Due Diligence on New Domains:
1. Once niche is defined and qualified, a domain name must be secured via godaddy.com -
a. Actual top keyword - ie. OutdoorDrapes.com
b. ________Source.com - ie. UmbrellaSource.com
c. ________Supply.com - ie. BirdBathSupply.com
d. ________Store.com - ie. FirePitStore.com
e. ________Outlet.com - ie. TeakFurnitureOutlet.com
f. ________ Shoppe.com - ie. ToyBoxShoppe.com
g.________shop.com - ie. ToolBoxShop.com
h. Just______.com - ie. JustTools.com
i. Simply______.com - ie. SimplyJewelry.com
j. e________.com - ie. ePlanters.com
k. Quality______.com - ie. QualityOutdoorFurniture.com
Finding a "qualified" drop-ship supplier is key:
1. What is the prospective supplier's current allocation of sales by product and market segment.?
2. What % of the prospective supplier's business is represented by their top 3 customers? We need to understand where they set their priorities, how big they are, and if they will give us the time of day once our orders start flowing in on a regular basis.
3. What level of sophistication does the prospective supplier have in order processing and closed loop data processing? Do they have a WMS, ERP, or an in-house manufacturing software that keeps up with inventory, ship status, manu. levels etc.
4. What % of the prospective supplier's sales are currently from on-line sales?
5. What is the market outlook for on-line sales for this product category...? You can find this information via industry trade magazines (Casual Living, Hearth & Home etc)
6. Is there available long range market outlook for this product category...? Source...?
7. Are consumer's more inclined to buy this locally or in-line? This question comes down to price, quality, and shipping cost vs. paying local taxes.
8. Does shipping cost make purchasing these products on-line make them uncompetitive vs. local sales channels. i.e.. Cast Iron Stoves...
9. Are products easily used or installed by customers..? Intuitively or with easy to understand illustrated directions.
10. Are there elements of this product that would make them difficult to be 'self-serving sites'.. i.e.. some of the fencing complexities or questions we could not answer online via our website content...
11. Does the installation or set-up or end customer require on-site installers or technicians. If it does, we would need to list such installers or technicians as a value-add
12. What could our differentiating factors be if we got into this new market with the supplier you found? The biggest challenge we face in the e-commerce arena is market saturation. The consumer (residential or commercial) will be able to easily get quotes, specs, cad drawings, options, and quantity discounts online - everything we offer (online tools, product description (3D, video, multi. pics etc)) has to be better than our competition through strong differentiating factors.
13. Does this new niche/domain/division reach across Retail, Commercial, and Wholesale markets. If so, in what order? If not, which ones and why?
