Turning website into making profit

Pekka · December 17, 2003, 22:50

I want to know all there is to this. With your help and guidance to the right sources of information, I will learn it all. I might have a website running rather sooner than later, and later on it might be doing some selling. Now, I'd like to knwo about internet selling, the tricks in the bag.

Also, if I do that, do I need to register it as a business?
How do I maximize the profits? If I sell outside my country, what is the best ways of finding the cheapest, yet fast enough couriering? What about boxes, I might have design for them, where can I order cheap boxes fort the products they'd be put in when shipping out?

Everything. Teach me.

Sava · December 17, 2003, 22:51

Good luck... I hear amazon only turned a profit last year.

Skanky Burns · December 17, 2003, 22:58

Pekka · December 17, 2003, 23:12

Thanks for the input fellows. Now I know lots about this.

Spiffor · December 17, 2003, 23:14

Laughing Skanky strikes again!

Pekka · December 17, 2003, 23:19

Well let's say that I'm not creating this to nothing. I already have the products, or access to them. Also I don't need info on marketing. I need info on the other things. Not 'how people buy from you' but the practical stuff. And how I can squeeze the money right here.
It's not how much you make, it's how little it costs you.

VJ · December 17, 2003, 23:21

Insert black & white video cam with sound-recorder and a really lousy image quality into the toilet of your mothers apartment, then connect it to your live dialer requiring internet-webcam-service, claiming that the footage source is a public toilet somewhere in Houston.

$$$'s will just flow to your swiss bank account.

Monk · December 17, 2003, 23:23

Tuomerehu's idea is being followed at www.chaos.dk

Urban Ranger · December 17, 2003, 23:26

Quote:

Originally posted by Pekka
I want to know all there is to this. With your help and guidance to the right sources of information, I will learn it all. I might have a website running rather sooner than later, and later on it might be doing some selling. Now, I'd like to knwo about internet selling, the tricks in the bag.

First rule of the land: avoid spam like the plague.

Quote:

Originally posted by Pekka
Also, if I do that, do I need to register it as a business?

Setting up a limited company has advantages.

Quote:

Originally posted by Pekka
How do I maximize the profits?

Sell high, buy low.

Seriously, without more information, nothing can be said.

Quote:

Originally posted by Pekka
If I sell outside my country, what is the best ways of finding the cheapest, yet fast enough couriering?

What is "fast enough?" IOW, what are your time constraints?

Quote:

Originally posted by Pekka
What about boxes, I might have design for them, where can I order cheap boxes fort the products they'd be put in when shipping out?

You are probably better off buying stuff locally unless your quantity is big enough to overcome the transportation costs.

Pekka · December 17, 2003, 23:30

UR, more explained in my last post. Yes I don't have to spam. I don't need marketing advices, though I will read them too and appreciate it. I'm not know-it-all type of person.

What I'm really trying to.. I know where the profit comes from, like I said it comes from the small expenses. I guess I'm trying to cut as many corners as possible, in the littlest details. The products would definitely have to be in destination in two days inside EU (3 MAX), and 4 to 5 days if outside EU. Majority will be inside EU.

Urban Ranger · December 17, 2003, 23:43

Well you seem to have a lot of time for delivery so you probably don't need a courier service, they are very expensive. It looks like you can use just regular mail (or perhaps a faster version of it).

One thing I found one is you don't want to compete on price. You need a huge volume and will constantly engaged in a neverending price war (e.g. Intel vs AMD). You want to have something unique to offer, so that means brand name, design, quality, or services. The latter 3 will contribute to brand name, but that's not always the case (I fail to see what's so hot about Louis Vuitton).

So first thing you need to consider is your product. Are you the only person who offers it? If not, you need to think hard. Can you perhaps get an improved model for yourself? Is there something unique about it that you can capitalise? For example, the Body Shop does not advertise, they rely on word of mouth, and they give back to the local community (at least some communities). So what is your selling point?

You need to look at your business flow. How do you minimise expenses? A lot of companies rely on computerised stock control to reduce inventory to a minimum. If you have a website, you need to make it completely automated. Again, look at Amazon's for a good reference.

Zylka · December 17, 2003, 23:50

If you have to ask here

It ain't gonna work

Pekka · December 17, 2003, 23:53

Yeah sorry I used the wrong term. By vourier I meant all kinds of delivering. Postal service should EASILY complete this task, at least inside EU. Shipping and handling is covered in 24 hours. I think if I make it a small business, I can even get some benefits and not have to pay the full price of posting. Maybe from taxes, can't remember.

It's not so much based on volume. The volume is not huge. But it has it advantages, like I'm not about to lose huge amounts of money either. Sales are almost guaranteed, the problem is if they are enough, and if I can profit enough to have the effort worth it. By minimizing expenses is the way to go I figure.
Also, as it is not my main thing to do, it wouldn't be disasterous if I don't make too much money of it. Some money is OK. I don't have to go to price wars. The prices are pretty regular already. The good thing is, I can capitalize on one thing with this that I will not reveal, and why I think it's worth a shot. If your advices need this information, I might PM you if you really want, because it's not that huge of a secret, but something I don't feel comfortable telling here publicly.

Also the sales in numbers I don't expect to get redicilously huge. I also don't expect to get rich. I expect to get some money (poor student, settles for little), and if not that, then at least good experience. BUt I'm serious about it. If oyu want to hear my selling point you have to PM me.

Pekka · December 17, 2003, 23:54

Zylka, basically you're saying, if you don't know it, don't ask or try, it won't work? I don't belive in that

.

I already have the concept. What I lack is expertise how to make more profit. How to cut expenses. And if someone has previous experinece, they can always chip in and share their knowledge.

Zylka · December 18, 2003, 00:48

You seem not to even know what it is your selling specifically, nor who your website will cater to. Do you have any layout ideas or graphic knowhow? So far it just seems like an assumed Internet + selling stuff = $$$

It can work, and if you can pull it off - all power. G'luck my brave Fin!

Pekka · December 18, 2003, 00:58

I know exactly what I'm selling. I know EXACTLY who I'm catering with it. Maybe more than most sellers will ever know. It is very spesific group...

I have layout ideas. My graphic knowhow is not the best, but my friend has decided to help me who is professional graphic designer, and very good one.

It won't start by selling anything. It's a site about something, and after I see how it goes and if the site itself gets popular, then I go selling some products. And mostly just to cover the domain etc costs actually. Maybe few extra euros to buy real cigarettes and not these pirated crap dry ones

. And if it doesn't success, hey it's all good.

I know I'm being very blur about this, so you couldn't know.. sorry about that. I have also something that no one else has. Goal is not huge sells necessarily, it's all good. No hurry, I got all the time I need...

So it's pretty safe to try out. But what I do not know is the hardcore expertise, the thing that separates the true winners from average and losers. How to maximize it and how to minimize my expenses. And as I'm being general, I expect general responses.. yeah I know most internet based places are doing horribly.. I mean, one of the biggest record stores went down.. groovetech.com... would have never guessed they were in such bad shape.

It can work for sure, it's all up to how well I can implement the game plan, because there's nothing wrong with it. But that's another question!.. thanks for the good wishes. I send you a free t-shirt someday if it works out

Urban Ranger · December 18, 2003, 02:05

Quote:

Originally posted by Pekka
So it's pretty safe to try out.

That's always a good thing.

I assume you know all the basics, like having a business plan, made realistic assumptions on finanacial situations (unlike the dotcom people

) like when will you breakeven, etc.

Pekka · December 18, 2003, 10:58

Well in theory I can do those. I can count the critical and all other points etc etc no problem, do the books and business plan.... and whole lots of other analyzing ding and dong. But that's not the problem, the problem is actual lack of experience. So, I'm just.. you know.. basic things, what should I expect that I don't now think maybe etc.. cut down the costs.. But the sales are not the priority #1. It would just go with the site if it should go that way.

DAVOUT · December 18, 2003, 11:25

How do you intend to collect the payments ?

Depending of the weight and volume of your product, you have to decide what quality of box you need (transportation is a cruel test for boxes), and considering that it will be the first thing coming from you, you have to choose an appropriate appearance; then you could inquire about the cost.

Pekka · December 18, 2003, 11:33

Well, I figure money orders, via credit cards (mostly Visa). Maybe some other payment methods also, but these for sure. Good thing is the weight is not big and the volume, well that depends, but the products themselves are never big, so .. the boxes can be rather small. Something you could use to fit in few VHS tapes maximum in ordinary sale.

DAVOUT · December 18, 2003, 11:42

I suppose that Visa card payments would require a personnal authorisation from the Visa Group to charge the client account. They likely prefer a registered corporation than an individual.

If the product is light and small, a box could be replaced by an envelop reinforced by plastic bubbles, cheaper and lighter.

alva · December 18, 2003, 11:53

Pekka, you're talking 'bout chinese take-away, right.

Pekka · December 18, 2003, 12:07

Yeah, that one I have checked already from them (their website). Nah, I think envelope won't cut it.

Traianvs · December 18, 2003, 12:30

Pekka, you're starting an online porn shop right?

I thought so because you said you wanted to have profit

Pekka · December 18, 2003, 12:47

It's not porn though..

Zopperoni · December 18, 2003, 13:00

What's your inventory model like? Is your product something "home made", or do you have to buy it from a wholesaler/distributer? Do you manage the inventory yourself, or will you have it vendor managed?

Amazon is a nice example to study the business model of, but you could also look at the business models of, for instance, content and/or interactive services providers.

Pekka · December 18, 2003, 13:03

I'd get the product from the distributer.. I'd manage the inventory myself, if it starts getting better (selling more), then I have to get help.

Zopperoni · December 18, 2003, 13:19

The principle of vendor managed inventory is that you make an arrangement with the supplier about the inventory. The supplier then keeps track of your inventory for you, and replenishes it for you in a timely manner.

O, and something on financial/logistics models. Check out Dell's, it's very clever. The transfer of ownership of the inventory occurs when it's taken from the factory shelf at Dell, not when it arrives at the Dell assembly facility.

DAVOUT · December 18, 2003, 13:24

Quote:

Originally posted by Zopperoni
Check out Dell's, it's very clever. The transfer of ownership of the inventory occurs when it's taken from the factory shelf at Dell, not when it arrives at the Dell assembly facility.

Pekka is very clever too, but the Pekka factory is at the same place than the Pekka assembly facility. Much more clever.

DanielXY · December 18, 2003, 14:49

Quote:

the boxes can be rather small. Something you could use to fit in few VHS tapes maximum in ordinary sale.

...

I'd get the product from the distributer.. I'd manage the inventory myself, if it starts getting better (selling more), then I have to get help.

So... you make an info site on drugs and than sell them?