Want to own your own Online Retail Website?

Want to own your own Online Retail Website?



Ok so you are new to the business, and you want to have your own retail store. You are dazzled by the amount of choice and the huge amount of different suppliers offering you all kinds of goods and deals. Seems great doesn't it? the reality is many simply do not live up to their claims, and often if your new to the business you want to give up and pack it all in, and feel what a load of wasted time.

The truth is though this is a great business and a great industry! Profits can be made, you just have to be careful and choose the right supplier for you and someone you can trust. There are ways in which you can make sure you don't fall foul of the con men that swarm after newbies, and I will list them below.

1. Do your homework, find the brands you most want to carry,and then there are a number of ways of finding a reliable, and trustworthy wholesaler/dropshipper. Either by contacting the brand themselves and ask, or by asking the wholesalers who carry the brand some questions and by asking for references from customers who they have dealt with for over a year.
(Let's face it if someone is prepared to use a distributor for over a year, and would be happy to recommend them they must be doing something right!)

2. Check the address they use is a commercial property, ours is a commercial property, and we have a loading bay and office. Previously part of the property was a beauty shop. You can get that information off the council I believe. Don't be fooled by Unit 3, Ejit Lane, Great Yarns, for example. One of my customers was, and when I checked with the local estate agent was told there was no industrial units or warehouses in that cul de sac, as it was all terraced houses! This "wholesaler" left several of our customers really badly down and wanting to quit the business.

3. Ask them about the brands, packaging, what sells and what doesn't if they hold stock they will know.

4. Do a couple of test orders and see how quick they go out to your customers.

Four simple things you can do to avoid Bogus Wholesalers/Dropshippers, now you need to decide what business model you want, either to hold stock or not.

The benefits of Holding stock
You are in control of your business
If you hold stock and sell it, you know you can deliver it.

Downsides of holding stock
Intial outlay to get stock
You may have it a long time before you sell it.
Cost of keeping stock, storage, lighting etc.

Benefits of Dropshiping
you don't have intial outlay for stock
no costs of storing stock
you have no dead stock eating into your profits

Downsides of Dropshipping
you are relying on another company to deliver a service.
Profits are smaller as you have to pay a dropship fee
you have no control

Once you have a clear view and business model, done your homework, you are in a better position to decide and choose the right wholesaler/dropshipper for you. Good Luck!