July 2009
Table of Contents
We want to know what you want to know! Email education@doba.com with your suggestions of what you want to see in future issues of the Doba eNewsletter.
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Featured Article: Expanding Opportunity with Grass-Roots Marketing |
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Marketplace Spotlight: How to Use 'Deals' to Create Momentum |
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Member Q&A: Updates in eBay and Doba's Push to Marketplace Tool |
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Supplier Information: New Suppliers
and Products from the Doba Product Catalog |
Featured Article: Expanding Opportunity with Grass-Roots Marketing
By Jake Sabey, Doba Education Specialist
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.
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3XP Websolutions
3XP Web Solutions gives you everything you need to start an online business in one complete and easy system, including a web store and a merchant account so you can accept credit cards. Best of all it is seamlessly integrated with the Doba product catalog! Also included are traffic analysis tools, search engine submission, domain name registration, multi-tiered affiliate program, and more. Click here to view 3XP's special offer for Doba members!
Marketplace Spotlight: How to Use 'Deals' to Create Momentum
By Jeff Knight, Vice President of Marketplace - Doba
In past articles, I have written about various strategies retailers can employ to differentiate themselves from their competitors and the idea behind helping your customer ‘identify’ with your brand/store/site/message. One idea, while certainly not new, has gained a tremendous amount of momentum in past years – that is, the idea of consistently offering a ‘deal’ to your customers. Without exception, there is no major (or even mid-major) e-tail site that is not offering some variation on this theme. Whether an hourly, daily or weekly deal on one or several products – the e-tailers all employ similar strategies.
If we shelf the discussion of the obvious (e.g. sourcing the deal) – there is probably nothing more important then the idea of consistency. Deals should always be scheduled and should match up with your best conversion times. Examine your traffic logs, sign up for Google analytics, look at sales reports, look at the time that feedback comes into your email, and think about your own browsing and shopping behavior - it doesn’t matter as long as you start looking at when you get the maximum amount of eyes looking and spending time with your catalog.
After you decide on a day or time, be consistent and ALWAYS display your new offer at that time. On top of that, let your customers know what you are doing and more importantly when you will be doing it. The idea is simple – don’t count on people to remember to check out your selection; instead condition them to habitually check for new deals (anybody hear the ringing bell?) Sales will not happen overnight and this is where consistency is important. The more times the consumer checks back and finds a new deal at the time they expected to find a new deal – the more likely you are to gain a long time customer. I can give you a personal example. For years, Evertek would take down their catalog every Friday afternoon and bring it up a few hours later. Evertek always has done an exceptional job of sourcing and whether you viewed them as competition or a good place for deals – every computer dealer in the country (especially liquidators and system builders) would pay close attention to what new deals were listed on Friday. To this day, 10 years later, I find myself checking the site every week whether I have a legitimate need or not.
The next idea to tackle is directly related to a previous discussion – what is your story or brand or hook that your customer identifies with? The idea can be as simple as great pricing on hard to find products (hard to do), in-depth analysis and review of a great product (make yourself a thought leader) or even build a niche around a category or idea. One of my favorite examples of a site doing a great job building a persona is Woot.com. The mix of community, sarcasm, and great deals is largely unmatched on the web. Woot has an incredibly loyal customer base and it shows if you watch sales or read the comments.
All of the above is for not, if you do not source or select the right products. I will let you know right now – not every product you pick will be a winner. In addition, while price definitely matters – helping your customer ‘perceive the value’ of the item matters more. Many buyers early in their careers make the mistake of seeing a ‘good deal’ based solely off the difference between their cost and MSRP/Street price and they over commit. Simply, because a product is priced right does not mean that it will fly off the shelves. The consumer has to believe the item has a value and that value matches their expectation of cost. The further below their expectation of cost you are – the more likely they are to buy. The inverse applies also – if the consumer feels the need for the item strong enough, they may purchase even if the deal doesn’t match their expectation. Even more likely is they have no expectation of cost but they still see the value as greater then what you are charging. The idea of impulse buys has existed for a long time and most traditional big box retailers use end cap positions to maximize these buying habits.
Planning ahead is your best strategy for finding the right deals. For certain deals you may buy them directly and carry them in your own inventory. However, for the most part, save this strategy for the very best deals. Drop shipping products is a very effective strategy for sourcing deals – you just need to plan, do your research and execute effectively. In addition to planning the deal(s) – remember to plan your alternates (in case the item is suddenly unavailable), cross-sell items (what items go nicely with the primary deal) and upgrades (extended warranty, different color, more storage, etc). If you plan ahead, are always consistent and give your self some breathing room the strategy of implementing a deal on your site will, eventually, pay off.
As a final note and following my own advice, make sure that you are subscribed to and watching for our weekly Doba Deals emails. The emails are sent every Tuesday morning. A lot of the deals are truly exceptional. Many of you have attested to the fact there are some great deals by clearing out the sale items early in the promotion period. The specials are all first come – first serve and while we try to reserve sufficient quantities to last – this is not always possible.
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.
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Member Q&A: Updates in eBay and Doba's Push to Marketplace Tool
By Kay Russon - Doba
On the 15th of June, eBay changed some of the listing requirements which forced some additions in the Push to Market Tool. eBay is now requiring that you post a return policy for every listing. Meaning, that you state whether or not a return is allowed as well as the average processing time for the order. This will affect both eBay and eBay Stores retailers, but does not change anything for ProStores retailers.
So what does this mean for the average eBay seller? Let’s take a look at the new additions and how it is going to affect you as a retailer.
Typical Order Processing Time
This is the time required from the time you submit your order until you can provide your buyer the tracking number. The default is 5 days. However, this is really supplier dependant. Because we work with so many suppliers, this default will not fit all of them. It may vary for each item you push as it may come from a different supplier. Some supplier may ship in 1-2 business days while others may take up to 14 business days. You will need to check each supplier you use to see what their processing time is. You can verify a suppliers processing time by clicking the underlined supplier link on the details page of the product. If you leave it at the default and you list a product from a supplier who has posted 10 business days to process your order, you may have an angry buyer who may leave you bad feedback. You must check this and set the correct processing time. This is done in the second step of the push request by clicking on the edit link below the Individual Item Settings. In fact, all three of these should be changed or set there.
Returns Allowed?
This is where you must be familiar with each suppliers return policy for the product you sell. Again, the default is set to 'No.' Leaving it at the default will indicate to your buyers that you do not accept returns; which will affect your sales. Setting the default to 'Yes', says, yes, returns are accepted. However, if you have listed a product that, in the supplier’s policy they will not take back, you run the risk of needing to refund your buyer for the sale even though the supplier will not refund you. Some products that the suppliers will NOT take back are cosmetics, underclothing and consumables such as foods.
One supplier I looked at states the following:
We cannot accept the return of certain items, including: swimming suits, undergarments, body jewelry, software, factory-sealed sports collectible sets, cigars, wines, and perishable products (food items, chocolates, plants & flowers). Other select items, as noted on the product detail page. If you list one of those items, you would want to change the selection to No.
There are many more so, before you list it, make sure the supplier will allow you to return it.
Return Policy
Of the three new entries, this is probably the most difficult. This is really YOUR return policy, not that of the supplier. So, don’t just copy the suppliers return policy on a product and use it as yours. You will need to create a personal return policy and put it in the default settings, (marketplace settings) that will meet eBay’s requirement. However, this must be one that you can back as you will have to live up to what you state. So, how are you going to handle returns? You have to be the man communicating between the suppliers and your buyers. You will have to strive to resolve each situation to the best of your ability within the constraints of the supplier’s return policy. You must be familiar with the return policies of the supplier’s that you are using. You should read through them before listing a product. It is found by clicking on the supplier link and then clicking on Return Policy.
By effectively communicating your return policy and procedure to your customer, you will help create a more secure and comfortable purchase experience your customer, and better your chance of having them return for future business.
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:
Kay “Papa” Russon is an eBay Certified Consultant, Customer Service Team Lead, and technical liaison for Doba. His knowledge, experience, and expertise assist retailers daily in running a successful online business. Before Doba, Kay was a team leader, supervisor, trainer and manager for World Support, Digital Equipment Corp., Digital Remote, SBC, AT&T, Macromedia, Sun Microsystems, and Motorola and served in the Army National Guard.
Partner Highlight
ProStores, an eBay company, enables small- and medium-sized businesses to sell products and services online through a completely customizable virtual storefront at their own internet domain, accelerating the growth and 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!
Supplier Information: New Suppliers and Products from 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 youachieve your business-related goals, we recently added new wholesale suppliers and manufacturer to the Doba Catalog:
Supplier Monte Rosa - Monte Rosa is a global leader in nutritionals and consumer health care products that promote human longevity, strength and vitality. We seek to understand the nature of aging and develop products to reverse the aging process.
Neti Pot Starter Kit |
Glutamine 2000 |
Biotin 1000 |
Supplier Charlie - Supplier Charlie specializes in the import and distribution of general merchandise and gifts.
Genuine Leather Jacket with Bull Rider Logo (Extra Large) |
11pc Surgical Stainless Steel Cookware Set |
Brookwood Hand Carved Fax Cuckoo Clock |
