January 2010
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. Also, check out our new blog at DropShippingBlog.com for drop ship news, information, commentary, and community.
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Featured Article: Attention New Online Retailers: Focus on Experience, Not Your eBay Feedback Score |
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Marketplace Spotlight: Suppliers and Product Sourcing Process |
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Member Q&A: Doba's Education Center |
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Supplier Information: New Suppliers
and Products from the Doba Product Catalog |
Featured Article: Attention New Online Retailers: Focus on Experience, Not Your eBay Feedback Score
By Stuart Lisonbee, Marketing - Doba
For anyone keeping score, my November 18, 2009, blog post titled Drop Shipping For Dummies has attracted more than 200 comments, one of which recently caught my attention. From Derick Sweet:
I have recently started with Doba on a trial basis; I have not decided yet to stick with it long term. Is it normal to not sell items at the beginning of using the service? I'm not too far into it but I'm trying to change up some of my strategies while at the same time learn how everything works and how to get my items to actually sell and at least compensate for my loss in fees. Perhaps it will improve once my eBay rating increases? That, I think, is what is crippling me, because I started a new eBay account and it placed me at 0 rating. Maybe the book [sic: Drop Shipping For Dummies] will help.
I'm guessing a lot of Doba members have asked themselves the same question, so here's what I think: It's not abnormal to have difficulty selling online when first starting out. While it's true that some people hit the ground running, more often than not, those people already have retail experience. For everyone else, there's a significant learning curve. Having low feedback on eBay definitely doesn't help, but that shouldn't stop anyone from plowing forward, learning as much as they can, and growing their online drop-ship business.
Many years ago, I receive a phone call from a friend who was doing business consulting for a department store that had more inventory than anyone knew what to do with, so he got them started on eBay. Problem was, nobody at the company had any experience with online auctions, and as a result, the very first item they sold brought them negative feedback.
My friend then calls me to help bail the department store out of what they perceived to be a bad spot. I came in and took over management of their eBay account, starting right off the bat with a feedback rating of -1. Over the next 18 months, we sold over 10,000 items, achieved the rank of PowerSeller, and enjoyed a feedback rating of over +5,000.
Going off what Derick wrote above, my honest opinion is that he has to get some experience under his belt before jumping in full bore with Doba and eBay. The first item I ever listed and sold on eBay was a worthless baseball card. I opened the bidding at $0.01, and got one bid. I decided to ship the card for free and didn't even bother collecting payment. Although I was out the insertion fee (back then the minimum fee was $0.30) as well as the cost of a first-class stamp, the experience was an important one... I gained a better understanding of how eBay worked and the confidence to move forward.
By the time I came to work for Doba, I was experienced enough that the very first item I listed from the Doba catalog (an avalanche beacon) sold for around $30 above cost. It had taken some time, but I had reached the point where I understood how to make money on eBay rather than lose it.
Find something, anything, to list on eBay, whether it's something collecting dust in your attic or something out of the Doba catalog. Go in with the expectation that you will probably not make a barrel full of money right out of the gate, but will break even at best or lose a few dollars at worst. The education, experience, and confidence you gain will be well worth the cost.
About the Author:
Stuart handles search engine optimization strategy and education at Doba. In the past, he has worked as Content Manager for one of the nation's leading online advertising agencies and manager of a department store's eBay PowerSeller account. He has also authored hundreds of articles on online business success along with several eBooks, and is the co-author of Drop Shipping For Dummies. Stuart enjoys card games, particularly poker which he first took up over 23 years ago. When opportunity permits, you can find him (not) counting cards in Las Vegas or catching one of the many great shows on the Vegas strip. Stuart also occasionally volunteers as a DJ at a local radio station.
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Marketplace Spotlight: Suppliers and Product Sourcing Process
By Jeff Knight, Vice President of Marketplace - Doba
As retailers, sourcing is always at the foremost of your concerns. How do you decide what to sell? How should you sell the item and where should you source the item? If there is a supplier integrated onto Doba's platform, then the sourcing question is largely answered. However, what if there isn't a supplier currently on the doba platform and how does getting suppliers onto Doba's platform work? What is the process and how does Doba determine which suppliers to work with and/or prioritize who are on boarded? This month, I am going to explain Doba's supplier on-boarding and explain the role a retailer plays in many of the questions asked above.
Supplier Pipeline
Suppliers are introduced to Doba in a few different ways. Doba's category managers attend several different trade events throughout the year. At the events, we touch base with our existing suppliers, and introduce Doba to new prospects. We tend to focus on suppliers whose products have a certain dollar density (sales price versus pounds to ship), their products are shippable via commercial ground carriers, and finally suppliers who add breadth and enhance our catalog. In addition to trade events, Doba does contact suppliers who are attractive or have been referred to us.
As Doba has grown, we have seen explosive growth in the number of suppliers who contact Doba directly and apply to be a part of our platform. As I have stated in previous Marketplace Spotlights, Doba believes in an open, transparent marketplace. In other words, we believe in explaining both Doba's and our retailers' expectations up front to the supplier. In reverse, we expect the suppliers to provide transparency to their limitations and benefits. Our backend allows for rapid on boarding and our transparent philosophy is conducive to moving suppliers quickly into the marketplace.
Finally, we rely on the referrals and recommendations of our retailers. Suppliers that are on boarded after being referred by a retailer tend to be more motivated and therefore, more productive then their counterparts on boarded through other means. For retailers using the Doba platform, there is very little reason not to use Doba for the 'heavy lifting'. We are experts in aggregating and standardizing disparate data and as a retailer; you should leverage the resource as if we were your IT department. If you want to refer a supplier; simply direct them to fill out the simple application at http://smb.doba.com/suppliers . Doba will promptly send them all the information they need to get started.
Priorities
As you can guess, Doba interacts with thousands of potential manufacturers, distributors, artisans and liquidators every year but we only onboard several hundred. Why is this? There are a variety of reasons. The supplier could have limited technical resources or they do not have the ability to fulfill packages individually. A majority of suppliers who enter the pipeline but don't leave - are for this very reason.
Another common reason is that the supplier has concerns over channel. The concerns generally revolve around who is going to sell their items (e.g. protect their existing retailers), where their items are sold (e.g. eBay, website, physical stores, etc) and for how much the items will be sold for (e.g. MAP violations). All channel strategies, regardless of whether you are a retailer or supplier, have advantages, and limitations. Some strategies will work mesh well with our platform and others require a more cautious approach. Doba works with the supplier and addresses their concerns by providing a transparent marketplace and explaining our value.
The final reason suppliers remain in the pipeline comes down simply to Doba's resource allocation. Just as with the supplier, Doba has a limited number of people and resources to focus on the endless possible candidates. We, like all of you, are forced to make priority decisions based on our perceived return on investment (ROI). We look at the number of retailers who will be affected (or are requesting the supplier/category), the technical sophistication of the supplier, the strategic value of the category versus the time/personnel costs. Ideally, the demand for a supplier/category is directly proportional to the number of retailers requesting products on Doba. Largely this is the case, but there are occasions where limited resources cause delays or inability to respond your requests for products in particular category.
As I stated above, part of your strategy should be to think of Doba as your personal, in-house, supplier on-boarding IT department. One way to insure you keep costs down is to maximize efficiencies in your operations. Supplier and inventory management are among the biggest expenses to your growing business. That said, you need to take an active role in which suppliers are brought on to Doba - Doba provides your backend/catalog. Research categories and find sources. Inform both the source and Doba that you want their products and help initiate the process. The Marketplace Department is keen on feedback and we have the expertise and technology to act quickly as we see the need arise.
Doba is not interested in working with all suppliers. We do reject a fair share of suppliers who we feel will not be able to meet standards or meet expectations. I would challenge you to do the same as your evaluate sources and look a products/suppliers/categories. Suppliers can apply directly at:
Finally, remember that while on boarding may seem simple and even though a supplier may be technically sophisticated; there are always other projects, complications, vacations, etc that cause delays. Plan ahead.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: Doba's Education Center
By Sharley Danis, Customer Support - Doba
The Doba Education Center is your gateway to nearly everything you need to know in order to make your online business successful. Here you will find articles, tutorials, archived web seminars (Webinars), and the Doba Dropshipping Blog. We are fully committed to helping you meet and exceed your business related goals, and by learning all you can from the Education Center, you can gain a leg up on your competition. Below are the items and updates we have made within the last year, so read on to learn about and take advantage of these tools.
Doba's Education Center
The first section in our Education Center is the archived Webinars. Listening to these is like sitting in on a real-live training session. Here you can listen to the advice given by industry leading experts that have developed proven techniques in online retailing. You can gain plenty of insight into the industry that can be implemented to your own business model. All of the Webinars have been organized into categories for quick navigation to the information you're looking for.
Multimedia Tutorials
The next section contains our newly updated Multimedia Tutorials. If you are new to the world of Doba, we highly recommend that you go through each tutorial before doing anything else. The tutorials give you a step-by-step demonstration on an array of topics ranging from navigating the Doba website, to transporting product information. We have received very positive feedback from our customers using these tutorials, so please look through them for up-to-date training on the Doba system.
Articles, Newsletters, Elite Seller Report
The third section is Doba's Article Database. This section contains all of the essential information you need about drop shipping. It also provides answers to nearly all the questions you may have. The articles, like the Webinars, are divided into categories based on the details they provide. Article topics include selling on eBay, business basics, industry news, marketing and many more. Also included in this section is the Newsletter Archive (allowing you to access the most recent newsletter and others dating back to October 2003), and the Elite Seller Report, which tells you the top selling products each month by category with additional featured articles. There is even a chart under Where to Sell, that shows and compares many of the different websites you can sell on if you are new to eBay.
Doba's Dropshipping Blog - Finally, we are proud to announce the newest addition to our Education Center, the Doba Dropshipping Blog. We are constantly striving to find more ways to interact with our customers, and our blog has allowed better access and communication than ever before. Here you can see the latest updates and insights from Doba employees. The blog not only gives you business information, but also a little look into our community here at Doba. We look forward to hearing from you in the future so that we can serve you the best we can.
Get yourself familiar and comfortable with the Doba Education Center. This is your 24 hour access library to success!
About the Author:
Sharley joined Doba in January of 2009 as one of Doba's customer support representatives. She has spent the past 5 years specializing in customer service, which has helped her immensely to best serve you at Doba. You may have talked with her many times or even heard her voice on the Multimedia Tutorials. When she is not working, she can be found spending every extra moment with her husband and family.
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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 you achieve your business-related goals, we recently added new wholesale suppliers and manufacturer to the Doba Catalog:
Supplier MiCasa - MiCasa specializes in specialty home appliances. It would be easy to find a gift for anyone within the family!
Aroma 7-Cup Pot-Style Rice Cooker Red |
Hoover Wind Tunnel Pet Cyclonic Vacuum |
Santa Fe QM2R Quesadilla Maker |
Supplier Buckthorn - Buckthorn is a distributor who offers a wide range of wholesale goods. They have products covering the home and garden, electronics, gaming, and toys categories, as well as tons of other categories.
Coca Cola Pub Stool with Back |
Euro-Pro Toaster Oven Remanufactured |
The Bean Elite and Flex 10 - Ultimate Exerciser |
