How to Start a Drop Ship Company
Drop shipping is a popular alternative that allows you to sell products online without having to actually buy them before they are sold. Drop shipping is when you act as the middleman between a wholesaler and a buyer. When a buyer chooses to purchase something from your online store, you turn around and order the product from your wholesaler, who is responsible for packaging and shipping the item to your buyer. Setting up a drop shipping company is easy to do if you have a little bit of capital and some knowledge of how to set up and run an online boutique.
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Instructions
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Find a wholesaler that is willing to work with drop shippers. Many online directories organize wholesalers by product and willingness to partner with drop shippers.
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Design a basic website or online store tailored to your products. Ebay allows its users to set up a store for a monthly fee. You can fill your inventory with products later, but at least create a domain name and type in some basic information.
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Contact your local government to find out about getting a "doing business as" or DBA name for your business and any licenses you may need to purchase.
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Email or phone the wholesale company to inquire about applying for their drop shipper program. They will ask you to fill out a form and maybe send them identification. You will need to provide your personal information such as Social Security number, website URL, and other contact information.
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Cut and paste the inventory that is listed on your wholesaler's website and place it into your website, but only after you have been accepted into their drop shipper program. List prices for each item on your website and be sure you will make a profit.
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Publish your website after you have everything in place. When people place orders, you must go to the wholesaler's website, order the product and have it sent to your buyer's address. The difference between the wholesale price and retail price is your profit.
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