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Drop Shipping

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A supply chain management method where the retailer does not keep stock of goods but transfers orders received from customers and its shipment details to the manufacturer, wholesaler or retailer, and then they ship it directly to the customer is called as drop shipping. Retail businesses make profit with the difference in wholesale and retail price but there are retailers who earn an agreed percentage of sales as commission which is paid to the retailer by the wholesaler. Drop shipping gained popularity as the seller need not keep goods in stock and they don’t have to take the stress of packing and dispatching them. The drop shipping retailer keeps goods on display in his physical brick and mortar store or even provides online product catalogue or hard copy to its customers for reviewing and purchasing.  This occurs when small retailers receive single large order for a product. Here, he arranges for the goods to be shipped directly from the manufacturer or distributor to t
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Key things to know about building a profitable business

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Building a successful and profitable business requires certain qualities and factors. Take a look at some of the key things to build a profitable business: Passion It is always better to start anything with the backing of a virtue called as passion as it acts as the driving force even during circumstances that could bring you down. When the business starts grilling you, this passion for your work will always keep you pushing to overcome those obstacles. Knowledge Having basic and an in depth knowledge of what and where you are dealing business is a must! If you feel you are lacking in any area, make sure that you educate yourself about it. Capital and funds Just knowledge and passion wouldn’t help you bring out the best for your business. It requires having a proper financial model that helps the entrepreneur figure out how funds will be raised and how capital can be arranged for smooth functioning and operations. Business model Have a clear journey
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3 Sales Techniques for Introverts

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Salespeople are usually said to be extroverts who have a knack in convincing people about the objectives of the business. If talking and bringing in customers isn’t your favorite cup of tea, there are various other ways too. Mastering a few sales techniques will help achieve your targets, even for introverts. Here are some tips that will help salespeople who happen to be introverts: The salesperson and the customer are aware of their objectives – to sell and to buy the product. Don’t jump in and offer a deal before the customer specifically asks about the thing they are looking for. Either wait until they approach you or else give them enough hints that you could direct them to where they are headed. Compliment your customer as it has an interesting and predictable psychological effect on them. Strike a conversation there and get them to agree with your assessment of certain character that you are describing to them. Though salespeople are meant to be graceful an
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Chain of Command in Organizational Structure

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Chain of command in an organizational structure refers to the hierarchy of reporting relationships in a company starting from bottom to top of an organization. This defines the structure for who must answer to whom and this not only establishes accountability but also lays out the lines of authority of a company and its decision-making power. A proper chain of command makes sure that task, job position and department have got an individual who takes up the responsibility for performance. Organizational planners consider the goals of the company first as the structure must support its strategy. Designers then determine the tasks that are required to reach those goals. Then takes place departmentalization, followed by assigning of authority for tasks and areas. Once authority is given, relationships between positions can be determined, thereby creating a chain of command. The number of people who are responsible for reporting to a manager is termed as a manager’s span of con
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Appraisal Interview

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A formal discussion process that happens between an employee and the manager is called as an appraisal interview. This process is one of the best ways to increase productivity of an employee and to change their work habits. Here, the employer and his employee discusses on the latter’s performance, key areas of improvement and ways he /she can grow through feedback mechanism. In an appraisal interview gives a chance to its employee to defend himself/herself from being evaluated poorly by the manager. Also, the manager is given an opportunity to speak out their reviews and determine the need for training them due to a lack in any particular skill or even to be promoted, retained, demoted or fired.  The types of appraisal interview include: Satisfactory-Promotable – when the performance of an employee is satisfactory and deserves a promotion with an objective for professional development. Satisfactory-Not Promotable – when the performance is only satisfactory and there
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Economies of Scale

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Cost advantages reaped by businesses when production becomes efficient is called as economies of scale. Businesses achieve it by increasing the production and lowering costs as it is spread over a large number of goods which can be fixed and variable. Generally, size of the business matters when it comes to economies of scale as the larger the business is, more would be their cost savings. This could be internal and external i.e., internal is based on management decisions and external ones are based on outside factors. Economies of scale are considered to be an important concept for any business belonging to any industry; it represents the competitive advantages and cost savings held by larger businesses over smaller ones. There are various reasons why economies of scale mean lower per-unit costs. Majorly, the specialisation of labour and integration of technology helps in boosting volumes of production. Then, lower per-unit costs come from bulk orders given by supplier
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Programmatic Advertising

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A system that automates transactions and processes involved with purchasing and placing ads dynamically on apps or websites is called as programmatic advertising. This helps in purchasing and placing ads and also for targeting advertising content in a few seconds. An auction system called as real-time bidding (RTB) is used for placing ads which manages transactions between sites and app publisher, and the advertiser. The advertiser lays out criteria for buying ads through demand-side platform which is a software interface. The publisher’s software notifies them that they have available spaces for ads or ad inventory. An ad is processed and placed during the time taken to load the requested web page. Programmatic advertising is used as a way of optimizing the investment of advertisers and profit for publishers while automating tasks and serving consumers with relevant opportunities to purchase. These opportunities provide businesses a potential to get sales.  There are
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