Starting a Mail-Order Business

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.