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One of the most difficult things to do when looking to start an online business is to find that elusive supplier that will supply you, put simply you need a source of real products to sell. Drop shipping is a perfect way to achieve this and lets you develop the perfect online business..
The perfect online business is one in which you are selling a product whereby you DO NOT HAVE ANY STOCK and you DO NOT PHYSICALLY HAVE TO DEAL WITH THE PRODUCT and all you do is COLLECT THE MONEY AND PASS THE CUSTOMERS DETAILS ON.
Sounds to good to be true! - well it definately is TRUE.
THIS IS DROP SHIPPING AND ANYONE CAN DO IT!
Read the following example :
You decide that you want to sell Mobile Phones, you then realise that to do this the traditional way you would have to hold a large amount of stock so that you have the range and product available for your customers. Without a massive amount of working capital you have no chance, also by the time you get your business noticed the lines you are carrying are out of date and not worth what you paid for them.
However, now consider this:
You sign up to a Mobile Phone drop shipper, they give you a list of products that they can supply. You now go away and advertise this list on your online store. You take an order from your website for a Motorola phone, you have this advertised at $200.. You then collect the customers details via your website, all good shopping cart software provide this feature, and then contact your drop shipper and buy the same phone for $150 and pass them your customers details. That is the end of the sales process for you, what happens next is :
The drop shipper SENDS THE PRODUCT TO YOUR CUSTOMER and usually it goes under plain packaging or some drop shippers can also put YOUR COMPANY DETAILS on the packaging when they send it to your customer.
Thats $50 PROFIT for VERY LITTLE WORK!
Just 10 orders a week will give you $500 profit.
Drop shipping is fast becoming the easiest way of starting your own online business because it offers a very simple formula for success :
The drop shipper sets the price that you pay, you then set the price that your customers pay and the difference between the two is your profit!
SIMPLE ISN'T IT.
Because it is that simple a lot of people are jumping on the drop shipping band wagon and it is not unusual to see lots of different websites using the same pictures and sales copy to sell the same product, usually because they just simply publish the promotional materials that the drop shippers provide for them.
It is important at this stage to remember that the internet was based upon the ability to share information and content. It is this simple word, CONTENT, that will help you to distinguish yourself from the rest and will also ensure that your search engine rankings are developed to increase the traffic (ie. customers) to your website.
This is simply using information and content to ADD VALUE to your website, customers want to be able to learn about the product before they purchase and having content specific to your area will allow this distinction in the mind of the customer. In order to make a success of your online business you have to make your customers want to come back. Think of your favorite websites, why do you keep revisiting them? Simple, because they provide you with something that is of VALUE to you.
Drop shipping allows you to develop your business in this manner because instead of worrying about stock levels and shipping you get to focus on listening to the market and discovering the products your visitors want - and then being able to rapidly add them to your site.
Its CONTENT SPECIFIC TO A WANT.
Drop Shipping is EASY - Have I said that?
BUT, don't get carried away. When you see the products that the drop shippers offer you simply think I can sell that, that, that and that and before long your list of things that you want to sell is massive and this is counter productive. In order to make drop shipping successful for you I would suggest to
FOCUS ON ONE PRODUCT AT A TIME
Build this up, when this is established then it gives you the ability to go into other areas a lot easier and your current customer base will give you a good source of potential new customers straight away.
A great way is to focus onto a product that you like, know a lot about or use personally in a hobby etc. This gives you the opportunity to develop your website as an authority on the subject and as such ADD VALUE.
Like any business venture there are some points that should be raised before you build your online empire the easy drop shipping way :
Don't just use the first drop shipper you come across as they may not give you the best deal on this particular product. Like all things shop around a number of drop shippers to find the one most suitable to your needs.
Some drop shippers operate a handling fee over and above shipping costs, this is usually quite a resonable fee and needs to be factored into your pricing structure.
Some drop shippers try to charge you a monthly 'members' fee as another means to make money from you, in my opinion these should be avoided as the only time you should have to pay a dropshipper is in connection with a specific order. You will find that the majority that charge a members fee are the ones that offer no true value to your business anyway.
As with any developing business the question of credibility is key, unfortunately there are a number of con artists out there that are aiming to take your money for nothing in return. A key phrase to remember is :
IF IT SOUNDS TO GOOD TO BE TRUE - IT IS!
Research is key, for example :
How long have the drop shippers been in business?
Do they respond to your information requests quickly and professionally?
Do they offer buying accounts?
What payments do they accept? (if just Western Union run a mile)
This list is endless, that is why I only recommend two sources of drop shippers information. Both these lists are maintained by professionals that constantly update thier lists and only recommend the best, most reliable and trustworthy dropshippers. These sources can be found from the link in my signature box at the bottom of the article.
As you can imagine the idea of drop shipping fits in with online auctions, in particular eBay, perfectly as eBay will provide you with the traffic and all you have to do is make that ad stand out from the rest (my FREE resources on my site will help you) and all the rest of the work is done for you.
You just concentrate on developing your business and using eBays traffic to make money and you cannot lose.
Mike - webmaster at Online Auction Traders Resource
Visit eBay information central to use the FREE resources to develop your online business.
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