Since 2002, Doba has hosted its own marketplace for drop shipping, catering to all aspects of selling products: manufacturing, distributing, and retailing. Its Web site and platform hosts about 1.5 million unique products from more than 250 suppliers, and thus has the potential to create thousands of buyer-seller relationships.

“We are exclusively focused on managing that supply, in helping retailers and suppliers simplify that process,” said Blaine Nielsen, CEO.

The convenience it provides for both retailers and suppliers has resulted in major growth. In fact, last year’s growth was a 400 percent increase from its 2007 profit, Nielsen said. The company also ranked high on Deloitte’s North American Technology Fast 500 and MountainWest Capital Utah’s lists.

Nielsen and the company attribute much of the past year’s success to its Product Sourcing application performance interface (API). Launched last February, the Product Sourcing API allows retailers to use the company’s supply chain programming within their own applications, for functions ranging between searching product catalogs and pulling shipping information.

Following its launch came ten new partners, though the Product Sourcing API adds to the overall cost and time-efficient services that Doba provides. For one, the company taps into the rising popularity of drop shipping, which Nielsen called “enticing in a recessionary time.”

Online retailers can test their target market and suppliers can market products supplementary to their tried-and-true, without much risk.

“There’s a lot less financial investment in there,” Nielsen said. “Even to the extreme that they don’t make any money out of it, at least they are getting over that hurdle.”

In addition, access to its marketplace saves both retailers and suppliers from most of the painstaking process that usually comes with finding potential customers. The company, after all, strives to combine “the supplier’s distributing ability and the retailer’s purchasing power at a single connection point,” its Web site states.

For 2009, Nielsen hopes that Doba continues to expand in all possible ways, by increasing their number of suppliers, products, and partners.

“We hope to turn the number of new partners into 20 or 30,” he said.

Then all you need is your equipment. Think of the items you would use in an office at a company, and transfer that to your set-up. So, the most important things would be a computer, a separate business telephone line, an all-in-one printer that can scan, photocopy and fax as well, and ideally a broadband or high-speed Internet connection. There are other items as well, such as a filing cabinet or cabinets, and a calendar or organizer for appointments, etc.

One thing worth pointing out is that you should buy the best equipment you can afford. Since you’re going to be using it quite a bit, it needs to be reliable – so spend the extra money when getting it; it’ll be worth it in the long run.

Expanding Your Virtual Office
Now that you’re set up, you can decide how you want to run your office. For example, is your business a small, entrepreneur-type one where you sell a product online, and then dropship direct from a supplier? Or is it more a consultancy approach, where you offer specialized services? Whichever it is, you can run all your back-up from your virtual office.

Dropshipping is an excellent way to eliminate the overhead of having to keep a physical inventory. If you have your own website, for instance, your customer can buy from you, and the sale will then be directed to your suppliers, who will then send it out on your behalf. You then pay your supplier at the end of the month. Your customer doesn’t know that your office is your 2nd bedroom – as far as they’re aware, they’re dealing with an international company.

Even if you need to meet customers, clients or suppliers , and you’re working from a virtual office, this isn’t a problem. Simply arrange to meet for lunch – this keeps everything informal, while still offering the image of a professional and expansive business. If clients or suppliers are not close enough to meet in person, you can hold teleconferences or even video conferences.

With technology continuing to improve, it’s no surprise that so many small businesses are starting up, and using a virtual office to build their brand. See what this type of office can do for your business.

Wholesale Product Sourcing for Your Business

It includes tips on dropshipping, sourcing closeouts and liquidations, and spotting fake merchandise.