A Guide on How to Get Started With Dropshipping Today
Chapter 1 Five Golden Rules to Dropshipping
Chapter 2 Reasons for Starting Dropshipping Business
Things to Consider
The Advantages Disadvantages
How to get Started
Chapter 6 How to find a Reputable Dropshipping Supplier
Chapter 7 Selling Through an eBay Store
Dropshipping is a type of retailing where, instead of the retailer (meaning you) actually keeping the goods in stock at their own location, they instead pass the order, along with the shipment details from a customer, to a wholesaler. It is then the job of the wholesaler to dispatch the goods ordered directly to your customer for you. The great thing about this method is that not only do you not need to have a large warehouse for storing all the goods you are selling, but also you make a profit through the price you pay for it wholesale and the price that you sell it to your customer for.
In fact, where drop shipping is concerned, you are actually acting as the middleman for the product that your customer receives and the manufacturer who produces it. This particular type of system is extremely beneficial to both small retail shops, as well as internet based stores, or those people who use mailing catalogs in order to generate sales for their companies. In fact, many customers who purchase their products in this way seem to not be too bothered that there is a delay between the time when the products are ordered and when they actually have them arrive.
But the biggest problem that is being addressed by drop shipping is that retailers no longer have to worry about controlling their inventory, as this is done for them by the wholesaler instead. Unfortunately, in a more traditional retail setting, the products a store owner orders will be ordered in bulk, and they will then need to be kept in a secure location until they can be displayed and sold. What this means is that you are adding costs to an already large budget, as you will need to have storage space available, along with hiring staff to maintain the storage area and ensure that the goods are ready for delivery to the store and to know what levels each product is at. You will also need to spend money investing in a good quality security system in order to prevent the goods from being stolen. However, if you were to use drop shipping instead, then you do not need to retain a large stock of your inventory on site, and also you no longer needed to employ a large team of staff.
Also, you will find that a large number of manufacturers now find the idea of drop shipping as a good investment, as it is also lowering their costs as well. Plus they are gaining an additional sales person who they do not actually pay a wage to. They are also saving themselves money as they no longer need to arrange for the delivery of large quantities of their goods to a retailer, so they are cutting down on their handling and fuel costs this way. Instead, they can use the more inexpensive shipping methods that are now readily available by using either UPS, FedEx or a locally based delivery company to ensure that their products are delivered directly to the customer. Plus, as many manufacturers have spent vast amounts of money ensuring that their warehouses are completely secure, they know that their products are safe until the day that they are dispatched, rather than them sitting in the back room of some retailer’s shop with very little or no security on the property.
Yet there are some drawbacks to running a drop shipping business, and these we will look at in more detail later on in this book. Through this book, we will provide you with how you need to get started in the business of drop shipping, along with what you will need and the benefits, as well as the drawbacks.
Chapter 1 –
Five Golden Rules to Dropshipping
If you want to ensure that your drop shipping business is profitable, there are a number of things you need to remember. In this chapter, we will look more closely at these five golden rules to ensure that you can run a profitable business.
In order to make your business as profitable as possible, you need to find a product which will sell in sufficient quantities, as well as one which will provide you with a good mark up, in order for it to be truly profitable. Therefore, it is important that you try to determine what the demand for the product is, and also what competition, if any, there is for this particular product. Also, if you can, take a look at what your competition is charging for it. You may find that some businesses will have a much lower profit margin than others, including you.
It is best when first starting out selling products using drop shipping, that you only sell a select few. Plus, also that those that you do select are related, or can be targeted and sold to the same market set. It is important that you do not try to sell every drop shipping product that you find, as this will help you concentrate more on marketing your goods, as well as keeping your own costs to a minimum. Plus, you are more likely to make an impact in the market place as well.
Due to its increased popularity, it is important that you find a reputable drop shipper for your business. Unfortunately, over recent months there have been many scams that have come to light in this particular industry. Avoid those people who are offering to sell you lists of drop shippers for 100’s of dollars, unfortunately, many of these are middlemen who are posing as drop shippers themselves, and will then charge much more than you actually should be paying. Remember, the whole idea of using drop shipping is to keep your costs down rather than raising them but also still be able to make a profit at the end of the day.
Also, if you are able to, avoid the “turnkey” internet businesses which are willing to sell you a package of products, e-commerce, and marketing for an exorbitant membership fee or charge you a monthly fee. These types of businesses, you will soon find, do not actually help, but rather hinder, and you will soon find that you are not making any profit whatsoever, while they are.
However, do not let what we have written above frighten you off, instead just be aware of these pitfalls. However, one of the best ways of finding a reputable drop shipper is through looking at such directories as “Chris Malta’s Worldwide Brands”. This provides you with a whole list of legitimate, as well as reputable, drop shippers that you may wish to consider using.
You will still need to deal with the problems associated with back orders and returns. Unfortunately, not all the hassles associated with running a normal retail business can be eliminated from a business that is run online. There will be times when you find that a product your customer has ordered is not in stock, and so will not be available
for dispatch immediately. Therefore, you will need to work out these matters with your drop shipper ahead of any of these problems occurring. This will then provide you with answers that you can provide to your customer should such an event occur.
Finally, it is important that you treat your business just like any other business, so do not spam people. Also, do not use either a personal or free web page address for your online store, and also ensure that you register the business with your County Clerk. It is also important that you register with the Tax office so that you have a Tax ID number and be prepared to file taxes each year.
As long as you start off by expecting that your business is going to make a decent profit, then the chances are that you will automatically see an increase in this.
Chapter 2 –
Reasons for Starting a Dropshipping Business
If you are looking for one of the best opportunities to be had today for running a business from home, and cost little if anything to set up, then a dropship business is probably the answer for you. Not only can you run this business from the comfort of your own home, you will not have to worry about keeping large amounts of inventory in stock and you will not have to worry about getting the products shipped to your customers. Plus, you can still run this type of business while working in your normal day to day job. However, if the business really does get off the ground, then you can become a work from home mom or dad instead.
In order to get your dropship business started, you will need either your own website, or you can sell your products on eBay. Then once an order is received and has been paid for by a customer, you send the order over to your dropship supplier and they then send the order directly to your customer while you still make a profit. Also, you will need to set up an electronic payment system such as those provide by Paypal.
If you were to carry out a search of the web today, you will be amazed at the number of people who are making money through a dropshipping business. There are even some who are actually earning a 6
figure salary from theirs, and others who are just doing it part time in order to earn a little extra cash to provide them with a better way of life. In fact, many people often start their dropshipping business as a part time business, and it is only after the business has really taken off do they decide to do it full time instead.
The great thing about setting up dropshipping business is you do not need any special skill sets in order to get it started. All it really needs is a person who is willing to dedicate their time to ensure that the business succeeds, as well as having a computer and this being connected to the internet.
But the first thing you need to do once you decide to set up a dropshipping business is to form a good relationship with your dropship supplier. Once this has been formed, then you can start selling their products online, either through your own website, or on one of the many auction sites such as eBay.
What you are actually doing is acting as a middleman and bringing together those who want to buy a particular product and those that are selling it, while still collecting a profit for you. The greatest benefit to be had from setting up this type of business is that you do not have to worry about inventory or paperwork as with a normal retail business, as this is all the worry of your dropship supplier instead.
The other great thing about setting up a dropshipping business is that you should find yourself almost making money instantly. If not today then tomorrow or the next day, but it certainly will not be long before you should start to see your first profits.
All you need to do is find a product that you feel people will buy, find a reputable dropship supplier, and then start advertising the product on eBay. By using this method, you will find it costs very little in order to get your business up and running.
However, as with any business, it is best that you ensure that the products you are supplying are of the best quality possible, and also provide the best customer service that you can. So if you are selling your products through an auction site, then make sure you keep in touch with what is happening. If any of your customers have a question, then make sure that you respond as quickly as possible and follow up afterwards to ensure that they are satisfied with the information you provided to them.
Also, always select products that there are not thousands of them selling on the internet. By doing this, your business will not only be much more fun, but will also be much more profitable. So before you start selling any products through a dropshipping business, you should do as much research as possible first. Look for those products which have not saturated the market, or that has very few people competing for the customers, and therefore, the sales.
But what you do need to remember is that starting a dropshipping business is very easy, and you can run it from anywhere, especially out of your own home. Also, such a business can be run from anywhere in the world, and will cost you very little in getting it started.
Chapter 3 –
Things to Consider
As you will soon discover, dropshipping is an extremely effective business model for anyone who wants to start an online retail business. You can either run it through your own website, or through some other outlet, such as an auction site.
However, because this form of online business has become so easy to do, and because of its increased popularity, many prospective dropshipping businesses have become targets for the less reputable people online, such as scammers.
Unfortunately, many people who do not really understand what dropshipping is about only see it as a way of getting rich quick. Because of this, there are plenty of people out there who are read