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Starting someone else's business online ...

What do I need to consider ... ?

         

mipapage

2:55 pm on Sep 20, 2003 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



I am looking at a few options for starting up an e-commerce site of my own - I have affiliate programs and other ideas in mind.


One of the Ideas

I know of a local retailer that fabricates their own product, and it happens that it is a product that I am passionate about. Sounds good. This retailer has even mentioned to me how he would like to get on the web, but doesn't have the time, nor is he ready to pay to have someone in the shop dealing with orders.

I've got the idea that I could build the site for free, something very simple to begin with. For the first x number of items sold I could take 5-10% of the sale value for myself to pay for the site, and then we could work something out for the future sales.

WRT hiring someone to work for him to ship the stuff, at first it would be a small volume so perhaps he could handle it, and as volume increases hire someone for as many days necessary to cover the costs.

What do you folks of this forum think of this idea? Has anyone done this and is there something big that I am missing here? He's afraid to take the risk and lose money, and I'm not going to do this for free - I can whip up a site quite quickly for him and feel that I can get it positioned well, and quickly - so I don't see much of a risk here if the thing flops.

Am I missing something in all of this?

Essex_boy

9:01 am on Sep 21, 2003 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member Top Contributors Of The Month



Another way of looking at this, how about agreeing to buy these items from him at a discount - adding 5 % - 10% on top and selling them on your own account?

I assume his products are unique.

mipapage

11:58 am on Sep 21, 2003 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Essex_boy,

Thanks, that's a good idea. I actually started thinking that, 'cause after doing some searching I found that some other web design firm appears to be building him a site (their 'client side' has been spidered by google). I'm going to talk with him and see what he thinks - Either I work in hand with him, or as an affiliate!

I assume his products are unique.

He's not reinventing the wheel - just a former 'pro in the biz' who now makes his own gear - hoewever he only sells it from his shop.

derekwong28

12:35 pm on Sep 21, 2003 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



I agree with Essex_boy, it is best you should just resell. You can ask him to drop-ship for you if you want. However, I would recommend that the margins be 30% or greater to cover for advertising costs, lost or broken shipments, and credit card fraud...

Essex_boy

12:41 pm on Sep 21, 2003 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member Top Contributors Of The Month



Oh yeah the margins! For me it has to be a rock bottom of 25%, 30 % makes me sleep better 50% leaves me with a smile! you get the idea.

youll be surprised just how this can work I know a guy making tables didnt have a site so I sold on his behalf before I knew I was attending trade shows etc, sold the business for nice profit. Just goes to show if you hit it right theres gold in thar hills.

Good luck.

mipapage

6:48 pm on Sep 21, 2003 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Thanks you two - this is great motivation:

drop-ship = What? I'm not familiar with this one.

Essex_boy - Yer on to something here. I can imagine that there are a lot of people around me in that situation...

Time to open the eyes a little wider...

sem4u

6:53 pm on Sep 21, 2003 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Drop-ship is where the company will deliver the goods to the customer on your behalf, but it will look like the goods have come from you.

mipapage

6:56 pm on Sep 21, 2003 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Gotcha, thanks.

Well, one of his concerns was having time to take care of shipping etc... so that may be sticky for this case, but totally possible for others.

My view of the world is changing - I live in an area where there are lots of little elves that make their own stuff...

mipapage

8:46 pm on Sep 21, 2003 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Okay here´s one:

If you are selling someone else´s stuff online, and they put themselves in contact with the store and buy that way, for example, what do you do for that? Just let the shop have that business for free?

Other example - Lets say I set up the shop for this guy, and he handles the orders - how do I keep him honest? I could receive a copy of all orders, for example, or even take care of orders myself - but this could become a bit tedious.

Any ideas for how to handle this aspect?

sem4u

9:03 pm on Sep 21, 2003 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Take the orders yourself, then you remain in control.

Essex_boy

10:33 pm on Sep 21, 2003 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member Top Contributors Of The Month



Blimey at 32 years of age Ive actually been of use to someone!

What you need to do is ensure that you are in effect an extended outlet for that guys products and by ALWAYS paying on time for your supplys youll be surprised just how extra accounts youll get passed to you by your supplier.

In my experience most people are honest and wouldnt poach your account by going direct to an outlet.

They dont have the time anyway - thats why they use you.

Or If ive spent a lot of time and trouble wooing (?) a customer I have the producer sign an agreement stating that they will not approach the firm directly.

Itll snowball very quickly.

mipapage

9:10 am on Sep 22, 2003 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Blimey at 32 years of age Ive actually been of use to someone!

Absolutely, you've all been super-helpful. Hopefully I'll be able to post something in Essex_boy's thread [webmasterworld.com] in the future.