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Anyone can launch an order fulfillment business with the right attitude. Competition will be fierce. You can't expect to put your feet up because it's your own business. On the contrary, you should expect to work very hard in the beginning. Before quitting your full time job to launch an order fulfillment small business in the hopes that you become your own boss, ask yourself the following:
1. Are you committed? It takes more than just a good idea to launch a mail-order small business. It takes time, money and hard work.
2. If applicable, do you have the right partners? Friends are sometimes best at being just that: they are not always good business partners. Vet potential collaborators as objectively as possible.
3. Have you done your research to make sure there's demand for your product or service? You may have a great idea, but how many others have the same idea?
Action Steps
The best contacts and resources to help you get it done
Join an association to build credibility when you open mail order business services
As a new business owner, you don't have to go it completely alone. Consider joining an industry association for support. Organizations bring together professionals with the same goals and challenges. As a member, you'll have access to certification and educational opportunities. Professional organizations also organize networking events, so you can meet industry peers, vendors and suppliers.
I recommend: The National Mail Order Association and the New England Mail Order Association both organize a variety of educational and networking events, conferences and membership meetings. Their websites also offer tools and resources to help you get started, including industry contacts and market research.
Choose reliable inventory suppliers when you open your own catalog service
Starting a mail order business means you have to have something to sell. If you don't make your own product, you need the best resource for finding product. Partnering with a reliable and trustworthy drop shipment distributor is a necessary part of the process.
I recommend: Doba offers a diverse selection of products that you can sell, without having to worry about storing inventory, packaging and shipping. Drop Ship Direct provides additional services that can help support your business. For assistance in getting paid, you should consider signing up with Paypal; a resource that offers a variety of services to direct mail businesses.
Build a professional presence when you launch a mail order service
When you have an online business, you need a presence that is dominant and professional. Direct mail is a huge industry and you cannot be left standing alone in the background. You must establish yourself boldly and quickly. Not only is the appearance of your website significant, but the functionality and payment process need to be very user friendly.
I recommend: Ydesigns.com and Red Clay Interactive both offer a wide selection of website designs, tools and e-commerce resources that can help you build a successful direct mail business.
Tips & Tactics
Helpful advice for making the most of this Guide
- • When you open a mail-order business, consider partnering with more than one supplier so you can always accommodate your clients' needs, by keeping your inventory fresh and your turnaround times quick.
Selling via catalog can seem daunting. The postage! The shipping! Returns! But the right product mix in an attractive printed format can move mountains, and make you piles of money.
Covered in this business start-up guide:
1. Mail-order business start-up
2. Controlling mail-order business costs
3. Advertising your mail-order business
4. Rules and regulations of the mail-order industry
Action Steps
The best contacts and resources to help you get it done
Setting up a basic mail-order business
Besides a home office and simple computer and telephone gear, you'll need space for inventory, depending on what you sell. But foremost you'll need a product that people want.
I recommend: Most mail-order business owners buy goods from drop-ship companies, which wholesale, keep inventory and deal with shipping and handling for you. Some big drop-ship providers for the mail-order business include SMC, Doba, DropShipDirect and directory Go Wholesale. See the Business.com directory on mail-order business fulfillment and mail-order business software.
Advertising your mail-order business
Most of the business costs of a mail-order business are quite low and controllable. Except advertising, which is the lifeblood of the business. Pick your medium carefully to maximize profits.
I recommend: If your product is of narrow interest, advertise in cheaper, narrow-interest media like newsletters and topical Web sites. But you also should consider direct mail to specific customers from mailing lists. The U.S. Postal Service has a page on running a mail-order business. Pick up tips and lists from DirectMail.com and compare price quotes at Direct Mail Quotes. Business.com has more direct mail providers for mail-order business.
Keep mail-order business costs down
Printing will be a big part of your mail-order business costs. Finding and pricing a printer is central to maintaining profitable growth. Unless you want to advertise your home address, you'll need a rented P.O. box as well.
I recommend: Check out discount Web-based printing companies, like Small Business Printing, Printing for Less, Print Globe, and Print Center USA. Some choices for mailbox rental include, of course, the U.S. Postal Service, The UPS store, and a new breed of virtual mail services which scan your mail and send it electronically, like Remote Control Mail and Mail Link Plus.
Dealing with mail-order business customers
Selling through the mail seems like the ultimate low-stress kind of career. But if you make enough customers unhappy, watch out!
I recommend: Keep up with mail-order business best practices via The Direct Marketing Association and the trade group, the National Mail-Order Association. See as well the Federal Trade Commission rules on the mail-order business.
Tips & Tactics
Helpful advice for making the most of this Guide
- • Choose your mail-order business product carefully. It should be small (easy to mail) and in-demand. You might think crystal chandeliers would be nice to sell, but novelty keychains would be a better choice.
- • The best mail-order business products are those that people want to buy regularly but cannot find easily in retail stores. Peruse other mail-order business catalogs for general ideas, then go from there.
- • Constantly test mail-order business ads in A-B splits: Try one pub, then another, repeating different style ads until you get a response, the toss out the weaker publication or ad copy and try again.
