Drop Shipping For Dummies

Submitted by: Aaron Landry

Want to start your own online drop shipping business but don’t know where to start? You’re in luck! Drop shipping is a low-cost, highly profitable business model that can help you earn the kind of money you deserve. It offers the flexibility of small start up costs with the potential for unlimited income. This makes it a great option for individuals who want to start a business but don’t want all the risks that come with it. However, as you may know, drop shipping isn’t as simple as it sounds. Its popularity has made it a prime target for scammers and middlemen.

To be successful in drop shipping you need a quality and reliable product source. Your wholesale supplier is your business partner and without a good one you will fail. This is the step where most people fail. New drop shippers tend to go to the search engine and sign up for the first drop shipper they find. These guys are almost always middlemen that mark up the wholesale prices and charge monthly fees. The net is saturated with these guys. The only one who makes money with this relationship is the middleman.

The fact is, real wholesale companies do not advertise in search engines. If you easily find your source in Google, you can almost be sure you’re dealing with a middleman.

Here are some dead giveaways that you’re dealing with a middleman:

* They charge monthly fees

* They don’t ask for a tax ID or resale certificate

* They offer the same products as another site or operate under multiple names

They make claims about how much money you can make

A real drop shipper will not sell you anything other than wholesale merchandise. If they try to, you can almost be sure it’s not a legit source.

However, finding a good product source isn’t the only thing involved. You also need a strong business plan if you want to do well. You have to plan ahead. Don’t think you can just list products on eBay and the cash will start rolling in. It’s not going to happen. You need to differentiate yourself from your competitors, know who your customers are, and know how you’re going to get your products in front of them. Just being online isn’t enough to make sales.

Most people head straight to eBay once they’ve found their wholesale source. It’s a highly trafficked site, so it makes sense that you’d go there to sell. The problem is that eBay is extremely competitive and charges tons of fees to sell products. This means you’ll have to lower your price to beat your competitors and you’ll also lose money from all the fees. This greatly reduces your profit margins, as you would guess. Not only that, but you’re eventually going to run into an out of stock issue. This occurs when you sell a product, then go to your drop shipper to find out it’s sold out. This means you have nothing to ship, and an angry customer. This will lead to negative feedback and possible banning from eBay.

This can be avoided by choosing a quality product source, but you shouldn’t rely on eBay too much in general. Try to find other places to sell your products, including your own online store. Building an eCommerce store is much easier now than it used to be. There are many simple software packages out there that are completely free and very easy to use. This should be your main source of sales, with eBay as a secondary source.

Obviously, drop shipping is not the simplest business in the world, but don’t give up. You can make a lot of money in this business if you do your research and plan ahead. Drop shipping is one of the greatest online business opportunities out there. Like anything, persistence is key. Keep expanding, improving, and focusing on customers, and you will eventually make it.

About the Author: For more information on starting a drop shipping business, including; drop shipping reviews, secret sources, scam alerts, and more, check out Drop Shipping for Dummies!

Source: www.isnare.com

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