Shopster's Dropshippers, eCommerce, and Selling Online Blog

Cross Selling: How it complements your e-business

While seasoned online entrepreneurs have been successful with their online stores, one has to ask: how do you increase sales on an already profitable online store ? One of the techniques that online entrepreneurs apply is the effective method of Cross-Selling. It's how you sell an additional product to an existing customer base and market niche. Introducing and selling another product that complements a product that a user already is buying from you. The key here is to educate customers that they need the complementary product as much as they need the primary product. With this in mind, they won't think that you're just selling the complementary product to squeeze some extra profit from you.

 A little cross-selling nudge can gradually boost sales. Such method can be applied extensively if you're managing an online store. For instance, if you’re selling video game consoles like XBox 360 or Playstation 3, selling accessories and video game titles is a must. Surveys show that most buyers appreciate being told about additional products that could meet their needs or about new items that were not offered in the past. It's all about educating buyers how they can use and benefit from a certain product. This is a way of demonstrating that you are aware of their needs and care about their satisfaction. Here are some simple tips to help you complement your online store with cross-selling:

Try to bundle up. Service bundling has long been used as a way to entice shoppers to buy not just a single item, but an entire group of items that go together. Offering a price break on package deals will help close the sale.

Post expert recommendations. One way to facilitate cross-selling success is to state specific recommendations from professionals, experts, or other customers. This could be a connoisseur’s recommendation on a menu, a dentist’s recommendation on a mailer, or lists of related items that other customers have purchased on a website. When you buy a book at Amazon.com, for example, the site automatically lists other books purchased by people who bought the same book you just ordered.
  
Make it personal. Use “you” whenever you're trying to suggest a product. It makes a customer think that you're really reaching out to entice him. For instance, have text along with images of products you are trying to cross-sell with something along this line: “You might also want to get this for your kid.”

Generate a sense of urgency. Label cross-sell products as “Limited Time Only at This Price” or “Special Offer” or something similar. It will suggest that the product is in demand.

Price Range. If you suggest three items to complement a product, try to offer a mix of price points. The lowest cost items are most likely to be picked up as impulse buys. But other items that meet the customer’s needs could also sell at higher levels.

As an online entrepreneur, it doesn’t hurt to enhance your selling solutions with techniques like cross-selling. It doesn’t only make you earn more profit; it gives you the opportunity to grow as an entrepreneur as well. Premier e-Commerce firm Shopster is one selling platform that helps millions of suppliers maintain relationships with other online entrepreneurs. Shopster will make a difference in your e-business in more ways than one. So, what are you waiting for? Start your online store with Shopster, now!

Supersize me...not.

In the vast world of e-commerce, big used to dominate. Amazon is still the largest online retailer. eBay is the biggest online auction. Google is the search engine with god-like status. Big Matters. It pertains to grand scale economies.

But wait, that hotdog vendor across the street wants to be a CEO of his own company. He wants to be big as well. Is this possible? Can the "small" earn big? Does being "big" really bring big revenue?

Being big added value to the specialization of firms, large R&D personnel, efficient quality control, and widespread distribution were some requisites were value was added. Value came from having a broad sales force. This notion pertains to tangibles as well. An SUV is better than a Mini Cooper. A bigger office space can hold up a large number of employees. Heck, we even like having our meal at Mcdonald's supersized!

"Get Big Fast" was the mantra for startups because multinational firms can get more access to capital and utilize it to grow even bigger. Now that makes a whole lot of sense. A big company should get the auditing services of a big accounting firm. A big shoe company outsources its manufacturing operations to a big country. A big athlete should have a third serving of mashed potato. Being big requires big operations in order to succeed.

Really now?

Enron (big) was audited by Andersen (big, too) then failed (big). Mainstream advertising is plummeting (Thanks to Social Media). Big media web sites are being trampled by Gawker's Blogs and BoingBoing. People would rather buy a customized shirt from a friend’s online store. Small is rising. The Lilliput economy has emerged. Being tiny matters now.

There was a time in retail that you had to have a store, which needed a location; that needed capital to come up with large inventory; that required cash flow to hire personnel and buy ads to entice customers. And then you had to have a chain of stores to establish relationships with suppliers. Now, you can find suppliers and customers via eBay, Amazon, and Shopster. These sites are more than retailers; they are platforms for small online entrepreneurs where they can complement each other's e-businesses. Today, online entrepreneurs are increasing in numbers. Small online stores earn more than big companies. If you're a budding online entrepreneur, being small shouldn't hinder you from thinking big. After all, big companies start from scratch. Be small yet think big.

References:
Seth Godin, Marketing Visionary, Sethgodin.com, http://sethgodin.typepad.com/seths_blog/2005/06/small_is_the_ne.html

What do you Really Buy Online?

While eBay and other e-businesses have shown a solid performance in the past few years, one might ask: do people even bother to shop at brick & mortar stores like Wal Mart and Sears nowadays?

With a handful of substantial figures form the U.S. Census Bureau, online advertising firm Permuto came up with a great infographic chart analyzing the comparisons of people's purchasing habits online vs. in-store. The chart really gives as an idea which products would people rather buy from an online store and vice versa.

 
According to the Census Bureau's data, the old brick & mortar stores are still responsible for the majority of sales in most of the categories, save for a few notable categories, including books, clothing, and electronics. While Social Media and e-Commerce is the big nowadays, industry pundits still believe that most people would rather see a tangible product before they buy it. While this notion makes sense, some products always ran out of stock in brick & mortar stores causing people to shop online instead. Hence, giving online stores an edge. This chart can give you an idea before deciding which products to sell online before starting an online store.

References:

http://www.permuto.com/blog/wp-content/uploads/2010/02/PER-ONLINE-SALES-R4.png

eBay’s Q1 Reports: A favorable sign for e-commerce

As an online entrepreneur, you have to be updated latest trends and news pertaining to vertical markets. It complements your annual planning for your online store. Furthermore, it gives you a heads up on how you will manage supply chain relationships in order to sustain your e-business. 

e-Commerce giant eBay recently announced its Q1 2010 results. eBay's annual report has been extremely useful for online stores and dropshippers. It has provided crucial data points for the e-business marketplace; however, market pundits are most likely to focus on the primary data point called Gross Mechandise Value (GMV). GMV is considered as the pulse of the e-business marketplace. While secondary metrics such as segment revenue, items sold, and registered users are vital data points, they don't focus on the business itself like GMV does.
eBay's overall GMV was $15.4b for the Q, but to get a true apples to apples for GMV, you have to pull out three pieces: 

• Autos - a drag on eBay's GMV growth and the economics are very different (more like a classifieds site) so they aren't applicable.
• Gmarket - eBay acquired gmarket and the gmarket is inorganically in Q110, but not in Q109.
• Currency (FX) - The GBP and Euro are fluctuating a good bit and their impact need to be taken out to compare year over year trends.

The following numbers are all ex-autos, ex-gmarket and ex-FX.

With revenue and profit margins skyrocketing beyond estimated figures, it only shows that eBay has seen a great first quarter. While eBay owes its Q1 win to PayPal, the Marketplaces division has been complementing eBay with its progress as well.
“Our first quarter results reflect another strong step toward achieving our three-year growth and profitability goals,” eBay President and CEO John Donahoe said.

“We are becoming a more customer-focused and technology-driven company, delivering more innovative products and experiences and driving operating efficiencies to reinvest in growth. We are improving the fundamentals of our business, strengthening eBay Marketplaces and aggressively growing PayPal to become the leader in global online payments,” he added.

Being more customer-focused and technology-driven means covering the largest network of potential customers – Facebook. eBay has signed a deal with the Social Media giant to become a payment option for its virtual currency called Facebook credits. So, what does this mean for online entrepreneurs and e-businesses? eBay is still the old reliable when it comes to e-commerce. And as an online entrepreneur, you need to complement your selling solutions on eBay, Shopster will be launching its supplier network soon which makes it even easier for importers, distributors, and suppliers to add their products into the Shopster network. Every online store will be connected to each other, establishing your product while bolstering your sales!

References:
Scott Wingo, eBay Strategies, http://ebaystrategies.blogs.com/
Lucian Parfeni, PayPal Processes $21.3 Billion in Q1 2010, http://news.softpedia.com/news

Twitterrific: Want to make $11,000 in two hours?

 Most online entrepreneurs who are new to the vast world of e-Commerce think that having an online store is enough to sell products online. It’s surprising that a plethora of e-businesses and B2B marketers aren't active on Twitter. While Facebook and LinkedIn have the visual leverage and enticing means of marketing products online, Twitter is not to be ignored. The micro-blogging phenom is extremely helpful in establishing a brand. Just look at what people are saying, thoughts run aplenty on Twitter; every idea might be relevant to your product; ideas that can make a difference in your e-business.

The funny yet amazing thing about Twitter is that a person can turn from a user to an online entrepreneur without really having intentions to sell products online. Amanda Palmer is a musician that Twitter made into a reluctant online entrepreneur. Palmer is the lead singer of the Dresden Dolls and a punk rock cabaret solo artist. So, how did she become an instant online entrepreneur? Palmer, being an active denizen of the Social Networking world, used her spontaneous yet amiable personality to connect with fans in person and on the Internet as well. Twitter is a very invaluable tool for her. It spares her from the hassle of promoting her gigs in a sporadic manner. Her Twitter feed has more than 50,000 followers; imagine such coverage if you were to build an online store and promote it.

However, Palmer didn't really use Twitter to make easy cash with a single Tweet. On a lazy Friday night, she tweeted that she's a loser on a Friday night. The next thing she knew that a virtual flash mob formed. There were other "losers" like her sitting infront of their computers. They started a faux group called The Losers of Friday Night on their Computers. It turned into the #1 topic trend on Twitter that time. They were just talking about random things. Someone suggested that they come up with a shirt. Palmer opted to make the shirts. Her web marketing company was able to put up an instant site to sell the shirts for $25 each. Feedback has been spontaneous and enthusiastic; in just two hours, Palmer made $11,000!

Such event only shows that an online store is not enough to sell products online. Personality counts as well. If you’re very passionate about the product you sell, it will be reflected through your online personality. In the case of an online entrepreneur, his online store is the reflection of his personality. Customers might consider buying your products by simply having an enticing storefront. Customization makes this possible.

Premier e-Commerce firm Shopster has an amazing solution for social eCommerce selling called the Shopster network. It allows retailers and aspiring online entrepreneurs to build their online business, complete with storefront and access to Shopster's product warehouse. This amazing solution makes it possible for you to personalize your online store. With this in mind, you’re not just expressing yourself; you’re establishing an online brand as well! Coming soon will be the Shopster supplier network which makes it even easier for importers, distributors, manufactures and suppliers to add their products into the Shopster network for the 50,000 plus retailers to sell! With over 1.5 million products in the Shopster virtual warehouse selling online and building your business or sales channel has never been so easy.

Keyword Research for Higher Conversion Rates

For an e-business to succeed, using a marketing campaign with a user-driven content is a no-brainer. Implementing such campaign helps you target specific buyer personas. The importance of understanding the words and phrases buyers use is crucial to be able to sell products online. Being abreast on the latest buyer lingo complements your marketing plan. It makes an online store's content relevant and user-friendly. Content is always the king. It increases conversion rates for any e-business out there. Feasible yet enticing content for your online store will draw potential customers.

Thus, keyword research is a vital aspect to complement the visibility of your e-business. Ascertaining which keywords to use will definitely complement an online store. Keywords can be single words or phrases that people searching the internet are typing into the search engines to find what they are looking for. This means there is a demand for the information and products relating to the keywords or phrases typed in, but not many web sites that are providing the information or products people are looking for. It generates a conflict of interest on what keywords to utilize for your online store. Keywords are usually the focal point in boosting your visibility in search engine rankings.

Begin your keyword research simply by typing in a few words and phrases related to your subtopics into a search engine like Google. If the search turns up millions of results, you either need to find a smaller niche or forget that idea entirely. Cross out the subtopics that are quite competitive, and keep track of the ideas that don't have stiff competition.

Once you trimmed down the list of ideas, you can make use of a keyword tool. Keyword tools such as Google Adwords Keyword Tool, Wordtracker, and Overture allow you to get an idea of how often a certain keyword or phrase is searched for in a given month. Furthermore, it features a list of related searches and how often those phrases are searched for. This will help you come up with a few new ideas for your online store as well. With this in mind, generating content can be more convenient for you, but always remember that keywords can only take you as far. Creativity with content is the key!

The Like Button: The Next Big Thing in e-Commerce

The most noticeable change in Facebook recently has been the transition of the "Become a Fan" button to the "Like" plugin. The repercussions of this modified feature are more than a change in name. As part of the new Open Graph application, it allows users to "Like" any form of content from a pair of Nike shoes to any Mcdonald's burger. The "Like" functionality has to be implemented in every website with a code in order to be visible to the social plug-in. So, what does this mean to sellers and buyers?

If you don't miss a day without logging in on Facebook, I bet you've been noticing alerts about friends "Liking" a particular company, person, service or product on the right side of the screen. This, alone, is an invaluable aspect in ascertaining market niches. Whenever a person clicks the Like button that certain information will go into their profile, such information can be used by marketers and online entrepreneurs to establish everything from product development to advertising purposes.

While the launch of the Open Graph application is mainly aimed for developers, Mike Murphy, vice president of global sales at Facebook, thinks that it's a great way to augment a company's Viral Marketing campaign. He exclaimed that marketers can generate viral spreading and organic distribution of that opportunity to Facebook and the 400 million-plus customers in the planet. For marketers and online entrepreneurs who put a premium on advertising, the number of likes that your product or brand has creates a better engaging and successful campaign on Facebook.

The key aspect of the Open Graph for online entrepreneurs is how they can complement their online stores with the Like button. One advantage is that every product can be validated in social circles of potential customers. How the Open Graph application can be deemed a success lies in the hands of online entrepreneurs and marketers. Plus, the willingness and enthusiasm of consumers towards a specific product, it will be one of the determining factors if the Like button did well for them. For now, click & mortar firms and e-businesses are looking forward to a plethora of opportunities in store for their brands in utilizing the strengths of the Like button.

Speaking of fan pages and like buttons – show us you like Shopster by becoming a fan. As a fan, you’ll be the first to receive all the great buzz on Shopster, from the newest blog posts, to hot tips and tricks and promotional discounts. Become a fan now!

References:
Debra Aho Williamson, eMarketer analyst, eMarketer.com, Facebook VP: Why We Want Marketers to Like “Like”

Blogging: How it complements an e-business

While retailers think of the Internet as a broad spectrum of buyers, a smart online merchant sees the Internet as a city. It gives them a sense of every aspect of the online society. As a city, think of every website as a building. Amazon is a bookstore that allows patrons to interact through purchase reviews. On the other side of the street, it's eBay, the daily garage sale. Forums are the lounges of the city. Blogs? They're like people who try to interact inside a club. Now, does this city give a merchant the opportunity to sell products online?

When you start to think of the Internet as a bustling market, it’s important to know how to communicate like an apt salesman. As an online entrepreneur, it’s not enough that you are dedicated to sell products online. You have to know how to reach out to your buyers in a practical manner. An online store has to communicate to end users in order to address any matter pertaining to a product or the online store itself, it has to have a blog.

According to Glenn Fannick, a text mining and media measurement specialist at Dow Jones, "Organizations use blogs to measure what's going on with their stakeholders and to understand corporate reputation. Reputation management is important, and media measurement is a key part of what PR people do. Companies are already measuring what's going on in the media; now they need to also measure what's going on with blogs."

A blog helps an online entrepreneur monitor what people are saying about their online store and products. There are organizations and companies who have lost revenue just by ignoring what's written about them on blogs. Be it a multi-national company or a small e-business, it is an imperative to cultivate and maintain a healthy relationship with customers through blogging.

Before starting a blog for your online store, it’s best to get a feel about ways to use them to sell products online. Here are some:

1. To easily monitor what millions of people are saying about you, the marketplace you sell into, your organization, and it’s products
2. To participate in those conversations by commenting on other people’s blogs.
3. To work with bloggers who write about your industry, company, or products.
4. To begin to shape those conversations by creating and writing your own blog

References:

David Meerman Scott, Marketing and Leadership Speaker, The New Rules of Marketing and PR

Social Media: How it finds your niche market

Facebook made tremendous waves as it unveiled a series of new and modified features to its product yesterday. These features will have a direct impact on how businesses market on and off Facebook. One of the new features, Open Graph, will try to make the Web more social. It attempts to amalgamate social actions from all over the Web then allow a rich depiction of what people are liking, reviewing, and rating. Open Graph allows e-businesses to be like a mosaic of customers, which will allow them to determine niche markets. It’s a great tool for fledgling online entrepreneurs in order to sell products online.

Before starting an online store, you have to ascertain the most crucial aspect of your e-business itself – your niche market. Niche market plays a vital role for the growth and progress of an e-business. Whether you’re an experienced seller on eBay or just a neophyte online entrepreneur, you have to be on the right track and determine your niche market before selling products online. How do you find your niche market then? Bear in mind that e-Commerce is not advertising. If a person who thinks the product he sells is for everyone, that business is deemed to fail. You need to be sure about your target audience to market your products accordingly. And what better way to do such by using Social Media platforms like Facebook.

Here are 5 useful tips in growing your target market network by using social bookmarking networks:

1. Update your profile. Before you begin a “friending” (i.e. request to become another’s friend), be sure that your profile is up-to-date with an accurate description of what you do, your interests, and your contact info, including your web site URLs. If you have multiple businesses, invite people in your target market to become fans of your niche-specific fan page.
2. Follow the gurus. Follow leaders in your field/industry and add them. Anytime you make a friend request, include a personal note, as that will increase the likelihood that they will accept your request. Say something like, “I’m a big fan and have been on your blog list for several years. I’d love to have you in my network.” Once they have accepted your invitation, make comments about their status updates to help you get on their radar and in front of their networks.
3. Mutual friends. Take a look at the people in the network of your industry leaders, as they are probably part of your target market as well, and send friend requests to those of interest to you. When you friend someone that you only know by association, send a personal note as well, like “I discovered your profile in Craig’s network and would like to get to know you better by adding you to my network.”
4. User groups. Look for groups that may contain your target market. In your search for groups, use keywords that describe your niche, your industry, your geographic area, the interests of your target market, or whatever other terms you might use to find members of your target market. Join and begin to participate in the group so that they begin to get to know you. Then peruse the member lists for good prospects, sic as the members you’ve connected with or have gotten to know. Since you won’t be able to view the profiles of the group members because they aren’t in your network, much of your decision-making about whom to friend may be based upon appearance or how you might be connected to them via other friends in your network.
5. Consider recommendations. Friends typically recommend other friends based on your current friends list when you log into your profile. I’ve found these recommendations to be pretty solid. Take them up on their recommendation and add those folks to your network. You might spot a person that might be interested on what you’re selling.

Passion and Business: Why online stores succeed

Every entrepreneur dreams of success when they decide to enter the competitive arena of e-Commerce. That being said, for every 10 people that start a small online storefront, only 1 succeeds. The issue is this: You don't go online just to sell a product. If that's the case, you are not starting a business; you simply want to earn some cash in a snap. Passion plays a crucial role in your online store. It's always best to select a product that is of your interest. The more you are interested in a particular product, the more likely your online store is to succeed. Remember that most online businesses succeed whenever it's related to your passion.

Business is always relative to one's passion. Online entrepreneurs have been successful by turning their passion into a business. A wine retailer named Gary Vaynerchuk has made this a reality over the Internet. Before bursting into the scene in 2006, Vaynerchuk was already making money with his wine store in New Jersey. The business was already established in the area. Revenue catapulted from $4 million to $60 million annually in a couple of years. But Vaynerchuk wanted more.

In 2006, he came up with WineLibrary.TV and became an internet sensation. WineLibrary.TV is visited by 80,000 people per day, which he fondly calls Vayniacs. His video blog and online store, didn't only made him a star, he showed that a product can go as far as long as you have the passion for it. Retailers see the Internet simply as an online catalogue of sorts. Successful online entrepreneurs see it as a place not only to sell, but a network to share their passion with other people. Vaynerchuk has gained profit through his online store, but the other good thing is that he made a platform for wine connoisseurs and common people to come together.

Nowadays, many people buy online. Online stores have caused them not to shop at brick and mortar stores like Wal-Mart and Sears. An online store becomes a platform for people who like the same product. People who shop at Amazon.com give their review for every similar purchase made. Amazon is not only an online store; it’s a platform as well. Such notion is a good thing for ebusiness owners who are passionate about the products they sell online. Passion and business complement each other. Start by finding a product you love and then build your online store, you’re guaranteed to have a leg up on the competition.

New Concepts of 2010

Digressing slightly from our usual blogs Shopster has hunted down some of the slightly crazier lifestyle concepts of 2010. Some save time, others save space and others still are just down right kooky. Share your thoughts and let us know what you think. Would you use any of these? Or sell them on your online store?

 

Drawers in a staircase, why didn't i think of that?

 

You’ll never need someone to take your picture again

 

 

Perfect for a rainy day walk with your better half

 

Weight-loss special

 

 

Waiter’s delight (though Ryan in the marketing department doesn’t get how his beers will stand on it)

 

 Not quite sure what to say about this one...

 

It’s a penguin, it’s a tea strainer, it’s perfect.

 

 Need a leg up?

 

 

He’ll never hog the covers again...

 

 

And last but not least...for the die hard Shopster addict (and a personal fav of the editor)

 

5 Tips to Sourcing Your Clothing Business

When running your own business, it is no secret that buying wholesale clothing can seriously cut your costs. When starting a small business, the most important thing to think about is making a profit and a great way to do that is to buy wholesale clothing. Here are 5 tips to show you how easy it can be:

1. Know what kind of clothing that you want to buy — Pick any designer, any style that you're interested in. Some wholesale distributors focus only on women's clothing, some only on men's, others on only children's. That's why it's important to know what you're looking for before you begin shopping.
2. Do your research — Check out the retail prices of the products that you want to resell. Start crunching numbers and calculating what your profit will be if you purchase items on wholesale and then sell them at their retail price. Look for the wholesale price that will generate the highest profit margin for you. All you need is a calculator.
3. Don't take No for an answer — If there is a specific brand name that you'd like to purchase, go directly to the source. Cut out the middle man; go to the company that actually produces the brand. Approaching brands from time to time may be difficult because they require you to meet certain standards if you'd like to benefit from their wholesale prices. If that doesn't work out, you can check out online sites like Apparel For U to find wholesale clothing on sale.
4. Remember to check out the minimums! — Most often wholesalers will demand that you buy a minimum number of articles in order for you to acquire their clothing at wholesale prices. You may have to purchase up to 100 of a certain product, or you may not have a minimum at all, but every wholesale distributor is different. No minimum = no problem.
5. Don't be stingy when shipping — Shipping wholesale clothes can take a very long time, especially after buying from international companies. To ensure that you have everything you need as soon as you need it, let them send it to your home or office. Don't forget to include shipping expenses in your pricing.

With these easy suggestions, you're already 5 steps ahead of the competition. Look for the greatest deals and do your own research. If you're still having a hard time getting started, look for other resources on how to buy and sell clothing.

Fortunately, it's a good time to get into all of this. Men have increasingly become more trendy and concerned with their appearance. Fashion has come a long way, from the 3-piece suit to the currently trendy fitted t-shirts and tight jeans. Men love clothes that highlight their physique. For the first time, men are fascinated with fashion. It's still true that women are a more profitable demographic to market to; they're always looking for something else, something new, something that appeals to their taste. Surprisingly, however, it's interesting to note that children's clothing is the most profitable. This phenomenon is due in large part to the fact that kids grow at such a fast rate and the likelihood of peer influences effecting what a child wants to wear (as opposed to an adult). Children's clothes are in demand.

With these tips, you should have no trouble getting started. Good luck!

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