Expand Your Inventory: Drop Ship With Doba

Jenny McLain started a ProStores web store Gifts and Fine Art in 2007 to help her artist mother Malenda Trick sell her work.  When she realized that few people were buying art during the economic recession, she decided to expand her inventory to include more gifts.  But she didn't have much room in her home to store the extra products.

That brought her to Doba, the service that helps merchants source drop ship products.  Since she signed up with them in 2010, all Jenny has to do is look through Doba's online catalog, click on the items she wants to carry, and then upload them to her web store.  When customers order something, the wholesaler ships the item directly - no fuss, no muss.  

Doba helped turn her business around.  "Without Doba, I probably would have closed the store," says Jenny.

Because Doba carries more than a million goods, Jenny recommends careful selections.  "I do a lot of window shopping at retail stores and keep an eye on design magazines.  I then look for unique products that people can't find in local stores."  She undercuts her competition by a small margin so that customers shop with her.    

It's been two years since Jenny started with Doba, the service now accounts for 85 percent of Gifts and Fine Arts' sales.

 

Your Best eCommerce Advice: Tuxedo T-shirts Online

Todd Walbridge has run a successful eCommerce storefront Tuxedo T-Shirts Online selling a niche product - novelty T-shirts - for the last five years.  In our continuing series "Your Best eCommerce Advice," we ask top merchants to share the best practices that got them to where they are.  Todd is a strong believer in customer service and inventory specialization.  

1.  Don’t try to be WalMart or Amazon.  If you try to be all things to everybody you’ll end up being nothing to nobody.

2.  Customer service first.

3.  Ship as fast as you can.  People are so shocked by fast shipping that they’ll post comments, not about your product, but about how fast they got their product.  

 

Cultivating Word of Mouth Marketing

Todd Walbridge of Tuxedo T-shirts Online is a self-proclaimed customer service freak.  That’s because he believes in the power of word-of-mouth marketing.

To grow his store's clientele, Todd abides by the age-old philosophy “The customer is always right.”  “The most successful large online stores have grown to their size with that mentality,” he says.  “We ship ungodly fast because that gets people talking.  We take care of the customer first even if the bottom line doesn’t make sense for that one sale.  It will at the end of the month because that customer will come back and become a repeat customer and tell his friends.” 

On the flip side, offering stellar customer service also helps him avoid negative word of mouth.  “Word of mouth can be your best and worst enemy on the Internet," he explains.  "You get a few people mad at you and it can spread like wildfire through Yelp, Facebook and Twitter.  One bad blog or review can take you down.”

Merchants, though, can't always know if someone has published a negative opinion.  Todd monitors his reputation by using GoogleAlerts, which tells him how many times his name appears online.  “It gives us an idea about how our customers are feeling.  If someone says something bad, we can do damage control by reaching out to them.  If we've done something wrong, we can fix it.  The most dangerous customers are the ones that don’t complain to you because they instead complain to their family and friends.” 

From Wholesale to Retail

With the economy such as it is, many merchants have had to reinvent their sales models to take advantage of new and changing markets.  Most of them say that opening an eCommerce storefront was what gave them that edge to prosper in a challenging environment.   

Tuxedo T-shirts Online and Dog is Good do most of their business wholesale.  Todd Walbridge of Tuxedo T-Shirts Online has a screen printing business.  Jon and Gila Kurtz and J. Nichole Smith of Dog is Good sell humorous products that celebrate the dog-human relationship.  In the late 2000s, each business opened their first eCommerce storefront.  Since then, the move has helped them improve their profits despite a Recession. 

“I’m thankful we did it,” says Todd.  “After the downturn, our business dropped off 30 percent because we were dealing mostly with businesses.  Now that we’re going directly to consumers, I picked up that 30 percent again.”

 

 

Dog is Good’s eCommerce storefront now accounts for more than 10 percent of the company’s revenue.  "Our web store may be a small percentage of our business, but it brings us a good-sized profit margin,” explains Jon.  “For something that costs us, say, $5.50 to make, we can sell it wholesale for $10 and retail it for $20.” 

Once businesses open an eCommerce storefront, their multi-channel selling possibilities open up even more, as markets today increasingly incorporate mobile platform selling, sales on social media sites, and other sophisticated online eCommerce tools.

Sell One Thing and Sell it Well

ProStores merchant Todd Walbridge has a screen printing business and sells humorous T-shirts online.  He carries tuxedo T-shirts, security T-shirts and T-shirts that raise money to fight multiple sclerosis, but instead of selling them all on one web store, he has three separate sites--Tux-Tees.com, security-tshirts.com and MSTshirts.com.

Todd learned from experience.  “In the beginning, I was trying to be a mini-Amazon.  I thought I’d appeal to a lot of people with a lot of different products.  Then I realized that I was never going to be Amazon, and I started focusing on niches.”

Having niche products on discrete web stores allows Todd to avoid having to compete with superstores.  He can instead focus on specific SEO keywords, attracting shoppers further along in their buying process.  “Because you’re so niche, you get more searches,” explains Todd.  “That’s what the Internet is about."

You might recall that the same thing happened to Dealzer owner Albert Farajian.  He opened his online store with 25,000 products.  When in the the first month he sold just two products, one being a hydroponic gardening system, he realized that he was better off focusing his inventory.  

“The best thing to do is start with a niche web storefront," he says.  "If it gets popular, then you can start expanding.”   

 

eCommerce Marketing in 2012

Now that 2012 is upon us, many eCommerce merchants are using the New Year to revamp their online marketing.  With the Internet continually evolving, they know that last year's techniques may not always work in the new selling environment.  The marketing trends this year point towards mobile devices, video content, and social media sites.

Practical eCommerce has listed five great tips for the New Year in a recent post.  Read the blog's 5 Effective Online Marketing Tactics for 2012 and you'll learn more about using:

1. Text Marketing

2. Mobile Optimized Merchandising

3. Subscriptions

4. Trigger Emails

5. Video Content 

Happy Selling in 2012!

Increase December Profits with Post-Holiday Promotions

Christmas and Hannukah are finally here, the orders are out, and it’s time to take a deep breath and relax, right?  Well, enjoy that well-deserved break, but once the weekend's over, it’s time to get your post-holiday sales going. 

Many shoppers like to cash in on deals after the holidays, so take advantage of those potential profits with the following tips:

1.  Run post-holiday promotions as soon as possible.  On Black Friday, featured merchant Dog is Good ran four different specials starting as soon as midnight.  "We offered a special and then changed it at 6am, and continued this throughout the day, just as department stores do," says owner Jon Kurtz.  "At times, we just lowered the cost of a product and kept that price up all day."  

2.  Use email and social media marketing to advertise sales and hot clearance items.  For instance, Dog is Good posted their promotions on Facebook and Constant Contact, which drove a considerable amount of traffic that day.  

3.  A lot of retail and web stores hold post-holiday sales, so you may have some competition.  Offer free shipping to make sure customers shop with you.

4.  Offer a flexible post-holiday return policy so customers and gift recipients feel confident doing business with you again.  You won’t lose any of your holiday profit if you offer exchanges and store credit. 

5.  Many people look for deals on accessories for top-selling products, electronics, and other big-ticket items they received as gifts, so keep up with post-holiday sales trends.  

6. Be savvy about hot products.  Put popular, hard-to-get gift products on sale to attract people who may have not gotten the top items on their wish list but received cash gifts.  Inform shoppers who wanted to buy out-of-stock items before the holidays when you’ve replenished your inventory.  Get rid of your low inventory items by displaying an inventory count, like “only three left in stock,” so people feel they need to purchase right away to get the discount.

7.  Give deep discounts for products that you don’t think will sell into the New Year.

8.  Whenever you hold a sale or promotion, always display the regular price and the sale price so people see that they’re getting a good deal.  Shoppers are more likely to purchase when they know they’re saving money. 

9.  Track shoppers with abandoned shopping carts and offer them a special offer, like free shipping or a certain percentage discount, to entice them to purchase their items after the holidays.

10.  Fine-tune your post-holiday SEO.  Use keywords like “post holiday sale,” “half off” or “after holiday discount” so bargain shoppers can find you.

Happy New Year and Happy Selling!

Last-Minute Holiday Sales Tips

Extend your returns window.  Consider accepting returns until at least the end of January so that gift recipients can return gifts easily.  For instance, if your window is usually two weeks, you may want to give customers a few more weeks to account for the holidays.

Promote your gift cards more than ever.  And allow for later shipping deadlines on those items.  Gift cards are a last-minute shopper’s saving grace.  It’s quick and easy, and if they can still buy one on December 23 for a Christmas Eve arrival, it may be their last chance and an extra sale for you.

Offer a deep last-minute discount.  Holiday shoppers don’t expect to find deals, specials, or discounts during the holidays.  If you offer one, it’s sure to attract last-minute shoppers eager to buy, and they’ll remember you for next year.  Offer a percent of discount, create a two-for-one promotion, or give a special gift with purchase.  It will also help you move holiday inventory.    

Cross-sell and up-sell.  When people look for gifts, they often find items that are not quite right.  Make it easy for them by showing them similar products, complementary items or a more premium model.  It may just give them the push they need to buy that perfect gift.

Be a holiday hero.  A favor done for a panicking holiday shopper could bring you a customer for life.  As those shipping deadlines loom and inventory decreases, ask customers who call with unusual requests how you can help them solve their gift-giving problems.  If you go the extra mile, shoppers will remember that holiday spirit.  

Have a backup plan.  Holiday sales are still at their height, and things can go wrong – a snowstorm disrupts your shipping schedule, an employee calls in sick, or you run out of inventory.  Troubleshoot those possibilities before they happen so that you have a game plan to keep up with your shoppers.  

5 Tips to Increase Holiday Sales

Become the One-Stop Shop
Turn your web storefront into a one-stop shopping destination.  Hold a sale and drive multiple purchases by cross-promoting.  Create gift baskets of complementary products and create a category for them.  Make gift buying easy by offering Wish Lists and e-Gift Cards.  Make sure they're clearly displayed on your home page.  Offer gift wrapping. 

Be Available Everywhere
Have a mobile store, as well as a shop on Facebook.  Mobile shopping is increasingly on the rise--CNBC.com recently reported that 27% of 18- to 34-year-olds have purchased something on their smartphones.  And according to a recent analysis by Booz and Company, sales of physical goods through online social networks will grow by 93 percent per year in the U.S., reaching $14 billion by 2015.  ShopTab (30 day free trial for ProStores mechants with code "ProStores30") and DudaMobile can help you quickly set up Facebook and mobile stores, respectively.  

Don’t Make Your Shoppers Guess What’s in the Box
Let your shoppers know exactly what they’re getting.  Write clear descriptions.  Have a streamlined checkout and clear shipping and return policies.  Be specific about when you ship; state, for example, “We ship your item within 24 hours.”  

Don't Make Them Ask Twice
Respond quickly to customer questions.  It’ll help you close a sale faster and increase conversion, since shoppers who get their questions answered quickly are more likely to purchase.  During the holidays, customers often want to get their shopping done as fast as possible.  If you wait too long, you might lose the sale.  Buyers may also be testing your response time as an indicator of what it would be like to do business with you.  You can save time by creating a library of simple email replies for your most common answers and creating a page of frequently asked questions.  

Make it Easy to Return
A good return policy, money-back guarantee, or warranty service can make buyers feel more confident, especially when they’re purchasing a gift for someone else.  eBay Consumer Research has found that 21% of nonbuyers cite "lack of return policy" as the reason they buy elsewhere.  That same research shows that even with a liberal policy, actual returns are usually few. 

Happy Selling!

Holiday Shipping: Time and Money Savers

With the holiday shopping rush, it’s important to ship as cheaply and efficiently as possible to please your customers and increase your bottom line. Here are a few seasonal tips:

Stock up on Supplies
Make sure you have everything you need – boxes, mailers, tape, bubble wrap, postage. If you run out, you could waste a lot of time and money trying to locate more.

Save Time and Money: Ship Online
Save up to 15 percent on postage when you use the U.S. Postal Service’s online services. Not only do you save money, but you also save time. Just order free Priority Mail and Express Mail supplies from USPS.com, and they’ll be delivered right to your door. (USPS suggests you order them by December 5 so that they’ll arrive in time for the holidays.) You can create labels, pay postage by credit card, and even purchase insurance online. Then let the USPS know your packages are ready, and your mail carrier will pick them up for free. Afterwards you can easily view your shipment status.

Be Smart about Packaging
To save money on shipments, use the smallest box you can, without damaging the products. Remember that USPS Priority Mail ships at a flat rate, so no matter how heavy your items, you can ship whatever can fit in one box for one price.

Print Once with PayPal Multiorder Shipping
Print up to 50 domestic USPS shipping labels at one time, complete with postage, right from your PayPal account. You pay postage costs, but the service is free. If you also use the USPS SCAN form, postal employees can scan the bar codes for every package in your shipment at once. You and your customers are then able to use USPS' Track & Confirm tool to verify that a package was actually sent.

Reassess Your Shipping Providers
If you offer multiple shipping providers, determine which ones your customers are using the most. If few shoppers are using a certain service, removing it might save you some money.