Getting Your Drop Shipping Business Started the Right Way

by WorkFromHome on April 4, 2011

Starting a drop shipping business has become a new popular way for creative business persons to make a living from home. If gone about the right way, it can have great results for the drop shipping business owner. But there are many things that must be kept in mind when starting out in such a venture. Let’s take a look at a few of them.

What Exactly is a Drop Shipping Business?

Essentially it is an online store, where the items for purchase are shipped directly from a supplier to the customer. The drop shipping company acts as the middle man between the client and the customer. The difference between the actual cost of the item and what is charged to the customer is profit for the business owner.

A few benefits of starting such a business are that the owner doesn’t physically have to store anything. The items are stored at the supplier’s warehouse and shipped directly to the customer. The business owner handles customer service and ordering for the customer. They have to deal with the vendor who is shipping the item, and take responsibility for any problems that may arise.

How to Get Started in a Drop Shipping Business

  1. Pick the product. You should pick a product that has a high demand and yet doesn’t have a lot of websites offering the same thing. You can experiment with various types of products to see which products have greater demand.
  2. Find a supplier. You need to find quality products at a very competitive price. The closest that a product is to the wholesale cost, the more you can reasonably make off any sale. There are many middle men out there that will sell to you at a higher rate, so do lots of research to find the best price.
  3. Verify supplier credibility. Many scams exist in this day and age. So, before doing business with a particular supplier, check them out online. Make sure they are a reliable and serious vendor. You may even do a few test orders to see how they follow through on timely delivery.
  4. Know vendor terms. Many suppliers may have hidden fees charged for drop shipping items to your customers. Avoid these, as you are already doing them a favour in providing them business. Also, beware of minimum order fees. Some suppliers will not be honest with you about these fees, so make sure to ask upfront. This could be a problem if a customer of yours only orders something of small value.
  5. Set up your website. To get great results out of your drop shipping website, you need to put work into it. Make your website SEO friendly, so more search engines will direct customers to your site. You may have to constantly tweak it so as to improve traffic on your online store.
  6. Vary your merchandise. Don’t just stick to the same product line, keep expanding! Your customers want to see new things each time they look at your website. Keep it interesting for them; search regularly for new and interesting items to sell.
  7. Promote your website. Use various avenues to promote your website, such as social networking and forum posting. Set up blogs and product reviews on your site to keep it interesting.

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