Product sourcing is one of the most exciting aspects of business but it’s not without challenges. Think of it as treasure hunting. Sourcing includes some of the most important facets of business such as research, relationship building, negotiation, quality control, and more. Having a great idea is not enough to succeed in business. Your idea is the starting point for finding the source for your product.

You have several options. You could build the product yourself or hire a manufacturer to build large quantities for your; you could buy it from a wholesale company, or have a drop shipper ship it for you, you could import it from overseas. There are many possibilities, and your goal is to find the right solution for you.

The real power in sourcing is buying smart. Your customers expect to get a good deal buying from you and so should you when sourcing for your business. One of the most important strategic decisions you make has to be about buying low. If you overpay for your products, you’ll price yourself out of the market. Nothing will hurt you sales more than a high price.

People shopping online will seldom purchase on the first site they visit. Expect them to shop around before making a purchase. If you are more expensive than your competitors, your sales will suffer. Just like your customers, research before you buy. Find out how much similar products sell for online. Don’t compare apples to oranges, and study online pricing rather than brick-and-mortar pricing. A product that sells for a couple of dollars online could easily sell for $9.95 in a mall shop.
Before you make your buying decision, be sure to determine what margins you need to succeed. Once you have done your homework, you can begin sourcing your products.

Practical Example: If you plan to start your business from your home, look for small products. The less space you need for storing your inventory, the more money you save on warehousing. There is nothing wrong with storing your inventory in your home until you can afford to rent a warehouse.

Online Product Reviews | Short Product Reviews

An “affiliation” is a relationship (an agreement) between two parties in which one party sells the products or services of the other in exchange for a commission. A good online affiliation program, even with a competitor, can supercharge sales. The product owner wins with additional sales and the affiliate wins by receiving a commission.

The affiliate does not have to create or transport the product that is sold, or even collect the money. This is all provided by the owner of the product. This is a huge advantage for the affiliate because startup costs are low. The beginning affiliate need primarily only focus on product promotion. In many case, the owner even supplies the affiliate with marketing information.

For sale of goods over the internet, the affiliate provides a URL hyperlink for the customer to click on. This hyperlink links to the website of the owner of the product and has a special code so that the affiliate will get credited when the sale goes through. The credit can range from to 50 percent (or higher) commission, depending on the affiliation agreement.

Some ways for an affiliate to increase sales include:

1) Offer something for free in exchange for the email address. People love to get free stuff and if they like what they get, they may reciprocate at a later time with a purchase.

2) Capture the email addresses to an “opt-in” list. From that list, send repeated emails to increase product awareness and to eventually trigger sales.

3) Market unique products with unique web sites. This provides product focus.

4) Include testimonials from real customers. (Be sure to get the customer’s permission first.)

Advantages for the affiliate include:

1) Low startup costs. The other party develops and produces the product.

2) No inventory. The other party manages that.

3) No handling of the product. The other party transfers the product to the customer.

4) No order processing. The other party sets up the merchant accounts and collects the customer’s money.

5) No shipping costs. The other party gets the product to the customer.

6) No downstream warranty costs. The other party handles all customer commitments.

7) If the product doesn’t sell, dump it and move to something else.

The main advantage for the producer (the other party in the affiliation relationship) is increased sales through increased product exposure.

A properly implemented online affiliation program really is a win-win for both the producer and the affiliate.

Jim McCabe

Online Product Reviews | Short Product Reviews

Do you believe in the product you’re selling? Do you?

In face to face marketing it is imperative to be so completely sold on the product you are ‘direct marketing’ that you can explain what the product is best used for and you can explain how you use the product.

When interfacing with online customers you actually have the same opportunity through Internet marketing. In this case you can provide personal information and unique uses for the product through knowledge-based articles.

I suppose it is possible to sell a product online for which you may not have a great interest. However, the truth is when you are committed to a product and believe in its ability to assist your customers you will find Internet marketing much easier.

There are plenty of entrepreneurs who will latch onto whatever they view as the next ‘hot’ item and then switch product when the next trend strikes. The game of hopscotch may have been fun in elementary school, but it does very little to help you in long-term Internet marketing of your site and product lines.

One of the best ways to get on board in the sale of a product for your online store is to research the product first. This is typically followed by a purchase of the product for testing. In the testing phase you should be convinced that the product has a high standard of quality, return on investment and will have a price that will make for a happy customer.

Far too often business owners will purchase a product in bulk for sale only to discover that the product does not meet customer expectations. This often leaves the online business owner lamenting the fact that they did not take the time to personally evaluate the product before determining their willingness to sell the product.

Some companies will provide a sample of the product for business owners to try, but even if this is not available the product should be acquired prior to opening the line through your ecommerce site.

If you can go into the search for a product line the same way you would shop for a similar product for yourself in a brick and mortar store you may find that you are more apt to select a product that is in keeping with your own high standards and personal taste. Remember less expensive may not translate to a better selling product. If you can explain in a content rich site why the product is superior from a personal standpoint you are likely to discover your prospective customers might just agree with you.

Online Product Reviews | Short Product Reviews