A great method that people have found that enables them to make money, and to be able to take advantage of the low overhead that the Internet offers is called drop shipping. Drop shipping is the business of a person operating a retail store or online store, but instead of carrying the inventory in their own home or warehouse, they order the product directly from the manufacturer.
Anyone can get started with a new drop ship business. However, there are several steps that you need to keep in mind when starting a new drop ship business and when working with dropshipping companies. Here are some aspects to think about:
If someone is interested in getting into drop shipping, they have to do a bit of research. First they need to research the type of products that they like to carry for their online store. Then they need to find manufacturers who participate in a drop shipping program. Finally, they’ll have to do research on the average prices for particular products that are sold online in order to stay competitive and yet make a profit.
2. Identify your niche
Before a person can set up a store online, they have to have an idea or a clear understanding as to what they will be selling. This is known as finding a niche.
3. Search for dropshipping companies and best prices
Once a person has determined their niche they need to find great suppliers for those products and make sure they’re getting the best price possible. The best prices are going to be prices that allow a person to make a profit, and yet not be so expensive that a customer wouldn’t want to buy. On the other hand, prices shouldn’t be so low that a person’s efforts wouldn’t be worth it.
4. Identify Marketplaces for Product Sales
This is the process of finding a place to sell your products and to advertise your online store. Some people simply choose to set up their own websites, while some people use forms such as Amazon and eBay to set up their drop shipping stores to sell wholesale products. Then again, some people use a combination of all of these.
5. Process Paperwork for each supplier
In most cases, when a person wants to send in an order to dropshipping companies, they can simply do so via e-mail. However, if there is paperwork involved then it may be best to send via scanner.
6. Make sure you have proper business licensing
An online business is just like any other retail business. One should check with state and federal regulations to make sure that they have all of their licensing and paperwork in place in order to operate a business.
7. Put products on your storefront: Once a person has done all of their back work and they’ve selected products they like to sell, the only step left is to advertise it in some way. This leads to the next point…
8. Market your product: There are several ways to market a product online. It’s best for a prospective wholesale products business person to read some books about online marketing, and to learn about more current methods such as social networking, in order to get the word out there about their online store.