Starting a Mail-order Business

Join the ranks of self-employed with a tried and true concept: a mail-order business

What do these names have in common: Sears Roebuck, JCPenney, Montgomery Ward. Besides being some of the best-known retailers in U.S. history, at one point in time they were primarily mail-order businesses.

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

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.
Try: 

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.
Try: 

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.
Try: 

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!
Try: 

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.

• 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.

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