Tag: alibaba

Preparing Your Business for the Cold Weather Ahead

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The weather has been turning quickly, as temperatures across the United States are plummeting. For businesses of all types and sizes, wintertime brings about a lot of changes to store policies, hours, maintenance and inventory. It’s good to begin prepping your business now so you’re fully prepared for all that winter brings.

1. Prepare Your Online Store

Currently, over half of the [U.S.] population, or 190 million people, [shops] online. This number rises in the winter, particularly around the holidays, as people are less inclined to face the storms simply to conduct their shopping. If you want to make the most of wintertime sales, it’s highly encouraged to prepare your online store and marketing strategy so you can garner as many online customers as possible.

2. Choose Your Seasonal Product Lines

As you prepare for winter, you also need to begin bracing yourself for the holidays. With the holidays, you’ll likely be updating your inventory to offer more seasonal gifts that cater to Thanksgiving and Christmas shoppers. Begin scouting out the latest seasonal trends so you can choose inventory based around the hottest-selling items.

3. Prepare Your Parking Lot

The parking lot of a business is critical to keep maintained, particularly in the snowy months of winter. Potholes and cracks in the asphalt can be dangerous at any time of year, but, [when] coupled with the icy roads, [they] could be a recipe for disaster. Scan your parking lot for any holes or cracks, and have them paved over before the first snow.

4. Stock up on Needed Office Supplies

Come wintertime, businesses are much more likely to face late shipments than in summer due to poor road conditions that limit travel abilities for truckers. As such, it’s better to be overstocked on necessary supplies than understocked in the event a shipment arrives late. Take stock of all supplies that are used daily, particularly office supplies, and be sure to purchase more than enough in advance.

5. Have a Disaster Recovery Plan Created

Disaster recovery plans are even more vital in winter, because there is much higher chance of the building falling victim to structural or technological damage. Have a plan in place that details what to do should your business lose power or be impacted by structural damage due to an intense storm. It’s wise to have all essential software and technology backed up to the cloud so business can continue to operate, even in the middle of a power outage.

In the wintertime, businesses have a lot more to deal with than in summer. The facility has higher utility costs, you’ll have more maintenance tasks ahead of you, and, all the while, you’ll likely see a drop in customers. By preparing your business in advance, you can brace your company for the worst possible circumstances. In turn, you can create more wintertime sales while avoiding the potential disasters that cost businesses money. Start stocking up on the supplies your company needs, so you always have enough on hand. Visit DollarDays today and start browsing.

Original article here: http://globalbizcircle.com/preparing-business-cold-weather-ahead/

6 Strategies for Streamlining Your Workforce

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Many business owners feel as though the workforce isn’t operating as efficiently as it should, yet are at a loss for how to improve productivity. Short of firing your staff and starting anew, what strategies are actually effective at boosting work performance and streamlining the workforce? Here are some simple and cost-effective ways to get more out of every workday, while improving overall performance as well.

1. Implement BYOD policies

“Bring Your Own Device,” or (BYOD), is a rapidly growing policy being implemented by businesses everywhere. BYOD policies are where businesses require employees to utilize their personal devices, such as cellphones or laptops, for business use. Not only will this save your business a tremendous amount of money, but it can encourage productivity, as well. BYOD devices typically link to cloud-based work platforms, so [the policy] offers employees the ability to work from any location and [from] all of their devices.

2. Automate, automate, automate

To truly boost workplace efficiency, take a [cue] from the robots. There is now automation technology that can streamline virtually all aspects of your digital workload. From organizing data to improving analytics, robots can conquer the menial tasks that your employees loathe.

3. Do it right the first time

One of the more common ways that businesses waste time is by making mistakes or having unknowledgeable employees. Training employees can go a long way in streamlining the workforce. When your employees are experts at their trade, they’ll complete tasks more efficiently while doing a better job the first time around.

4. Leverage technology to its fullest capacity

Today, there are literally hundreds of different technologies and apps that can help to encourage productivity, improve time management and streamline a workforce. From customer-relationship-management software to improve your customer management to sales-management software to help manage inventory and sales, investing in the right software applications can significantly improve your work efficiency.

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5. Schedule breaks regularly

There has been ample research conducted into the need for breaks in the workplace, with most suggesting that businesses are shorting their employees considerably. Most employees get two 10-minute breaks and a half-hour lunch each day; however, by implementing the Pomodoro Technique, your employees can enjoy more frequent breaks while increasing their total productivity for the day, as the technique is based around the natural attention span of humans.

6. Partner with reliable suppliers

The suppliers you depend on play a crucial role in helping to streamline your workforce. With unreliable suppliers, you’ll have difficulty remaining on top of inventory. When one aspect of a business process is disrupted, it negatively impacts many other areas of business. You need professional and reliable suppliers to ensure your business thrives and business processes operate as efficiently as possible.

At DollarDays, we understand that wholesale suppliers are more than just venders—we are actively supporting your bottom line. With this in mind, we go above and beyond to ensure every order is fulfilled in a timely manner and exceeds your expectations. With all that business owners have to worry about nowadays, your product orders shouldn’t be one of them. Contact us today to learn more about our services.

Original article here: http://globalbizcircle.com/streamline-workforce/

Honing in on the Perfect Profit Margin

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Business owners need to possess multifaceted skillsets. Not only is it imperative to possess exceptional work ethic and business management skills, but you need to be an excellent writer, a mathematician and a creative thinker, as well. When it comes to finding the ideal profit margin, it requires both excellent mathematical skills and innovative thinking. Here is a guide to help you hone in on that ideal profit margin without zapping your mental energy in the process.

Determine What an Appropriate Profit Margin Looks Like

Small- to mid-sized businesses (SMBs) can anticipate lower profit margins than their big-box competitors due to […] scale. Before honing in a perfect profit margin, you need to determine what an appropriate profit margin will look like based on the size of your business, the number of years in operation and the industry [in which] you’re operating.

While profit margins will vary by industry, Butler Consultants reports that, for retailers, the average profit margin is around 48.46%. By striving for an unrealistically high profit margin, you’ll be driving customers away with unreasonable prices; however, settling for a low profit margin could increase your risk of business failure.

Maintain Low Overhead Expenses

When striving to achieve healthy profit margins, businesses often turn to their pricing to see how they can squeeze more money out of each sale; however, overhead and operational expenses can actually have a tremendous impact on profit margins. [B]efore raising your price tags, examine your business model to see how much you’re spending and how you can reduce costs.

Take office supplies, for example. According to Gartner, the amount of paper produced by companies has been growing by a shocking 25% each year. It’s estimated that businesses spend about $200 per year per employee on office supplies. By finding lower prices on office supplies of the same quality, you can reduce this cost on an ongoing basis [and enable] your business to increase its gross profit margin. Compare the cost of office supplies among a variety of suppliers to ensure you’re getting the best price available.

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Partner with Top Wholesale Suppliers

When choosing a wholesale supplier, price should certainly be a primary concern; however, you need to consider other factors that will influence business performance and productivity, ultimately shaping your overall profit margin. How easy is the supplier to work with? Can they accommodate your needs? Are they able to scale their offerings to fit your demands? Do their shipments arrive on time and in excellent condition? All of these will partially contribute to the gross profit margin of your business, so it’s important to take all of it into account when choosing the right supplier.

DollarDays Puts Customers First, Encouraging Business Growth

At DollarDays, our primary concern is customer satisfaction. We understand that, in order for your business to thrive, it depends largely on the performance of the suppliers you partner with. We take our commitment to customer satisfaction seriously by offering the lowest prices possible on all of our merchandise and ensuring we are well-stocked to accommodate orders of varying sizes. Contact us today, and talk to us about your needs from a wholesale supplier.

Original article here: http://globalbizcircle.com/honing-perfect-profit-margin/

Leverage the Pokémon Go! Trend to Catch More Customers

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Pokémon Go! is the latest trend, and it has been sweeping the nation with haste. It’s estimated to have 9.5 million active users each day, and players range in ages from young children to senior citizens. It’s safe to say, this Pokémon Go! craze is popular among all age groups and will likely remain trendy for quite some time. The question is, how can you as a retailer cash in on this trend and catch more customers?

Create a Pokémon Go! Account

With the rise of interest in Pokémon Go!, more people are out and about, wandering the streets than ever before. For urban businesses, this offers a lot of potential for bringing new clients to your store. To start, you’ll have to create a Pokémon Go! account. Pokémon Go! has a free mobile app that can be downloaded directly to your smartphone.

Check Your Area for Pokéstops & Gyms

In the game, Pokémon has already established a variety of outdoor locations that are known as pokéstops and gyms. Pokéstops are places where users go to catch Pokémon and collect pokéballs. Gyms are places where users gather to battle other Pokémon. Check your app to gain a sense of all the nearest pokéstops and gyms in your area, so you can know where foot traffic will be heaviest throughout the day. You can use these high-traffic areas as marketing locations by posting signs, flyers or other marketing materials that will draw people to your business.

Set Lures in Your Store

One creative way to draw in more customers is by setting lures in your store. Haven’t heard of a lure? Then you must not be playing Pokémon. A lure is a feature in the game that allows users to plant lures at specific locations that will draw other players to that site; hence, by placing lures in your store, you’ll literally be drawing people directly into your business. Once they’re there, you can increase brand awareness and boost the likelihood of a sale.

Sell Pokémon-related Merchandise

Just as the Pokémon trend was starting to go out of style, the makers have found a way to resurrect their following. You can maximize on these trends by extending your product line to include some Pokémon-related paraphernalia. Stocking Pokémon cards near checkout, offering Pokémon stuffed animals and keychains, selling Pokémon shirts—the opportunities are endless. Use this as an opportunity to add a bit more variety to your shelves while creating a favorable impression on all the diehard Pokémon Go! fans.

Offer Pokémon-related Deals

One fun way to engage the public is to offer deals related to the Pokémon achievements of your customers. For instance, have a day where you offer all customers 10% off their purchase for catching a rare Pokémon.

While Pokémon was starting to fade away and become a relic of the past, the brand has found a way to make itself relevant again. With their brilliant marketing tactics, it’s likely Pokémon will continue to trend for decades to come. Take a tip from the Pokémon marketers and keep your business relevant as well. […] With the right approach, you’re bound to catch ‘em all—customers, that is.

Original article here: http://globalbizcircle.com/leverage-pokemon-go-trend-catch-customers/

5 Red Flags Signaling the Need for a New Wholesale Supplier

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Every business owner knows the importance of a quality supplier. The supplier forms the very foundation of the business, providing you with a vast selection of quality merchandise, partially determining your profit margin and ensuring your shelves are always stocked. With the wrong supplier, your business will suffer, and keeping your doors open will feel like a perpetual challenge. Here are some signs that your wholesale supplier isn’t a good fit.

  1. Your profit margin is struggling. Settling on an appropriate profit margin is always a challenge for business. You need to keep prices high enough that your own profits are healthy, but prices need to remain low enough to compete with other businesses in the area. If you’re struggling to find a balance that’s conducive to business success, the problem could be your supplier. If your wholesale supplier is charging too much for merchandise, it will be impossible to maintain healthy profits while ensuring your prices are reasonable for customers. You need a wholesaler who puts your profits first by offering the lowest prices possible on high-quality merchandise.
  2. Your customers are complaining. Have you noticed an increase in customer complaints? If customers are routinely expressing concern over the quality of your merchandise, then you may need to find a new wholesale supplier. A great supplier is one that provides excellent merchandise at fair prices, and if customers are regularly irritated at the lack of quality, then this is a major red flag.
  3. Your shipments are late. To operate a business successfully, you need to streamline your inventory management so supplies are always ordered on time and always arrive when needed. If your shipments arrive late, it throws off countless aspects of business, making it difficult for employees to do their job and leaving a bad impression on customers. A shipment may be late every once in a while if items are out of stock or if weather is bad; however, if your shipments are perpetually arriving late, it may be time to find a new supplier who takes their deadlines seriously.
  4. They’re calling all the shots. As a business, you are the supplier’s customer, and it’s their job to take you seriously. You need a supplier who’s willing to work with you and can continually meet the commitments they’ve signed up for. If they’re routinely out of stock of the items you need, if their pricing is constantly fluctuating, or if their shipments are inconsistent, this is a huge red flag that the supplier isn’t the right fit for your store.
  5. They offer poor customer service.You need a supplier you can communicate with and that’s available to hear your concerns. You need someone who will perpetually be in contact and update you about the status of your orders. If communicating with your wholesaler feels like pulling teeth, then you’ll end up doing more work than necessary to ensure your shipments arrive as expected. It’s time to find a supplier who offers the customer service you need.

The supplier you choose for your store can greatly improve your ability to operate your business effectively. With the right supplier, you’ll be able to meet your own deadlines more efficiently and remain on top of inventory management. […]

Original article here: http://globalbizcircle.com/wholesale-supplier/

5 Products That Can Reduce Your Environmental Impact

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Environmental awareness has become more prevalent in recent years as people become increasingly concerned with global warming, water scarcity and the depletion of fossil fuels. Whether out of concern for the environment or a desire to save money, decreasing your impact on the Earth offers numerous benefits. There are countless ways to ease your environmental impact and reduce monthly spending simply by switching out some common products in your home for their sustainable counterparts.

  1. Compact fluorescent lightbulbs. Compact fluorescent lightbulbs are considerably more energy efficient, and they can drastically cut down on the energy consumption of your home and office. Not only will it result in a cost savings for you—about $57 in energy expenses per bulb—but it will allow you to reduce your environmental impact, as well.
  2. Biodegradable trash bags. Each year, 5.3 million to 14 million tons of plastic enter the oceans and landfills of our planet, polluting the Earth with ecologically harmful materials that pose a danger to wildlife and aquatic ecosystems. By switching out your regular trash bags for biodegradable trash bags, you’ll be reducing landfill waste by about two to three bags per week, or 100 to 150 bag per year.
  3. Water-saving showerhead. It’s estimated that about 0.007% of all water on Earth is available to fuel and nourish the growing human population. With many areas of the world becoming increasingly arid and major droughts plaguing much of the United States, water scarcity is a pressing concern. A water-saving showerhead can reduce your water consumption considerably. On average, a person uses about 6,000 gallons of water for showering each year. With the right showerhead, you can cut that number in half, saving 3,000 gallons of freshwater annually. In addition to saving water, you’ll also be saving about $32.50 per year due to decreased water expenses.
  4. Reusable shopping bags. We’ve all heard of “plastic island,” the large conglomeration of trash that’s floating around in the ocean and has already surpassed the size of Texas. The average U.S. family uses about 1,500 plastic shopping bags a year, which, with the help of reusable bags, can be completely eliminated.
  5. Recycled paper products. The global demand [for] paper is rapidly growing, even as technology usage increases. In fact, global demand has increased by 400% in just 40 years, with 35% of the world’s trees being cut down and milled for paper. […] Deforestation impacts local ecosystems, contributes to global warming, and requires considerable energy consumption to cut, mill and manufacture the trees. By using paper products [composed of] recycled materials, you can make a dent in energy consumption and reduce your reliance on deforestation. With recycled tissues, toilet paper, stationary and more, there are countless ways to improve the energy efficiency of your home.

There has long been an emphasis on going green for people and businesses alike. Going green allows a person to considerably reduce their own environmental impact while also reducing their monthly expenses. A simple switch of your lightbulbs and showerheads can help you save a few hundred dollars per year while also promoting healthier and more sustainable lifestyle habits.

Visit DollarDays.com to explore a range of sustainable, energy-efficient and biodegradable products that will enable you to reduce your environmental impact.

Original article here: http://globalbizcircle.com/5-products-can-reduce-environmental-impact/

Don’t Care About Alibaba? Here’s Why It May Matter

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When the Alibaba Group Holding prices its initial public offering Thursday, small businesses, in particular, will be watching. Founder Jack Ma—the former English-teacher-turned-dot-com-billionaire—has touted his e-commerce platform as a way for smaller merchants to expand their international footprint, including access to consumers in China.

In its September 5th filing with the Securities and Exchange Commission (SEC), Alibaba said it “fights for the little guy,” but will Alibaba really champion “Main Street” in a crowded online marketplace?

Alibaba launched its IPO roadshow in New York last week with enough investor demand to cover the entire deal within two days, according to Reuters. Alibaba’s stock sale is expected to rival Facebook’s $16 billion offering two years ago.

“Our proposition is simple: we want to help small businesses grow by solving their problems through Internet technology,” Ma wrote in the filing.

So CNBC canvassed a few small merchants who already have waded into Alibaba.com. Their experiences, for the most part, were positive, according to the select group of small-business owners.

And in a twist on domestic manufacturing, products that are “Made in USA”—or even China-made goods sold through an American-based company—can get traction and differentiate themselves among a crowded slate of online sellers.

“The majority of our products are made in China, but simply being in the U.S. has helped us stand out,” said Marc Joseph, founder of DollarDays, [an] Arizona-based business-to-business site that sells more than 300,000 products—from apparel to cleaning supplies—in the United States and 44 other countries.

In the end, though, small businesses may have to play nice with the giant e-commerce portal, whether they like it or not. Alibaba is China’s largest Internet retailer, with online merchandise volumes that lag only Walmart worldwide. Alibaba does not break down how many businesses it partners with in the United States, but the company does report giving Chinese consumers access to millions of global merchants through a constellation of portals that essentially serve as digital, global storefronts or marketplaces.

In the SEC filing, Ma wrote that “international brands that set up storefronts on Tmall Global benefit from the exposure to the hundreds of millions of visitors on Taobao Marketplace and Tmall, enabling them to establish their brand awareness in China without the need for a physical presence in China.”

Some U.S.-based small businesses already have found success selling to other businesses on Alibaba.com. Absonutrix, a Greensboro, North Carolina-based nutritional supplement company, has been working with Alibaba for three years. While Chinese competitors have similar products listed for one-tenth the price of their supplements, being based in America and offering “Made in USA” supplements have helped their brand stand out on Alibaba.

“We will quote our products one time, and there will be nine Chinese (price) quotations at the same time, but people prefer purchasing ingestible products from the U.S.,” said Absonutrix’s senior sales manager, Adam Thomas.

The 10-employee Absonutrix will hit the multi-million-dollar mark in business sales this year. Thomas declined to detail what percentage of his sales comes from Alibaba.

“We have had some large partners materialize from Alibaba—the ones I have dealt with are sitting around the half-million mark,” Thomas said. “But the biggest value is in penetrating new markets. Our company becomes more well-known.”

If a U.S. company is selling something that international consumers don’t readily have access to, that American company naturally will stand out among international competitors, said Kelland Willis, associate analyst at tech research firm Forrester.

“T-shirts, you can purchase in China—but nutritional product demand, for example, is so high right now, so it will naturally generate a lot of interest from customers in China,” Willis said. “If you have a niche product that there is demand for in the market—like formula, toothpaste, laundry detergent—consumers will go crazy for it.”

And, in some cases, just being an American company can help an entrepreneur stand out. DollarDays’ Joseph has seen business grow through Alibaba sales for the past four years. DollarDays boasts some 3.5 million registered users and attracts 1,400 new customers daily globally, with about 100 coming from Alibaba. “With Alibaba being so strong as they are in the Far East, that has helped awareness to small businesses that may be made in, or from, China,” Joseph said.

Betty Mills, a San Mateo, California-based business-to-business e-commerce company, has also found success on Alibaba. Mills has been selling everything from uniforms to health and wellness products for the past six years. Traffic the 20-employee company gets from Alibaba is “very significant,” said Victor Hanna, the company’s chief executive, also known as “Chief Betty.” Alibaba has helped Betty Mills grow total annual revenue to about $15 million. Exposure on the site has boosted business leads both domestically and abroad, and, like Absonutrix, Betty Mills has raised its profile for uniforms and health-related products by just being based in the United States, which has some cache on Alibaba, Hanna said.

“The amount of leads we get from Alibaba each month is in the thousands,” Hanna said. “We are very happy with the relationship and excited about the future.”

Not every entrepreneur has had a smooth experience on Alibaba. Take Wil Willis, a Lancaster County, Pennsylvania-based startup entrepreneur who designs for Confrontational Clothing. His 12-employee company manufactures and distributes graphic T-shirts that are popular among mixed martial arts fighters. With the brand relatively new—the startup is four years old—Willis decided to give Alibaba a try. Sure, Willis attracted international business-to-business clients. There was just one problem: most of the potential clients weren’t real. Willis would attempt to charge the credit card numbers he was given but couldn’t complete the transactions, a sign of false accounts.

“The majority of inquiries I received were scams,” Willis said. “I would get emails from Algeria, Dubai and more that would say they were looking to buy our clothing in bulk. One guy wanted 250,000 T-shirts and was ready to give me his credit card info right there—it was clear the transactions would be fraud.”

Willis says Alibaba was not good at catching scammers, despite several complaints he brought to the company’s attention. Alibaba declined to comment on its fraud protection policies; however, in its SEC filing, the company said “as of March 31, 2014, [Alibaba] … had a dedicated in-house team of over 2,000 customer service representatives focused on serving consumers and businesses on our marketplaces through telephone hotlines, real-time instant messaging and online inquiry systems.”

And while he did receive several inquiries from China, Willis says potential clients requested his company use outside firms to manufacture his shirts. Willis wasn’t open to that idea since he’s a U.S.-based manufacturer. His one-year deal is nearly up with Alibaba, and he won’t be re-signing, he said. “I am really unhappy with the year I’ve had with them,” Willis said. “I’m not bashing them, but I won’t be renewing the deal.”

Absonutrix’ Thomas said while he has received a few phishing emails via Alibaba, he has faith that once trading begins, deals will flow to his business.

“I think there will be a lot more comfort in the American market, and that [selling on Alibaba] will be more accepted,” Thomas said.

Hanna agrees and says once Betty Mills moves into private-label products, it will be primed for even more international growth. “When that time comes, we will be looking to ship internationally, and I don’t have any other way to get the exposure that I get today from Alibaba,” Hanna said. “The additional exposure we will get from the IPO will increase our U.S. registration base significantly.”

Original article here: https://finance.yahoo.com/news/alibaba-being-american-business-plus-115709825.html

Buyer Beware

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It involved only about 1% of the suppliers on its global online marketplace, but the word from Alibaba.com last month was startling to retailers who pore through its webpages looking for products to buy at wholesale—[m]ore than 2,300 of Alibaba’s supposedly trustworthy China Gold [s]uppliers in 2009 and 2010 engaged in fraud, ringing up on average about $1,200 per claim reported by buyers.

The fraud, uncovered by an internal investigation by China-based Alibaba, often involved the sale of popular consumer electronics products at unusually low prices with low minimum order requirements, Alibaba said last month. About 100 of Alibaba’s salesforce of 5,000 were complicit in the fraud, the company said.

In an attempt to save face with its customers, Alibaba said on February 21 that CEO David Wei Zhe and COO Elvis Lee Shi-Huei had resigned, even though the company said they were not involved in the fraud and had tried to address it. In their place, Alibaba named as its new CEO, Jonathan Lu Zhaoxi, who will retain his other positions as Executive Vice President of parent company Alibaba Group and CEO of sister company Tao Bao Holding Ltd.

With the change in the executive ranks, Alibaba said it was sending a strong message that it was reversing what it described as a “systemic breakdown in our company’s culture of integrity.”

Rebuilding confidence with buyers may also require changes in some of the fundamentals of doing business with suppliers through marketplaces where buyer and seller often never meet in person, retailers say. Although there are more suppliers than ever—and more easily available than ever on the Internet—retailers must take extra steps to ensure they get honest treatment from suppliers who can provide the right quantity and quality of products at the right price and level of service.

“When you have a trusted marketplace like Alibaba and something like this happens, it just goes to show that no matter how good you think a supplier is, you have to do your homework, your due diligence in checking them out,” says Matt Scriff, Cofounder and President of 3Gorillas.com, a web-only retailer of home furnishings and appliances.

A dangerous game

And fraud in foreign e-marketplaces is not e-retailers’ only concern regarding suppliers.

“The market is incredibly flooded with suppliers who think they can get the job done, but only about 10% can,” says Phillip Crane, Cofounder and Partner of Pure Modern, a web-only retailer that relies on a constantly updated stable of some 300 wholesalers and other suppliers of fashionable home furnishings and accessories ranging from wristwatches to travel gear. “It can be dangerous for people like us to find suppliers,” he says.

For example, Crane recalls one provider of what appeared to be an unusual and highly attractive line of computer bags and wallets. “They approached us, were super nice, and asked if we would represent their line,” he says. “But 60% of the orders we took for their products couldn’t be fulfilled because they didn’t have the products available. That usually angers customers, especially if they came to us looking for a unique product—and then they never come back.”

Adds Scriff, “We reach out to a variety of wholesalers as well as manufacturers, do our evaluations and see what works, [b]ut we have to constantly weigh the risk versus the reward.” He constantly seeks new suppliers to find products that will give him an edge and provide good profit margins but worries that suppliers may not provide good quality or deliver on time.

“When testing a new products supplier, you have to ensure it ships on time so you don’t miss your selling seasons and confirm terms and conditions of payments,” says Christina Bieniek, a partner at retail consultants Kurt Salmon, who specializes in sourcing strategies.

Many options

The online wholesale industry is served by a number of major players, including DollarDays, which offers new, overstock and closeout products ranging from apparel to household furnishings and consumer electronics. Alibaba.com also operates AliExpress.com, which can provide small businesses with quick shipments of appealing products from overseas suppliers. (AliExpress was not named in the recent fraud investigation.)

Other major online sources of products include Liquidation.com and GencoMarketplace.com, which both specialize in selling overstock, closeout, salvaged and refurbished merchandise from manufacturers, as well as other retailers.

Another option is a firm like etailSales Associates LLC, which matches Internet and catalog retailers with wholesalers and manufacturers, often helping to set up drop-shipping arrangements for merchants who don’t want to hold inventory. Rand Koryga, Founder and President of etailSales, says he caters mostly to retailers doing from $1 million to $10 million a year in sales.

There are many more wholesalers and other suppliers operating online and offline, [b]ut finding the most useful and reliable ones can be difficult, retailers say. “We get random solicitations every day, so we’re exposed to a lot of people who don’t necessarily know what they’re doing,” says Crane of Pure Modern, who uses etailSales to find some of the roughly 25 new suppliers he takes on each year. The trick is to find the ones that can come through on product type, quality, price and on-time availability.

Due diligence

At both Pure Modern and 3Gorillas.com, the process typically starts with a query to the Better Business Bureau, checking references with other retailers, visiting trade shows to meet wholesalers in person, and, increasingly, searching for mentions of a wholesaler on online social networks and blogs.

“With all the social media sites and blogs about products, there are a lot of sites where people don’t hold back on comments,” Scriff says. “And if I do a Google search on a wholesaler, it will give me information I need to know.”

After recently finding tablet computers available over the Internet from a foreign supplier with whom he was unfamiliar, Scriff did a quick Web search to find a U.S.-based wholesaler of the same product and placed an order. “There’s a certain comfort there, to use a local wholesaler,” he says.

Once 3Gorillas.com takes on a new wholesaler, the next step is to negotiate price, he adds. He looks for wholesalers willing to be flexible in buying terms and may offer to take an entire lot from a supplier in return for a discounted price.

Pure Modern has found it advantageous to expand its online retail footprint to better manage and sell the inventory it acquires. It uses PureModern.com as its flagship e-commerce site for selling the hottest and most unusual products, and it has launched sister niche sites for garden supplies, electronic gadgets, furniture and gifts. The sister sites include more commodities, such as basic planters on the garden site ModernPlanter.com, but also display more unusual and innovative items, such as decorative stainless-steel planters, after they debut on PureModern.com.

3Gorillas takes a different approach. In addition to its one retail site, it also operates wholesale site SmartSurplus.com, where it sells overstock and closeout merchandise. SmartSurplus.com provides an outlet for items that don’t sell on 3Gorillas and can help 3Gorillas.com’s wholesalers move excess inventory. He adds he is careful not to set retail prices that undercut the retail prices of his wholesale customers.

“We have good relationships with wholesalers who are also our customers,” Scriff says.

The fraud at Alibaba underscores the importance of retailers building good relations with suppliers they can trust.

Original article here:
https://www.digitalcommerce360.com/2011/03/01/fraud-scandal-major-chinese-marketplace/