Introduction to Drop Shipping
Online business opportunities have all kinds of allure in this day and age. Many people want the luxury of working from home and are searching for viable possibilities. When searching the internet one model that often comes up is “drop shipping” and oftentimes the next questions is “What is drop shipping” and “What is a drop shipper?” To put the meaning into simplest terms, drop shipping is a business model that is an appealing option to make easy, risk-free money as a side income or full-time income, depending on how much extra time a person has. Today the model will be discussed in ways that money can be made and the importance of finding reliable drop shippers, should this be that route that a person decides to take.
What is Drop shipping, and What is a Drop Shipper?
Let’s say you find an item in a hot niche and you just know that it is going to sell like hot cakes. You have ideas to create your listing, you have great pictures, but there is only one problem, you don’t have room to store all the inventory. What’s worse, you have very little money to sink into inventory. That’s where drop shipping comes into effect. A trustworthy drop shipping company has a stockpile of items that they store and ship for you when someone buys from you. There is no hefty sum of money up front. Pay as you go.
With a traditional online business, space is needed to store the inventory, be it a garage, basement, office, or warehouse space. Many people despise the clutter. Drop shipping makes you the middle man (or woman) :). You create beautiful sales copy, purchase the products for the customer, provide a forwarding address for the drop shipper company, and the company ships it for you. Easy Peasy! No risk of dealing with slow-moving inventory or large upfront investment. More time for the more pertinent parts of building a business.
How Do I Make Money?
The first step is to open a store or multiple stores. This can be through a marketplace like Amazon or Ebay. There will be a seller’s fee, but the traffic will be there quicker for your business. Sometimes using this route the profit margins can be slimmer, but your product will probably be in front of more eye balls just starting. The other option is to create a personal store. The beauty of a personal story is that there are no seller fees and one can benefit from more profit. A personal store can be created easily by CLICKING HERE. The next step is to populate the store of your choice with the very best products that are drop ship eligible. Depending on your business plan, you can then mark the prices up anywhere from 10-50%. A comfortable profit margin is one that makes the efforts seem worthwhile and can vary from person to person depending on the situation. The main thing at this point is to take action in some capacity.
How Do I Find Drop Shippers?
Many people will tell you to resort to China for all of your sourcing needs. However, there are three problems with this:
- Sometimes you invest money but never receive the products.
- Sometimes the products are knock-offs and not the brand they promise to be.
- If a good supplier is located, shipment time is several weeks to several months
I took to the internet to find an alternative to the sourcing-from-China strategy. I wanted vetted sources that were trustworthy and companies that would get the products to customers quickly. The option that made the most sense for me was SaleHoo. If interested, more information can be viewed about the company by CLICKING HERE. Offering an online product and source directory of 8,000+ drop shippers, wholesalers, and liquidators, the options are endless for anyone looking to start an online business as quickly as possible with validated suppliers ready to work with business owners and/or business hobbyists.
A person can mess with long wait time from China or scour thrift shops, consignment stores, and secondhand stores, but our time in life is worth something, and this makes product sourcing much more efficient with the luxury of selling and repeating the process over and over. If you are still thinking about whether SaleHoo is a viable option for you and your product sourcing needs, Read my full SaleHoo review by CLICKING HERE.