Forum Moderators: buckworks
But since the Adsense program provides little security, I would like to diversify the income from my site. I want to sell hardware online! (Who doesn't?)
I have written down some pros and cons and I hope you can give me some beginner advice on this subject.
Pros
- I have a site with 5000 pageviews per day on average.
- My visitors show a general interest in computers, computer hardware, and Windows networks.
- I know where to get a web shop and how to work with it.
- I know some basic marketing principles that I learned in school.
- I know people like the content I write from the emails I get, from forum replies and from sites that link to me.
- I think I can stay ahead of competition by offering a better looking and user friendlier site.
Cons
-> I am very chaotic and bad at keeping a financial administration
-> I have no previous experience with selling products online
-> I am a bit afraid of the responsability
-> I have a part-time job
-> I can invest a maximum of 3000 Euro (+/- $3650)
My initial plan is to sell hardware through a large distributor. Some distributors offer reselling deals. They send the hardware to the customer, take care of RMA procedures and repairs. I, as a reseller earn a share of the loot.
Do you have some beginners tips for me? How do you consider my chances of succeeding in setting up a steady business? How much of an advantage will I get from my existing site if I implement the shop there?
Find a supplier that will allow you to buy in ones of an item or the smallest quantity available, make sure you know the correct weights and cost for shipping.
Ensure that you have a supplier of packing materials on hand. Find yourself a decent credit card processor and cart.
Away you go.
Build say 3% into the price that you put away as insurance against fraud.
Be reliable with your despatch times and answering emails from customers.
If you already have the visitors should be onto a winner, fingers crossed.
I, as a reseller earn a share of the loot.
Anything that rosy has got to have a catch. Is the contract of sale between YOU and the customer (because that's what a reseller does)? You will then also bear all the responsibility....awkward customers, technical support if they can't get it from the distie, legal responsibility for giving refunds even when there is nothing wrong with the goods, stupid customers (major problem) who don't read the manual, can't figure out how to use the product and blame YOU, payment frauds, other frauds (I did not receive the goods - I don't know whose signature you have there), compliance responsibility, business and pubilc liability insurance in case a router catches fire and burns a house down.... and that's the tip of the iceberg.
Wanting to diverse is savvy business thinking. I'd do it by diversifying your advertising income sources. Let somebody else not just take the credit card number and do the shipping, but be the actual seller - minimise the risk you are taking on. Use your strengths, start websites in related areas. With a little marketing of the sites/your emails you can earn more there with the same amount of time. Make a sale and you've earned ten euro. Make a page on that widget and make 1 euro when someone clicks the ad. But you'll make that one euro day after day after day.
However, I don't think spreading risk by diversifying is savvy business thinking in my case. Since my site is in Dutch it is difficult for me to expand my advertising to other ad selling companies. There simply are very little such companies in my country and the ones that do operate on the Dutch internet pay very little money. Nothing compared to Adsense.
I will give this plan a lot of thinking. I don't want to be held liable by a company and lose everything.
