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    Dropship Auto Parts
       July 6th, 2008

    One thing is to run a dropship business that gets 500 unique visitors monthly and another – 50,000. There are certainly other important metrics when you analyze online businesses:

    • average order amount,
    • page impressions,
    • conversion rate,
    • return rate,
    • SKU number,
    • and more…

    But my point is that you earn as much as you aim at. Yes, eBay market is great as you can tests products and reach customers there in no time compared to running your own website:

    • Marketplaces has approximately 83.9 million active users worldwide.
    • Marketplaces net revenues totaled a record $1.48 billion in Q1-08, representing a year-over-year growth rate of 19 percent. With 45 percent from US operations and 55 percent from our International business.
    • In Q1-08, gross merchandise volume [GMV], the total value of all successfully closed items on eBay Inc.’s trading platforms, was $16.0 billion. [Total GMV for the full year 2007 was more than $59 billion.]
    • eBay.com users worldwide trade $2,040 worth of goods on the site every second.

    Nonetheless, my personal opinion is that eBay loses its attractiveness due to high seller saturation and rates (from my personal experience) and should be just ONE of your sales channels.

    Final goal of any online business incl. dropship should be something like below case study. I still believe that it is possible to achieve that scope starting with any of the listed dropship merchant list sellers (they cost a few dollars and if you can’t afford that then you are destined to run 500 uniques per month business) and after careful analysis of many case studies published on pages of our website.

    Below come the details of really BIG drophip business:

    Virtual Auto Parts Business for Sale – $1.7M per year in sales

    Work from anywhere in the USA – No auto experience needed

    URL: www.partsgeek.com
    Established: Mon Mar 31 2003
    Uniques/Month: 43,279
    Page views/month: 4,000,000
    Monthly Revenue: $141,000
    Google Pagerank: 0

    Description:

    Here is your chance to purchase a Virtual Auto Parts Store and work from your home or office –even if you have no prior automotive experience. The owner’s spouse has become ill and he can no longer dedicate himself to operating his business and needs to sell the business.

    What you are buying:

    1. A turn-key, Active Business that in 2007 had sales of $1.7 million at 30% gross profit. (Sales and profit are increasing each year)
    2. 53 domains (.com’s and .org’s) with May’s 2008’s actual Unique visitors registering at 43,279 that month. Averages between 40 – 60k per month of uniques. 4,000,000 (million) hits per month is a rounded down estimate. Only 14 active sites are active, others are ready in waiting to open up.
    3. Database of over 132,000 customers – nearly 30% are wholesale (dealerships and repair shops)
    4. Gain of nearly a dozen different Internet Catalog Licenses that are not avaialble to the public.
    5. Gain of our eBay and Amazon stores
    6. Ownership of two established US trademarks
    7. Owner will train on-site (I will travel to you) and via remote computer and phone and make transition smooth (assume 30 – 60 days to learn business and advertising; with one year of phone support afterwards).
    8. Owner will sign a non-compete agreement
    9. 3 dedicated and protected servers in 2 different states
    10. Customer retention rate of 20% (this is incredibly high considering we do not market to our customer base)
    11. Web design staff, tech support, IT support, cart support and all integration is seamless and included in the sale
    12. An Advertising spend of 12% with Google and Yahoo (industry average is 20%) that has been operational since 2003 and Google algorithms always like the older ad campaigns overt the new ones.
    13. Optional Bonus – One part time (30 hours per week) sales rep who works from her home 50% sales and she handles 50% of the customer service. She has been employed over 3 years with us and is a 1099 sub-contractor.
    14. Optional Bonus #2 – One part (30 hours per week) employee 1099 sub-contractor, customer marketing, order sending, order sourcing, etc.
    15. This is not an affiliate deal, or a franchise offer. This is a one of a kind, fully operational business for sale with the owner leaving the industry. The owner averages about $10,000 per MONTH in draw salary, and the growth potential is incredible.

    Revenue Details:

    $1.7 Million per year in sales @ 30% GP.

    This is not an affiliate deal, or a franchise offer. This is a one of a kind, fully operational business for sale with the owner leaving the industry. The owner averages about $10,000 per MONTH in draw salary, and the growth potential is incredible.

    Traffic Details:

    Domains (not all are live, but all are owned) included in sale: 53

    Manage Your Business – Manage Your Time
       July 4th, 2008

    When you start working from home, for example selling things on eBay (any sort of products you find or prefer to promote online), you become a boss for yourself. It means that you are free to choose how to spend your working time, but it also means a great amount of responsibility, responsibility before yourself. The most difficult thing in the working-from-home process is to organize your time. The secret of successful people is in knowledge how to spend their time without loosing it.

    When you work from home, you are in charge of your business. It’s up you to find the clients and to deliver your services to them. It’s up to you to collect the money, pay the bills and make the office run. You should be aware of how to organize everything in order your business not fail but become flourishing. If you want to manage your business, you are to manage your time. The following 4 tips will help you take charge of your time and make the most of it.

    1) First of all, you should have a plan which you are to follow without any indulgences. You should schedule your days, and literally stick to your schedule. Allocate particular times for particular activities. Mind that if you don’t have your own schedule, you will almost definitely wander without any purpose and waste the whole day without really accomplishing anything; or you will forget something important what you were going to do.

    2) Secondly, you are to make a to-do list every day and don’t forget to cross off everything that you have accomplished. If something is left unfinished, you are to transfer it to the top of the next day list. A to-do list is the best thing to stay focused and concentrated and to manage to do everything in time.

    3) Set aside time to market yourself. Promoting your business is essential, so schedule time for whatever it is that you do to bring in new customers. Use, for example, the first hour of the day to make phone calls to potential clients, send out emails, etc., before you get busy with all your other business.

    4) Assign a special place (your working place so to say) where you will dedicate your time only to your business. Better it will be a separated room where you won’t find all the distractions to your business: the kids, the fridge, the TV, the solitude. Don’t allow these things to penetrate your place when you are working. Explain to your family that your workspace is different from your home space and don’t allow them to disturb you when you are ‘at work’.

    Following these simple tips you will be able to organize your working time and become profitable in home business. And if you organize your time according to your needs, you will have an opportunity to achieve your goals.




    Six rules of successful product selection and selling
       June 30th, 2008

    For a person who has just started selling on eBay it can seem confusing how to begin. Nevertheless, it will be much helpful to orient to those people who have an obvious success in this sphere. Without any doubt, it will be useful to adopt some winning techniques of these successful entrepreneurs, to learn their lessons, so to say. Here I’d like to present six techniques for you: study and learn them, and then you will be a prosperous online retailer.

    Identify Emerging Markets

    First of all, you should identify emerging markets. An emerging market is a market where the bid rate is growing at a greater rate than the listing rate. While a hot market has reached its capacity, an emerging market has room for growth. You will be aware of what people sell and what customers need. The rule is not to chase after hot-ticket products with saturated markets. You should search for neglected niche markets where demand is greater than supply. Turn to Andale.com and Hammertap.com – two good research market tools which can show you this information.

    Look at Your Competition

    The second rule is to look at your competition. You are to identify who are your rivals and how they reached the top. You even can borrow some of their most successful techniques, but don’t copy all the tactics. While borrowing be sure that the primary idea is yours and don’t forget add something specially yours in order to distinguish yourself. You are to be unique to build your own niche market and create your loyal customers.

    Set Your Prices

    The technique number three consists of looking at your competition’s prices. Thus, you will make it possible to set your own prices. Also use market research tools – they can give you the item’s average selling price and moreover they will show you the factors that can influence the prices. The tools also interpret the data for you and show you how to get the most from your item: for instance, the best day and time to end an auction, which listing features draw the highest bids and so on.

    Know Your Seasons

    In order to sale well, you should know the right season for proposing right products. Remember that everything is good in its season. If you know products’ seasons, you’ll know the best time to list them. If it is right season, you can sell products immediately. If the season hasn’t come, it is right time to stock the product. You can stock it up now and sale it later on, when you will be sure that you will get the most of the product.

    Create Effective Titles

    Titles are the face of the product, so by choosing creative and original ones you will provide a certain attention to your product. By words you specify your market and help optimize a search engine. If you don’t want to be lost in the crowd, but on the contrary, you are eager to get to the top, use special tools for making up effective titles. Try Terapeak.com – the tool designed to help you create optimal titles for your merchandise based on eBay data.

    Keep Records

    And the last but not the least, you should keep records and analyze them. Study why some products emerge only for some time, and some trends are afloat from season to season. Analyze not only the latest sales results, look from year to year. Mind that your business requires long term thinking, not just day to day. Studying a longer period of time will give you an opportunity to gain a better understanding of how trends and seasons affect your market.

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