How I set up my online gift basket business using droshipping

Before I even started this blog (in fact a few months before that), I decided to try my fortune with dropshipping. Of course, the more I digged into the subject, the more I realized I had a long way to go. What product to chose? What company to go with? What promotional and marketing techniques to use? The questions were popping up and with each answered question, two new ones popped up.

First decisions.

But now, I am (almost) ready to move on with the project. I decided to sell gift baskets and as my supplier I chose GiftBasketDropshipping. There were plenty of suppliers to choose from, but this one seemed like a perfect match. I did not want a company that distributes thousands of products in hundreds of categories. I want to put all my efforts in one type of products and therefore I want a supplier who does the same. Plus, Gift Basket Dropshipping also makes the baskets they distribute, which makes the whole distributor-seller relationship much tighter. And on top of that all, they do not retail their products, they only sell to whole sellers. So unlike with many other dropshippers, I do not have to compete with my own distributor.

Setting up the web site and business.

I chose the products to sell, I chose the distributor, and then it was time to pull up my sleeves and go to work. If you want to sell online, you obviously need a web site. And today I am proud to announce, that my web site has been  designed, coded and is fully functional. But it is not live yet, for that there are some more things I need to do. You can check out the test version at www.GiftBasketDreamland.com. Now I need to register my business and receive tax ID. I wanted to do so anyway, but it is actually requirement from Gift Basket Dropshipping. Then, I need to contact the supplier and sign up and receive the product database with images and product descriptions. Then, I need to enter these into my own database. Right now, I only have test images and a test database. After I do all that, I need to hook the shopping cart to a payment gateway. I have decided to go with CDG Commerce. It seems like a good, reliable, and affordable gateway. Plus, it is recommended by Foxycart, which is the shopping cart I use on my web site. Another option was PayPal’s Website Payments Pro. I used them previously and was quite happy with their service, but unlike CDG, they charge $30 mothly payment (as opposed to $10 CDG charges).

Online marketing and advertising.

But after I do all that, there still will be plenty of work to do. What good is a web site if no one can find it? Yep, I am talking about marketing. I already set up ads on my Adwords account, but for now I keep them on pause. I am still trying to figure out the whole campaign in terms of ads and budget. I am also thinking to try the advertising waters with 7Search.com. Although they do not have the reach Google does, the ads are very affordable and the competition is much smaller. This is the part I have to analyze and make decisions carefully, because with a poorly set up budget and ads, I am going to drain cash and get no sales. And that would be a sure way to bury the whole project before it even takes off.

Getting social and special offers.

Of course, paying ads are not the only way I am going to use to promote my new venture. Facebook and Twitter accounts have already been set up. On top of that, I am offering a lot of benefits for customers, from free shipping to many discounted gift baskets. Even sweepstakes, where every month, one lucky person will win a free basket and the only requirement to qualify for it is to become a friend on Facebook or follow Gift Basket Dreamland on Twitter. Do both, and your chances double. And of course, every paying customer will be entered into the drawing automatically. The goal for me is obvious – build a list and at the same time, build a brand awareness. BTW, this is not just a marketing scam, I absolutely guarantee that the possibility of winning a basket is real.

SEO building.

Beside the classic promotion and advertising I am also going to include a simple article marketing. Over the time, I certainly am hoping for good search results occurring naturally, so SEO is important to me right from the start. If budget allows, I am actually going to hire a copywriter to help me out in this area. But for now, money is tight so I have to do what I can myself.

Lots of work ahead. And that’s if everything goes smoothly, which is rarely the case. But I am determined to make this work. I have already put many hours and effort into it. This is my entry into real online business and I will do all I possible can to make this entry as successful as possible. And I am planning on writing about it, so do not forget to come back to check out the progress. I will keep you posted.

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