STARTUPBIZHUB

How to Start a Drop-shipping Business

If you want to sell products, one option is drop shipping business. You will be working closely with a wholesaler or distributor.

As the seller, you need a website to sell the items and when there are orders, you can pay the wholesaler to ship the items to the buyer.

The shipping is a very important aspect that you have to consider especially if you plan to sell products online. Are you familiar with drop shipping? In this business, the distributor or manufacturer is in charge of shipping the products to customers. It is the seller that takes the orders but they pay for the shipping and are usually charged for a wholesale price. Now that you have a thorough understanding as to how drop-shipping works, you will find it easier to manage this type of business.

Starting a Drop-shipping Business from Home

You should start by searching for wholesalers in your area or nearby places. Always work with a reputed company that you can trust and has a good reputation when it comes to first-rate products. As a distributor, you will be provided with photos of the items and their descriptions. Once you’ve developed the store’s website, you can now sell such items online. Another option would be opening a seller account with eBay. You will need to pay for all items you’ve sold and be sure to provide accurate shipping information. In a matter of days, the merchandise will be received by the customers. Over time, you will know which ones are saleable and the ones that are not; take your time and study the latest trends.

There are times when delays can happen but this should not occur on a regular basis. When backorders are the cause of delay, you must explain the reason to your customers. Avoid scams since they are widespread online. Take your time in finding the right opportunities. Many companies can provide you with attractive offers but you have to be cautious when working with them. Not all wholesalers are willing to drop ship items for you; you will have to inquire in advance and don’t just assume.

Even when running an online business, there is a need to secure the needed licenses. Try to inquire with the Secretary of State if there are licenses that your drop shipping business needs. A business license is needed and you may need to pay a certain fee. You can ask a professional to help you in creating a website where you can sell the items. There are also online resources that can guide you in establishing your own store. The eBay account can be attractive but you can always start from scratch and succeed. Learn everything you can about the business and you will have better chances of success. Work out a plan and stick to it.

<< How much does it Cost to Advertising in Business Magazines
Starting a Dressmaking Business >>

1 Comment

  • SONYA said on January 20, 2011
    How to start selling on ebay, how to purchase goods in bulk from manufactures, and wholesalers. I want to create my own company by selling goods that women would want on ebay. thanks

    Comment

    (All the above fields are required.)

    Categories

    Popular Articles

    Join Our Newsletter