Mfg companies setting up affiliate marketing/drop shipping

[CommonCents]

I've got two manufacturing companies in the US doing BtoB wholesale biz. 15-20k sq ft facilities each, high production capability. I'm thinking of setting up a separate drop ship/affiliate marketing operation for them to let all the net entrepreneurs out there build sales and make money. The products are frozen gourmet desserts(cheesecakes, pies, cookie dough etc..) and quality candles(think Madonna/Elton John/Neiman Marcus) but also do lower price as well for fundraising industry. We would have the mfg and drop ship capability or bulk pack/ship to those that do their own fulfillment. We would provide stock photography of the products and descriptions.

Would probably set up a website template that can be replicated for affiliates.

Anyone have input or resources on starting up affiliate/drop shipping operations from a manufacturers point of view? What price points work best for online products? How to handle ordering and billing and paying commissions? What are average/enticing commissions for partners? Where to acquire affiliate partner for these type products? Affiliate/dropship/commission software solutions? (run quickbooks 10.0 for mfg so maybe some plugins avail) etc...

Thanks

 

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[PatrickP]

I am not understanding.

Did the 2 companies already say they are willing to do drop ship?

Or are you going to buy from them and then fill orders for other people?

 

[CommonCents]

They are my family companies. Am considering setting up affiliate/drop ship programs.

 

[MNentre]

Hey CC,

I like the idea. Do you have the infrastructure in place to start taking and fulfilling orders? What part of MN are you in?

 

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[Fisherman]

my advise is to prove your system before you start marketing it to others.. treat it like a franchise.

 

[PatrickP]

Hey CC,

I like the idea. Do you have the infrastructure in place to start taking and fulfilling orders? What part of MN are you in?

Did you read his first post? He is asking how to start taking orders.

my advise is to prove your system before you start marketing it to others.. treat it like a franchise.

What do you mean?

He already has 2 manufacturing companies which sell to distributors and resellers. He is asking if people would be interested if they started drop shipping.

 

[LightHouse]

Do they currently sell online? It’s tough to run an independent affiliate program for niche companies and have it produce any real traffic, esp considering your site is the only one that needs to convert. Dropshipping may be much better but you would certainly have to have the infrastructure to fulfill orders fast with blind shipping, plus inventory feeds and various other things. I’d be interested to see the products.

 

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[MNentre]

Did you read his first post? He is asking how to start taking orders.

PatrickP- I'm not sure if you were being condescending or insinuating i didn't read the OP or what, but I think my questions is relevant?

What I was trying to say was, with your current operations, B2B, do your current systems that you have in place now (probably large quantity, low frequency orders) allow you to also fulfill small one off orders from affiliates. Not to mention everything that LightHouse pointed out above.

 

[AffPlaybook]

Setting up the affiliate program is the easy part. It's very difficult to get affiliates to promote it. I think you would be best served by getting on an affiliate network like Sharasale, CJ, etc. I've worked with a few drop shippers whose programs are on those networks. If you want some names/contact info to go that route let me know.

 

[GamerGripz]

ive been looking to start up a drop shipping store but food and candles arent my bread and butter so im not sure if i would be able to sell them.

 

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[Fisherman]

Did you read his first post? He is asking how to start taking orders.



What do you mean?

He already has 2 manufacturing companies which sell to distributors and resellers. He is asking if people would be interested if they started drop shipping.

if you want to affiliates to jump on board in mass you must prove that it can be marketed profitable online...

 

[CommonCents]

Thanks for the input everyone. I'll check out aff networks and do a little digging on existing candle sales on sites such as ebay. I'd think a candle of the month club might work well for larger sale upfront or recurring CC sale, then auto ship monthly.

There should be plenty of margin for aff/ds compared to retail/wholesale general price points. For aff I would have to hire someone to create a good converting site template and backend stuff. Running quickbooks for mfg but I'm sure their are plugins to handle one off orders/shipping info etc...

 

[CommonCents]

Also looking at specialty mass customization candles using color photo capable printing for labels. customer could submit photo online and have a candle made w/ the photo on a label. Birthdays, weddings, anniversaries etc.... like hallmark but candles instead of cards.

Trying to get a little creative for new biz opps in addition to traditional brick/mortar mfg B2B

Yes, would have the room/capability to do all fulfillment/shipping in-house.

 

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[LightHouse]

I think DS would be much easier for you all to get started and pushing product vs affiliate stuff. Affiliate programs have to have a dedicated manager and always proving to the affiliates that you can convert their traffic to make sales. With DS that is the clients job is to get the sale and you are just wholesaling for them. You would just need a simple store for people to order from after they log in, and be able to update them regularly on the order status so they can pass it along. It would probably take less resources and produce a higher yield from your current situation.

 

[CommonCents]

Thanks, sounds like the right path.

I think DS would be much easier for you all to get started and pushing product vs affiliate stuff. Affiliate programs have to have a dedicated manager and always proving to the affiliates that you can convert their traffic to make sales. With DS that is the clients job is to get the sale and you are just wholesaling for them. You would just need a simple store for people to order from after they log in, and be able to update them regularly on the order status so they can pass it along. It would probably take less resources and produce a higher yield from your current situation.