Home > Dropship Business > How To Start A Dropship Business

How To Start A Dropship Business

February 3rd, 2011 Leave a comment Go to comments

Many people start a dropship business because of its convenience. Dropshipping offers advantages, such as allowing, to you:

  1. Work from home
  2. Set your own schedule
  3. Be your own boss
  4. Run a business without stocking inventory
  5. Start the business with little or no capital
  6. Avoid the risk of unsold stock
  7. Avoid the hassles of packaging, labeling, and shipping

How does a dropship business provide these advantages? Dropshipping is a business model where the reseller (in this case, you) finds customers on behalf of the supplier. The customer orders products from the reseller via eBay or an e-commerce website. The reseller passes the order on to the supplier, who packages the product, labels it, and ships it. The customer pays the reseller at the price advertised, and the reseller pays the supplier at the supplier price plus shipping cost. The difference between these two prices is the reseller’s profit. Therefore, the more the difference, the more the reseller profits.

Now that you know how a dropship business works, here are the three steps to starting a home-based online business.

  1. Decide which product to sell: This is often the most difficult part of starting a dropship business! Like all businesses, you have to put in a fair amount of time for market research before you choose a product category. In general, working in a highly specialized niche is more profitable, particularly in a category you are knowledgeable about.
  2. Find suppliers: This is the second most challenging part of dropship selling! Suppliers often do not dropship, and those who do may charge high processing fees or offer no discounts on their products. To find the best suppliers, do a bit of searching online. You can even ask manufacturers to provide lists of their suppliers. Dropship selling in the USA is comparatively easier because of the popularity of the concept and the availability of many wholesale USA directories. Many resellers subscribe to a paid or free directory to locate updated supplier names and contact details. A free dropshippers list does not cost you anything, but a paid list often contains more relevant and up-to-date information.
  3. Create a website or eBay profile: Whether you are using auction sites, such as eBay, or creating your own e-commerce website, make sure your inventory is properly listed with photos and product descriptions.

Follow these steps, and you are on your way to a comfortable income, provided you work hard on your dropship business!

  1. adam
    February 16th, 2011 at 19:03 | #1

    Drop shipping is a simple business to commence however is only imaginable if one has a
    shipping corporation to supply them with the products. There is no path that one can
    commence their business without first choosing a drop shipper who will do the shipping for

  1. No trackbacks yet.