Another Kiwi - Decisions to be made

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kat66a
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Joined: 12 Aug 07
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17 Aug 07 03:56:20 am
Hi Members

I've had a really good look around this website and have had e-mail contact with lots of sellers, but after weighing things up I'm wondering if I should be trying to buy wholesale from my own country. Why? a: I'm not that comfortable with dropshipping. What happens if it all goes pear shape? You're left looking like it's all your fault. B: I can't buy 10,000 of one product, which seems to be the best way to make a profit if you can move the product. Everything I've looked at would not be cost effective in small lots or isn't selling that well here. C: Shipping is so expensive and often confusing. d: Buying small lots on e-bay to sell in NZ is a joke. It's either rubbish or not much more expensive in NZ. D: the NZ dollar has dropped, which is great for exporters, but not importers. Sorry, for being a misery guts...I know there are so many fabulous things about this site, but I'm a Mum with pre-schoolers, whose also studying and all I wanted to do was import something I could flick off on trademe to make a profit to make life a bit easier. I suppose if it was that easy everyone would be doing it. I'd love to get other members opinions...even if they aren't positive :wink:

thanks
Katrina

Site Admin
fudjj
Posts: 5906
Joined: 27 Jul 07
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17 Aug 07 05:58:41 am
Unfortunately you're absolutely right Kat, if it was that easy then everyone would be doing it!

That doesn't mean that it is impossible, although the Kiwi dollar doesn't help as an importer, but your local competition all face the same problem, and i'm sure some of them are going ok.

No doubt that buying in volume will always secure you the best price, and therefore the chance of selling at a competitive price while still having some margin left, but there are niche products out there that you can get started with at least. Yep, we all know they exist, but please don't ask me what they are..LOL

Personally I think you have the right idea about dropshipping. I know there are some products and some companies that are much better than others, but you are really putting yourself out there when relying on a drop shipper. As you said, when it goes pear shapped, you will be the one in the customer's sights, and if you don't get much support from the company then you are in real trouble.

It always amazes me that people seem to think that drop shipping is a great opportunity for them, when in reality it is a rolled gold opportunity for the companies offering it. Hundreds, if not thousands of free sales people working for them, selling produts with next to no margin so the company is cashing in and you are just getting by, if at all. Apart from all that, all their marketing done for free!

Make no mistake about it, dropshipping is all about putting money in the companies pocket, not in yours.

Hey, stick with it. You will find a lot of good advice in here to help you get amongst it!


Mark (fudjj)

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SaleHoo.com

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Free Member
kat66a
Posts: 8
Joined: 12 Aug 07
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17 Aug 07 06:43:45 am
Thank you for replying and for the helpful advice :-).

Site Admin
fudjj
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17 Aug 07 08:53:21 am
No problems Kat, good luck with it all!


Mark (fudjj)

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Full Member
gulfy13
Posts: 472
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18 Aug 07 12:22:16 am
I definately agree with fudjj, it's hard to compete anywhere. And niche products are the way to go. And of course we all hear about 'niche products'. And still the remaining BIG QUESTION is, what are the mysterious niche products and how do I find them....

Here's what I do and a few things to consider. First I don't try to sell what everyone else is selling. For instance, mp3 players. Everyone is selling them and the market is just to saturated to make any decent profit on things like that..

You have to think 'outside of the box'. You want to be different. Sell things that are different.

These are the niche products. The things that are different from the products that everyone else are trying to sell.

Let's look at it from a different view and see what you think...If I put 5 pieces of apple pie on a table in front of you, but on just one piece I placed a big scoop of ice cream on top,,,which one would catch your eye first?

More than likely it would be the one with the ice cream on it. Why? Simply because it is different from all the rest and stands out more..

That would be a niche product...Now, it's not really as hard to find these products as you think, once you start thinking 'differently' from the rest of the crowd...Here's a tip,,look for popular selling products, and then think about what other items would sell well with them....For example, one of my daughters has a womens boutique. One item that she buys for $1.00 and sells for about $15.00 is a tiny cell phone charm. Simply a little charm that attaches to your cell phone, that's it. The most popular one are either a palm tree or a dolphin. They attach to you cell phone with a little piece of string..She probably makes as much profit off of a couple of the little charms as the person made who sold the phone...

And do you know why the ladies buy them??? Because it makes their phone just a little bit different that all the other phones,,,that's it.

Now,,let me tell you this. It's important. The BIGGEST market for any item, sold anywhere, is:'AFTER MARKET PRODUCTS'. Aftermarket product revenue most always exceeds the revenue produced by the actual product...A cell phone charm is simply an after market product of a cell phone..

A leather cell phone case is an aftermarket product of a cell phone..a cell phone charger is an after market product of a cell phone..etc..etc...

These are the things you should be looking at..Don't try to sell the phone, try to think about what would be a nice accessorie to that product..These are where you find the niche products..

In the U.S., baseball is a national sport. Everybody loves baseball. Just about everyone either watches it, plays it, or talks about it..

You have professional teams, college teams, high school team, childrens team,, and on and on. Great aftermarket products are the team hats, jerseys, banners, tradeing cards..etc...One of my local friends has a 'niche market' for baseball...He buys small plastic trophies and engraves the local childrens team names on the trophies on a small metal plate that is attached to the trophy..At the end of the season, each team presents each child a small trophy..Just locally in a town with a population of about 40,000 people,,he sells in excess of $80,000 per year. And it all takes place in just the summer months...That's a niche product...

No one else was doing it, so he though he would give it a try,,In less than two years he quit his regular job and is doing nothing but trophy's for different sports now..

I notice that you mention 'trademe' quite often. Think about going on trade me and looking for products that are selling well. When you have picked a few out, then sit down and make a list of what you think would be a good accessory for that product. More than likely you will find a niche product that no one else is selling...

But in order for this to work,,you have to think differently..Use your imagination. Think of something that you, yourself would like to have in addition to this product...What would compliment this product...what would make this product more beneficial...For example, I bought a nice new digital camera. I needed it to take quality photographs of some items that I was selling..Great camera, all the latest bells and whistles,,but I just could not get the photos to come out clear and crisp..Either too much light or too much shadow. A friend suggested a 'shadow box'. I'd never seen one or heard about one. Looked around town and no one had any and most didn't know what I was talking about anyway..Went online on ebay and at the time found just two people selling them..Just two..and they were selling all they could get..I think at the time, they were actually building the kit themselves...Just a small cardboard box, with several lights shining into the box, where I could place my item and shoot the photo with 100% correct lighting..It produced excellent photos everytime....Great niche product....That too is an aftermarket product.

So don't give up, just re-think your strategy..It might not be easy, but it will pay off in the end...Good Luck...

Free Member
kat66a
Posts: 8
Joined: 12 Aug 07
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18 Aug 07 05:22:56 am
Thank you for that wonderful advice. Thinking outside the box is so important :-).

Site Admin
fudjj
Posts: 5906
Joined: 27 Jul 07
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18 Aug 07 05:51:14 am
A quick tip for you Kat, take a look at LED dog tags, not sure about online sales so much, but if you can find an outlet the young guys with all the attitude will eat them up.

I recon the advice about phone charms is also spot on, young girls love these things, but you can also promote them as charms for there bags, hats......just about anything, and create 3 or 4 sales per client.

You know sometimes customers aren't that smart, you have to feed them some ideas on how best to use the products you sell : )


Mark (fudjj)

Community Manager
SaleHoo.com

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