Drop Ship Professor

Drop Shipping Information, Reviews, and Free Ebook

September 6th, 2007

Addressing Drop Shipping Concerns

Advice

David, one of my loyal readers recently left the following comment on one of the posts. I though it was important, so instead of burying the reply in the comments area, I’ll address it here.

I have been reviewing some of the websites that say they will set up a drop shipping website for you and provide you with drop shippers that will work with you etc. etc.

A couple of them are usellcorp and worldwide brands. Are they bogus operations? How do you know who to believe and whether are not you can trust them. I guess what I’m worried about is paying someone a sum of money for their services and then getting the run around.

Thank You

David -

Great question. There are a ton of scams out there - one of the reasons for this site and the ebook. Let me clear up a few things.

First, there are a number of companies that provide a database of drop shippers. These companies include WorldWideBrands, AidandTrade, and Salehoo (among others). I have personally used these three companies (click here for detailed reviews of each) and all are completely legitimate.

Now, there are other companies that are basically drop ship aggregators. They sign deals with a bunch of drop shippers. These companies can be useful if you need to sell a variety of items. However, you need to know that many charge a membership fee and they also markup the actual items (so you’ll pay more than wholesale). Probably the best known of these is Doba.

Finally, there are companies that are aggregators and also provide you with a shopping cart. Usellcorp is one of these. I quickly reviewed their site and belive that their prices are high ($1,000 for a basic cart system). A Web search reveals that you can get a very nice osCommerce setup for less than $500. If you are interested in going this route (and it does have some advantages, especially for beginners) check out Shopster.com. Don’t forget to sign-up for the newsletter where I reveal how to use Shopster to test any market before making a large investment.

Popularity: 74% [?]

August 23rd, 2007

Shopping Cart Review One - Yahoo

Detailed Reviews Reviews Shopping Carts Uncategorized

For many people Yahoo’s shopping cart, called Yahoo Merchant Solutions, is where they start and they keep using it as they grow. Many top ecommerce merchants (really big names in the industry) use Yahoo’s solution. So this is a great place to start our reviews.

Let’s work through the criteria I listed and then I’ll give my overall recommendation. All ratings are on a 5 point scale (5 is best, 1 is worst).

Design = 3

Yahoo’s cart solution does have many templates to choose from and they can be customized. The real problem is that Yahoo uses a proprietary markup language called RTML. RTML is a programming language, which in theory, makes it very powerful. In reality, it’s a pain in the ass! Almost nobody knows RTML. So anyone who does charges a fortune. Minimum quotes I have received for a fairly basic Yahoo store template ran over $1,500.

Search Engine Optimization = 3

When it comes to SEO for a shopping cart system there are a few things that stand out. One of them is the ability to enter meta tags for individual items. This will allow those items to rank well in the search engines. Well Yahoo’s cart does not allow this functionality. You can hire an RTML programmer to add it, but it will cost you.

Yahoo stores also don’t come with many other standard SEO features, like sitemaps. In addition, the internal linking structure is a bit strange. If you do a complete redesign, changes to navigation and internal linking are recommended.

Catalog System = 3 (1 for drop shipping)

The catalog system is fairly straightforward. You can add, edit, and delete categories and products. It does provide the ability to upload from a spreadsheet or database.

The system includes inventory control - in terms of tracking inventory in stock and setting alerts for when levels become low.

Drop shippers beware - Yahoo stores does NOT support drop shipping. I had a sales person tell me point blank that it does. However, a quick call to technical support revealed that what they consider adequate drop shipping support does not jive with reality. Basically, their solution is that you receive the order e-mails and then forward them to the drop shipper.

In the real world, you usually do not want to do that. The drop shipper may require a purchase order in a specific format. Most require that you indicate billing terms. So, you would need to copy the order details and paste them into a new e-mail to the drop shipper. Too much work for me, especially since there are better solutions available.

Marketing = 4

Yahoo’s cart does have the normal range of upsell, cross sell, coupons, and gift certificates. But nothing special or particuarly interesting.

Shipping/Payments/Taxes = 4

Yahoo has partnered with Paymantech and PayPal as their primary merchant account/payment solutions providers. Both a credible companies. In theory, you should be able to use just about any reliable merchant account, but I have not tested this (and Yahoo does not list other merchant account solutions).

The Yahoo cart does support multiple shipping solutions (UPS, FedEx, and USPS). And can calculate shipping based on weight, price, location, etc. It can also determine the correct local sales tax to charge, if applicable.

Other = 5

Yahoo’s hosting platform seems rock solid. As I mentioned there are alot of big companies using this system, so you know it’s scalable and seems secure.

Technical support wait times were normal (a few minutes or longer during peek times). Technical support reps are hit or miss. Some obviously are just reading from the script, some actually know a bit about the system.

Price = 3

Yahoo is one of the least expensive solutions on the market - starting at $39.95 per month, plus 1.5% of all transactions, for their starter plan. However, the start plan is very limited. Almost any good online retailer will need at least the standard plan, which is $99.95 per month, plus 1% of all transactions. There is a professional plan, which runs $299.95 per month, plus a 0.75 transaction charge. All plans charge a $50 setup fee.

Overall Grade = C

The starter plan is tempting for a new user due to the low price point. However, it is severely crippled and only really useful for a very small store. The lack of good drop shipping features may even lower the overall grade to a D.

I’m not sure why some of the big retailers are still using this system. My best guess is that they started their stores years ago when ViaWeb (the company Yahoo purchased to create Yahoo Stores) was one of the very few cart solutions available. Over time they have invested in heavy customization and don’t want to change now.

My advice to you is, stay away from Yahoo Merchant Solutions. There are much better cart systems available and I will review many of them shortly.

Popularity: 100% [?]

June 9th, 2007

Shopping Cart Review Criteria

Drop Shipping Reviews Shopping Carts

Before delving into the actual shopping cart reviews. We need to understand the factors that make up a good shopping cart. First, I have used a few dozen shopping cart systems in order to compare them and determine which is the best for various purposes. Obviously, each carts has strengths and weaknesses. So, unforunately, nobody can say that one is the absolute best in every circumstance.

Here are my important shopping cart criteria:

  • Design
    • Many professional templates
    • Customizable
    • Ability to handle thumbnail and large images
  • Search Engine Optimization
    • Store level meta tags
    • Category and item level meta tags
    • Good internal linking structure
  • Catalog System
    • Easy to add and update products and categories
    • Ability to upload data feeds
    • Inventory control
    • Automatic drop shipping
  • Marketing
    • Ability to handle free shipping offers
    • Coupon system
    • Gift certificates
    • Customer order tracking
  • Shipping/Payments/Taxes
    • Automatically determine shipping cost
    • Multiple shipping methods and vendors
    • Ability to handle multiple payment types and multiple credit card
      gateways
    • Ability to add handling charges
    • Restrict processing and handling by location
    • Calculate appropriate sales tax
  • Other
    • Technical support
    • Hosting platform
    • Stability and security

     

Not every shopping cart system will meet every criteria listed. In addition, depending on your situation additional criteria may prove more important.

Obviously, cost is also a major factor and I will consider that in my reviews. I was recently speaking with a shopping cart sales representative who was trying to sell me a solution for $10,000 per month. I’m sure it’s probably a great system (maybe even slices bread), but way, way outside of my budget.

Popularity: 91% [?]

May 30th, 2007

Shopping Cart Systems

Shopping Carts

Once you have found a drop shipper, you’ll need a way to present products to potential customers, allow them to add those products to a shopping cart, and allow them to make an actual purchase. In short, you will need some type of shopping cart system. Unforunately, this is where things get confusing. Read the rest of this entry »

Popularity: 91% [?]

May 16th, 2007

One Simple On-Page Change That Can Lead to Dramatic Results

H1 Tag On Page SEO

Search Engine Optimization

Search engine optimization (or SEO as it’s popularly known) is a set of tools and techniques, which, when applied to a Web site lead to higher (that is better) ranking in the search engines. These tools and techniques are often divided into two main categories - on-page factors and off-page factors. Off-page factors refers to backlinks - links from other sites to individual pages on your site. Read the rest of this entry »

Popularity: 95% [?]