Here are some superficial details on the establishment of a business and its website using the drop-shipping as a means of selling.
I ceased activity linked to the company for various reasons.
I have time available before restarting another project, if you need details, URLs or other information, it will be with pleasure to answer your questions.
How to create a company abroad?
What are the benefits?
The three main advantages of creating a business abroad are:
1 / Easiness
Create a company abroad is very easy, the elaboration of the application folder is a breeze and the initial process is done in a few hours. Company Registration depends on the administration of the country in which the company is created.
We will take the example of a company created in Hong Kong for the sale of products manufactured in China.
2 / Taxes
One highlight of the establishment of a company in Hong Kong are taxes. Many businesses go bankrupt after a few years because the fees / taxes are too heavy to bear.
There is a very low tax rates in China, moreover, it is possible to deduct many costs, the costs of meals, travel, transportation etc …
3 / The cost
The cost for the creation and registration of a company “sole proprietorship” is about 5000 $HK Dollars. Included are:
-the administrative costs
-Recording In the commercial register
-A Virtual office
Optionally and in addition, the secretariat and accounting of the company.
How to proceed?
At first contact an agent specialized in business creation (be careful there are crooks in all areas) through the Internet.
After you have made your choice
Make an appointment with the chosen agent because presence is mandatory for the elaboration of the original file, there will be no need to go the consecutive years.
The necessary pieces:
– Passport Copies
– Proof of address
– A business bank account
Generally, the agent will help you to open a bank account in one of the largest banks in Hong Kong (required Presence). We recommend HSBC and Hang Seng Bank. Very professional and friendly service.
You can very easily open it by yourself in less than an hour, you will leave with bank cards and checkbooks record company.
Return to the office to complete the folder.
And voila your business is created.
After a fortnight, you will receive your company registration number from the Hong Kong Trade Register.
Why sell products manufactured in China?
Contrary to what one believes the quality of products manufactured in China has greatly improved. Most of the leading brands Hi-tech products are made in China.
You will always find products of mediocre quality at very low price, but with a little research and common sense you will find the right manufacturers / agents who will sell you excellent products for a very interesting price. It will even allow a comfortable margin if your business sells wholesale. Their products will be guaranteed for a period of at least one year and you will be pleasantly surprised by the quality service and professionalism offered by these companies.
These business representatives will accompany you throughout the sales process from the purchase of sample up to provide all the necessary documents for the content management of your website (photos, specifications, dimensions, weights, prices and minimum quantities for wholesalers) or advise you to open your physical store.
How to recruit agents abroad
There are tens of thousands of factories manufacturing the product you are looking for in China.
You have to find the one (s) that are most serious, offer the best quality and best services.
One of the most effective ways is to visit exhibitions, Hong Kong for example, for products manufactured in China. Most serious factories have offices with showrooms in Shenzhen and / or Hong Kong and participate in exhibitions in Hong Kong.
It is then easy to exchange business cards and request information.
Have some knowledge about the practices of buying and selling in Asia is highly recommended.
The Web has tons of specialized courses in International Business Etiquette.
Maintain constant communication is very important.
The quality is paramount, have poor or bad comments on the net can be very hard to beat.
In China like anywhere if a mobile phone price is on average $ 200 and you find it at $ 50 , there is a serious problem. The price can range from $ 180 to $ 220 depending on the options and the seller margin, but no more.
Do not be swayed by words that may not reflect reality.
Do not hesitate to negotiate, you are in business, to not negotiate can have the opposite effect to the desired effect.
Even if the product is proven and is tested at the end of the construction chain, order samples and test or get tested for intensive use where possible.
Branding or re-branding is critical and has many advantages for search engines and for the credibility on the net. It is your identity on the web.
Do not hesitate to ask your suppliers to put your brand on the products you have designed, modified or not. Add Logo and Slogan.
Most plants accept branding or rebranding free or from a certain minimum order.
These figures come from my Business Plan for 2013, take into account that I was working alone to reduce costs and I only called for help from freelancers for some technical work.
Employee Related Expenses $ 5.400
Start-up Marketing Campaign / SEO $ 1.170
Start-up Insurance $ 3.080
Start-up Web Design $ 6.705
Start-up $ 9.565 Samples
Start-up Web Hosting $ 1.252
Start-up Business trips $ 2.471
Online Marketing $ 5.500
Start-up Accounting $ 40
Start-up Repair and Maintenance $ 1,000
Start-up Legal $ 1,000
Web Hosting $ 1,500
Business Trips $ 3,000
You will need to add your salary
The first year it will take between $ 40,000 and $ 50,000 for the overall project, these costs will be considerably reduced in the second year.
The importance of securised desktop, network and server
The ecommerce servers and other businesses are very often the prey of hackers and phishers.
You can have a website and do not realize that this one has been infected for several years together with your desktop, network and server. Scammers can send virus, trojan, malware to modify folders from your computer, redirect visitors from your website to other sites and use your email addresses to spam. In short you have lost control of your computer, your server and your website as they have access through SSH. Be very careful and monitor very regularly. It is hard to break a virus like Ebury: Operation Windigo and it is better to be more cautious than not enough.
Your passwords should be complex and independently used from an app to another. Change regularly and invest in good antivirus. The firewall is also very important. Pay attention to wireless communications. A VPN connection is recommended.
B2B or B2C ?
Retail remains the best option to start.
Be wary of shortages from manufacturers, stay informed on manufacturing delays of preparation and shipping.
It is very important to negotiate for the best prices, but even more important are negociations for the guarantees and return policies. Do not forget!
Wholesale trade has a totally different approach.
There will be more of contact for negotiations with potential buyers and a sale can take several months. Most of the time the negotiation with buyers or directors of businesses will be difficult and will leave little profit margin. Be good at sales is a definite asset, if otherwise have a budget for sellers.
E-commerce or online shop is becoming increasingly popular. The figures show that in the years to come shopping from China will grow by 3.4% on average globally. The march of global exports in 2015 amounted to 1008 Billion Dollars.
Added to your physical commerce a website will allow better geo-location, and will add to the turnover from the customers whom could not access your shop because of distance or else.
A website allows you to sell without the expense of a physical store. More and more purchases are made through the internet and it goes on increasing.
Importance of m-commerce
The mobile version of a website today is inescapable, yet the figures show an increase in purchases made from mobile impressive.
Choosing a web-host and Shopping Cart
The selection is huge and varied. Personally I choose the Open-source for price advantages and possibility of changes.
Depending on your ability to create, schedule, code, you should choose your shopping cart carefully, there are sites you can build mainly with copy paste, very easy to use and gives very good results.
For the web-host or hosting provider, the choice is vast, prices vary given the specifications; memory, bandwidth, etc .. and the service and response delays for incident or more serious problem.
What are the advantages of drop-shipping
Drop-shipping is a form of sale which allows working without major investment in stock. Despite a minimal amounts of items is preferable, it is quite possible to have no stock and make many sales. Sales in no way depend on your stock except for back orders or stock-outs.
A regular communication with suppliers is very important for new products and stockouts.
Indeed despite the fact of being an intermediary, on the cost point of view to the company, drop-shipping remains very economical because the goods need to only be sent directly from the manufacturer to the customer.
Furthermore the buyer not only interested by the price will not have to search among millions of websites for what you offer will have been tested by the plant but also by you with the samples.
Time savings, increased confidence, good services for the buyer.
How does the drop-shipping work?
You are in contact with a factory of Mobile Phone
You have checked and tested the quality of these Mobile phones
You display these on your site and put them on sale
A customer purchases 10 mobile phones on your site
You send the order to the manufacturer / factory and join the customer’s address, logo and address and the payment of your 10 mobile minus your commission.
The plant sends 10 mobile directly to your customer with your logo and address.
Be careful and if possible leave the customs fees and taxes to the charge of the customer. It is practiced by most e-shops and avoids a lot of inconvenience and of course simplifies and facilitates the proper functioning of sales.
How to develop your website?
Start with small quantities of products 10 per categories for example. You can choose to put your site online anytime during construction.
As previously suggested, a good dynamic is important, additions, replacements and product withdrawals must be done regularly.
Managing the medias is also important, the statistics on different media channels like Youtube and Vimeo hosts allow to see the most viewed videos.
Maintain your blog clear and concise, staying on topics related to your products or similar, find the best info, share, modifying or not, and always attach links redirecting to your sites.
Opening page speed
Of course the faster your pages open the better. The pages will be opened in less than 4 secs, beyond is too slow. A site, too slow, despite the various advantages, visitors will choose to go somewhere else.
Many factors come into play; size of photos, animations load, videos, etc …
An international website should be translated into the mainly used languages . There are sites that offer translators in major languages for reasonable prices.
It is advisable to translate the site into major languages if one seeks a global clientele. Many speak only their native language.
One or more blogs are necessary to any e-commerce. These will receive the documents you share in your content marketing but also the comments of the parties concerned. This blog with a direct link to your website (s) will not only attract more visitors but also help for search engine optimization.
Keep it up to date, check statistics and replace items that interest less or, not related to the products you sell.
The blog is also essential and draw attention to your site (s). Furthermore it will help the researches on search engine.
How to use different medias
The videos, photos, podcasts, etc .. will be on your site with direct links to sites like Youtube, Vimeo, Instagram and others and have links that point back to your site.
Rename with good titles all pictures videos and other media ..
The quality of different media especially the pictures of products will need to be of very high quality. Site visitors do not have the product on hand!
Try to keep the same dimensions of pictures
Social Media Marketing and SEO (search engine optimization)
The presence of your site well up in the first page of search engines is essential unless you have a considerable budget for advertising.
This work is pretty sharp and outsourcing to some professionals will be much more efficient and with faster results.
SEO depends on algorithms by the different search engines and change and evolve regularly. The keywords and key phrases that will give the keys of the result can be searched for on the web. Applications / commercial software are offering good results at low cost.
In order to attract visitors to your site, it is recommended to provide and share information or other content related to your products on social networks that link to your site.
There are ways to automate this form of marketing or you can outsource with professionals at least at the beginning.
The Marketing is as important as your website because without it you do not have visitors, it is also very important for referencing on search engines.
The regular daily sharing is important
Add two or three articles per day to your blog
Share between 5 and 10 articles per day per social networks
Write between 5 and 10 items of roughly 300 words and between 2 and 5 items of about 500 words or more per week.
Do not hesitate to reshare articles.
The helpdesk is an asset to a website, you can offer troubleshoots without having to answer because every time you save your answers as the problems or incidents occur. Not to forget as very useful and good service appreciated by the potential customer.
In the Cloud or not?
The choice is yours, the figures show that for big data, the cloud is the future but the safety was still a weak point in the last few years, but big progress has been made.
SaaS and PaaS
Software and Platform as a Software.
There are many on the market, some may be more complicated to set up than others,
a budget is needed for CRM and other app to automate various Mechanisms, is useful to better communication among the various crew members and clients. Each has its specialty, take time to choose the one best suited.