Drop shipping is a retail method where a seller does not keep products in stock, but rather purchases them from a supplier. Order and shipment details are sent to the supplier who will ship the goods directly to the buyer. In drop shipping, you do not have to worry about inventory issues.
There are a lot of advantages to drop shipping. For starters, even with a small capital you can start your business. You are selling items that you do not have, and you only have to pay for them once you have orders from buyers which at this point mean you already have your buyers’ money.
Another advantage of drop shipping is mobility and flexibility. You can even manage it from a handheld mobile device. Once you have launched your store, all you need is your mobile device hooked to the web so you can accept orders and transact with your supplier/s.
WHO SHOULD VENTURE INTO DROP SHIPPING?
If you want to start an ecommerce business but you do not have your own products to sell, drop shipping is the best option for you. This also works for people who have a lot on their plate yet want to earn extra from an online business. Remember you only need a mobile device with an internet connection to manage orders.
HOW TO START DROP SHIPPING BUSINESS
You need products to begin with. You can simply Google drop shipping suppliers but, before contacting suppliers, check out if they have requirements like in the U.S., wholesalers would ask for your Employer Identification Number and sales tax and/or resale certificate.
With products to sell, it’s time to build your store. Start with your store domain name. I use NameCheap to purchase the most affordable domain names. Look for website builders or hosting services to launch your site. Hosting services usually offer website building tools. On the other hand website building platforms also usually offer hosting services. Top choices for hosting are BlueHost and Hostgator. Easy-to-use website building platforms are Wix and Shopify.
You should not stop at launching your store. Visitors would not just magically come across your business. You need marketing tools like SEO, social media, viral video and email marketing.
EARNING POTENTIAL OF A DROP SHIPPING BUSINESS
A drop shipping business requires low overhead capital. However, income per item can be a bit marginal since your profit depends on what you can put on top of the original price. But, you can earn a lot if you fill your storefront with a lot of items and you put enough effort in marketing. Maintenance can be as low as $1000 per year for your website and other costs depend on your agreement with your supplier.
You can launch your website in less than a week and results from your marketing campaign can vary, usually it would take a month.
DROP SHIPPING AS A PROFITABLE ECOMMERCE BUSINESS
With a low annual maintenance and low startup capital, you can immediately start your drop shipping business. You do not have to create your own products and all you need to manage it is a mobile device with internet connection. If you want to start a drop shipping business, click on the blue prints below.
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