Episode 5: Stair Step from Basic Vendors to Higher End Vendors

Links  The Stairstep Approach to Bootstrapping The Stair Step Approach to Launching Products Episode Transcript: Hello. Welcome to the Business of eCommerce. I'm your host Charles Palleschi. This is episode five. On today's episode, we're going to cover steer stepping vendors. What this is is, on today's episode, steer stepping vendors is going from more beginner level type vendors, intermediate, to advanced. This episode is targeted more towards retailers who are apparent to you as just starting off, or intermediate, and looking for extra vendors, looking at how to add some more products that are a little more unique to that store. This is really targeted more towards you, if you're that sort of retailer. When we steer stepping vendors, what this is is there are vendors out there who it's very broad in the range. They go from they are vendors who are willing to accept brand new retailers. You apply, show them basic, some sort of proof that you're in business, maybe you don't even need a site, but eventually they'll start selling you products. They want with very little hoops to jump through. Very easy to get started with these guys, and they're great for starting off. Then, all the way on the other side of the scale, there are some vendors who it's much different. Working with them, you have to fill out credit applications, you need to show them your site, proof that you're in business X number of years. They all require something different. The deal when choosing a vendor is when you're just starting off, you can only really work with the vendors who basically are allowing newer retailers. It's a lot how to get your foot in the door with these vendors, the bigger ones. The benefit of working with the bigger ones is they have products that tend not to be found online as much, just because they don't let every new retailer in the door. You're not competing with tons, and tons, and tons of folks, you're competing with a much smaller subset of retailers. The goal, in a lot of cases, is to find vendors that are more exclusive because they typically are better doing business with. Better products, better experience they usually offer credit terms. There's all sorts of different things, but usually, when you're just starting off, it's hard to get your foot in the door with these vendors. What I've done and what I recommend other retailers do is when you first are starting off, always begin with these intro vendors, beginner vendors, ones that basically just let you get your foot in the door, as long as they have the type of products that are in your niche. Let's say you decide you're going to sell a particular type of product in the sports good niche. You then find vendors in that niche that have some sort of products in that category, something you're interested in selling. Maybe it's not exactly the products you want, but it's at least in your niche, it's in your field, it's things that fit with what you're looking to do. Get started with those vendors, get your site up and running, get some products on your site. It doesn't have to be perfect from day one, but at least now you have some products, you're in business, you can start going out there, you're going to make some ad words, getting some traffic on the site, some orders, some interest. Start building news letter, Facebook audience, things like that. Basically, start promoting the site and getting business. Once you do that, other vendors in that industry, it's a lot easier, then, approaching the next vendor. Maybe day one that's someone that wouldn't talk to you, but now that you have that, it's a lot easier to approach the next vendor and say, "Hey look, I have this site, XYZ. Here's the URL, check it out. Here's the type of products we sell. We're interested in bringing on these products, these also sporting good products from you. I'd like to get started." It's a much easier sell showing them you've already been in business, you have the site running,