How to Start a Drop Shipping Business
Drop shipping occurs when a seller takes orders for products and then pays a manufacturer or distributor to ship the products directly to the customer. The distributor typically charges a wholesale price to the seller and the profit is made by the difference between the retail and wholesale price. You can make an outstanding profit by starting a drop shipping business.
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Instructions
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1
Look for a reputable wholesaler. You want to deal with a company that has a reputation for selling high quality products in a timely manner. Drop Ship Direct and Shopster can be used as your supplier.
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2
Select the items from the wholesaler's inventory that you wish to sell. The distributor provides you with a description of the item and pictures that you can use to help sell the products.
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3
Set up a website or eBay seller account. You can market your products online through your own personal website or by listing them on the auction site eBay.
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4
Pay the wholesaler for the products that you sell. You give the money and shipping information to the distributor and they'll mail out the merchandise for you. The difference between the retail and wholesale amount is your profit.
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5
Manage your inventory. Once you start selling, you'll see what sells and what doesn't. Offer more of the products that sell well and steer clear of products that don't sell.
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Tips & Warnings
Wholesalers may experience delays due to backorders when shipping items that you have sold. You must communicate any expected delays with buyers.
Watch out for scams when you start your drop shipping business. People may try to sell you a list of wholesalers that are not legitimate.
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Comments
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yesterdaylady
Jan 04, 2010
This article is well written and very accurate. I whish more people were aware of the fact you made in point 5. It determines your sustainability in the market place. Good for you for pointing to it.
