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How To Compete With Amazon.com
If you are selling online,here is the down side of our
business....you will never be able to compete with Amazon. (Or
Kmart, or Target, or any other big outlet) Here is why, They buy
directly from the manufacturer in such huge quantities that they
are getting the product for a price that you and I (as small
business owners) will never realize. That is an unfortunate fact
of business.
The other problem is that they often use products like this as
what they call a 'loss leader.' They are willing to take a huge
loss on the product in the hopes that the customer will buy other
things. If you are like me, you cannot afford to do that. So what
do we do?
The answer is very simple....if you can't compete with Amazon,
don't! You are not the size of Amazon, so don't compete with
them. (I know sounds too simple, but stay with me) So, if I can't
be the cheapest price, or compete with Amazon, how can I make any
money? ( I know, I asked the same thing when I started) The
answer is, if you have a great product, you sell it for a
reasonable price, and you have a great sales letter....people
will buy from you. (I don't have a degree in marketing, so I
can't explain why) But they will.
Here's the thing, if every small business in the world tried
to compete with Wal-Mart, or Amazon, there would be no small
business around. But, there are and they continue to thrive. What
you want to do is to not compete with Amazon, but others on eBay,
or wherever you are advertising your site, that are selling the
same product. Try and see what they are selling it for and stay
in that range. And most of all, don't worry about being the
lowest priced!
I know that sounds funny but, you would be amazed that if you
write a GREAT sales letter...then pricing has very little to do
with it. (And that has been proven time and time again) In the
members area of Drop Ship Connection there are great resources
and software that can help you write a great sales letter.
One mistake, between you and me, that I see people making
every day on eBay or on a website is that they are not even
bothering to write a sales letter. They list the product specs
and throw up a picture and expect it to sell. The mistake they
are making is that eBay is not a store that has products on a
shelf for everyone to pick out.
With the competition on eBay, and the internet as a whole, it
should not be looked at like a store for people to pick and
choose, but rather a mail order system on steroids. Think of all
of the junk mail that you receive in your mailbox; Most of it (if
they are trying to sell you something anyway) is going to be in
the form of a sales letter. (The main page of The Drop Ship
Connection is an example of a sales letter.) You really have to
make people want to buy your product from you with a great sales
letter, then price is not an problem.
So why is there not much difference between what Amazon sells
it for and the wholesale distributors you list; Are you sure they
are real wholesalers? My answer to this question is always...yes
all of the wholesalers are verified as true wholesalers or
manufacturers. However, you will never get the same price Amazon
gets...that's just an unfortunate fact.
You are not buying hundreds of thousands of units shipped on
pallets with a HUGE discount because of the size of your order.
You are ordering from a wholesaler who maybe got two pallets in,
then has to pay people to break them up into single units and
repackage them for distribution to your customer (obviously they
have a higher overhead, so they are going to pass that on to
you). And, if they are the manufacturer, again they have to pay
people to ship them out individually in packages vs. a huge
pallet. (More work, more money)
About The Author
Tony Keeler is the founder of MAR Services who publish several
successful websites:
Drop Ship Connection - The Web's #1 directory of wholesale
distributors who drop ship.
$2 Software - All of the marketing and advertising software
you've seen out there for $50.00 or more for only $2!
DingleHopper - Funny Name, Cool Products!
Free eBay Resources - Start your auctioning career right, for
FREE.
tony.keeler@dropshipconnection.com
 MORE RESOURCES updated Thu. February / 09 / 2012
3G.co.uk |
HTC Launches First 4G LTE Smartphone in Europe3G.co.ukVodafone in Germany are just getting ready to launch their 4G network, but in the UK the 4G auctions are yet to even take place. The HTC Velocity, which is similar to the HTC Vivid LTE that launched in the US, should be released in the next few weeks ...and more » |
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KeyDrive Acquires Moniker and SnapNamesBusiness Wire (press release)... investments Key-Systems®, Moniker® and SnapNames® offer a complete suite of domain name products and services worldwide including access to over 300 domain name extensions, full-serve brokerage, live and online auctions and monetization services.and more » |
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LEAP event supports literacyKPCnews.comTickets for Saturday's event cost $50 per person and include food and beverage tasting, live entertainment by Dan Heath with the Paradise Band, along with the chance to bid on gift items at two auctions. The evening will feature a variety of food ... |
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College show a dress-up affairVictoria Times ColonistIt includes food, music, games, prizes and auctions. Casino Royale has a James Bond theme, so guests are encouraged to wear tuxedos and gowns. The decor of this year's fundraiser will bring to mind Montenegro, one of the settings of the 2006 Casino ... |
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Kickbacks row: AP proceeds to review excise policyZee News"The current system of auction (of liquor shops) is flawed. It needs to be revised...we are on the job," Mopidevi told newsmen here today. A team of senior Excise Department officials visited Tamil Nadu recently to study the excise policy in vogue ...and more » |
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Hart, S - Superfast BroadbandDeHavilland (press release) (subscription)In reply, Mr Hart asked about what could be done to help those left out of the plans. Responding, Mr Hunt said that Ofcom's announcement for 4G spectrum auctions would mean that 97 per cent of the country would be reached, but more should continue to ...and more » |
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Muckdogs planning for Hot Stove eventThe Daily News OnlineBATAVIA — The Genesee County Baseball Club will conduct its annual Batavia Muckdogs Hot Stove dinner and auction on Friday, March 2, 2012, from 5:30 to 8:30 pm at Terry Hills Golf Course and Banquet Facilities at 5122 Clinton St. Rd. Tickets are $25 ... |
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As a small business person-slash-advice columnist I dread
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