Online retailer...what does it take?

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techno935

SatelliteGuys Pro
Original poster
Jul 27, 2006
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Pompano Beach, FL
I was tinkering with the idea of becoming an online retailer/reseller of satellite equipment. Is it time consuming? Is it worth it? Would be fun to make a little extra money doing this if I don't have to open a physical store.
 
I've seen a lot of little guys doing that.
A nice web page goes a long ways.
One guy who I won't mention, has a really difficult to follow web page, and I just can't stand to shop his site.

I believe SatelliteAV is a master distributor or wholesaler; you might check with them.
And having DMSI drop-ship stuff for you would sure make it easy.

Some sites really go too far afield, and would benefit from focusing a little more closely on the FTA stuff.
Take a look a the sites of IvyStonePlace and DavesWebShop for ideas, both good and bad.
SkyDeals is mostly a Dish seller, but their site has tons of accessories. (nothing specific to FTA)
 
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been to daves place it is great... its a old town shop on the main street in Van Buren Ar. ... they are mostly a hobby store and have lots of stuff. some of their fta stock is onhand. other larger online shops, i'm sure have a on hand stock. but for starters that drop shipping might fit the bill, very little stock and little overhead. but like Anole said a basic web page layed out nicely , you don't have to sell a lot of items just key ones and support.
the main thing about being a reseller would be being able to field the incomming questions.there would also be a plus to offer items maybe no one else has like maybe this
 

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Online reselling has become extremely popular with the widespread acceptance of sites like Ebay. Just because the business is online doesn't mean that you do not need to follow many of the same rules that apply to Brick and Mortar shops. You will need to be aware of the Federal, State and Local requirements for operating a business.

You will want to decide if your business will be a Sole Proprietor or a Corporation. You will need a federal Tax ID number, state reseller permit, business banking account and either a line of credit or arrangements with a wholesale distributor to carry the account. Often resellers do not inventory the items that they advertise and have the wholesaler Blind Drop Ship on their behalf. Locate several reputable wholesalers and submit reseller applications with the required paperwork. Once your applications are approved you are ready to start advertising.

The saying, "build it and they will come" does not usually provide enough sales. You may find that Ebay or other sites can be beneficial, but these sites can prove to be quite difficult due to the cut-throat pricing and selling against resellers who purchase in very large quantities and can offer substantially lower prices. A sad but true fact is that many Ebayer's do not provide any service beyond shipping a product. Once the product is delivered, they often believe that their responsibility for customer satisfaction is over!

Many resellers are very good at getting high rankings on the free Google links while others chose to buy high ranking on the paid links. Banner advertising is great if done on the right sites with the correct demographics that fit your product. Word of mouth regarding your great products and support is often the best way to build your business.

Most small shops carry very small amount of inventory. We provide drop ship services for the majority of the single employee shops. With the drop ship service they do not need to pre-purchase equipment, packaging supplies, and manage the shipping process and the occasional damage claim.

A major mistake that most resellers make is not carrying a diverse line-up of products from more than one wholesale source. If you offer the same product as other sites, your service and prices will be the only factors that differentiate. Remember, Customer Service is required! Be prepared to provide installation and technical service support, handle warranty and other returns. Know your product and how to install and trouble shoot. Many resellers are often surprised by the amount of time that can be consumed in providing service. Customer service is not free for the reseller to give away, so build the cost of your time into the price of the product. First time buyers are usually influenced most by a price. This can be a "catch 22". Set your price to low and the business can quickly become an expensive hobby!
 
I would like to add that if you are a good web designer, you can start by offering a few products and use the drop ship method that Sadoun, SatelliteAv and other distributors offer.

Also, if you want to have a hands off approach, try the afiliate program. Basically, you create a few pages that have interesting topics related to the product. Put a few links to the products on our website (using your affiliate id). If the person buys within 30 days, you will get credit for it. Check the affiliate program details here.

Another option would be adsense by Google. I read that a lot of people are making good money that way. Check google for details.
 
I've been curious about this sort of stuff a while too... I have a lot of images on turbosquid, and several similar sites. When I asked the people at the state capital about it, they said that there's no sales tax since no actual physical good transferred hands, just a digital file. I have some stuff on cafepress, where there's really a cd full of images and they said the same thing since I'm not the one doing the actual sale. Personal income tax kicks in on both of those if there's enough sales... Does the same thing happen with other affiliate programs, and/or drop ship setups? Does the affiliate have to pay sales tax if they aren't actually handling the goods, just connecting the buyer and seller more or less as a middleman.

On another note, if anyone knows of free auction sites, please list em, if possible... I know that yahoo auctions used to be like ebay, but without all the costs that ebay had if you didn't make a sale. I read the other day that there's lots of other places like that out there where they are free and just take a percentage off of your final sales. Does anyone know of where those sites are?
 
mastermesh - I use a site that isn't really an auction site, but a "classifieds" site. It's 100% free, and it gets loads of traffic. Try craigslist.org - you setup your sales in regional sites (which could be difficult to find your target audience if you're selling something that is easily sent anywhere, but is GREAT if you're selling large stuff like a 12ft satellite dish)
 
I see people buying FTA systems and having the same install problems over and over.

Basically the instructions which come with FTA receivers, diseqc switches, LNBF's, etc. are little or none. Then no one knows the difference between C and Ku and no one tells them. Sats are listed in the receiver with both C and Ku TP's and many of these frequencies don't work. Software versions with out of the box receivers have serious problems. Etc.

I would only sell blind search receivers which work and then update the software version to a known working version. Then also download to the receiver a TP list for each sat which has only one current working FTA TP per sat and has each satellite listed twice, one for C, one for Ku, then rename sats which are circular polarity CC or KC. Also set up the LNB's and diseqc switch settings.

So basically the customer would receive an FTA receiver which indicated which satellite listing was C, which was Ku, and which were circular polarity. And they would pull it out of the box and the software version would work and the TP's for each satellite would work. They would get something on their receiver signal meters if pointing at the correct satellite.

Include an inexpensive coax signal meter and inclinometer with each FTA "package system" sold. The package would include receiver, 1 meter dish, and positioner if Ku only, or big 10 ft. dish, BSC621-2, VBox, etc. for C and Ku.

Then include "tested" instructions for the install. In other words, you have given different people the package system and they have been able to read the instructions and get their system to work. You have modified the instructions until most people can install the system on their own.
 
... also download to the receiver a TP list for each sat ...
I know SatelliteAV and Global-CM both pre-configure some of the receivers they sell.
It's got to cut down on their support calls a -lot- !
Also set up the LNB's and diseqc switch settings.
Now, that's a heck of a good idea!

Next, you'll be suggesting they color-code the connectors and cables, like has been done on home computers! :cool:
Couldn't hurt, but in the mean time, how 'bout some colored dots pressed onto the rear of the receiver, switch, and LNB, along with matching shrink-wrap/tie-wrap/string-tags on the mating cables?
Include an inexpensive coax signal meter and inclinometer with each FTA "package system" sold.
I have found those things cheap, and now have at least three meters, and a couple of inclinometers.
Can't lose 'em if you have enough. :D
Also good to loan to friends, and still have a few at home "in an FTA emergency" :eek:

Then include "tested" instructions for the install.
I've read through some of the booklets SatelliteAV supplies for their systems.
I'd have to say they're as good as Dish or DirecTV for self-installs.
I think the problem arises when people try to mix 'n match and go off on their own, without knowing what they're doing.

Installing a motorized system for the first time, has got to rank right up there with a trip to the dentist.
A beginner should get their feet wet on a couple (6 is a good number) of DBS installs. Dish or DirecTV.
Then, graduate to a fixed-dish FTA lash-up ... and not on the weaker birds, either.
After gaining some experience, the motorized system won't be so difficult.
 
Installing a motorized system for the first time, has got to rank right up there with a trip to the dentist.
A beginner should get their feet wet on a couple (6 is a good number) of DBS installs. Dish or DirecTV.
Then, graduate to a fixed-dish FTA lash-up ... and not on the weaker birds, either.
After gaining some experience, the motorized system won't be so difficult.
I couldn't agree more Anole. We have struggled and failed on this forum to help a new kid on the block. Seems they have bought the whole enchilada - motor, quad LNB with C/L outputs and with a receiver that won't run a motor, and then mounted it on the roof in a hard to reach place!
SatelliteAV has sold a system with instructions to match. I have to hand it to Brian, with what he has done with SatelliteAV & GloryStar. If you can find a niche market and serve it well, that would be the key in my opinion. Two many people self stuff that they can not support! For what its worth.........
Bob
 
Then include "tested" instructions for the install. In other words, you have given different people the package system and they have been able to read the instructions and get their system to work. You have modified the instructions until most people can install the system on their own.
Great idea... and make sure that somewhere in the instructions that you make up you give instructions on checking out this forum, and maybe a little paragraph on why this forum is more better and legal than a lot of others out there! :)
 
Great idea... and make sure that somewhere in the instructions that you make up you give instructions on checking out this forum...

Very good idea! List sources of where to find additional information. Or better yet, in the printed instructions, provide one link to a page on your web site which lists other sources of information.

Web sites come and go. Links change, etc. So you could change this on your web page and not need to update the printed information (which is costly).

Following is a 145 page government document on setting up satellite TV. Ignoring the military specific stuff, this detailed installation information is what I would expect to receive with something as complex as an FTA satellite receiver.

Defense Media Center Satellite Handbook...
http://www.afrts.osd.mil/tech_info/handbook/pdf/handbook.pdf
 
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