by Jason Green on December 20, 2008
Doba.com is a wholesale service that concentrates on dropshipping. Their main focus is on making it extremely easy to sell their products. Obviously this isn’t purely for your benefit. If you sell more products, they also make more money. You pay a monthly fee of $49.95 or $59.95 depending on the features you want. In return, you get access to 1.2 million products that their suppliers will dropship on your behalf.
From the Doba.com website…
Doba provides a place where suppliers can list their product inventory, and you can find items to sell. These different suppliers will drop ship products right to your customers, so you never have to handle or ship products. If you’re a retailer looking for products to sell we have a service package that will work for you.
Features:
Push to Marketplace Tool: Doba.com has an integration with Ebay that allows you to post an item for sale in just 3 steps. This is one of the ways they make it so easy to sell their products.
Custom Product Exports: You can export a custom list of products that contain titles, descriptions, MSRP’s, and images to be imported into your eCommerce website. *Note, this feature is only available at the $59.95 per month level.
eBay and eCommerce Training: Tips, tricks, and strategies for selling on eBay by Steve Lindhorst. They’ll also teach you the basics of setting up your own eCommerce website.
Advanced eBay and eCommerce Training: This gets into the finer details of running an online business. Topics such as marketing, revenue analytics, selling bundles, and customer retention. *Note, this feature is only available at the $59.95 per month level.
I’ll say that their prices aren’t incredibly low. However, the fact that they take care of most administrative tasks more than makes up for it. Calculate all of the time you would spend buying an item, storing, packing, and shipping it before sending it to your customer, and you will truly value this drop shipping service. As long as you can make a few dollars on each sale, you should be able to have such an automated system that you can sell much more than you could by manually processing all of your orders.
They also carry brand name wholesale merchandise. Brands such as Dell, Samsung, Sony, Panasonic, Skechers, DKNY, JVC, Kenneth Cole, Disney, Kenwood, KitchenAid all have products available for drop ship from the Doba.com site.
Upon signing up for the free 7-day trial, I received an email with a link to a 45-minute webinar titled, “Picking Products That Sell”. Hopefully it will help with my “starting a wholesale business” project.
Why should you sign up for an account?
Automation. That pretty much sums it up. They’ve gone to great lengths to make it easy for you to sell their products. A couple clicks and you have an eBay listing configured. You don’t have to worry about inventory, shipping, or returns. And, depending on your business model, you really don’t have to pay for anything until you’ve already made a sale.
You’ll need to be fairly active to justify the monthly fee, but I encourage you to sign up for a free 7-day trial account, if for nothing but to compare their prices.
by Jason Green on December 18, 2008
I have found the e-commerce platform that I’ll be using for the “start a wholesale business” project. I’ve always been a fan of osCommerce because they were the platform I used when I owned SellSunglasses.com. However, Magento eCommerce has a ton of absolutely awesome features!
1. Integration with Google Website Optimizer : This is the most fantastic feature I’ve ever seen in any CMS ever! With the latest version of Magento, they have created a tab where you can very simply create a multivariate test for your landing pages. Google has a video of this on their blog if you need more explanation. This is the main reason I’m using Magento as my eCommerce platform.
2. Optimized for viewing on the iPhone.
3. Flexible Pricing : Coupons, free shipping, tax rates, etc… All of this is highly configurable.
4. Automatic Cross-Selling : Yes, it will suggest similar products for your customers to buy.
5. Shipping to multiple addresses on one order.
6. Search Engine Friendly : Automatically creates a Google sitemap and a sitemap for users. Allows URL rewrites. (ie.. category=electronics vs. category=12) Auto-Generated popular search terms.
7. Integration with Paypal, Authorize.net, Google Checkout. Also allows checks, credit cards, and money orders.
8. Batch import of product catalog: You have no idea how much time this will save. Or, if you don’t believe me, go type the name, description, price, and shipping options for 1000 products. (Let me know how it goes.)
9. Multiple Images per Product : Handy if you want to show different angles of your products.
10. Integration with Google Analytics : As if I wasn’t excited enough about the Website Optimizer integration. This will automatically configure Google Analytics to track your users’ activity across your site.
Overall, Magento eCommerce is light years ahead of what I used just a few years ago. I’m very excited to get it up and running so I can write another review. I hope I like it as much as I’m expecting to.
by Jason Green on December 18, 2008
Best Buy recently reacted to the “economic crisis” by cutting affiliate commissions from 1% to .25%. Many have reported backlash across the web about this because it’s such an incredibly stupid move on their part. Perhaps cutting this commission will save money up front, but by losing so many affiliates and having such a negative reaction, they’re sure to lose money in the long run.
Angel at Revenews.com has a much more detailed writeup of this. I’m just helping spread the word. If you were thinking about becoming a Best Buy affiliate, I’d say… don’t.
by Jason Green on December 16, 2008
I just received an email from Amazon.com selling gift cards. First, I’ll mention that I am an Amazon.com affiliate and might benefit if you click these links. It will not hurt you in any way, but if you buy something, I might make a few pennies. 
Anyway, I honestly love Amazon.com for books. I used to go to my local chain bookstore, but Amazon always has the best prices. The shipping isn’t all that expensive, and I’m always extremely surprised at how fast I receive my books. (Less surprised each time, but still happy.)
Many times, I go for the used books available on Amazon. I’ve seen $50 books priced below $10 just because they’re no longer the latest fad or new technology. So, you can go to Amazon and buy the latest wholesale business book
, but it may be hit or miss. By getting a gift card, you give the control to the person who will spend many hours reading the book.
The reason I find this marginally blogworthy is the variety of ways they allow you to buy and send your giftcards. No longer do you have to go to the store and pick up a physical gift card!
(Copied from the email I received.)
1. Email a personalized gift card for immediate delivery.
2. Print a personalized gift card on your own printer. (Remember to have your credit card handy when you’re ready to print.)
3. Mail a personalized gift card (shipping is free, of course). Please allow 5-7 business days for delivery.
4. Add a $25, $50, or $100 Gift Card – or a box of them! – to your other purchases in your Amazon.com shopping cart.
I think it’s awesome that you can buy a gift card and email it to someone. True it’s not very personal, even if it is “personalized”, but hey, it’s a gift card.
I suppose the ability to print your gift card might be handy if you’re in an extreme hurry and need something to slip into a card.
And if anyone is having trouble coming up with a last-minute Christmas gift for me, consider this a hint. 
Get Amazon.com gift cards here!
by Jason Green on December 10, 2008
I have not forgotten about the “Starting a Wholesale Business” series / project. I’m honestly just having a very difficult time deciding what product to sell. For anyone reading this, bear with me while I write out loud…
I’m trying to stay away from electronics because I don’t want to deal with returns. I want a product that is very unlikely to be returned because it’s not functioning properly. I’ve looked into iPods and other consumer electronics, but to sell major brand names, you’ll probably need to become an official distributor of that company if you want to make any kind of profit. For simplicity’s sake, I’m avoiding this as well.
The product needs to be fairly light and small. I don’t want to sell a $20 product and charge $15 for shipping. If I could sell volcanic rocks, that would be ideal. Light…small…and not likely to malfunction. Hmmm….
I have a few ideas that I’m kicking around, but nothing is really inspiring me yet. I’m hoping to make a decision by this weekend. If you’re the charitable kind, you could go to the product selection part of this series and leave a comment. I’ve had quite a few views of the mindmap, but no one has made any additions yet. Maybe I need to go back and re-read that post and follow some of my own advice.
by Jason Green on December 6, 2008
Originally, I thought SaleHoo.com was a site very similar to Liquidation.com where you could buy products directly on their site. However, my original review was based mostly on their sales pitch. I apologize for this, and hope to clear some things up with this post. (Here’s the first review of SaleHoo.com)
Q. Can you buy anything directly from the SaleHoo website?
A. No. They are basically a directory of wholesale suppliers. You search for a product and a list of suppliers that carries that product is displayed. If you click one of those listings, you’re taking to a “company detail” page that lists the supplier’s name and business information. They also have member reviews listed on this page.
Q. Are the member reviews useful?
A. Not so much. There are a few good reviews scattered around, but for the most part, each supplier has 1 comment stating that the company does what they say they do. I’m assuming these are either SaleHoo employees or the suppliers themselves.
Q. Is the member forum useful?
A. Yes. Very. This may be one of the best reasons for signing up for SaleHoo. They have topics covering everything from how to get started, to commenting on bad experiences. The forum has over 50,000 members and 30,000 articles.
They also have a Learning and Training Center with articles about setting up your business, watching out for scams, selling on Ebay, and how to import products internationally.
Overall, I’m a little less impressed with SaleHoo than I was when I wrote the last review. However, for the relatively small fee, you do get a good list of wholesale sources, and access to a member forum that’s actually useful.
by Jason Green on December 5, 2008
Since starting this blog, I have had more questions about LCD TVs than anything else.
I’ve reviewed several suppliers, but I’m going to defer once again to Liquidation.com. They currently have over 323 auctions for LCD TVs. The lots range from $50 for 1 Magnavox 52″ HDTV to $3000 for 100 Sharp LCD displays.
They also have plasma tv auctions, but they’re not nearly as popular as LCD. There are only 89 auctions for plasma tvs, but you can check them out here.
As always, do your homework before buying anything at any site I recommend. Liquidation.com is a reputable site, but they also deal with other sources for wholesale products. Remember that you may not always be dealing directly with Liquidation.com. And also remember to research the products you’re buying. Are they refurbished, salvaged, returned, or brand new? Is there a warranty? Be tough with your questions. If the supplier doesn’t give you straight answers, or you just get a bad vibe, you’re better off walking away.
by Jason Green on November 25, 2008
Liquidation.com is running a contest where you could win $500 just for bidding on one of their auctions. It doesn’t even look like you have to win. You get one entry for every bid you place.
I think Liquidation.com is one of the best resources we’ve reviewed, so a contest just makes it that much better.
:::From Liquidation.com:::
Promotion Details:
Bids must be placed between 12:01am on 11/27 and 11:59pm on 11/30. You will earn one entry per Liquidation.com auction that you bid on between those times.
The winner will be randomly selected on December 10, 2008 and will receive a $500 check from Liquidity Services, Inc.
If you haven’t done so yet, now would be a great time to sign up for a free Liquidation.com account!
by Jason Green on November 25, 2008
I’m betting that in a few years, retailers start having a “black thanksgiving week” sale, just to drum up more business and get more consumers to beat each other up over a free remote control.
Well, Amazon is starting today with their Black Friday Sale. Fortunately, you don’t have to drive, park, OR wait in line. I checked it out, and there really do seem to be some good deals. Like a Leatherman for $13, or a compound mitre saw for $140 (hint hint…), and DVDs are 50% off. Take a look to see if there’s anything you can remove from your actual black friday shopping list.
Amazon Black Friday Sale Starts Today!
by Jason Green on November 21, 2008
Now that we’ve decided to start a wholesale business, we need a product to sell. This post will take us through the process of determining what product to choose.
If you have any ideas for a product as you read this, you may want to jump over to our mind map and jot them down. Just click the link or image below.
MindMap of Product Ideas
Mind Map for Choosing a Product to Sell
Passion
First, I want to say that the product you choose to sell should interest you. It doesn’t need to be the greatest love of your life, but you should at least enjoy learning about it. If you’re interested in what you’re selling, it will show in your business and your advertising.
Demand
Next, there needs to be some demand for your product. Preferably, a lot of demand. Basically, you should start by making a list of products you would be interested in selling. From that list, check out what’s selling on Ebay. I’m not suggesting that you market directly to the Ebay crowd, but they’re big enough that you can get a good idea of the overall market by looking at what’s hot there. A good service for researching the ebay marketplace is Terapeak. They’ll show you pricing trends as well as average listing prices, selling prices, and how many listings result in a sale. Go through your research and pick out the products with good sell rates. (Ratio of listings to sales.) This is your new short list.
Competition
With the short product list in hand, we now want to research competition. It’s great if you found a popular product. However, if everyone and their mother is selling the same product, you should move on. Not to be repetitive, but Ebay is still a good place to do this research. Take your short list and search for each product on Ebay. Note the number of listings and average prices. You may also be able to use some of the data you got from Terapeak for this step. At this point, you want to rank your products by highest demand and least amount of competition. Unless a product is totally flooded with competitors, take your entire short list to the next step.
Costs
What will it take for you to start selling these products? What is the cost per sale? If you choose a product that requires a large initial cash outlay, you need to be that much more confident that you can drive enough sales. Does the wholesale source require some sort of membership fee? You’ll need to work out all of these costs for each product you plan on selling. This will probably be the most time consuming part of your research, but it’s very important. If it costs $1000 to get started selling a $10 product, you’re way behind before you even “open your doors”. It’s also more time consuming because we need to include another step in this process, which is… finding a supplier.
Finding a Wholesale Supplier
You should start by taking a look at our wholesale sources page. Even being a fairly short list, you should be able to find a source for most products from someone on that list. As it’s been said before, SaleHoo comes highly recommended because they have a community of people that review all of the wholesale sources. If anyone has a supplier to recommend, please leave us a comment. I’d be happy to add quality wholesale suppliers to our list.
Profit
Now that you know the costs involved in buying your product, and you’ve done your market research, you should be able to determine what your customers would pay for your product. If the direct cost per sale divided by the selling price is over 70%, you better have a very efficient system of marketing, advertising, and order fulfillment, or you’re not likely to realize any actual gains from this business. When deciding on a selling price, always keep in mind that more comes out of your selling price than just the cost of the product. You need to be compensated for your time. You need to pay for advertising and marketing. You may have hosting and other technology costs. Forget about it if you have employees. Don’t be afraid of the math on this one. If you gloss over the details here, you’re in for a rude awakening.
Easy
This is a rather general topic, but you need to make the business as easy as possible for yourself. You want a product that is easy to sell in that it doesn’t require pages of explanation to get someone to buy it. You want it to be easy to ship or you’ll lose customers and profit to shipping costs. You want it to be easy to service. You don’t want to spend an hour on the phone walking a customer through how to use their $10 product. It may sound harsh or too impersonal, but you really want to be as hands-off as possible. Of course you need to have awesome customer service, but ideally, you just want your customers to be satisfied without contacting you.
I’ll be going through this process over the next few days to come up with the ideal product for me to sell. I would really love to hear your ideas on the process so far. I want this project to have as much community involvement as possible. I can do the research and make the decisions, but I’d really love for someone to surprise me.
To be continued…
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