How Blogshop Owners Make Money
Starting a blogshop is extremely easy, anyone who has basic knowledge of computers and internet can start a blogshop. However, to make even a sale or decent profit is hard. Many blogshops do not survive in the long term. Due to the ease of entry and low startup costs, the market is becoming increasingly competitive. That does not mean that profiting from a blogshop is impossible. There are several ways in which blogshop owners make money.
1. Buying in Bulk
Also known as wholesale, buying in bulk occurs when the blogshop owner imports goods in large amounts from suppliers at once. There are several benefits for doing so.
First, blogshop owners are able to negotiate for massive discounts from suppliers and keep the cost of their supplies very low. This helps enable them to charge relatively lower prices yet make a profit.
Secondly, making large quantity orders help blogshop/instashop owners in Singapore establish a relationship with suppliers. Suppliers are likely to treat customers who order more with more respect and would make an effort to build trust with them. Once a relationship is established, blogshop owners are more likely to encounter other offers from suppliers in the same industry who wants their business.
Lastly, buying large quantities of goods reduces the amount of shipping per piece of item. Since most shipping companies charge a fixed amount for a minimum amount of shipment (e.g. 150sgd/500kg), blogshop owners can effectively reduce the cost of shipping per item by shipping more items at once.
However, bulk ordering has its risk. Blogshop owners have to ensure that they are able to clear all if not most of their imported items. It is a risky investment as customers may not be accepting of all imported goods. Often, there will be times when some products are unable to be sold.
2. Adding value to their products
Goods that are imported from suppliers are mostly poorly packaged and unattractive. There will also be some damaged and defective goods. The responsibility of the blogshop owner is therefore to inspect all goods, remove faulty products and repackage them with some customisations.
The concept of value-adding to imported goods is present in every industry. Blogshop owners who are more creative will include unique modifications to the clothes/shoes/bags, etc. imported and make them more attractive, hence enabling them to sell their products at a higher price.
3. Marketing and promotions
Reaching to a large audience and viewers is essential for blogshops. There are many marketing techniques which blogshops use to promote their products. They can be categorised into these categories: 1)Social marketing 2)Search engine marketing 3)Email marketing 4)Word-of-mouth advertising.
The success and failure of any blogshop is largely determined by how well the product is marketed and the quality of the product itself.
Smaller blogshops tend to have limited budget for marketing hence reply mostly on social networks like twitter, facebook and instagram to spread the word. This form of advertising is free hence allows blogshop owners to save on cost and maximise profit.
It is definitely not impossible for blogshops to survive and thrive. Understanding the basics of how blogshops operate can help owners make a profit. However, to be really successful, these owners must employ more complicated techniques, improve their products and create value for customers. In the long run, successful blogshops can turn into megastores and even establish their own brand name.