What is drop shipping? You've heard the term thrown around and you're still not sure what it is. Let's define it now. Drop shipping is basically where you sell a product and the drop shipping company ships the product to your customer. Drop shipping can be an ideal solution for many small business owners because they do not have to stock the products being sold. With drop shipping wholesalers, the products remain at the warehouse. This also means that a person can use a drop shipping business without upfront cost in inventory. This is money that could be used in other parts of the business such as marketing.
Ok, now you know what drop shipping is. But how do you make money with it? First let's look at what type of products you can get through wholesaling/drop shipping companies. The list is enormous. These companies provide products such as furniture, toys, business equipment, clothes, nutritional supplements, food items, diapers, etc. The list goes on and on. Needless to say, you need to decide which area or niche you want to build a business around.
So back to the question of making money. The first ingredient to success with drop shipping is to find a company that is legitimate and has great products you can resell. Finding good drop shipping wholesalers can be a problem when people search the Internet though. Many of the results found by search engines are scammers or middlemen just waiting to take an unsuspecting person's money.
The second ingredient to drop shipping success is to choose a company where you can make a profit. If the company is charging too much for their product you will not be able to sell it at a reasonable price and still make a profit. This is where many beginners in the wholesale/drop shipping business make their mistake.
When choosing a drop shipping company you want to research each one closely. Examine the company's product line, how much will you be charged for shipping, how do they ship their products, and what is their return policy. These are all important issues that can eat at your profit if you don't address them.
I stated earlier that it can be hard to find good wholesalers and drop shippers. One company, Worldwide Brands, has made finding reliable drop shipping wholesalers, fairly easy. This company has conducted research on the wholesaling companies and they have vetted them. The company has put these wholesalers in a searchable directory which allows you to find companies that may match your niche. The directory includes a list of over 9000 wholesalers and drop shippers. Their directory can save you time from tracking down hundreds of companies yourself. The directory is also good because Worldwide Brands understands the wholesaling business and knows which companies to stay away from.
Keep in mind though that drop shipping may not a a perfect permanent solution for you. Drop shipping companies may require you to pay a higher wholesale price because you are not purchasing the product in volume. As your business grows and revenue increases you can demand lower prices on your products or purchase them in large quantities so you can be a better percentage.
If you work at it, you can make money in the wholesaling/drop shipping business. Find the right wholesaler and begin your journey into the world of eCommerce.