazon. As you start to get many skus or products consider an inventory management system that will work with many channels including your own webstores. Currently we are using Solid Commerce. There are others out there that are more expensive and less expensive. You have to decide what features you can or cannot live without If you are looking for drop ship vendors I have had success once I determine my niche by (1) doing google searches for dropship in the niche, (2) using InventorySource.com which lists various companies that specialize in dropship, (3) being a member of groups like ASI (Ad Specialty Institute) and (4) going to trade shows. Since I live in the Orlando area I can go to trade shows such as ASI, The Surf Show, PGA Golf Show, etc. where there are hundreds of vendors. While only about 25% of these vendors work with dropshippers I can pick up catalogs, make contacts and see the products. I would not recommend joining ASI unless you are really committed. The Ad Special Institute is more for merchandise that ends up being imprinted so not every ASI vendor will be willing to work with you and not every brand will let you sell their products online. If you are going to dropship you can find vendors that will drop ship the blanks. We have found that if you promote on your own ecommerce websites the correct way you can end up with custom orders that bring in a lot of profit. One thing to consider about channels such as Amazon, Rakuten, Sears and eBay is that the percentage that is being paid to the channel does not develop a customer base for you. While you can generate a lot of sales the margins are much narrower because of the typical 15% being paid to the channel. Consider whether it might be better to spend money to develop your own webstores and drive traffic to them instead of paying the 15% to the channel. We have built stores using Miva, Big Commerce and others. Each system has advantages and disadvantages. Consider cost plus integration with your inventory management system plus whether the system such as Big Commerce has the features you want. For example Big Commerce has shipping rule limitations if you are working with dropship vendors. Big Commerce allows you to set up shipping from only one location. If you are using 30 different vendors that ship from all over the country it would be much better to be able to have the customer see and be charged shipping costs for the correct location. As you drive the traffic there and get sales you can develop you own customer base. Isn't the primary thing all internet marketers are looking for -- the list?

Thank you for the nice info.Currently not in the Amazon business.But this post is helping out.

[roversierr]

Thanks-rep added
:)