How to Start a Mail Order Company
Starting a mail-order business can be a profitable venture. Convenience, low overhead costs, and the ability to choose your own schedule makes a mail-order business attractive for someone who is either transitioning from a full-time job or would like to start a part-time business. Another benefit of starting a mail-order business is that profits can be made in a short amount of time.
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Instructions
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Begin by determining what product you would like to sell. Products can range from cell phones to clothing, books and video games, among others. Go to sites like Amazon.com and eBay to determine what is selling. Choose products that you may be passionate about.
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Decide the method in which your customer will shop for your product. You can have a website where you take and ship orders from purchases made online. Or you can have customers call in their orders by dialing a phone number, preferably toll free. You can create mail order catalogs for your customers to shop from as well.
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Research and select a supplier. Determine if they can drop ship your product to your customer. Drop shipping is a practice in which you pay the drop shipper to send your product to the customer with your company name on it. Customers do not know that you are using a third-party company to send the product. You can also purchase the product yourself, package it and mail to your customers.
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Make sure you legally structure your business. Speak with a certified public accountant or lawyer to determine if you should form a corporation, LLC, or sole proprietorship. You may also need to establish a merchant account which allows you to accept credit cards. Your CPA may also help you determine if you need any licenses. Your local chamber of commerce can assist as well.
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Attract customers through effective advertising. Determine your target market. For example, if your products are cleaning supplies, your target audience may be stay-at-home parents or maids. Once you know your target market you can advertise in publications they might read or place advertisements in the stores they shop.
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Tips & Warnings
Since you will be mailing packages, consider opening an account with FedEx, UPS or stamps.com to reduce trips to the post office. Also, you can start your mail-order business on sites like Amazon and eBay.
Use a referral system and background checks when selecting your suppliers. Some suppliers overseas can sell you replica products that are not authentic. Also be careful if they request Western Union as a form of payment.
