Home – New Forums Selling online Inventory vs dropshipping vs affiliate programs vs private label?

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  • #996950
    Steve T
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    Just want to ask experienced online business operators, which of these four selling methods would you prefer if you were starting out? Particularly if you were just getting your toes wet. Could you please explain why you would prefer that method? Also would you consider a combination of these?

    Thanks
    Steve

    #1209680
    LucasArthur
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    May i ask what course are you studying?

    Jason Ramage | Lucas Arthur Pty Ltd | E: [email protected]   P: 61 3 8324 0344    M: 61 412 244 888
    #1209681
    Steve T
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    Hi Lucas

    I’m not studying any courses. I just research and read. :)

    #1209682
    bb1
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    Simple really…. The best one is the one that makes the most money for you.

    #1209683
    Steve T
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    Is there experienced online business operators who have a preference for one or the other, or any combination, as per my question?

    I’m thinking experienced operators would be able to share some insights in light of hindsight.

    Thanks
    Steve

    #1209684
    LucasArthur
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    teve, post: 250174, member: 76820 wrote:
    Hi Lucas

    I’m not studying any courses. I just research and read. :)

    Awesome, my advice.. research less and take action in an area that interests you… the more you research, the more confused you will become.. Although, it does depend on why you are researching and how you intend to use that research? Are you wanting to open a business? Develop an idea? Unsure? Procrastinating etc..

    The more information you provide, as this is about you more than about people that visit the forum, the more people can try and tailor some assistance.. As it stands, and how i read it IMO, its similar to age old question ‘how long is a piece of string’.

    Cheers
    JASON

    Jason Ramage | Lucas Arthur Pty Ltd | E: [email protected]   P: 61 3 8324 0344    M: 61 412 244 888
    #1209685
    Steve T
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    Hi Jason

    Thanks for your reply. I appreciate what you’re saying there and indeed more research can probably lead to confusion. Hence a query like this. But by asking this I am enquiring if people might of been able to share their preference using the benefit of hindsight from experience. For me it is about developing a strategy for execution and deciding which might be a better online selling technique for beginners. Perhaps my post would of been more appropriately placed in the ‘Starting Your Journey’ forum.

    #1209686
    Trent Tran
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    teve, post: 250172, member: 76820 wrote:
    Just want to ask experienced online business operators, which of these four selling methods would you prefer if you were starting out? Particularly if you were just getting your toes wet. Could you please explain why you would prefer that method? Also would you consider a combination of these?

    Thanks
    Steve

    Here are the pro and cons:
    A) since drop shipping is so hot now, I started with it first

    EXAMPLE, a popular item now: “studio box”.

    Here are the dropshippers:

    1) https://www.upkeepyoga.com/products/portable-led-studio-photo-box
    facebood_ad.jpg
    2) https://cloudandterrace.com/collections/photography-gadgets/products/psb?variant=47865994191

    Pro: no inventory, no stock image required, no video required as it was pre-made
    Cons: you will face competition from different dropshippers, as I have seen those 2 guys above running Facebook Ad for the same products. One was buy 1 get 1 free and the second one is price as marked. As you can see, the audience will be very similar

    They both use Shopify with a popular apps: Oberlo (droppshing management app connect you with Aliexpress)

    B) Affiliate: Now, this requires hard work, and in my opinion, it works best on Review type of content. In youtube fitness channel, you can see many reviews of different branding and some (or most) would include an Amazon affiliate link which will direct customers to buy from there (of course, not necessary Amazon, it could be someone else too). This is similar to drop shipping but you accept no liability at all because you direct (refer) customers to the sellers. The disadvantage is “razor thin margin”. This works on volume mainly. Having say that, some affiliate program do pay really well: SHOPIFY affiliate program: 200% commission on the first year subscription !!!. Business Coach, or some coaches love this model.

    C) Inventory: the riskiest yet the most reward
    you will spend time and money to develop your own brand and products, it is the slowest if compared to the above. There will be many months of negative cash flow, money will be pouring out without return for many months. You must be very sure that your product will work and YOU MUST BELIEVE SO with back up.
    The good thing is: you can get your product manufactured in a small batch. You then blog the benefit, the features, the pain points which it solved for your audience, your customers. You will do it constantly. You also go to some body building forum, looking for pain point of this niche, seeing if this product fit?
    As it is your own product, you can mark up your margin as your will. Variants ARE the key:
    1) product 1: weight lost : $10 (may be 150% margin)
    2) product 2: build muscle: 20 (200% margin)
    3) product 3: weight lost, muscle building, faster recovery and won’t put on any fat. (250% margin)

    You will then run a special intro for 25% discount which you still make money and keep your business going.
    You don’t have to do it fulltime, but the more knowledge you can show your audience, you will soon become an influencer and eventually order will come
    (my first order was on the second day after my website was built, haha because I sold on eBay backthen and the customer when directly to my site. However, my second order was in the 4th month directly from Google Search, from a stranger who I did not know, I jumped for joy so much joy)

    #1209687
    Steve T
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    Wow Grandawood what a helpful informative post! How long have you had your site running and how’s sales going?

    Gotta say I’ve never seen a portable photo studio, how cool is that!

    #1209688
    Trent Tran
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    Steve T, post: 250238, member: 76820 wrote:
    Wow Grandawood what a helpful informative post! How long have you had your site running and how’s sales going?

    Gotta say I’ve never seen a portable photo studio, how cool is that!
    Hi Steve
    Thank you
    site running for 3 years, and touch wood, every day is a blessing day :)
    Yes the studio box is excellent if you want to take your own picture. Actually, I have ordered one from eBay for half of the price :) (because it is a dropshipping products, we know that they will fight over for the sales)

    #1209689
    herveybaywebdesign
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    If selling to locally order inventory Australia wide I would do a mix of both depending on what you are selling eg if you are selling $5 watches I would dropship with a takes up to 20 business days to deliver written on the product description. if selling locally I would order in bulk. if delivering high priced items like laptops for example they usually have quicker drop shipping options as they are a high priced option. a mix of both is the best option as sometimes you can pick up these types of items cheaper in Australia for reselling and use fastaway for shipping. lower priced items if you are shipping auswide cost around $7.95 minimum which eats your profit you could in theory send using 50cent envelopes for some items but then how will you know if your customer has received their item when they do a charge back?

    #1209690
    jobsasc
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    Do you really need to have inventory to be come dropshipper? Can i have the supplier directly delivered it to the consumer?

    #1209691
    MikeDav
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    Drop shipping is a great concept but will not work unless you are making a decent margin. Unfortunately, most of the wholesalers offering drop shipping will want a lot of the margin for themselves. If you consider that you need around 10% for marketing and another couple of percent for credit card fees and then you need to pay GST you potentially need at least 30-40% margin over the drop shippers rate to make any money.

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