Time To Go Online
Having a presence online is something every business needs and our packaging business is about to take that step this month. Tomorrow we are meeting up to finalize what we need to do to make this happen. I don't expect big sales numbers, but it should at least be profitable so only time will tell how profitable. With these particular products volume is where the profits are and if we do not sell 2000 items monthly we would have to question the time spent versus the return and if it is worth pursuing or not.
We need 5 high resolution photographs of the products or products being sold with one being lifestyle which shows the product being used. This has already been completed and now we need to settle on prices.
My daughter is being dragged to the meeting as this is where she fits in as she knows all the hidden costs for each platform. There are 4 online sales platforms available being Takealot, Amazon ,Makro Market Place and One Day Only. Each are very different in what they offer and what they charge so prices have to be calculated on an individual basis in order to keep the profits margins the same or similar.
It is easy to say you want to get this done, but doing it is harder than it sounds and why so many companies have not managed to get involved in this sector yet. You need someone with the knowledge to make it happen as the hidden costs could sting you and knowing what they are is crucial to the outcome of this online business.
We know Amazon and Takealot are wolves in sheep's clothing if you are a seller of the product and not the original manufacturer. Being a third party seller has no future because as soon as the product numbers rise you will be muscled out by Amazon and Takealot as that is how they operate. They are basically a huge database of manufacturers around the world as when registering as a seller you have to give the details of where and by whom the product is manufactured. Within 6 -12 months your main competitor will be the online platform itself muscling in on your success listing the same product from the same suppliers you are using. This is why you need to control the manufacturing or tie up the manufacturers protecting your own interests not allowing Amazon or Takealot to shaft you.
Our only business name is factory direct and we have 3 manufacturers tied up in agreements blocking any other supply. Thankfully with these listings the packaging business is our own business and we manufacture so if Amazon or Takealot want to they are welcome to buy directly from us. Sales are sales and we do not care where they come from which is the difference in thinking when you are not a third party seller.
This is all going to be a learning curve over the next 3 weeks as I have no idea the differences between the 4 online platforms and one needs to know. There are very few people who have this knowledge and it is very much a specialist role these days and highlights how the last 5-10 years of online sales has changed how businesses have to think and adapt. What my daughter has in the knowledge she has is rare and we need to tap into this and teach ourselves as quickly as possible.
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Great move taking your packaging business online, having in-house manufacturing gives you a big edge against platform cannibalization. Best of luck navigating the hidden costs and finding the right sales channel mix!
We shall test the waters and see how it goes.
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Our city is currently far behind our country in terms of technology, but even here, people prefer to shop online only, and if the service is good and the product is delivered on the spot, then this business is becoming successful.
I wish I had your knowledge of manufacturing, sales, and logistics. You're awesome!
Good thing you have her in your team and also good for her as well because it's a huge responsibility, your profits are depending on how she performs, so she gets the experience that will be useful in the future, wherever she goes.
Being present on these platforms is a must these days and those who don't understand this, are left behind, so it's time to do it.
Yes very true and each one is very different from the next. WE learned quite a bit this morning and still have a lot of work to do before the products can be listed. We will sit down again next week and only then decide which platforms are the right mix for our business.
I am currently studying towards a diploma in online marketing. Gosh there are so many avenues and platforms that I feel so old! hehehe. I'll get the hang of it though!
The sales platforms are a degree on their own and take years to master and why so few have the knowledge that is required as the only way to know is to use them daily. Good luck with your diploma.
I have some incredible friends who have been working with Google and SEO since 2006 and have also been incredibly gracious at coaching me. I hope to take their physical experience and marry it with what I am currently earning to set my new career path. Thank you for te encouragement! You are absolutely right. it is no small undertaking!
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