Are you dreaming of starting your own business but don’t want to rent office space or hire expensive professionals? As an alternative, try selling goods on international marketplaces: then, you don’t need an office, an inflated payroll, or a large production facility to do this. Instead, all you need to do is negotiate with representatives of other businesses to assemble and deliver incoming orders.
Experts from the Alex Reinhardt Academy discuss taking the first steps into a new business area.
The marketplace guide from the Alex Reinhardt Academy
Usually, there are two different ways: either the supplier holds the goods in their own warehouse, takes them to the delivery point after the order is placed, or you place the products in your own warehouses, delivering them to the customer on your own. In both cases, the marketplace recognises the goods with the photos you supply, packs them at the delivery point, accepts payment, and processes the returns.
The advantages of marketplaces
Aggregators generate huge traffic. You don’t have to worry about your advertising budgets because thousands of potential customers will see your shop on the marketplace. The more visitors click on your offers, the sooner you will rise in the “Popular” search criteria!
You can start very (very!) quickly. The rules for collaboration can differ from site to site. For the most part, they demand registration on a separate portal, uploading documents, product cards or simply photos and product prices.
You will save lots of money. You don’t have to invest your money in launching targeted advertising, email campaigns or using other communication channels with a potential customer. You also do not have to stress about having the documents for accepting payments through your own website. You do not even have to worry about individual packages for delivery. The marketplace will do almost all of the leg work for you.
The disadvantages of marketplaces
You pay a commission to the service. The amount will depend on your product category and its margin (the effectiveness of product sales.)
You have to participate in the service’s promotions. Of course, you can refuse to do so; however, your product may be downgraded in the search results. Do not worry; a sale does not mean “taking” 50% off the product cost. However, it can help you attract interested customers who are already “warmed up” for further purchases.
You face competition. You will have to “tempt” the customer either by price dumping (which, of course, is not the best option here) or by having a strong brand together with excellent high-quality products. Alex Reinhardt, the eponymous academy founder, is confident that a truly valued brand will easily find its customers in the marketplace. Online business training can help with positioning your products. In the course “Launch an online business with global marketplaces” offered by the Academy, you will find step-by-step instructions about packaging goods and displaying them on an aggregator site without spending any of your money or time.
How do you start collaborating with marketplaces?
First, select the product that you want to sell and the method of delivery. You can send orders from the marketplace to a third-party company, which will, for example, print sweatshirts, engrave pens, or design dresses according to specific measurements.
Then make a plan of action. Who’s going to supply you with the merchandise for resale? Where can you buy it? Which company will produce the product’s contents or the entire product itself that you have in mind? Do some minimal research, draw up a table with a list of organisations, find out the terms of collaboration. By just spending one evening on this, you will be ready to conquer the world of marketplaces!
Be sure to register your company legally! According to Alex Reinhardt, this is a crucial step. However, if you prefer not to start with a serious legal registration requiring money, try registering as a sole trader. If you don’t do this, your products will be refused in the marketplace. Don’t try, you will not be able to cheat the system.
Now all you need to do is get the right documentation (if you are selling the type of product that requires it), register on the resource site, and wait for your application to be approved.
What if I want to enter foreign marketplaces?
The best countries for online sales are China and the United States. You will find that both countries have the most universal marketplaces that sell literally everything. Although, if you would like to trade in China, due to the peculiarities of the legislation there, you might face some difficulties. It is far easier to trade in America (if you have a legal entity registered in any American jurisdiction, including offshore zones, and don’t have your own trademark). The most popular marketplaces in the United States are Amazon, eBay, and Etsy. Interestingly, individuals who are simply registered in the USA can upload their goods easily onto these sites. Experts from the Alex Reinhardt Academy, who have frequently created shops for displaying products on aggregator sites, also recommend paying particular attention to the European marketplaces, such as CDiscount, Zalando, and Allegro. Finally, if you still want to reach a Chinese audience, take a closer look at AliExpress and Taobao with JD.com.
Trading on an overseas marketplace is easier than you might think. And the Alex Reinhardt Academy will help you gather all the knowledge you need to start your own project. We will show you how to register a company in another country if you do not have the appropriate visa and teach you how to successfully communicate with local officials. So, it’s time to take your place on the Academy courses right now for your chance to start an extremely profitable business!
{This is an advertorial post}