advertising, business, cheeky elephant, drop ship, drop shipping, dropship, dropshipping, entrepreneur, holy bell, mumpreneur, mumtrepreneur, new business, on-line, recipes from a normal mum, retailers, start-up, wholesale, yumbox
So leading on from my blog last week, the challenge with both cheeky elephant and Yumbox is that due to the quality of the product (in cheeky elephant’s case the fact that each piece is hand crafted and in Yumbox’s case the fact that the lid is engineered to such a high quality to make it leak proof) plus the shipping, VAT, import duties etc etc I simply can’t get to a place where I can allow retailers to put on a 100% mark-up to sell the products.
Well, I guess I could, but I am not sure anyone will then want to buy them as they will just become ludicrously expensive! Based on that I need to find models whereby I can reach a substantial audience but for less cost so that I can keep the RRP (recommended retail price) at a reasonable level. Luckily there is already a precedent for this and it is known as drop shipping.
The way this works is that on-line retailers list your products on their site and then when customers order from them (and pay them) they send the details (and a payment less their commission) over to you and you fulfil the order. Generally retailers take between 10% and 25% commission for this service, in exchange for this they provide advertising (both through their site and often additionally through social media and more traditional channels), promotion and generally access to their buyers. For cheeky elephant this is a great model and so far we have signed up 5 different sellers all of whom target different markets. I will keep you posted on how successful this is, but so far I am very confident that it will be a great model.
For Yumbox we will be going down the more traditional route of selling through Amazon (and getting them to warehouse and dispatch for us) as this works better in a volume model. We are however currently coming up with some other more creative sales models which I will share very soon.
Anyway, must be off as I have a meeting in town this afternoon with an ap design company to scope out project number 3 in my portfolio….. more to follow!
PS – if you haven’t already, please do enter the 2 competitions which are currently running to win Yumboxes
This one on our facebook page – https://a.pgtb.me/Bk4xDv
and this one hosted by Holly Bell (the Great British Bake Off contestant and top Mum Food Blogger)