This is a guest post from the team at Drop Ship Strategy, the worldwide experts at helping new entrepreneurs build and establish an online drop shipping business. Enjoy!
What is the art of drop shipping? If you have ever wanted to start a retail business without all the hassle of storage space fees, shipping, receiving and more, maybe drop shipping is the line of business you should get into. Drop shipping is a form of business where an individual accepts orders through their website for products that are manufactured and delivered from another location. The drop shipper does not take care of any retail stock and works as the middleman between the customer and the supplier. The drop shipper takes care of the sale, buys the product from the supplier and sends the delivery address details to the supplier.
Any paperwork delivered to the customer will identify as being sent directly from your drop shipping business. The customer pays the retail price you have listed on your website storefront, you pay the wholesale price of the suppliers retail line and then you make a profit.
Sound simple? For some it works as a flourishing income-friendly business, while others might find it more difficult to get the orders coming in.
Why Drop Shipping Might Work for You
There are two specific reasons why drop shipping might be a profitable business for you. The first reason is that you can erase rental and storage space fees from your list of monthly payments as you will not need to have anything by an online storefront. It also reduces the risk of buying a large amount of products from a wholesaler and then finding out they do not sell online. When you are a drop shipper, you are able to change the line of retail products whenever you need to, to fit with trends and retail popularity. The second reason why drop shipping is a smart investment is because you do not have to deal with the stress of packaging, shipping and receiving products.
Many people start their drop shipping business by setting up their business on eBay. If you want to start your own drop shipping business, check out these top 5 steps on how to set up an eBay storefront.
1: An Introduction to eBay: A Seller Account
Go to www.eBay.com and start up a seller account. One of the drop shipping investments you will have to pay for is the listing fees in your seller account. Become familiar with the website and read anything you can on how to sell products on eBay.
2: Do Your Research
Start your journey by doing as much research as you can on suppliers and wholesalers. (also called drop ship companies) It is a smart idea to choose suppliers within your own country to make the shipping times for your customers easier. You can use online sources like www.DOBA.com that can assist you in finding loyal and legitimate wholesalers.
3: Choose Your Product Range
Make sure you research whether there is a large demand for the products you choose. When on eBay.com, click advanced search, then enter the product you are seeking, sort the items by the highest price, click on ‘completed listings only’, then search and write down the top sellers.
4: Become a Retailer
Get in touch with suppliers (make sure they are not a drop shipper themselves and cutting profits even lower!) and send them a retailer request.
5: List, List, List!
Use the product images from the suppliers and products descriptions to start listing items on your eBay storefront. Keep it clean and simple and provide the customer with everything they need to know. Eventually, it would be wise to create your own product descriptions as it could increase sales for your eBay store.
An Extra Tip: Complete the Deal!
Once a customer buys an item from your eBay storefront, you must purchase the product from your wholesaler (supplier) at the price agreed and provide them with the delivery details of your customer. Voila! You have made your first profit!