Thursday, February 13, 2014
On the Business Path: Internet Business-14
You can find many manufacturers, wholesalers, distributors, closeouts and dealers on the internet of every product available, the trick is the buy at the lowest price And at this juncture the economic rules comes into play which is economies of scale. The more you buy the more your price per unit of a product goes down and sometimes you get free stuff in addition it but it will never be free so you want to get to the lowest minimum price per unit. But being a startup you may not have funds to go the minimum lowest price or buy in extremely huge quantities like truck loads or container loads of goods. You will have to buy small quantities at slightly higher prices and then justify it by providing additional service so that your customers can see value in what you are offering. So still you have a chance to buy low and sell high but initially it would not be possible to buy at the lowest price. I will come back to the point of economies of scale since this does not matter to a startup but a unique idea surrounding the common products can certainly gain you many customers. Nowadays free shipping on big ecommerce is a given but there are certain variations to it like a limit dollar amount that you can spend that you can achieve free shipping but in the future small ecommerce sites will have to provide this service and makeup for the expense in some other way because the customers expect it so.