Selling on Third Party Websites – Part 1 of 4
amazon Oct 04, 2016
Setting up a website can be a long and arduous process. If you choose to use a solution like Magento, it is a little less painful.
If you decide to work with a web design firm and do a custom website, it generally takes more time and money.
I am going to assume that your drive in wanting to start a website is to have a presence online and to drive traffic some online business to your site. Geez – if everybody is selling online, why can’t you?
It does not matter if you have a website or not, I am a firm believer in having a strong presence online whether it is through your website or anothers. Hear me out. The goal is for a buyer to look online for your brand, or your keywords, and your company comes up. It would be ideal if it came up and said multiple websites. See the example below. B-Low the Belt has their own website, they sell on shopbop.com, they sell on bluefly.com as well as on amazon.com. They have a strong presence.
It can take some time to drive traffic to your website and convert those customers into actual paying customers. I urge my private coaching clients to try and sell on 3rd party websites to help with sales. A third-party website will have you list your proucts online, put up a company bio and you pay a small commission to the website for their operational expenses. The caveat is that you need to have inventory for the product you list and be able to ship out almost immediately. When you receive a sale, some of these companies will pay you next day. Others will pay you twice a month. Again, you have to apply to be accepted but they do this to keep out all the sub-standard product out there.
Check out the following websites and apply to see if you can be listed as a vendor with them.
Amazon – they are not accepting any new jewelry vendors at this time.
Additionally, if you have been done any trade shows recently, you have probably been asked by several people if you will ‘drop ship.’ This is the same idea essentially. These websites will list your product on the site and you will sell it them, if and only if, your product sells on their site. They will generally share with you their courier number and you will have to handle the shipping. The website normally sells for retail and you sell it to the website for wholesale. So, if they sell it on their website for $250, you would charge them $100 assuming a 2.5 markup. This agreement could result in an actual order in the future if your product sells well with them. The downside of this arrangement is that you are selling items one by one and not capitalizing on volume orders.