Table of Contents
Featured Article: Expanding Opportunity with Grass-Roots
Marketing
By Jake Sabey - Education Specialist, Doba
It's not breaking news that marketing has changed dramatically through
the years. The extreme advancements in technology present marketing
with new and exciting opportunity and resources, but also cast a shadows
over the founding principles of marketing. The challenge for online
retailers is to not forget what has worked for so many years in the
past. In this article, I will discuss how to combine old and new strategies
in becoming a hybrid business and expand business opportunity through
grass-roots marketing.
Seeing Green
I was riding my bike home from work the other day and saw a bumper
sticker that read, "Green is the new Black"–meaning
that natural or organic things (referred to as the color green) goes
with everything (just like the color black in a fashion sense). Coincidentally,
I noticed this sticker attached to the back bumper of a Honda Civic
hybrid,
a type of vehicle that combines a gasoline engine and an electric engine
for a mixture of fuel that powers the car, conserves energy, and provides
"better gas mileage."
It seems the current economic state has everyone going back to their
roots and thinking "green." With everything from the food
they eat to their mode of transportation, as a society we are analyzing
our lives and expanding our options; keeping available resources from
becoming extinct and opening opportunity's door at the same time. Online
retailers can do the same by using a blend of new and old marketing
resources.
Available Resources
Especially as online retailers, sometimes we need to stick our heads
in water and shake it out and say, wait a minute, what time is it, and
where do I go to get lunch? (Translation: Stop, step back,
look at the overall picture, and move forward accordingly) Make it a
habit to analyze your business practices and strategies on a consistent
basis. An ever-changing market presents a situation where your business
marketing, strategies, and practices may not work as well as they have
in the past. You may be asking yourself, "With so many markets
available to sell in, which one should I choose?"
Well, the real question should be, "Which one's should
you choose?" Putting all of your eggs in one basket might not be
the safest bet. Start with the available resources.
Grass-Roots Marketing
Grass-Roots marketing was born and became successful long before advanced
technology showed it's face. The Four P's of Marketing (Product, Price,
Place, and Promotion) introduced the marketing
mix which created an equal opportunity for retailers to compete
on the same grounds with the same end goal–satisfying customers
and making a profit. Customers looked to more than just a good product
for a good price to determine their satisfaction, they looked for a
relationship and a good overall purchase
experience; a relationship deeper than the wallet.
I remember my grandpa saying, "Back in my day, you never bought
something from someone you didn't know and respect. Now, people will
buy anything from complete strangers."
Although the times have changed, my grandpa shares an important customer
trait that has not changed that much; customers will purchase a product
from whoever presents the most comfortable overall situation.
Classified Advertising
Classified Advertising is just one way to market your products. With
classified ads, you can list products easily (and free!) locally through
newspapers, community boards, and online without needing a physical
store–targeting members of your local community. Beneficial to
both retailers and buyers, purchase experiences within the community
bring more comfort, security, and trust to the table.
Last year, a Doba employee purchased a chocolate fountain off of Doba's
website to use for parties and game nights with friends. After receiving
plenty of comments and questions about the chocolate fountain, he listed
the same fountain on the classifieds of www.ksl.com
(local Utah news station website). The listing including contact information
(with address for those interested to come see if first), photos he
took himself, a detailed product description, and a personal story that
paints a picture of love, laughter, and good times with the chocolate
fountain being the center-piece. He also included a list of possible
occasions the fountain could be used for. Within a month he averaged
selling 2 or 3 chocolate fountains a week.
Note: When using a supplier that drop-ships and selling
in a classified ad market, it may be necessary to communicate to the
customer that the product will be shipped directly from the warehouse
and allow for necessary shipping times. Or, you may have to take on
inventory by pre-ordering the product and shipping it to yourself.
Marketing in your local community changes the situation overall; suddenly
sellers are not just some one reaching for your wallet anymore, they
become an actual person just like you, someone you can personally relate
to.
Here are some classified ads to consider (Most are free
to list products):
- Local television, radio, and news classified boards and websites
- Local community, business park, and college classified boards and
websites
- CraigsList.org
- Kijiji.com
(An eBay company)
- USFreeads.com
Word of Mouth Marketing
Word of Mouth Marketing has always been a free and fun way to market
products with virtually no rules. It's all about doing something to
stand out in a crowded marketplace. Use your imagination and creativity
to get the word out about your products. The more you have people talking,
the more people will talk.
On the same bike ride home I previously mentioned in this article,
my attention was caught by what I thought was a lemonade stand. Unfortunately
for me (in that particular situation), reality struck when I stopped
next to a small table on the sidewalk and noticed it was a table full
of all types of hand made cards, paper and previously designed pages
for sale, instead of some type of cold thirst-quenching beverage. There
were 3 little girls trying to get their piece of the business pie by
selling scrap booking pages and supplies on the side of the road.
I know of some people who host a "Pants Party," where people
look at, try on, and purchase brand name jeans. Similar parties are
thrown to promote and sell other entrepreneur's products or services.
Word of mouth marketing, for the most part, can be free and can be
argued as the most effective marketing in terms of return on investment.
Adding creative and original touches into word of mouth marketing will
expand your opportunity to reach out to more potential customers...and
get them talking as well.
Amazon.com
Amazon is another excellent resource to consider in addition to the
markets you are already selling in. Amazon is a market for any type
of seller, with a platform that offers many different seller accounts
to best suite your business style and needs. And, just like classified
ads and word of mouth marketing, it is free to list products through
on Amazon. They will not charge you until the product you listed has
sold.
Former eBay University Instructor and Online Retailing Instructor,
Steve Lindhorst
teaches people how to expand their online business with Amazon in his
book, "Selling
on 'the River'- The eBay Seller's Guide to Amazon.com." Known
as a competitor to eBay, the title quickly sets any assumptions straight
by emphasizing that this book is not one to bash eBay, but to assist
eBay sellers in considering multiple markets to sell in, along with
other options.
Visit www.amazon.com
for more information on how to start listing products today.
Increased Success: Going Hybrid
Technology has played a major role to help provide opportunities and
resources that work in the favor of online retailer's today. When it
comes to marketing, businesses have neglected the old to make way for
the new–when they should be using the old with the new to create
a hybrid business–fueled with grass root marketing and new-age
technology to expand their business options. Becoming a creatively hybrid
business will extend the life of your business, improve the value of
your business, help your business run cleaner and smoother, and give
you better gas mileage (return on investment).
About the Author:
Jake Sabey is an eBay Certified Consultant and an Education Specialist
for Doba. Jake's educational strategies and methodologies help online
retailers meet and exceed their business-related goals. Prior to working
for Doba, Jake was a team leader, supervisor, and trainer for Toys R
Us, Sinclair Oil, SBC, and AT&T.
Doba Update: Member Feedback Helps to change Drop Ship Fee
Due to the feedback of Doba members, Doba has recently changed the
drop-ship fees for media suppliers Sinai
and Platinum,
from $2.50 to $0.00. This new drop-ship fee will assist you in standing
out in a competitive market.
At Doba, it is our priority to help our members be successful in every
definition of the word. However, a lot of our ability to do so lies
in your hands. That is why we give you the option to leave feedback
concerning products or suppliers through the feedback link on any product
information page.
Note: Feedback does make a difference. Although all
feedback is read and taken into consideration, not all feedback will
result in actions to products or information on Doba's site.
Here are more resources for more information about the Doba's Feedback
Link:
- March 2008 Doba eNewsletter: Featured
Interview - Ashley Schaumburg, Doba Merchandiser
- April 2008 Doba eNewsletter: Marketplace Spotlight:
"Doba Feedback Link" - Jeff Knight, Doba's Vice President
of Marketplace
Partner Highlight
ProStores,
an eBay company, enables small- and medium-sized businesses to sell
products and services online through a completely customizable virtual
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profitability of their overall business and extending their brand online.
Use Doba's Push to MarketPlace tool to push Doba products directly in
to your ProStores webstore. Free
one month trial!
Marketplace Spotlight: 'Tis the Season
By Jeff Knight, Vice President of Marketplace
We are 7 months into 2008 and yesterday while I was enjoying a wonderful,
sunny Utah summer weekend – my thoughts turned towards the coming
Christmas season. While it may seem in the distant future, the start
of the Christmas season will start in a mere 3 to 4 months. The decisions
and plans you make in the next few weeks will determine whether 2008
is successful for you. A successful fourth quarter can generate resources,
traffic, cash flow, etc. to gain the momentum needed to grow. In contrast,
a poorly planned fourth quarter can leave you and your business deflated
and flat – and a year away from the next Christmas season.
I am not saying that you should ignore the seasonality or merchandising
opportunities of the next few months. ‘Back to school’ is
one example that presents a tremendous seasonal opportunity for certain
categories. However, that said, I will say that everything from choosing
technology providers to understanding the basics of SEO should be geared
towards the single goal of converting sales in Q4.
In the next month, as a retailer, you should be able to verbalize your
sourcing and merchandising strategies. Have you picked your preferred
suppliers (or types of suppliers) that you will use? Being realistic,
who are some of your competitors and what advantages/disadvantages do
you have over them? Remember there is no need to reinvent the wheel,
most successful strategies are merely optimizations of existing business
plans. Do you use 100% drop shipping or do you have a mixed model? If
you have a mixed model, drop-shipping strategies can range from generating
traffic to being residual income by adding breadth to your product selection.
If you are 100% drop-ship, you have specific goals for quality (cancellations,
back orders, accurate data, etc) and fulfillment times in mind when
selecting suppliers.
As far as goals and resources, a retailer should know the exact costs
of their operations and how much margin is required to maintain and
grow the business. One of the largest issues I have seen with new retailers
is when they drastically underestimate the financial and resource costs
of drop shipping. Traditionally, a brick and mortar retail would have
to lease a building, order products and market their store. Strangely
they had an advantage in one way - they understood exactly where they
sat financially with their store. I would propose that while your catalog
is virtual – that you should approach the cost analysis in much
the same way. When you are working on margin requirements – you
should still consider the costs of shipping, the real estate (website,
auctions, etc), the services required (marketing, logistics, taxes,
etc) and your time. While you may be a long way from paying yourself
a handsome salary – you still need to make sure that your goals,
expectations and pain threshold are all realistic numbers.
As mentioned briefly above, now is the time to experiment with marketing
strategies for customer acquisition (get the eyeballs to your products)
and conversion (get them to buy your product). It doesn’t matter
whether you have a website or sell on eBay – you still need to
have a acquisition strategy and you will have costs associated with
that strategy. Whether through affiliate networks, SEO, or a viral/social
network strategy – the goal should be to not only get people viewing
your items now but be able to somewhat lock down your costs and conversion
strategies for when it counts. Not all strategies will work, and you
will spend money without results but as long as you gain some insight
on why it didn’t work it should be worth it. Google has wonderful
free analytics you can use and match up your advertising to website
traffic.
Finally, I would be remiss if I didn’t take the opportunity to
remind you that if you have suppliers that you need integrated onto
Doba – time is of the essence. Access for suppliers is free and
we have incredibly simple – yet robust and dynamic – technology.
As resources get tighter and timelines get shorter – it only makes
sense to put more of your time and energy towards merchandising and
leave the supplier management to us. For us, it is likely we have talked
to most of the suppliers you could refer. However, we dedicate resources
to supplier integrations we feel have the best return on our resources.
Simply, if we don’t know there is a good fit between a retailer
and a supplier – we may move forward more slowly then we would
normally if we hear from you.
Suppliers should apply at:
http://www.smb.doba.com/suppliers
About the Author:
As the Vice President of Marketplace, Jeff Knight is responsible for
all aspects of the merchandising strategy, supplier acquisition, and
vertical category management and fulfillment operations of Doba's marketplace.
Prior to Doba, Jeff was Director of Merchandising for Overstock.com
where he developed the growth and management of the Computer and Home
Office category. Jeff's background includes merchandising and technology
leadership roles at DealDeal.com and BCI International. He earned Bachelor
and Masters of Arts degrees in Communication from the University of
Wyoming.
Partner Highlight
eBay
Stores
One of the fastest ways to build your eBay business is by opening your
doors to a wealth of buyers with eBay Stores! You'll have everything
you need to maximize your success the easy way with the selling power
of an eBay Store. You'll get powerful marketing features, design tools,
listing management, advanced reporting, dedicated toll-free support
and more. Open
your eBay Store today!
Member Q&A: "How often does the 'Last Update' category in my
Watch List get updated?"
By Rick Limon
Recently many Doba members have expressed their concern about their
Doba watch list, especially regarding the "Last Update" category.
Here are some questions and answers that will help clarify the workings
of the "Last Update" field in the Doba watch list.
(Click
here for bigger image)
Why do certain items show a date of several weeks past? Does
this mean the supplier does not update their inventory on a regular
basis?
The "Last Update" section of the watch list will only change
if any product information changes. Although the suppliers update the
product feeds frequently, there may not be any change in the information
for that product. In that case, the "Last Update" category
in the watch list for will not change, and reflect the last date in
which there was any change made in the product information.
Why would a supplier update the product feed, yet there would
be no change to the inventory?
This could occur for several reasons. Some suppliers are manufacturers.
Since they make the products, they can maintain a steady quantity available.
Some suppliers have more quantities of an item in their warehouse than
they make available in the catalog. So, even though orders are being
placed, they make the same amount available to Doba customers.
How do I best utilize the watch list to determine what is available
to sell?
If you encounter products that don’t seem to vary in quantity
available, add them to your watch list. Over a few days, monitor how
the inventory fluctuates. Since the suppliers update the inventory on
a regular basis, this will give you an idea as to how quantities fluctuate
for that product, and give you a better idea on which products you wish
to list for sale.
For further information about watch lists, search the Doba Knowledgebase
by keyword. Here are some resources to get you started:
We Want to Hear from You! Want to see your question
featured in the eNewsletter Member Q&A? Well we want to hear from
you! Please email education@doba.com
if you have any non-account related questions or topics you would like
us to write about. If you have questions concerning your Doba account,
such as billing, product or order questions, please search our knowledgebase
site content or contact our Customer
Support.
About the Author:
Rick Limon is an eBay Certified Consultant and an Account Manager
for Doba. Working directly with new online retailers, Rick assists retailers
in meeting their business specific goals by helping them take full advantage
of the resources and services Doba offers. Rick holds experience as
a Behavior Specialist and Mental Health Worker with Lackland ISD, Southwest
Mental Health Center, and Parent Child Incorporated.
Partner Highlight
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is the nation's leading eCommerce merchant account provider. Offering
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mail order, retail and auction sellers. e-onlinedata is Authorize.net's
largest payment gateway provider, providing instant establishment of
a Merchant ID Number (MID) to get you online and processing customer
payments quickly, easily and inexpensively. For
more information and special Doba customer pricing, apply online today!
Supplier Information: New Suppliers Added to the Doba Product
Catalog
Starting an online business is relatively easy. Making it a success
takes hard work and the right mix of products. To help you achieve your
business-related goals, we recently added 1 new wholesale supplier and
manufacturer to the Doba Catalog:
Carrot
- Wholesaler of the unique Pictoob picture frames that displays pictures
in a clear tube.
Linen
- Distributor of wholesale sporting goods and hunting-related products.
Safflorite
- Supplier of apparel and fashion.
Jake
- Manufacture of Life Learning Devices, devices that display centuries
of wisdom at the touch of a button.
Sulfur
- Manufacture of gift baskets for every occasion.
Doba has
updated their privacy policy. Click
here to read Doba's updated Privacy Policy.
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