Ultimate Guide to Make Money with Drop Shipping
Drop shipping may not be a part of everyone’s dictionary. Well, that is expected, as it is a relatively new concept to make money.
But you have a good reason to rejoice, since you will never have to wonder ‘what is drop shipping’ anymore after reading through this ultimate guide.
What is Drop Shipping?
It is a kind of business where there are totally 3 different parties involved. First of them is the wholesaler, next is the retailer and the third is the customer.
The retailer acts as the middle man between the wholesaler and the customer. He / she is responsible for collecting the orders from the customer, but the responsibility of shipping the product to the customer’s doorsteps lies with the wholesaler.
Here 2 things are clear. First of all the retailer does not have to invest in stocking an inventory of the products that he/ she intends to sell via the drop shipping business. Secondly, the retailer sells the product at a slightly higher price when compared to the price paid to the wholesaler. This difference is the profit made by the retailer.
Is It Possible to Make Money With Drop Shipping?
On first impression, the entire arrangement looks like any other retail business that you see offline, in the real world. But the real secret to make money with drop shipping lies in the fact that the initial investment is quite lower than a similar offline retail business. This makes it is much easier to make money with this business.
How Does Drop Shipping Work?
Drop shipping is a great business opportunity that anyone can start and operate out of their homes or their computers. The most important part of this entire business is finding the right wholesaler. The profit you will be making as a retailer will depend upon the discounted prices that the wholesaler offers you.
You will also have to deal with problems like refunds, customer complaints, defective products, delayed shipping etc. But many retailers often prefer working with wholesalers who are ready to take on the headaches of customer care.
Basic Requirements for Starting a Drop Shipping Business Online
1) The first requirement for starting an online drop shipping business is a computer with internet connection.
2) After you have got this arranged, you will have to first find products with a profitable market.
3) Once you decide on the product/ s you wanna sell, you will now need to set up a business arrangement with a wholesaler who can sell you this product at the lowest rates.
4) Once everything is settled, you will need a website to sell your products online. This site will be different from regular websites, and is known as an ecommerce site which will double up as your online store. You obviously will have to set up facilities for collecting payment from customers like an online payment gateway.
5) After your ecommerce site is set up, you need to fill it up with information related to the product/ s you are selling. Usually the images, product specs, product descriptions etc are provided by the wholesaler itself, but you will need to arrange them in a systematic manner on your site to ensure a trouble free buying experience for your customers.
6) You will have to find ways to pull traffic towards your ecommerce site and there are both free and paid ways to do this.
Related Post: 8 Ways to Pull traffic To Your Site
7) After you complete the sales, you will have to send the order details and shipping address to the wholesaler, to enable dispatch of the product to your customer’s doorsteps.