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  1. #1
    HI silver trophy Silverado4x4's Avatar
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    Selling with a limited budget

    I am talking to a manufacturer about selling their products. However, these products average at about $180 retail. I can only carry about 3 of these products at first until I can see their ROI. This is fine with the manufacturer because they do not have minimum orders.

    This product has several different models (think Chevrolet having different types of vehicles), and for the beginning I would only stock one model.

    I am planning on creating a one-page website (off a good domain name I just bought) selling this product that is both professional and appealing to customers.

    Do you think customers would be weary of buying something on a tiny website (well, the sales page, contact information, etc. would all be there) selling this one product? I would be marketing it on PPC engines.

    I'm just worried it may seem like a fishy business to them if I am not carrying the other models.

    What do you guys think about this idea?

    How do you others start an ecommerce website without a large budget to stock as many items as your competitor?

    And finally, what is the general percentage retailers buy their products from? Such as 20% off retail...

  2. #2
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    If you think only showing one item on your site may be an issue, you might consider displaying all the different models on the site anyway. You don't necessarily have to have any in stock, you can have the manufacturer ship it directly to the customer if you want. Kind of like Value America's inventoryless system back in 200 or so. Then when you generate enough revenue to store a couple of each item in stock, go ahead and do so.

  3. #3
    SitePoint Wizard silver trophy
    beley's Avatar
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    One thing we've done with manufacturers in the past is offer to bring in a few items in stock and have the other models/styles available on our website even though we didn't stock them. We would state on those specific products that delivery times woudl be a little longer... and we would order them from the manufacturer if/when we got orders from them. That way we could bring in the most popular style and still list all the others before seeing which ones would sell or not.

    That has helped us tremendously in the past. Ask your manufacturer how fast they can get you a product. You may have to pay a little more for expedited shipping from them to you but even if your margins aren't quite as good you'll still make a little $ and can offer more of a selection.

  4. #4
    SitePoint Enthusiast Pouchman's Avatar
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    It depends on the product, market segment, volume you buy in, and profit margin potential. Your markup will be less on higher ticket items, but even so your profit margin will probably still be higher. I would still target more than a 20% margin because you have costs eating into your profit.


    And finally, what is the general percentage retailers buy their products from? Such as 20% off retail...


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