People starting a brand new ecommerce business are often eager to find their first product to sell. Some are fueled by the promises of hyped-up educational programs promoting little-known approaches (so they say!) including private labeling, drop shipping and retail arbitrage.
The truth is that all those approaches are well-known, and all have been used effectively for many years both in ecommerce and in traditional retail. But for every business that has succeeded following a particular strategy, many others have failed.
Why is that? Well, like most things in life, it ain’t what you do but the way that you do it: the quality and creativity of your execution matters a lot more than the business model you are following.
So here’s my suggestion to all those new sellers urgently seeking their first product to sell: just stop. Go back to basics, and think more carefully about the different models an ecommerce business can follow.
But what are those models?
Online sellers who ship orders internationally have several challenges: translation, delivery, taxes and returns often top the list.
But what about the fundamental issue of receiving the income from sales they’ve made? For many marketplace sellers, just getting their money back home is not a problem: Amazon and eBay (through PayPal) will send funds to a bank account in your own country, conveniently converting currencies along the way.
So why would sellers use a third-party company like World First to handle their foreign exchange needs? What do they have to gain from doing that?
World First, a fast-growing company with its headquarters in the UK, has won numerous awards and established an outstanding record of customer feedback here on Web Retailer. In the apparently simple business of changing money from one currency to another, what could it be that sets them apart?
To find out, I spoke with World First’s Chief Commercial Officer Alex Sullivan. We talked in-depth about the company and their services for online retailers.
This post is by Will Tjernlund, a third-party Amazon seller who has sold over $10 million worth of inventory through Amazon over the last 3 years. Will’s business was profiled on Web Retailer earlier this year, and you can find Will on Twitter as @WTjern.
Private labelling is where you buy generic items, then add your own branding to create a whole new product. It’s one of the most popular strategies for people who sell through online marketplaces, especially Amazon sellers.
When something gets as popular as private labelling is right now, hype can take over from reality. Rumours start about how it works, what you need, and what you should always do – or always avoid. Then they get repeated and spread until it’s hard to tell fact from fiction.
So here are my top twelve myths about Amazon private labelling. They’re misconceptions that I’ve heard time and time again, and now’s the time to put them right.
This post is by Lorna Franklin, an Account Manager at SimulTrans, a leading localisation company providing services into over 100 languages. With a degree in translation studies, a postgraduate diploma in digital marketing and experience driving international sales in a successful ecommerce business, Lorna has a passion for international ecommerce and the art of providing a localised experience for global consumers.
The beauty of the internet and the growth of cross-border trade is that small businesses and large corporations are now on an even playing field when it comes to selling globally.
There is just as much opportunity out there for SMB’s to establish themselves as a dominant player in their sector as there is for their larger competitors.
But with growth slowing in developed ecommerce markets, and even the “first tier” of emerging markets like Brazil and Russia, it may be time for smaller retailers to start thinking about newly emerging markets. Enter an emerging market early, and you may be able to establish yourself long before your competitors arrive.
In this article I’ve picked out three markets which, based on some really promising growth statistics, might be worth keeping on your radar.
Imagine owning your own successful line of private label products on Amazon: high customer demand, no direct competition, ability to set your own prices easily, and larger than usual margins.
What’s not to like about this arrangement?
Nirvana for any seller obviously. It sure beats the challenges of procuring national branded products that millions of other sellers are fighting you to source.
However while building your own private label brand has appeal for lots of reasons, going alone to build a private label product business is rampant with risk: the hidden costs of private-label product sourcing must be clearly understood by anyone considering this approach. We want to instil informed confidence in you to build a private label business properly.
The top 10 landmines for Amazon private label sellers are in the infographic below.