Rupesh Sanghavi Member Since August 2008
"While researching other drop-ship aggregators, I found Doba and liked the idea that you carried products from many different categories, allowing me to work with hundreds of suppliers with one account."
How did you get started with Doba?
I wanted to diversify my business. I was doing well in the book categories and realized that I could sell products from other categories since I was selling on a lot of marketplaces like Amazon. While researching other drop-ship aggregators, I found Doba and liked the idea that you carried products from many different categories, allowing me to work with hundreds of suppliers with one account.
Explain the product sourcing challenges you face as an Ecommerce Retailer?
Since my model is based on selling “long tail” products, I’m not out there selling hot-selling items. So I need a lot of SKUs for the model to work. That’s why I market more than 5 million products versus a company that focuses on selling just hot selling products and doesn’t require as many SKUs. Because of this I need to work with many drop ship vendors both domestically and internationally. Managing that amount of product data can be challenging. Data is always an issue and finding ways to have accurate data is something we are always working on. Plus, a lot of long tail products don’t have UPC codes, which is standard for selling in various marketplaces such as Amazon. There are ways to work around it but it takes a little more time.
On average, what is your profit margin in selling drop ship products from the Doba catalog?
My profit margin is between 8 percent and 10 percent.
What have you done to make your business stand out? What contributes to the growth of your business?
Search Engine Optimization (SEO) has a lot to do with the growth of our business. We focus on optimizing our websites so the long tail products we sell show up high on search engine result pages. I guess that’s one of the reasons selling long tail products is effective – less people doing pay-per-sale (PPS) bidding and optimizing on those keywords. This lowers our marketing spend drastically, which helps with our margins. Also, customer service is critical — especially when selling on open marketplaces that have seller feedback. People buy from those that have good track records. We do everything we can to have extremely high feedback.
Where do you sell the products you source through Doba?
How many drop-ship suppliers do you work with?
We work with about 50 suppliers who drop ship, most of whom are based in the U.S., with a few in India.