Getting Ahead with a Drop Shipping Business

by WorkFromHome on April 11, 2011

In today’s competitive world, many are looking for new and creative ways to make money from home. Affiliate marketing is one means of doing so that many have chosen, but in many cases the profits earned aren’t worth the effort. That is why many in Australia have turned to starting their own drop shipping business.

What is a Drop Shipping Business?

A drop shipping business is basically an online store. The owner of the business finds products at wholesale prices, or slightly above wholesale prices, that they can sell to customers and make a profit on. A drop shipping business is essentially the middle man between the manufacturer or supplier and the customer. Any profit made between the wholesale price and the retail price is kept by the drop shipping business.

The beauty of drop shipping is that the owner of the drop shipping website does not have to worry about having a warehouse full of goods on hand, or about having to pack up and ship a product to a customer. This is taken care of by the supplier. The owner of the drop ship business places the order with the supplier, and they ship the item directly to the customer. In turn, the supplier bills the drop ship company, and the drop ship company bills the customer.

Getting Started

As the owner of the drop shipping business, you will want to make sure that you choose a product line that is truly attractive to customers. You will want to make your website SEO friendly, so your online store will get results on search engines.

Make sure you pick reliable vendors. You will want to make sure they ship items in a reasonable amount of time. You will also want to shop around and really be sure you are getting the best possible deal on the items you will be selling. Remember, the better price that you as the drop shipper receive, the more profit you’ll make. Do a few test orders to make sure the supplier is really reliable. You are the one who will have to answer to your customers if their orders do not arrive on time.

Keep Improving to Get Ahead

In the first few months or weeks of setting up your drop shipping business, you may have success in selling particularly on certain items. But, don’t be content to continue with the same product line. When we shop online, all of us like to see new items as well as sale items. Continue to expand the items on your website. Make it interesting by setting up blogs, informative articles, complete product descriptions and product reviews.

If you have a lot of success on one particular item, this may be an indication of other products that may be useful to offer on your website. Focusing in on popular items can help you expand your online business.
Every business needs an advertising strategy. Try promoting your drop shipping business on social media networks, article marketing and forum postings. Don’t just assume that people will automatically visit your website, you have to promote it!

Yes, having a successful online business takes time and dedication. But with constant effort, many have made a good living by setting up a drop shipping business. Why not give it a try?

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