The cloth diaper business in Malaysia is moving rapidly. There are more cloth diaper retailers coming onboard. The ‘outlook’ of cloth diaper online business looks so impressive. You might think that it is easy as there is a huge market out there for the retailers to explore. But in reality it is not. There are so many factors you need to take into the consideration before you actually venture into the business. These are some of the factors you need to consider:
- Your online store – what type of web hosting and shopping carts available
- What is your budget for item (1), if you do not have any budget, you may consider 2 particular web hosting with shopping cart that are free, i.e. vstore.ca and ecrater.com
- What are the cloth diaper products range that you want to sell
- Where to get these cloth diaper products. Most cloth diaper wholesalers in USA, Australia and UK required a min order value for new retailers
- The RRP (Recommended Retail Price) and the Wholesale Price. This is important as you need to know what is the 'gross' profit margin.
- Shipping charges. It is advisable to use the most economic mode of shipping. Shipping charges from USA is relative high compare to Australia and UK
- Malaysia custom duties. This may vary according to the value of the product and your negotiation power. The maximum duty that you will need to pay is 25% + 10% or a flat rate of 30%. If you are lucky, you might be exempted or pay a minimum amount
- Selling price. This is very important as you need to ensure your price is comparative with the existing retailers and it meet your desire 'net' profit margin
- Your delivery charges to customer and customer payment methods
- Publicity of your online store and the products range
- Your responsive rate to the customers. Most customers look for good, realiable and fast service seller
- On going creativity. You will need to continuously bring in new products or be creative in promoting your products
- Your cooperative with others retailer in Malaysia. It is relatively important as you are able to share information and resources in bringing in new products or selling your products
In view of the above, would you think that it is easy to operate cloth diaper online business in Malaysia?
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