The bad guys that have this debit card data are not going to attack online merchants for goods that they will have to convert to cash. They have been walking straight to the ATMs for the green dollar.
The impact on merchants in the CNP world will be minimal; certainly no more than a few numbers of credit cards but probably less. I do not think the CP merchants will feel it much either. Consumers, on the other hand, are going to take a huge hit. As you probably know, credit card holder's liability is limited to $50 under FTC regulations but I do not think there is any such limit for debit cards. The card holder is responsible for keeping the PIN private and shame on him if it gets out and he does not report the card stolen.
And yes the banks will almost certainly do what they can to keep their card holding customers happy, particularly if the cleaned out account can be traced to a compromised PIN by whoever it shakes out is accountable. Will that responsibility always be traceable? I do not know. But even if the banks in the end cover those losses, the cardholder has to deal with his account being cleaned out and all that goes with it.
Fraud Protection on the long term
The big concern for the merchant, on line and off, is if the consumer confidence disappear. We already have confirmation that confidence in online transactions has been falling a bit. This first debit/PIN compromise by itself is survivable, but if it turns out that it was not a one-time thing and we have all of a sudden discovered that PIN transactions are not as safe as we thought. Well, then on line merchants are in trouble and brick & mortar could be in trouble as well.
And I wonder how long the banks are able to calm down their debit card holders. When will they begin to pass the losses to the cardholders like they already pass them on to the online merchants now? It could become a matter of continued existence.
Tuesday, December 26, 2006
An Organic Herbal Tea Blend
With US$5 billion market in the United States alone in 2003, a 500% increase in 10 years, tea is a well established industry that is quickly growing. Tea bags, loose teas, tea shops, and gourmet teas are only a few examples of the outlets for this ever increasing number. Though sales have been mainly rooted in the standard teas stemming from the Camelia sinensis plant (Green tea, Oolong tea, and Black tea), a vast increase in herbal and natural medicines in the western world has brought upon a virtual explosion of Organic Herbal Tea Blend, releasing any confinements there may have previously been.
Now it is not only Big Business that is apart of this industry as the infinite number of herbal tea blends are combing with the free commerce of the internet. This conception is creating new life in an industry that had been patiently waiting. New companies are forming, new mixtures are being created, and now even new tea bags are being designed.
The machine manufactured tea bags are still standard in market where cost is being put before quality. A metal staple is used to close a bag filled with low quality tea dust, which is known to have very low health benefits and give a more bitter taste than its whole leaf loose tea counterpart. Due to the manufacturing techniques used by these production factories, tea dust is the only filler able to be injected with the machines used to mass produce these bags. As the general size of each organic herbal tea blend is larger, they are unable to be used with these processed bags.
Second in popularity is a relatively new pyramid shaped tea bag. A more spacious bag allows for a free floating of the loose tea that is inside. Though higher in quality than the stapled standard, problems of this style include a large shape and size that makes bulk packaging difficult. Also, most bags are filled with green and oolong loose teas, as opposed to organic herbal tea.
With the combined short falls of these two bags, the ever increasing number of organic herbal tea blends and home based companies are in desperate need for a tea bag to match their unique nature. Fortunately as the number of companies is increasing, and more money is entering into the market, handmade gourmet tea bags are being created, better matching the ingenuity behind each organic herbal tea blend. It is very possible that as the number organic blends increase in popularity, raising the desire for organic products and higher health benefits, consumers will be more willing to pay slightly higher prices to receive significantly higher in quality tea bags. With this in mind, it very well could be that a unique organic herbal tea blend could be your gateway to differentiation in a busy tea industry.
Now it is not only Big Business that is apart of this industry as the infinite number of herbal tea blends are combing with the free commerce of the internet. This conception is creating new life in an industry that had been patiently waiting. New companies are forming, new mixtures are being created, and now even new tea bags are being designed.
The machine manufactured tea bags are still standard in market where cost is being put before quality. A metal staple is used to close a bag filled with low quality tea dust, which is known to have very low health benefits and give a more bitter taste than its whole leaf loose tea counterpart. Due to the manufacturing techniques used by these production factories, tea dust is the only filler able to be injected with the machines used to mass produce these bags. As the general size of each organic herbal tea blend is larger, they are unable to be used with these processed bags.
Second in popularity is a relatively new pyramid shaped tea bag. A more spacious bag allows for a free floating of the loose tea that is inside. Though higher in quality than the stapled standard, problems of this style include a large shape and size that makes bulk packaging difficult. Also, most bags are filled with green and oolong loose teas, as opposed to organic herbal tea.
With the combined short falls of these two bags, the ever increasing number of organic herbal tea blends and home based companies are in desperate need for a tea bag to match their unique nature. Fortunately as the number of companies is increasing, and more money is entering into the market, handmade gourmet tea bags are being created, better matching the ingenuity behind each organic herbal tea blend. It is very possible that as the number organic blends increase in popularity, raising the desire for organic products and higher health benefits, consumers will be more willing to pay slightly higher prices to receive significantly higher in quality tea bags. With this in mind, it very well could be that a unique organic herbal tea blend could be your gateway to differentiation in a busy tea industry.
How Can a Drug Store Founded in 1838 Survive in The 21st.Century?
When my daughter and I meet for lunch in Greenwich Village, we always pass by Bigelow's Apothecary. I asked her if she shopped there, and she remarked that their Alchemy mascara is the best ever. (I had to take her word for it.)
I spoke with Bigelow´s current proprietor, Ian Ginsberg, and the Bigelow's story is both a fascinating piece of New York nostalgia, and a demonstration of the importance of change in business.
C. O. Bigelow Apothecaries has been a familiar sight in New York's Greenwich Village for over 160 years. Founded in 1838 by Dr. Galen Hunter as the Village Apothecary Shop, it was bought and renamed in 1920 by Clarence Otis Bigelow.
The original store was located a couple doors down from the current address, but in 1902, the ambitious Bigelow built a new building for himself which has housed the pharmacy for the last hundred years.
The Sixth Avenue drugstore still looks very much the way it did in the nineteenth century, and the business philosophy - integrating innovative change with unparalleled customer service - has remained a constant as well.
Pharmacist and businessman Ian Ginsberg now heads up the landmark shop, which came to him through his father. His family first became involved in the store when his grandfather took the helm a full century after its doors first opened.
He is just as much of a mover and shaker as C.O. Bigelow, and he has helped usher the business into the 21st century.
To keep the business moving forward, he took it on the Internet. Bigelow Chemists now has two e-commerce sites, one for their well-known house brand of cosmetics and skincare products.
They are two separate companies offering two separate but related brands. Ian decided to keep the sites separate (although Alchemy Cosmetics can be purchased from the Bigelow site) because he didn't want to dilute either brand.
Being in the catalog business prepared them well for the addition of e-commerce. They had the manpower and facilities to process and package orders and manage the remote sales. Their web sales, most of which come from outside New York, have surpassed their catalog sales:
"It's like a catalog that can go into anyone's home, and we can manage the content on a daily basis. It is a great thing."
Ian saw the potential of the Internet as a business building tool and went on to create a site and online store for the shop. A sound decision, he feels, and one that no business owner today can afford not to make.
"With the cost of building web sites today falling so low, with the way you can do this really inexpensively and still retain control of your branding, you've got to be crazy not to at least have some sort of representation online."
"Who opens the Yellow Pages anymore? For the cost of a little yellow and black ad in the book, you can have ten pages online in full color, describing everything you do."
"The first question people ask you these days is `What is your email address?´ That means that they're checking their email every day. And if they're checking their email every day that means that they've got a browser window open every day. So think about the guy who is checking his email, has a browser open right in front of his face, but doesn't have a website for his own business. It doesn't make sense!"
Ian finds that the web site speeds every aspect of the transaction, from a customer's product selection, to the placing of the order, to the packing and delivery.
Our biggest source of referrals has come from the press. We get a substantial amount of PR, and we always include the web address or our toll-free number so we can get names that way, but most of our catalog requests come directly through the website."
I spoke with Bigelow´s current proprietor, Ian Ginsberg, and the Bigelow's story is both a fascinating piece of New York nostalgia, and a demonstration of the importance of change in business.
C. O. Bigelow Apothecaries has been a familiar sight in New York's Greenwich Village for over 160 years. Founded in 1838 by Dr. Galen Hunter as the Village Apothecary Shop, it was bought and renamed in 1920 by Clarence Otis Bigelow.
The original store was located a couple doors down from the current address, but in 1902, the ambitious Bigelow built a new building for himself which has housed the pharmacy for the last hundred years.
The Sixth Avenue drugstore still looks very much the way it did in the nineteenth century, and the business philosophy - integrating innovative change with unparalleled customer service - has remained a constant as well.
Pharmacist and businessman Ian Ginsberg now heads up the landmark shop, which came to him through his father. His family first became involved in the store when his grandfather took the helm a full century after its doors first opened.
He is just as much of a mover and shaker as C.O. Bigelow, and he has helped usher the business into the 21st century.
To keep the business moving forward, he took it on the Internet. Bigelow Chemists now has two e-commerce sites, one for their well-known house brand of cosmetics and skincare products.
They are two separate companies offering two separate but related brands. Ian decided to keep the sites separate (although Alchemy Cosmetics can be purchased from the Bigelow site) because he didn't want to dilute either brand.
Being in the catalog business prepared them well for the addition of e-commerce. They had the manpower and facilities to process and package orders and manage the remote sales. Their web sales, most of which come from outside New York, have surpassed their catalog sales:
"It's like a catalog that can go into anyone's home, and we can manage the content on a daily basis. It is a great thing."
Ian saw the potential of the Internet as a business building tool and went on to create a site and online store for the shop. A sound decision, he feels, and one that no business owner today can afford not to make.
"With the cost of building web sites today falling so low, with the way you can do this really inexpensively and still retain control of your branding, you've got to be crazy not to at least have some sort of representation online."
"Who opens the Yellow Pages anymore? For the cost of a little yellow and black ad in the book, you can have ten pages online in full color, describing everything you do."
"The first question people ask you these days is `What is your email address?´ That means that they're checking their email every day. And if they're checking their email every day that means that they've got a browser window open every day. So think about the guy who is checking his email, has a browser open right in front of his face, but doesn't have a website for his own business. It doesn't make sense!"
Ian finds that the web site speeds every aspect of the transaction, from a customer's product selection, to the placing of the order, to the packing and delivery.
Our biggest source of referrals has come from the press. We get a substantial amount of PR, and we always include the web address or our toll-free number so we can get names that way, but most of our catalog requests come directly through the website."
Monday, December 25, 2006
Selling on Web? You Can Do It
“Sell on web”, the dapper man in striped suit was saying, “it’s easy.” Robin knew he heard that before. To him the question was not ‘if’, but ‘how’. He always thought selling on web is a hallowed precinct belonging to only a few. Could he be one of them, he wasn’t sure.
Back home early, Robin crouched before his desktop and started shooting queries at Google. Soon enough, he zeroed on what he wanted. “Phew”, he exclaimed, “what a gem!” He was looking at SBI!’s website.
Robin was orthodox. He believed in the adage “whatever comes on a platter isn’t worth it”. He found solace in SBI!’s firm advice to work hard at it. But wasn’t it that SBI! gave all that one needed to succeed on web? Robin decided to take note of all that SBI! offered.
Own A Website
The basics first. Did SBI! offer domain name, building website, web hosting, unlimited pages, page templates, unlimited email accounts, or for that matter, unlimited data transfer and unlimited hosting space?
Yes, SBI! offered all these and more. Robin knew old-styled hosting providers would never provide unlimited hosting space and unlimited data transfer. Not SBI!. That meant when he owned a website in SBI!, he owned from the head to tail of it. Nothing less.
Ecommerce Now
You named it, you had it. Robin was eager that he must have catalog-display of his products, a fully-featured shopping cart and credit card processing as well. He wasn’t disappointed. To be true, SBI! overwhelmed him. Literally. Robin could either use SBI!’s Store-Build-It feature or plug-n-play with leading 3rd parties that delivered ‘pre-sold visitors’.
The icing on the cake was that SBI! included affiliate program too as part of ecommerce package. Was that an error he saw? Nope! He rubbed eyes and confirmed again.
Search Engine Optimization
Robin now leaned back and thought. He would require search engine optimization for his website. Unless he did that - he had recently learnt in a seminar – there was no way his site would ever appear in top search results. But wasn’t search engine optimization an expert job? He tried to figure out what help he must have if he wanted to do himself.
Keyword research tool for sure (he always thought ‘keyword research’ was better than plain old ‘keyword selection’). What else? He must know what the logfiles said. He must have click tracking option and their proper analysis. Search engine ranking report for various keywords was another help as also link exchange program.
Here he paused awhile and thought hard. Did he need any more help? Well, if he could have website analysis for search engine compatibility, nothing like it. And above all, why not ability to track search engine spiders and search engine listing report?
Well, he must be insane to ask all that! To his utter amazement, Robin found SBI! gave all these help! For the first time he started feeling he would never want anything else, but SBI!.
Back home early, Robin crouched before his desktop and started shooting queries at Google. Soon enough, he zeroed on what he wanted. “Phew”, he exclaimed, “what a gem!” He was looking at SBI!’s website.
Robin was orthodox. He believed in the adage “whatever comes on a platter isn’t worth it”. He found solace in SBI!’s firm advice to work hard at it. But wasn’t it that SBI! gave all that one needed to succeed on web? Robin decided to take note of all that SBI! offered.
Own A Website
The basics first. Did SBI! offer domain name, building website, web hosting, unlimited pages, page templates, unlimited email accounts, or for that matter, unlimited data transfer and unlimited hosting space?
Yes, SBI! offered all these and more. Robin knew old-styled hosting providers would never provide unlimited hosting space and unlimited data transfer. Not SBI!. That meant when he owned a website in SBI!, he owned from the head to tail of it. Nothing less.
Ecommerce Now
You named it, you had it. Robin was eager that he must have catalog-display of his products, a fully-featured shopping cart and credit card processing as well. He wasn’t disappointed. To be true, SBI! overwhelmed him. Literally. Robin could either use SBI!’s Store-Build-It feature or plug-n-play with leading 3rd parties that delivered ‘pre-sold visitors’.
The icing on the cake was that SBI! included affiliate program too as part of ecommerce package. Was that an error he saw? Nope! He rubbed eyes and confirmed again.
Search Engine Optimization
Robin now leaned back and thought. He would require search engine optimization for his website. Unless he did that - he had recently learnt in a seminar – there was no way his site would ever appear in top search results. But wasn’t search engine optimization an expert job? He tried to figure out what help he must have if he wanted to do himself.
Keyword research tool for sure (he always thought ‘keyword research’ was better than plain old ‘keyword selection’). What else? He must know what the logfiles said. He must have click tracking option and their proper analysis. Search engine ranking report for various keywords was another help as also link exchange program.
Here he paused awhile and thought hard. Did he need any more help? Well, if he could have website analysis for search engine compatibility, nothing like it. And above all, why not ability to track search engine spiders and search engine listing report?
Well, he must be insane to ask all that! To his utter amazement, Robin found SBI! gave all these help! For the first time he started feeling he would never want anything else, but SBI!.
E-Commerce and Drinking Water
Safety, Convenience and Customer Service Combine for Customer Satisfaction
E-Commerce is coming of age with millions of new customers from internet sales for a wide variety of products. Advances in web site design, payment mechanisms and delivery systems have met the increased demand for online ordering.
With the advent of on-line ordering firms like Amazon and E-Bay, what started out as a small business has morphed into a multi-billion dollar industry. The key to success in the field of E Commerce is the offering of high quality products coupled with state of the art technology to ensure ease of ordering and secure payment mechanisms.
The bottled water industry is an ideal beneficiary of e-commerce technology because of the large number of customers served and the frequency of transactions and purchases.
E-commerce Defined
E-commerce is similar to other forms of commerce except that it involves the buying and selling of goods over the Internet. E-commerce sites range from a simple web page highlighting a single item to dynamic fully developed on-line catalogs featuring thousands of products. The common theme and benefit in e-commerce sites is instant purchase, instant payment (if desired) and instant gratification for the customer.
Over the years, the e-commerce web has blossomed into a multi-billion dollar industry yearly, with significant growth projected over the next 5 years. A defining characteristic is that all ecommerce web sites accept a type of online payment, whether through a third party or directly with a merchant account..
E-commerce: The Wave of the Future
The internet is changing world view of shoppers. Instant gratification is a reality Utilizing e-commerce allows customers the ability to quickly take delivery of the goods they require and desire. In addition, the Internet is perhaps the best sales tool ever invented as it allows customers to browse endlessly in privacy. They can return and order again and again without ever leaving their home.
Most experts agree that it is only a matter of time before all sales-oriented companies will have some sort of e-commerce presence in order to remain competitive and the development of software and tools to improve the productivity of e-commerce sites remains strong. As more and better technology is developed, e-commerce will greatly expand.
Secure Payment and SSL(Secure Socket Layer): The Heart of the System
SSL(Secure Socket Layer) has been the de facto standard and heart of the system for e-commerce transaction security, and it's likely to remain so well into the future.
SSL is based on encryption. SSL encrypts data, like credit cards numbers (as well other personally identifiable information), which prevents unauthorized use. An SSL protected page is identified when the address begins with "https" and there is a padlock icon at the bottom of the page.
SSL Certificates
The SSL certificate resides on a secure server and is used to encrypt the data and to identify the Web site. The SSL certificate also helps to prove the site belongs to who it says it belongs to and contains information about the certificate holder, the domain that the certificate was issued to, the name of the Certificate Authority who issued the certificate, the root and the country it was issued in.
In general, e-commerce users are urged to avoid sites that fail to use and display proof of SSL Ceritifcates.
The Bottled Water Industry and E-commerce
The bottled water business is actually two lines of business: Local delivery water and private labeled water and each is an important subset of the total business.
Local delivery water is defined geographically and usually comprises rental or sales of coolers and delivery of 5-gallon and small package (12, 16.5 and 20 oz.) bottles to customers located within a limited distance from the water source. This business includes a customer base of consumers and businesses in the defined geographic area who take periodic delivery of water. The key to success in this line of business is the production and efficient delivery of the highest quality pure water.
Private labeled water involves the development and production of high quality custom labels with a clear branding message. This line of business is national in scope and includes a strong element of branding and advertising. The key to success in this line of business is the design and production of a label of the highest quality with a clear branding message.
E-Commerce is coming of age with millions of new customers from internet sales for a wide variety of products. Advances in web site design, payment mechanisms and delivery systems have met the increased demand for online ordering.
With the advent of on-line ordering firms like Amazon and E-Bay, what started out as a small business has morphed into a multi-billion dollar industry. The key to success in the field of E Commerce is the offering of high quality products coupled with state of the art technology to ensure ease of ordering and secure payment mechanisms.
The bottled water industry is an ideal beneficiary of e-commerce technology because of the large number of customers served and the frequency of transactions and purchases.
E-commerce Defined
E-commerce is similar to other forms of commerce except that it involves the buying and selling of goods over the Internet. E-commerce sites range from a simple web page highlighting a single item to dynamic fully developed on-line catalogs featuring thousands of products. The common theme and benefit in e-commerce sites is instant purchase, instant payment (if desired) and instant gratification for the customer.
Over the years, the e-commerce web has blossomed into a multi-billion dollar industry yearly, with significant growth projected over the next 5 years. A defining characteristic is that all ecommerce web sites accept a type of online payment, whether through a third party or directly with a merchant account..
E-commerce: The Wave of the Future
The internet is changing world view of shoppers. Instant gratification is a reality Utilizing e-commerce allows customers the ability to quickly take delivery of the goods they require and desire. In addition, the Internet is perhaps the best sales tool ever invented as it allows customers to browse endlessly in privacy. They can return and order again and again without ever leaving their home.
Most experts agree that it is only a matter of time before all sales-oriented companies will have some sort of e-commerce presence in order to remain competitive and the development of software and tools to improve the productivity of e-commerce sites remains strong. As more and better technology is developed, e-commerce will greatly expand.
Secure Payment and SSL(Secure Socket Layer): The Heart of the System
SSL(Secure Socket Layer) has been the de facto standard and heart of the system for e-commerce transaction security, and it's likely to remain so well into the future.
SSL is based on encryption. SSL encrypts data, like credit cards numbers (as well other personally identifiable information), which prevents unauthorized use. An SSL protected page is identified when the address begins with "https" and there is a padlock icon at the bottom of the page.
SSL Certificates
The SSL certificate resides on a secure server and is used to encrypt the data and to identify the Web site. The SSL certificate also helps to prove the site belongs to who it says it belongs to and contains information about the certificate holder, the domain that the certificate was issued to, the name of the Certificate Authority who issued the certificate, the root and the country it was issued in.
In general, e-commerce users are urged to avoid sites that fail to use and display proof of SSL Ceritifcates.
The Bottled Water Industry and E-commerce
The bottled water business is actually two lines of business: Local delivery water and private labeled water and each is an important subset of the total business.
Local delivery water is defined geographically and usually comprises rental or sales of coolers and delivery of 5-gallon and small package (12, 16.5 and 20 oz.) bottles to customers located within a limited distance from the water source. This business includes a customer base of consumers and businesses in the defined geographic area who take periodic delivery of water. The key to success in this line of business is the production and efficient delivery of the highest quality pure water.
Private labeled water involves the development and production of high quality custom labels with a clear branding message. This line of business is national in scope and includes a strong element of branding and advertising. The key to success in this line of business is the design and production of a label of the highest quality with a clear branding message.
Sunday, December 24, 2006
$10-$15k Per Month On Ebay? The Changing Face Of Online Selling
Dropshipping is a means by which a company or individual can obtain wholesale prices on a large variety of products without the hassle or having to warehouse or ship anything. Basically, you are a selling agent for a larger company, and you are making the difference between what they sell the item for, and what you sell the item for.
The Benefits of Dropshipping.
• Large product lines.
• Professional worry free shipping.
• No upfront costs.
• No inventory management issues.
• No warehousing.
How Dropshipping Works.
Working with a dropshipper is much easier than it sounds. After you have found a dropshipper, or shippers, you wish to work with, it is as simple as deciding which products to sell, and finding a platform to sell them on.
An example of a dropshipping strategy follows:
Dropshipper XYZ offers a wide range of flatscreen TVs at wholesale prices. After deciding which flatscreens you wish to offer, you list them at a price higher than what the dropshipper is selling them to you at.
Example:
42 inch Sony HD flatscreen plasma TV available from the dropshipper at $1400. Shipping to anywhere in the lower 48 states is fixed at $25.
As the seller, or middleman, you offer the TV at price above the wholesale price offered to you, say $1600. Additionally, you mark up the shipping to $40.
The difference between the wholesale price plus shipping, and your price plus shipping is $215. This is your profit margin.
Important Considerations.
While a $215 profit for virtually no work seems too easy to be true, this is exactly how dropshipping works.
However, there are several factors that you must consider before finding a product line that you can make a profit on. Use the following check list to see exactly what kind of profit margin a product has built into it.
• What is the difference between the wholesaler’s price plus shipping, and the retail price of the product?
Never trust the wholesaler’s suggested retail price. This price may in fact be substantially higher than the actual retail price of the product. Using our example above; if the TV is available to you at a wholesale price of $1400, but Wal-Mart offers the same TV for $1350, then the dropshippers price does not offer any incentive for a buyer.
• Is the market flooded with sellers offering the same product?
Competition is a good thing for buyers, but not for sellers. You want as close to a monopoly as you can get. Stay away from crowded areas.
• Can you get in front of a trend?
If you are the first person to market with a hot new product, you can command higher prices, and achieve greater sales. Knowing how to identify trends is one of the most important aspects of selling merchandise online.
• Will the platform fees you incur leave you any profit after the sale has gone through?
If your platform is Ebay, what will your profit margin look like after your listing fee, final valuation fee, and paypal fees? If your profit margin is $30, and your fees total $35, you are actually losing money.
• What is the dropshippers current inventory on the item you are looking to sell?
If the dropshipper only has 2-3 items available, you should give real consideration to passing on the product. Dropshippers work on a first come, first serve basis. If you sell the item, and later learn that it has gone out of stock, you now have to refund the buyer potentially creating bad will, and possible incurring auction fees.
The Benefits of Dropshipping.
• Large product lines.
• Professional worry free shipping.
• No upfront costs.
• No inventory management issues.
• No warehousing.
How Dropshipping Works.
Working with a dropshipper is much easier than it sounds. After you have found a dropshipper, or shippers, you wish to work with, it is as simple as deciding which products to sell, and finding a platform to sell them on.
An example of a dropshipping strategy follows:
Dropshipper XYZ offers a wide range of flatscreen TVs at wholesale prices. After deciding which flatscreens you wish to offer, you list them at a price higher than what the dropshipper is selling them to you at.
Example:
42 inch Sony HD flatscreen plasma TV available from the dropshipper at $1400. Shipping to anywhere in the lower 48 states is fixed at $25.
As the seller, or middleman, you offer the TV at price above the wholesale price offered to you, say $1600. Additionally, you mark up the shipping to $40.
The difference between the wholesale price plus shipping, and your price plus shipping is $215. This is your profit margin.
Important Considerations.
While a $215 profit for virtually no work seems too easy to be true, this is exactly how dropshipping works.
However, there are several factors that you must consider before finding a product line that you can make a profit on. Use the following check list to see exactly what kind of profit margin a product has built into it.
• What is the difference between the wholesaler’s price plus shipping, and the retail price of the product?
Never trust the wholesaler’s suggested retail price. This price may in fact be substantially higher than the actual retail price of the product. Using our example above; if the TV is available to you at a wholesale price of $1400, but Wal-Mart offers the same TV for $1350, then the dropshippers price does not offer any incentive for a buyer.
• Is the market flooded with sellers offering the same product?
Competition is a good thing for buyers, but not for sellers. You want as close to a monopoly as you can get. Stay away from crowded areas.
• Can you get in front of a trend?
If you are the first person to market with a hot new product, you can command higher prices, and achieve greater sales. Knowing how to identify trends is one of the most important aspects of selling merchandise online.
• Will the platform fees you incur leave you any profit after the sale has gone through?
If your platform is Ebay, what will your profit margin look like after your listing fee, final valuation fee, and paypal fees? If your profit margin is $30, and your fees total $35, you are actually losing money.
• What is the dropshippers current inventory on the item you are looking to sell?
If the dropshipper only has 2-3 items available, you should give real consideration to passing on the product. Dropshippers work on a first come, first serve basis. If you sell the item, and later learn that it has gone out of stock, you now have to refund the buyer potentially creating bad will, and possible incurring auction fees.
E-currency Exchanging and the DXinOne: A Revolution in Internet Commerce and Home Based Business
The world of commerce is bracing itself for a global financial transformation. Much like the industrial age had its revolution our information age is facing that time now. A new way of conducting business transactions is being used and perfected by individuals and companies throughout the world. What I’m talking about is electronic currency.
The introduction of electronic currency into the market place has facilitated web based purchases and a variety of sales transactions to take place faster and safer than ever before. This growingly preferred method of payment is taking the world of commerce by storm.
As with any new commodity there is a rush to copy and improve it, a phenomenon which breeds competition. In the case of e-currency the market place is now filled with a variety of e-currencies readily available at the disposal of private and corporate users.
Any national currency’s history will show that they came about as a unifying force to eliminate issues that rise with a multitude of currencies in one market place such as exchange rates and conversion hold ups.
An example of this would be the Euro which revolutionized commerce between European countries by providing a powerful standard for the multitude of currencies to abide by. Today this element is missing from the many e-currencies being currently used in the global market.
Thus a company called GDT (Global Digital Transactions) is leading the way in the e-currency unification process by creating the DXinOne. Their market place is based on the DXG which is used to describe a unit of e-currency’s value in relation to Gold at the following current conversion rate, 1.00 DXG = 1.00 USD. A unit of DXG is known as a “digot” and is transferable between DXinOne users and can be used for all services provided by the DXinOne.
Why should you care about digots and e-currency? The answer is because you can make a serious profit by becoming an e-merchant. A position that will entail providing liquidity for e-Currency exchanges that take place, hundreds to thousands of times, in the online market place.
Essentially, a firm grasp of the inner workings of the DXinOne system will allow you to successfully develop your DXPortoflio. Your portfolio will be the life line to your profits and if it is well managed then there is no stop to how much you can make. With gains between .2 -2% compounded daily and a start up cost of as low as $50, your profits will quickly add up based on how much money and time you work with.
Furthermore, due to the growth of the DXinOne’s popularity many experts in the field have begun selling training courses that provide step by step instructions on how to successfully navigate the system. Some of these can be a great resource in getting you started quickly but others fall short in their promises.
The introduction of electronic currency into the market place has facilitated web based purchases and a variety of sales transactions to take place faster and safer than ever before. This growingly preferred method of payment is taking the world of commerce by storm.
As with any new commodity there is a rush to copy and improve it, a phenomenon which breeds competition. In the case of e-currency the market place is now filled with a variety of e-currencies readily available at the disposal of private and corporate users.
Any national currency’s history will show that they came about as a unifying force to eliminate issues that rise with a multitude of currencies in one market place such as exchange rates and conversion hold ups.
An example of this would be the Euro which revolutionized commerce between European countries by providing a powerful standard for the multitude of currencies to abide by. Today this element is missing from the many e-currencies being currently used in the global market.
Thus a company called GDT (Global Digital Transactions) is leading the way in the e-currency unification process by creating the DXinOne. Their market place is based on the DXG which is used to describe a unit of e-currency’s value in relation to Gold at the following current conversion rate, 1.00 DXG = 1.00 USD. A unit of DXG is known as a “digot” and is transferable between DXinOne users and can be used for all services provided by the DXinOne.
Why should you care about digots and e-currency? The answer is because you can make a serious profit by becoming an e-merchant. A position that will entail providing liquidity for e-Currency exchanges that take place, hundreds to thousands of times, in the online market place.
Essentially, a firm grasp of the inner workings of the DXinOne system will allow you to successfully develop your DXPortoflio. Your portfolio will be the life line to your profits and if it is well managed then there is no stop to how much you can make. With gains between .2 -2% compounded daily and a start up cost of as low as $50, your profits will quickly add up based on how much money and time you work with.
Furthermore, due to the growth of the DXinOne’s popularity many experts in the field have begun selling training courses that provide step by step instructions on how to successfully navigate the system. Some of these can be a great resource in getting you started quickly but others fall short in their promises.
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