Dropshipping is one of the effective business plans that anybody can start even with less capital. This business is designed to enable simple people to start a whole scale retail business without having to spend money for inventory. You can actually start a dropship business without spending money at all.
What is dropshipping?
Dropshipping is a method of selling goods without actually having them in stock. When a customer orders, you take the payment and list down the products ordered and then forward the order to your partner company (manufaturers of retailers.).
Your partner company will then ship the order on your behalf. In short, you are acting as a middleman between the customer and the manufacturer or retailers.
How do I make money from dropshipping?
Simple, your partner company will be selling items to you at wholesale prices, while you sell them at retail. You get to keep the difference. For example:
Retail price: $45 (This is what your customers will pay)
Wholesale price: $24 (This is what you will pay)
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Profit: $ 21 (This is your profit from a single sale)
Very simple isn't it? That number is actually low compared to what you can actually get if you sell the right products. There are dropship business products with very high profit margins. They are worth spending sometime on because of the great reward.
How to Choose the Right Product to Dropship?
This is where you'll have to do your research. Find out what products people are searching for. You can use Google's keyword tool to help you out on your research. Also, you will have to check on your competition, if the competition is extremely tight, you might want to consider selling other products.
The key is to find products that have demand but with less competition. It takes hard work but you'll reap the rewards once you find a good niche.
Some people try to sell products that they love. Yes, it easier to sell products that we love but you also have to consider the market. If you found out that you are the only person who loves that product, then don't bother selling it.
Research. There are a lot of companies out there that would love to do business with you. It takes time and effort though because dropshipping companies don't really advertise the service because they will get thousands of applications from people who are not serious about the business. So it's kinda like a referral thing.
Be mindful of scams though as there are many, many, many scammers online. Make sure that the business is legitimate by researching their company and asking around in forums and other social media networks.
Where to sell dropship products?
Easy, you can set up an ebay seller account and start posting the products for sale. Ebay is a very good venue since millions of people search for products at ebay everyday.
You can also put up your own e-commerce store so you can lessen ebay fees.
Once you have all these factors in check. You can now start promoting your products. Write reviews and submit them to article directories, talk about your products in forums, e-mail all your friends, optimize the search engines, etc... do everything that you can think of (ethically) to get a sale.
That's it! you are now off to a bright future in the dropshipping industry
