In the vast world of Internet entrepreneurship, there are many answers to all these questions. You can create your own products, but it can be long and tedious. Or you can buy wholesale from a manufacturer and then send products to your customers when they buy them. But it is a costly solution, and you must take the risk of investing that money in buying stocks and not having sales (we all know someone whose garage is full of their inventory). Great idea, “right?
Let’s look at how to start a drop shipping business, how the drop shipping business works and what you need to know before you enter…
Start A Drop Shipping Business
Estimates vary. However, industry observers have found that between 20 and 30 percent of online retailers use drop shipping. Therefore, it is a proven business model and you will be in good company if you follow this path. Even large retailers like Amazon use drop shipping. With drop shipping, you can sell each product in each niche. Best of all, you do not have to deal with the hassles of traditional companies, such as:
- Store your products (it can be very expensive to buy large quantities of inventory, rent warehouses … and who wants to fill a room or garage with boxes)
- Packaging or shipping of products (can you imagine the problem of taking orders and picking them up several times a day … and going to the post office?) This is not an evolutionary way of doing business.
- More importantly, you do not have to deposit money to buy wholesale products for sale … they do not sell.
You see, when you run a business through drop shipping, you avoid all these risks and the possible loss of capital.
Now that we consider the benefits of a drop shipping business, let’s see how the drop shipping business model works.
How Does Drop Shipping Work?
With drop shipping, you will work with a wholesaler or distributor that offers this service. Not all manufacturers and wholesalers offer drop-shipping services, but many do.
You manage all the marketing of your business … You set up your website with a shopping cart (or you set up a virtual presentation on Amazon) … you write your blog … you make social networks and shipping marketing. Contact potential clients and prospects. They tell you all about the products and how they can improve their lives. Basically, you do all the marketing, advertising and promotion to get customers and make the sale.
Remember, however, that you do not risk your money from the beginning. You pay these fees only if you really sell a product.
What Products Can Be Drop Shipped?
As with any online business, you want to be in a “hot” market where many people are willing to buy the products you sell. In the best of cases, the niche in which you specialize must be one of your personal interests.
If you are passionate about a specific market or type of product, this enthusiasm will increase your marketing efforts … and your business stronger. Not only that, but you will really appreciate what you do: make your work look more like the game. What is better than being paid to do what you love?
Fortunately, there are drop-shipping companies that work with almost all markets, all niches and all types of products. Baby items, yoga clothes, electronics, clothing, art, books, beauty products, supplements, supplies for the home and garden.
A good place to check if there are interesting niches is the online ecommerce platform like Amazon. Regardless of the items in the bestseller lists, this could be a good option for a drop shipping company. But also look at the trends you see on Facebook and other social networks.
Here’s a professional tip: During the holiday season, the football season and other special season-related products can work very well.
A big mistake many people make when they start a business, including drop shipping, is that when they see other people, they think it’s too competitive and they cannot take advantage of it. Nothing could be further from the truth. If you see a lot of competition, it’s a sure sign of a large, healthy and profitable market.
Choose A Drop Shipper
Before working with an automated operator, you must complete the order process from the customer’s point of view. You want to see how easy it is to order the product, how long it takes to deliver it, how the drop shipper solves the problems.
Of course, you also have the opportunity to see the quality of the product. You want to make sure you can treat your customers with pride. In some cases, the drop shippers are willing to send you an additional product for your evaluation, or at least sell it at your expense.
If you are in a niche and have used other similar products, you can try the product for yourself. Use it, Study it, Do what is promised? Is it made with high quality materials or ingredients? Review other online comments to see if your experience matches.
If you’re not in the niche, ask a friend or family member to try the product. And also be sure to check online reviews, forums in this niche, to see user reviews, Facebook too. Search in other words.
Knowing the product will also help you sell it. Its marketing will be much more authentic and effective.
Drop delivery is one of the easiest ways to do business online.
A drop shipping order business is a fast, easy and low risk way to start selling online. You do not have to accumulate a large amount of money in advance in the inventory, which cannot be sold. And your drop-shipping partner resumes delivery.
Choose the right market and the right product and you could have a profitable business in your hands. They could even grow in other niches and sell other products.
There are many people who make six or seven healthy numbers just from a drop shipping company. The possibilities are really endless with a drop shipping business.