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Many people know they would like to start an Internet business, but they don't have a product to sell. The solution is often drop shipping.
Drop shipping is a business arrangement in which a company (often the manufacturer of a product) sells a product at wholesale prices to a reseller and ships the product directly to the reseller's customers. The retailer makes the company's products available to customers, often through a web site, collects payment, and then orders the product from the manufacturer. This arrangement works well for both the manufacturer and the seller. The manufacturer is able to make the product available to a large number of retailers. The retailers are able to sell products they would not otherwise have access to. Drop shipping allows almost anyone to start a retail company without needing to order large amounts of inventory. This eliminates the need to store the product and cuts overhead dramatically. The reseller only orders products after he has sold it, and in most cases only after being paid. For small businesses concerned about cash flow, this is very attractive.
There are two different philosophies concerning what items to sell via a drop shipper. You may choose whichever appeals to you. The first group believes that you should research the market to determine what items to sell. They say you need to find a high demand item, then locate a drop shipper that sells that item. The second group believes that you should sell what you are interested in. If you like knives, find a company willing to drop ship knives. If you like power tools, find a drop shipper for those. They believe that if you sell something you enjoy, you will do a better job selling. Whichever method you choose, an outstanding way to find a drop shipper is the web site, World Wide Brands (http://databuilders.net/wwb). The people at WWB work full time finding companies willing to drop ship their products for you, Their database is updated constantly to insure only the best companies are made available.
If you decide to go it alone and find a drop shipper yourself, look for a company that either drop ships exclusively, or requires you to register as a member before getting the wholesale prices. If anyone can log into the site and pay the same low price, why should customers buy from you? Many companies require you to provide a business license number before allowing you to register. This is to insure you are a legitimate retailer. If you do not have a license, you should get one. Ideally, the company will deal exclusively in the product you want to sell.
I also do not support companies charging for drop shipping. You may see some offers similar to "Sell hundreds of products for only $29.95 a month." They go on to tell you that you can make thousands of dollars selling their products on E-Bay, so the $29.95 they charge shouldn't matter. There are enough companies that don't charge anything. Avoid paying for the right to sell someone's product for them.
Perhaps the most difficult part in starting a drop ship business, is building the web site. If you have never built a web site before, it can be an overwhelming task. You must consider each detail, from deciding what software to use, to finding a host, and accepting payments. I recommend using osCommerce to build your online store. It is free software that can be modified to look like you want it to. There is an online knowledge base that can answer many of your questions about setting it up and configuring it, or you can let someone else set it up for you.
Thousands of people are making money using the osCommerce, drop shipping combination. It is a powerful, inexpensive way to get your business started.
About The Author
Jason Conley is the owner of Databuilders, a web hosting company for small and home office businesses. He has built a number of drop ship web sites using osCommerce, and contributes regularly to the osCommerce support forum. You can contact Jason at email@example.com, or visit Databuilders at http://databuilders.net.
Business Wire (press release)
Over a Half a Million Dollars Raised to Benefit Tilly's Life Center
Business Wire (press release)
Sponsors, supporters and friends of TLC gathered for an evening of dancing, drinks, family style gourmet food, music, live and silent auctions accompanied by a TLC graduate's captivating story of forgiveness. Their overwhelming support resulted in ...
Yield curve flattens before auctions
NEW YORK: The US Treasury yield curve flattened to its lowest level in more than two weeks on Monday before the Treasury Department is due to sell $108 billion in new short- and intermediate-dated debt this week. The debt sales will include $38 billion ...
November Basrah Light Cargo Sold At OSP +$0.20: Dubai Mercantile Exchange Auctions
Exchange News Direct
Iraq's National Oil Company SOMO Monday sold a 2-million barrel cargo of Basrah Light via DME Auctions, achieving a premium of $0.20 per barrel over the November Basrah Light Official Selling Price (OSP). SOMO increased its Basrah Light OSPs for ...
Manchester Evening News
This is how you can buy cheap stolen goods - legally
Manchester Evening News
Bumblebee Auctions - This is a dedicated site where police forces across the country list stolen goods for sale. Auction Houses - Some forces sell their items through auction events, which you have to attend in person. GMP uses a number of auction ...
Key Bank Tower to be auctioned off
DAYTON, Ohio (WDTN) -- A Dayton landmark is going on the auction block in November. Real Estate Auctions LLC confirms the Key Bank Tower is one of three buildings going up for sale. Other buildings to be auctioned include the Leigh Building nd the ...
The Star, Kenya
King Kaka auctions Eastlando Royalty album cover art for Sh32,000
The Star, Kenya
The proceeds of the auction will go towards the King Kaka Sanitary Bank Campaign that aims to keep 100,000 girls in school. In an interview, King Kaka said he has 18 songs on the album which also features artistes Talib Kweli,Tracy Morgan, Atemi and ...
TREASURIES-Yield curve flattens before auctions
Two-year yields rose to their highest levels in a decade on Monday as investors prepared for the auctions, and on expectations that the Federal Reserve will continue raising rates. At higher yields, the debt should be attractive, said Ian Lyngen, head ...
Times Square Chronicles (press release)
Prince, Madonna, Jimi Hendrix's Memorabilia and More Will Rock Julien's Auctions
Times Square Chronicles (press release)
Julien's Auctions, the world–record breaking auction house, has announced that ICONS & IDOLS: ROCK–N–ROLL their two–day music extravaganza to take place Friday, November 9 and Saturday, November 10 live in Hard Rock Café in New York and ...
The Hindu BusinessLine
Homedale estate tops Coonoor tea auctions
The Hindu BusinessLine
The Coonoor-based Homedale Tea Factory, a small-scale tea factory, excelled at Sale No: 42 of the auctions of Coonoor Tea Trade Association with its CTC leaf grade, auctioned by Global Tea Brokers, fetching the highest price beating even the orthodox ...
Key Bank tower, other downtown landmarks up for auction
Some key downtown Dayton buildings are up for auction next month. Both the Key Bank Tower and the Leigh building and garage, at 10 W. Second St. and 100 W. Second St. respectively, are listed for auction, with the starting bid set at $2.8 million.
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