How to Run a Drop Ship Business From Home

Making money from home is a big idea that is growing as we speak. Even in these lean times, home businesses are expected to grow in numbers and become a primary source of income for some folks.
The hottest one right now is the "drop ship' business model. This is easy, simple and anyone can do it. Even my 12 year old!!

Things You'll Need

  • A membership at EBay, Craigslist or other auction site.
  • A membership with a drop ship warehouse company.
  • A little time each day (about two hours, depending on business levels).
  • A Paypal account, if you don't have one now.
  • A desire to make as much money as possible.
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Instructions

    • 1

      If you don't have a membership with EBay or Craigslist, do that now.
      If you do have a membership, you are ready to rock 'n' roll, baby!

    • 2

      You will also need a Paypal account. Almost all EBayers use Paypal. It makes them feel safe when you do as well.

    • 3

      You will need to find a good, reliable drop ship warehousing company. I know a few, but can't name them here. Join one of these and get acquainted with it. Trust me, this will pay off long term.
      If you want to, send me a message here at EHow and I will respond.

    • 4

      There is an option here, folks. You can list items individually OR you can get aggressive and open a storefront on EBay and list a whole LOT of items. This is what I do and it makes me anywhere from $250 to $400 a month. Could make more if I listed more. The sky is the limit!

    • 5

      Upload a few items to your EBay store or just list them on the site.

    • 6

      When your item sells, the money goes right into your Paypal account. Make sure the payment is secured, then go on to the next step.

    • 7

      Now you have your money, you need to get the merchandise to the buyer. Go to the drop ship site and enter the shipping address for the buyer. When done, you will pay for the merchandise. Here is where it gets good.
      Say you sold a XYZ for $50 with free shipping. The drop ship site charges you $20 for the item and $4 for shipping. You profit $26 and NEVER HAVE TO TOUCH THE MERCHANDISE! What could be easier?

Tips & Warnings

  • Be sure to completely describe the item and use a picture as well.

  • Use HTML in the description to make your listing POP! when the visitor reads it.

  • Accentuate the benefits and make it seem like this is the BEST deal they have EVER seen and they HAVE to have it NOW!

  • Yeah! Hype is absolutely necessary here as you are competing with thousands (literally) of other sellers with the same items.

  • Offer a FREEBIE of some sort. Maybe a key chain or something.

  • Include the freight in the price and advertise FREE FREIGHT! Buyers come running!

  • Watch for Paypal fraud! If a buyer's information is suspect, be careful. You have every right to ask for a more secure form of payment.

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Resources

Comments

View all 19 Comments
  • Craig Dresser Mar 16, 2009
    Great information on drop shipping. Thanks.
  • Calandra Cooper Mar 11, 2009
    Great article. I've always wondered about this. Thanks so much.
  • bigspencer Mar 11, 2009
    Great way to keep the costs down of running a small business... good article!
  • rayjsm Mar 07, 2009
    Excellent article. I definitely plan on doing this. 5*
  • knowball Mar 05, 2009
    great info for reference! 5*

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