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If you've been interested in starting your own internet businessbut you've been trying to avoid the hassles of things likedeveloping and producing products, tracking your inventory, settingup warehouse space, and maintaining a confusing shipping/receivinginfrastructure, then drop shipping may be your answer. It allowsyou to sell quality, brand-name products on your website for ahefty profit, while someone else looks after product developmentand order fulfillment.
In addition to not having to worry about shipping productsyourself, there are a few other advantages to this business model.First, it saves you the cost of building your own inventory. Ifyou're like most people starting a small business, you don't have aton of extra money lying around, so the last thing you want to dois tie up your cash in inventory that you may or may not be able tosell.
Have you noticed there are literally hundreds, if not thousands,of sites selling huge mish-mash selections of inexpensive giftitems . . . things like plastic gnomes and porcelain figurinesThat's because there are a few very large drop shipping companiesthat import these items and then recruit websites to sell them ontheir behalf. Unfortunately, this is not the way for you to go ifyou're getting started with drop shipping. There are already a lotof giant gift sites out there--and way too much competition for youto reasonably expect to be successful at it.
Whenever possible, you'll want to set up drop shippingarrangements directly with the manufacturers of the products youwant to sell. The fewer middlemen you have to go through, thebigger your profits will be.
If, after contacting the manufacturer, they agree to drop shipfor you, great! You can be fairly confident they'll offer you acompetitive price. If they don't agree to drop ship for you, you'llhave to look for another alternative. This usually means trackingdown a distributor. A distributor is simply a company thatmaintains a large inventory of another company's products anddistributes those products to smaller companies. The best way tolocate a distributor is to simply ask the manufacturer of theproduct to recommend one. Another great way to find a distributorfor the type of product you wish to sell is by looking throughrelated trade magazines. You'll frequently find manufacturers anddistributors advertised in the backs of these publications.
2. Do they charge a handling fee for drop shipping If so,how much Most companies that drop ship will simply add thecost of UPS or FedEx shipping onto your wholesale price, but somewill also charge you a handling fee (generally between $1 and $5).This is to offset their cost of picking, packing, and processingthe order for you.
3. How do they ship their products Almost every companythat drop ships products will use a major nationwide deliveryservice like UPS or FedEx. Ask them to include tracking numberswith the order confirmations they send. This will save you manypotential problems when customers ask, "Where is my order"
4. How do they bill you Most drop shippers will billyour credit card the wholesale price of the product plus shippingand handling as soon as they receive an order from you. Withothers, you may be able to set up a monthly billing cycle where yousubmit payment for all orders at the end of each month.
Luckily, many dropshipping companies offer access to thousands of vetted product suppliers. This may reduce your chances of having issues with the quality of your products. You may also rest easier knowing a vetted company will provide your customers with quality service and goods.
To someone who is new to the online business world and looking to break into the ecommerce scene, the dropshipping process can seem a little intimidating as it can be difficult to find a reliable source that tells you everything you need to know.
To have a successful ecommerce business, you have to find the right products to sell. But when it comes to dropshipping, finding t