Sales of any product or services is possible. If it’s a commodity, you sell by volume, and create awareness and exposure.
If you can do your own branding on a white label product, and that product itself is reasonably in demand, then you can charge premium.
Reselling a Branded Product
If you’re doing this, then the only service you’ll be providing is a stocking and delivery service. Customers can and will search and compare prices, and the moment you’re charging more, they go to other online sellers. The only strategy here is to sell in volume, to up-sell, cross-sell and do product bundling to ensure the profits cover the cost of customer acquisition.
Custom Product Branding
Buying something white label, you have the ability to charge premium.
“A white label product is a product or service produced by one company (the producer) that other companies (the marketers) rebrand to make it appear as if they had made it.” – wikipedia
This can be a digital product or a non digital product. Just make sure if it’s a physical product, it doesn’t have a brand stamped on it where the customer can compare prices post purchase. If they discovered you have charged way more than what it truly costs, they could request a refund, calling on your money back guarantee.
Your Own E-Commerce Website
This avenue would require you to have some technical knowledge, running a shopping cart software and integrating with Paypal or to your own payment gateway. The knowledge domain needed would be store setup, customization and then operations management.
Popular Alternative: Shopify
The popular alternative to hosting and running your own shopping site would be a hosted solution from Shopify.
Keeping Stock or Drop Shipping?
“Dropshipping is a retail fulfillment method where a store doesn’t keep the products it sells in stock. Instead, when a store sells a product, it purchases the item from a third party and has it shipped directly to the customer. As a result, the merchant never sees or handles the product.
The biggest difference between dropshipping and the standard retail model is that the selling merchant doesn’t stock or own inventory. Instead, the merchant purchases inventory as needed from a third party – usually a wholesaler or manufacturer – to fulfill orders.” – Shopify
With dropshipping, you don’t have to risk paying for products up front. You would also be saving on double shipping cost, when the wholesaler ships directly to your buyer.
Being a stockist can be expensive, based on the amount of stock and product variety you’re selling, even more so when you’re not able to sell. However, keeping stock allows better price negotiation and savings on self packaging and storage fees. All those extra fees have been bundled into the real cost of dropshipping by the wholesalers.
The Real Magic To Profiting From Buy/Sell Model..
- Strong Custom Branding for White Label products OR Volume Sales For Reselling Branded Products
- Effective Prospect Targeting and Re-Targeting
- An optimized sales funnel incorporating social proof, urgency, scarcity and simplification of buying process
- Effective Up-Selling, Cross-Selling and Product Bundling
- Persuasive sales copy
- Ability to receive thousands of unique visitors daily from organic traffic alone
The Devil Is In The Detail
It took me nearly 20 years to fully study, execute and succeed at digital marketing and building organic traffic. For one of my income stream alone, I had over 6,000 unique visitors daily, all purely organic. I made slightly over a hundred sales daily.
The details on succeeding at a buy/sell business model heavily depends on your understanding of search engine behavior and this relates to user-intent, SEO ranking factors and A/B testing of sales pages among a dozen other things.
In the past, I used to work for airline companies and also in the fintech industry. My job then was to architect strategies to deliver high quality, long term organic traffic. I delivered over 10,000 unique visitors daily, all purely organic!
The result from organic traffic is astounding. Without paying for clicks, 10k organic visitors daily resulted between 200-400 leads daily. While you should have short-term paid traffic plan to kick off your sales quickly, it’s the long term organic traffic that will provide healthy profits for years ahead.
If You’re Interested To Know More
Contact me and we can have a casual chat over coffee in Starbucks or a cafe nearby. Over the years, I have made a checklist of different categories of products, what will sell, and what doesn’t. This decision tree was born from my various attempts at promoting different type of products, whereby some sold really well and others were hardly sold at all. Studying through all my past results, there was a clear pattern which indicated that some products will not sell, no matter how persuasive the site was.
I cannot guarantee that I will be able to help you for what you intend to sell, or I might, based on how my experiences overlap with your idea. But I can most certainly share with you the real knowledge of getting thousands of organic visitors daily, which will be a key factor of any website’s success.