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    Product Sourcing Techniques: Industry Publications
       April 15th, 2008

    Being an online retailer requires a good command of the industry, the insights of it. But where can one learn about that stuff? One of the best solutions is reading industry publications. This source can help you learn how to market the products and make up the product lines according to your customers’ requirements.

    Some words about Trade publications

    First of all, what’s a trade publication? According to Lisa Suttora (WhatDoISell.com), it is:

    A trade publication is a magazine, newspaper, or even email newsletter that is written specifically for industry insiders.”

    A trade magazine supplies you with a great amount of extremely important information:

    • Product lines that are being sold
    • The ways of successful marketing of the products you are dealing in
    • Reports on what is selling good at the moment and what is likely to be popular in the near future
    • All the upcoming industry events
    • Contact Information of suppliers (as you already know this information as well as the choice of the right wholesale suppliers can be crucial for you business)
    • The new products the manufacturers are likely to come up with
    • All the latest trends and tendencies in the industry

    Rely on your knowledge

    No matter what industry you are into, each has its own publications which are as a rule available only to subscribers. Some of these subscriptions come for free, others cost money. But even if you pay a monthly fee you can still save a lot of money by learning from others’ mistakes instead of doing your own ones. In order to find these industry publications you can run a Google search under “trade publication” or “trade magazine.”

    Does it really give me a competitive edge?

    Of course if does! Reading such publications ones gains valuable knowledge on the structure of his business and his/her sourcing choices become more conscious than blind. You can learn all the latest trends beforehand and thus have a competitive edge over your competitors.

    Perfect Product Sourcing

    Trade publications help you make the product lines more versatile. The give you a clue on how to make the selling strategies and tactics more effective.

    Suttora continues:

    You’ve got to look at all the ideas available for different kinds of products to sell. You can’t do that in a vacuum—you need a system to help you have creative ideas.

    Setting up with Wholesale Suppliers: Useful Tips
       April 14th, 2008

    When you are going to a job interview you cannot go unprepared, can you? Why don’t do the same while approaching a wholesale supplier? You need to understand that for a wholesaler working with you (setting up an account etc) means time, paperwork and money. If you don’t look like a credible retailer, you might get turned down immediately.

    Charlie Hall, the owner of Charlie’s Woodshop, comments:

    I spend a lot of time helping online retailers get going with my product, but they may not go anywhere if they’re not doing the follow-up work.

    But, of course, a coin has two sides. It is not only you who has to be reliable in the eyes of the wholesaler, but the wholesaler must be a trustworthy one. Here, at dropshiparea, we do out best to supply you with the most reliable and trusted wholesale suppliers. By using the services provided by us you are not likely to end up with a middleman or get into any kind of financial fraud.

    If you create a favorable impression you are not likely to get a point-blank NO. So let’s find out what is a good way to ask a wholesaler for an account:

    First of all be professional

    Any wholesale supplier wants to see how are you going to position their products.

    1. Take your time to check the presentation (it includes grammar, your punctuation, capitalization etc.). If you are not sure whether the grammar is correct use any kind of spellchecker.

    Hall continues:

    These are little areas that tell me whether or not I want to do business with a retailer. If they’re not doing all the work, they’re last on the list.

    2. Provide the wholesaler with credible info

    • Give them you full name, the name of your business, address and full contact info
    • Bother to include the tax ID. In fact, without this kind of information you are not likely to be given pricing information. A wholesaler needs this info to check if your business is legal and some other procedures.

    Be aware

    1. Come prepared

    Before making a contact give a careful study to the companies you are abut to get involved with. While mass mailing is a working way to set up multiple accounts, it cannot ensure the quality of wholesalers. And remember that stuff with multiple email addresses.

    Have a look at the web-page of the company, its policy, services etc. In your letters try to avoid asking questions the answers to which can be found on Help pages and in the FAQ.

    2. Realize what to expect from collaboration

    Remember one important thing: a wholesale supplier is not your guru. They don’t have time (and even if they do, it is not their responsibility) to answer your questions and teach you how to sell their products.

    One more crucial aspect of mixing up with wholesale suppliers:not every supplier is willing to work with eBiz. Some of them are working on larger scales. But some of them are ready to supply you with products. So, once more the problem of choosing the best wholesale suppliers seems to be the vital one for your home-base business.




    Tax Questions: Strategies for an eBiz
       April 8th, 2008

    When you are on the edge of opening an eBiz or already have one, you still have to keep in mind that it is a real business and the approach to it must be a proper one. You have to make sure all the legal formalities are carried out. Consider all the legal issues in order not to lose money in case of emergency.

    Do I Need to Charge Taxes Online?

    Taxes issues

    When you own an eBiz you have to keep current on taxes that are connected to your activities. As you are a retailer you have to be aware of the payments of state sales taxes.

    Jim Reed, www.tetontax.com, comments:

    The collection of sales tax for items sold over the internet is only required if the business has a physical presence in that state.”

    To cut the long story short according to Jim if you sale a product to a customer from a different state you need to charge this customer the sales tax.

    Besides taking extra money from customers (as taxes) you are responsible for delivering this money to the government. As a rule in the majority of states you have to fill out a tax return.

    Reed continues:

    You’re required to fill that out, whether you have sales or not, once you obtain a sales tax license. Each state has its own sales tax form to be completed, signed, and filed, and the tax remitted, based on what taxes have been collected during that period.

    Some thoughts on the structuring of eBiz

    In order to make your eBiz legally proper you need to give a careful thinking on how to structure it. There are a number of type of eBiz structure:

    1. Sole Proprietorships

    This type of business is usually set up by eBiz owners who want to avoid the costs of incorporating. At the same time this type of business makes you property vulnerable in a lawsuit.

    2.Corporation or an LLC

    Remember that the major advantage of a corporation is getting your property insured. In case your company is used only the belongings of the corporation are at risk. The fees associated with setting up a corporation or an LLC are fairly minimal

    To conclude: no matter what type of property you decide on, take your time to consult a CPA and an attorney in order to be sure that you are legally squared away and find out what scheme is the most effective in your case.

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