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HOT TOPIC Make money with B2B ecommerce, even with just 1 product

Pershing

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Jan 25, 2012
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Hello guys,
I would like to share with you an interesting type of business that doesn't require a big investment but with a really big potential.

The concept is simple:

1) Spot a product companies need every day
2) Study the competition on google
3) Register an exact domain name and make a very basic website
4) Start selling

It can be a packaging product for a specific niche, raw material, or whatever companies need everyday.

Last year I discovered a product that some companies use to ship their products. Did some seo, but you know, it's slow, so I started to do some ppc too. Quote requests started to come from day one, even very big ones.

Another case study is a guy that makes extract of a plant and sells to pharma industry. He's doing very good, and spent no more than 5,000 to start.

Think about it, just 1 or 2 products companies need continuously.

I have a lot of spare time, and I'm always open to new hot niches.

If you are from another country we can share products and niches.
 

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YoungPadawan

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Yep, b2b is where it's at. ESPECIALLY if it's a product that they continuously need. That way, you can keep them in your Rolodex and they can be a cash cow for life.

I'm looking at supplying bulk commodities to companies/foreign markets in the future, but it's pretty capitally intensive. For now, I'm sticking with b2c products.

If you want to play in the big leagues, b2b is the way to go.
 

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I'm B2B with my service. It's a reoccuring service that they need every month

Best part about B2B is usually the 'decison maker' is not the person you usually deal with. In my case, a new employee comes in, calls me and asks how they place an order, I email them everything and then *bam* new work order. I'm just in their info as a vendor for my service so new customers send me work without any question. The 'decision maker' doesn't deal with the brute of the work behind the scenes so I'm out of mind for them. They just pay my monthly invoice.

Frankly all of my future plans are B2B. It's easier I think to have 20 clients that I bill for 15000 a month than 1000 or 10000 clients that buy something for let's say $25.
 
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Pershing

Pershing

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Hello @YoungPadawan
You don't necessarily need a big capital for B2B. I started with my first product line with 5,000 € and the next product I'm going to launch needs a 2,900 € capital.

These are products that specific businesses need 100%.

My business is to launch a niche website selling a product in several sizes and, at the same time, research every day for spotting new opportunities.

Would love to build a wordwide network of entrepreneurs wanting to apply a similar concept and share material, and I mean oppotunities and marketing. It's clear that it would be necessary to avoid two people from the same area sharing the same niche
 
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AgainstAllOdds

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2) Study the competition on google
If the majority of sales are done offline, studying a competitor on google will only give you a fraction of insight.

You need to find out what the customer is buying and how much he is paying. Information is everything.
 

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Interesting concept. I am interested in doing the same. The problem I face at the moment is, that I don't know, how to find products.
 

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Interesting concept. I am interested in doing the same. The problem I face at the moment is, that I don't know, how to find products.
Step by step, look for what your industry needs or what your industry is using and can be done better, each step take time.
 

SunnyN

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Would love to build a wordwide network of entrepreneurs wanting to apply a similar concept and share material, and I mean oppotunities and marketing.
The idea sounds great. Can we collaborate, even I may be able to bring in some resources (considering outsourcing opportunities too, if u want)
 

ProblemOd

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Are you basically ordering large volumes from manufacturers and selling it to businesses who need it in lower quantities?
 

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Walter Hay

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This could develop into a very valuable thread. B2B selling has some great advantages over selling to consumers. In saying that, I would suggest that selling consumer products to retailers as a wholesaler is likely to reduce profit margins compared to what you can achieve if you sell direct to a business end user.

A further issue to take into account is the matter of credit provided to retailers. They are notorious for expecting and in the case of large retailers, demanding, extended credit terms.

This means you risk becoming their banker.

There are still credit risks in selling direct to businesses, but discounts related to payment terms can help with that. Another way to minimize the risk for a reasonable cost can be to factor your invoices. Factoring services will pay you quickly, sometimes as fast as within 24 hours. Fees vary substantially, so shop around. I would treat the cost of factoring as insurance.
Are you basically ordering large volumes from manufacturers and selling it to businesses who need it in lower quantities?
That is OK if you have a product that you know is used regularly by businesses in the industry you are selling to, and you have done your homework to confirm that you can provide a competitive service that businesses will appreciate.

That could be a better price, a better product, or better service.

Don't underestimate the importance of better service. It was a combination of better service and better quality that led to my success in my B2B importing business. I sold them on the service angle, and the better quality was an unexpected bonus for them, and that welded them to my business, with long term repeat orders.

When I was a manufacturer, I produced in quantities to meet expected demand, but I always had sufficient raw materials in stock to meet sudden demand. In that business I also sold products for which I only carried samples that I could demonstrate or display. When I received orders that's when I bought the required amount, so inventory was low.

When importing, I also only carried a stock of samples to display, and ordered overseas as soon as I got an order. NO inventory.
If the majority of sales are done offline, studying a competitor on google will only give you a fraction of insight.

You need to find out what the customer is buying and how much he is paying. Information is everything.
Yes, information is vital, which is why I say intending B2B sellers must do their homework. I would suggest looking at both sides of the coin.

Check out your competitors as best you can. You definitely need to know their business thoroughly.

Research your potential customers. Get to know all you can about their business. Look for them or their employees on LinkedIn. You can even ask them there about any dissatisfaction with products or suppliers. You can ask if there are any supply problems hindering them. Are there any products they use that could do with improvement? etc.

Walter
 
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ProblemOd

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When I was a manufacturer, I produced in quantities to meet expected demand, but I always had sufficient raw materials in stock to meet sudden demand. In that business I also sold products for which I only carried samples that I could demonstrate or display. When I received orders that's when I bought the required amount, so inventory was low.

When importing, I also only carried a stock of samples to display, and ordered overseas as soon as I got an order. NO inventory.
What i meant is that, most people starting a b2b business wouldnt be manufacturing, instead importing the product. The main value you offer is that you carry the stock that you import. That way you offer faster lead time/ smaller quantities rather then the business having to order from overseas themselves? There are of course other scenarios, but I wanted to clarify if this was the specific strategy the OP was talking about.

In my skin care business, my manufacturer would order packaging from US packaging companies, but i'm sure most of them are supplied by China. Instead of buying 20,000 pcs, he can just order 2500 pcs, at a marked up price, delivered much quicker. The risk would be holding stock that no one wants.
 
OP
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Pershing

Pershing

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This is basically what @AgainstAllOdds
Do you do this in your own country only or worldwide?
In my own country and sometimes other EU countries

If the majority of sales are done offline, studying a competitor on google will only give you a fraction of insight.

You need to find out what the customer is buying and how much he is paying. Information is everything.
It depends on the product and the niche. Let's take packaging for example, a lot of companies, even big ones, buy online on B2B platforms

Interesting concept. I am interested in doing the same. The problem I face at the moment is, that I don't know, how to find products.
I love to surf B2B websites like Alibaba to spot new products. I often find crazy things, like ox gallstones, they sell for more than gold

The idea sounds great. Can we collaborate, even I may be able to bring in some resources (considering outsourcing opportunities too, if u want)
I created this thread because I would like to find people from different countries who would like to spot new opportunties and apply the model

Are you basically ordering large volumes from manufacturers and selling it to businesses who need it in lower quantities?
Yes, but it happens that a company needs a very large order, so I import a full pallet just for it
 
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Pershing

Pershing

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A further issue to take into account is the matter of credit provided to retailers. They are notorious for expecting and in the case of large retailers, demanding, extended credit terms.

This means you risk becoming their banker.

There are still credit risks in selling direct to businesses, but discounts related to payment terms can help with that. Another way to minimize the risk for a reasonable cost can be to factor your invoices. Factoring services will pay you quickly, sometimes as fast as within 24 hours. Fees vary substantially, so shop around. I would treat the cost of factoring as insurance.

That is OK if you have a product that you know is used regularly by businesses in the industry you are selling to, and you have done your homework to confirm that you can provide a competitive service that businesses will appreciate.

That could be a better price, a better product, or better service.

Don't underestimate the importance of better service. It was a combination of better service and better quality that led to my success in my B2B importing business. I sold them on the service angle, and the better quality was an unexpected bonus for them, and that welded them to my business, with long term repeat orders.

Research your potential customers. Get to know all you can about their business. Look for them or their employees on LinkedIn. You can even ask them there about any dissatisfaction with products or suppliers. You can ask if there are any supply problems hindering them. Are there any products they use that could do with improvement? etc.

Walter
Great tips Walter. Extended credit terms is an annoying aspect. Mid-big size companies always ask for 30-60 payments, but I insisted for payment before shipping, and for now all of them accepted after some emails, calls, and negotioating tricks I learned from books. Lucky for now. There is some stress when saying no to a client wanting to order thousands but asks for 30-60.
 
OP
OP
Pershing

Pershing

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WHY THIS WORKS

Inside every B2B ecommerce platform there are billion dollars categories, and you can take a slice of it. They often can't market those precise niches on google, youtube, or linkedin, because they have to cure the marketing of hundreds products. Bad descriptions, bad google rank, bad videos.

I often see my exact products I'm selling in thousands and thousands "hidden" inside big companies websites. I'm well positioned on google and have detailed explanation of the product in the form of text and videos.

The trick is to become an authority in one exact product, and prepare targeted marketing for every potential client.

Let's say you want to sell plastic containers, just a trivial example (not a good product to sell, because they are bulky), you'll not market them to anyone. You'll prepare laser targeted marketing for every potential client from several industries.

WHICH TYPE OF PRODUCTS TO LOOK FOR

It must be a product that companies need continuously, so repeated orders as long as your product is good for them and you keep your unique sale propositions.

Great lifetime value of the clients, and you have to acquire them just once. You can also afford a higher cost per acquisition compared to B2C.

I prefer to look for innovative products that make client's life easier. Shortly, you have to solve one or more problems.

After I find the product I want to be sure that I can reach the potential client online.


Hope it's clear. I'm not english native
 
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banjoa

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Let's say you want to sell plastic containers, just a trivial example (not a good product to sell, because they are bulky), you'll not market them to those wanting to put in whatever they want. You'll prepare laser targeted marketing for every potential client from several industries.
Pershing thanks for the great thread.

I don't really get this part.

Can you please elaborate.
 

banjoa

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May 7, 2017
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Hello guys,
I would like to share with you an interesting type of business that doesn't require a big investment but with a really big potential.

The concept is simple:

1) Spot a product companies need every day
2) Study the competition on google
3) Register an exact domain name and make a very basic website
4) Start selling

It can be a packaging product for a specific niche, raw material, or whatever companies need everyday.

Last year I discovered a product that some companies use to ship their products. Did some seo, but you know, it's slow, so I started to do some ppc too. Quote requests started to come from day one, even very big ones.

Another case study is a guy that makes extract of a plant and sells to pharma industry. He's doing very good, and spent no more than 5,000 to start.

Think about it, just 1 or 2 products companies need continuously.

I have a lot of spare time, and I'm always open to new hot niches.

If you are from another country we can share products and niches.
TAKE ALL MY REP!
 
OP
OP
Pershing

Pershing

Bronze Contributor
Jan 25, 2012
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Pershing thanks for the great thread.

I don't really get this part.

Can you please elaborate.
I mean that you should not make general marketing selling plastic containers, but prepare the messages for each type of potentical client with specific applications. They will better understand how your product can be useful for them.

Hope is clear now
 

banjoa

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I mean that you should not make general marketing selling plastic containers, but prepare the messages for each type of potentical client with specific applications. They will better understand how your product can be useful for them.

Hope is clear now
Yes.
Very clear now.
Thank you.
 

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Walter Hay

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A little more that might be helpful:

The icing on the cake for most customers in my importing business was that I offered FREE setup. The products, largely a variety of types of labels, that almost without exception, required artwork and a manufacturer's setup fee.

I amortized that setup cost with a moderate increase in price, that I had already included in a printed price list. As it happened my prices were as much as double those of my entrenched competitors, but getting something for FREE dazzled even hard-nosed executives.

That wasn't the whole story when it came to conquering an established market. Combined with my own marketing ability, I employed my son who is a wordsmith. His words are like gold. With no hard feelings I criticized his creative work and he criticized mine for the benefit of the business.

Our family business did all our own copywriting, logo design concepts, direct mail campaigns, brochure design, price list design - in fact, all advertising material. As we sold franchises that material was all provided as part of the package.

Another major factor was the presentation that first of all I made, then later commission reps, and finally franchisees, were equipped to make. All were provided with glittering display boards that fitted into a briefcase. They oozed QUALITY.

They looked so beautiful on red velvet display boards that staff of the businesses would call others to feast their eyes. The result was that a visit to one business would reasonably often result in immediate referrals to others.

Many years before, while trying to find suitable employment I sold a product on commission by demonstrating it with a small machine. It attracted a huge amount of attention in engineering workshops, and almost always resulted in a sale. Displaying and demonstrating are great selling techniques if you have a suitable product to show and tell.

When I refer to businesses it can include:
  • Almost any business operating as an incorporated body.
  • Manufacturing businesses of every kind.
  • The mining industry, oil and gas.
  • Power and gas networks.
  • Professional services, such as accountants, lawyers etc.
  • Government departments and agencies.
  • Special interest groups including hobbyists, bushwalkers, and political activist groups.
  • Political parties.
  • Trade unions.
  • Charities and NGOs.
  • Universities, and schools in general.
  • Sporting clubs.
  • Retailers, but supplying products for their own consumption, not consumers goods for resale. There is one exception that I know has worked well for at least one person:
  • Retailers who sell at flea markets. One of my early importing students started off as a flea market seller, saw my book and decided to import for his own stall. He very quickly gave that up and branched into wholesaling after other stall holders asked to buy products from him. He now has a thriving clientele and they all pay COD.
  • Service businesses. Many have a huge appetite for consumables.
  • Small-scale tradesmen. Even as individuals they will buy products repeatedly. Many would be glad to be able to phone a supplier who offers next day delivery. Otherwise they spend a huge amount of wasted time at hardware stores, electrical stores, plumbing supplies stores etc.
  • Jewelers. They buy a lot of products known as "findings." Those range from very cheap brass, or plated brass, or plated steel, to stainless steel, and even sterling silver or gold. This is a very competitive field.
If anyone can add to this list it might be helpful to those who want to run a B2B business.

Walter
 

AgainstAllOdds

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It depends on the product and the niche. Let's take packaging for example, a lot of companies, even big ones, buy online on B2B platforms
You're largely ignorant if you think analyzing a website will give you a full picture. Yeah, a website will list prices, and yeah, "even big companies buy online", but if it's a significant part of their cost, then you bet their a$$ that they have agreements and pricing in place that you're not privy to.

If you mark your efforts based on the wrong calculations, then you're going to fail and fail hard. In the product space, that means scrapping your entire inventory.

In my warehouse we have a "Kill Wall". It's pictures of competitors that we drove out of business. So far, there's two Harvard MBA's on that wall. They analyzed the market the same way as you, and invested close to $300,000 in startup costs. One and a half years later and they're bankrupt.

They never got traction, and best of all, they don't even know why they never got traction. Their calculations were correct based on the website. What was wrong was that me and my partner were selling to their potential client base at prices that were economically unfeasible for that startup.

You need a full picture if you're going to service bigger clients. You don't get that full picture through a website.
 
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Pershing

Pershing

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You're largely ignorant if you think analyzing a website will give you a full picture. Yeah, a website will list prices, and yeah, "even big companies buy online", but if it's a significant part of their cost, then you bet their a$$ that they have agreements and pricing in place that you're not privy to.
I'm sorry you wrote a long post just on a small statement, because in reality that's not how I do my entire market research. It's more complex. Please, don't absolutely think I make research visiting a website, that would be stupid. But I have to say that for this type of product google is very important.

You are right, but you can't write wihout knowing what is the product and its typical funnel, and other variables.

The funnel of my product starts on google. People calling me often tell me "hello, my boss told me if I can find product xxxxxx, and I've just found you on google".
There's no other way for this product, trust me.

They also can find me via youtube, facebook, linkedin.

I'm not the only one with a B2B google funnel being good source of the clients.

To answer your questions above

Regarding the fact that google gives a fraction of info of the market...

Not in all cases. Regading my product, here it's impossible to find it locally or offline in general, and when companies need it the first step they do is, I repeat, an online search, and sometimes they know me by
word of mouth.

I know my competitors very well.

You seem a smart person,so, please, next time ask details before telling a person is ignorant. I don't say I'm smart, but I prefer to chat politely.

Anyway, from what I understand, you're clever, so, respect to you.
 
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YoungPadawan

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Something kind of crazy I found out is that you can also find your competition's leads if they are exporting on panjiva.com.
 

Vanderbilt

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You're largely ignorant if you think analyzing a website will give you a full picture. Yeah, a website will list prices, and yeah, "even big companies buy online", but if it's a significant part of their cost, then you bet their a$$ that they have agreements and pricing in place that you're not privy to.

If you mark your efforts based on the wrong calculations, then you're going to fail and fail hard. In the product space, that means scrapping your entire inventory.

In my warehouse we have a "Kill Wall". It's pictures of competitors that we drove out of business. So far, there's two Harvard MBA's on that wall. They analyzed the market the same way as you, and invested close to $300,000 in startup costs. One and a half years later and they're bankrupt.

They never got traction, and best of all, they don't even know why they never got traction. Their calculations were correct based on the website. What was wrong was that me and my partner were selling to their potential client base at prices that were economically unfeasible for that startup.

You need a full picture if you're going to service bigger clients. You don't get that full picture through a website.
could you please elaborate your steps on finding a need in the b2b world? And how do you make your research about prices and competition?
 
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Pershing

Pershing

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could you please elaborate your steps on finding a need in the b2b world? And how do you make your research about prices and competition?
This is a rough idea of what I do

There is not an exact precise process to find new products. Sometimes I spot opportunities after spending countless hours on alibaba (there are some pearls if you search deeply), and sometimes I spot the needs first and then I search how they are satistied.
I also try to chat with entrepreneurs and see what they use in their business.

For example, let's take the shipping of hazardous materials. The companies need special packaging and materials like vermiculite for protection and absorption.

Before proceding I want to be sure that I can build a funnel online, so I check keyword tools to see if there are some searches. Out of 300 monthly searches, great part are cuoriosity queries, some are small companies, and a small part are big companies.

Competition is good, I have competitors, you just need to have a competitive advantage.
The fact that there is someone selling similar products means there is a market online.

Prices are sometimes shown directly on the competitors websites, but in B2B it happens you need to contact them for pricing, so you spy by contacting them telling you are potential client. By doing this you'll also know their conditions, what they offer, how, and so on.
 
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amp0193

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For example, let's take the shipping of hazardous materials. The companies need special packaging and materials like vermiculite for protection and absorption.
It's funny you mention this.

There is a special hazardous packaging, that if available... from any source... we would be doing exclusive business with that source.

For now, we are having to use a less than ideal solution, that is wildly expensive to boot.

I definitely see the value of the business model you're discussing.
 

yomtov

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Hi all, thank you for this interesting thread.
I ve been hotel director for 15 years but the hotel has been sold and now I'm reconverting in the food area.
When I try to find an idea regarding this b2b thread, it s blank page for me. I don't know where to start. Sorry if I don't have the state of mind but it s weird how I my brain has hard to dig into new areas regarding needs from other sectors than hotel industry.
So let say, I want to find a product for the hotel businesses (it s the only one I really know and I have a good network). Just for example, what was really recurent were the guest amneties: soap, shower gels, shampoos, toilet paper, shoe shine kits, etc...but there are tons of suppliers offering a huge panel of products. So, not a good idea to start with? not specific enough? And it is not one product but many...so what would be a one product need in this sector? light bulbs? cleaning products? deodorizers? napkins? vacuum cleaner and bags? What could be a one product supplier for hotels?
I'm a good worker and really creative but when it s about starting with a good new idea...I m lost.
I need a sparkle to start the engine.
I think it s a problem most of the newbies entrepreneurs have...If someone could provide more concrete examples it would help. Milk and ice cream shop is an image, not a good example, at least in my cold country.

Thank you and regards
 

zeros-only

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It's funny you mention this.

There is a special hazardous packaging, that if available... from any source... we would be doing exclusive business with that source.

For now, we are having to use a less than ideal solution, that is wildly expensive to boot.

I definitely see the value of the business model you're discussing.
Could you give more details on this...if you're OK with that...(even via PM)...I've worked in sourcing before and I'd like to see if I can still work my sourcing stuff...
 

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