How do ecommerce sites do this ???

I am in the pet industry. I sell pet products retail at pet shows and events already and have a small amount of inventory I keep in stock for my shows. I have an ecommerce site in development. I sell about 100 products now. I would like to sell 1000's, like my competitors. When I go on other pet supply (boutique type pet supplies) sites, they are offering 1000's of products. How are they all doing this? I know many of the products and they come from manufacturers who will not drop ship. Are there only two choices? Drop shipping or stocking a ton of inventory? I can not possibly stock the amount of products that my competitors offer. I can barely stock the 100 products I sell now. Please help, I can not move on with my website until I figure out my distribution system. I want to package my own items for now. In the future, I may switch to a fulfillment house. I pride myself on excellent customer service and don't want my customers to have to wait weeks for their products. My original plan was to wait and see the orders that come in, then order products from the manufacturer the same day or in a few days when orders build up. I would have to hit the minimum for each manufacturer, which means I would be gaining extra inventory that I may not be able to sell. This could get very costly. And I am afraid that if I offer even a ship date of 1-2 weeks for my products, by the time the manufacturer sends the products to me, I pack and ship them, I will be late with the order. Thanks, any input/ideas will be greatly appreciated!

This is an excellent question and goes right to the heart of ecommerce.

I see you have 2 choices:

1. You can promote as many products as you can comfortably handle. Not being able to deliver in a timely manner can be destructive.
   
2. You can contact your suppliers and try to negotiate a better deal. I have done this successfully with my drop shippers.

For a small or startup company to remain competitive, you have to be able to price your line so it will sell and sometimes that means taking a loss or not making as much profit as you would like. I have found that selling a product for under MSRP can be a problem because manufacturers are very protective of their major customer's positions and here we are, the small guy, trying to make a meager living by under cutting the competition.

To be able to remain in the game, I have found the direct approach to be the best. Make a phone call and establish a relationship with your suppliers. I think you'll find them to be surprisingly understanding and flexible. After all, they probably were in your shoes at one time and may be willing to 'bend' the rules for you for a limited amount of time.

1- Find a distributor that ships the products directly to the customers with your package and logo but does so same day or within 48hrs....not 2 weeks.
2- Find an IT team that is able to manually upload 1000s of product skus to your website design
3- Find some people who will check the price change lists and quantity change lists and new product details every day to make sure your listings are correctly posted and based on the same details the supplier has.

or.....skip 2 and 3 and use a service which can upload all of the pet suppliers products for you and then update the product details like price, quantity, and status on your site every day. Some services can automate the inventory as well as the order automation back to your supplier. This way you focus your time on your customer service and marketing your site

o.k. this might help too. Not all products listed there are the stocked inventory but it may be affiliate program. Basically someone who promotes a product for another company. Take a look at these stores

http://poolsbyinflatableshops.com or http://inflatable-air-bed.com

Non of those products that person handles individually, but just a promotion. That same person has an affiliate code, that tells the promotional company who bought in a sale.

There is one great site http://affiliate-niche-stores.com that talks more about it! I hope this helps!

ps. Profit margin tends to be smaller, such as 5% or even 1% but considering that that person did not do anything except promotion to make money, it is not bad!

Rcheltrvel,
Your competitors may be using a combination affiliate links and direct buys from distributors that do the dropshipping for them. I'm in the process now of helping an old business associate from Circuit City.com to build a pet site called WhiskerWorld.

My recommendation to you is, GO TO THE SOURCE!

You can view a list of dealers and distributors on the manufacturer's web site, if they show the list, or you can call them directly. When you call, tell them you're a reseller looking for a distributor that handles their lines.

From there, contact the distributors and ask them about their fulfillment programs. Some will allow for "blind ship" purchase orders and some won't. Some will also have a handling fee that can range from $2 to $4 per order. Some distributors will have catalog and image export files that you can use to build your online presence.

Don't forget that many resellers make the mistake of going to fulfillment houses right off the bat, this can be a costly mistake if your site doesn't work out for you. Remember also that there is a very distinct difference between a fulfillment house and a distributor that does dropshipping (also called fulfillment).

I hope this helps!

How about the rating of suppliers that are projected with on various sites while placing a purchase order. How real they are ?

Hi,

I have found that selling a product for under MSRP can be a problem because manufacturers are very protective of their major customer's positions and here we are, the small guy, trying to make a meager living by under cutting the competition.

Competing by lowering price is not the best way to compete usually and, yes, many manufacturers frown upon the practice as they want to keep the market value of their goods high. Failure to follow their MAP guidelines can get you into trouble.

It is best to compete in other ways. Offer more personalized customer service and a friendly personal touch. That will differentiate you from the large competition.