Drop-shipping is a wonderful way to make a very good living online. What is drop-shipping? Drop-shipping is a method of doing business without keeping any inventory. The seller, you, contracts with the supplier, the wholesaler or manufacturer, to sell the suppliers product to the consumer, your customer. The customer places an order with you, you, in turn, place an order with the supplier, who then ships the product to your customer in your name.
What’s involved in drop-shipping? Well, first you have to have a product.
What do you intend to sell?
Choosing a product is more important than you might think. Your product choice can determine the amount of sales you will have and your overall profits. For example, if you choose to sell cars online then your profits will be higher per sale, than if you chose to sell specialty baby clothes. However, you will make more sales if you sell specialty baby clothes, and more profit, in the long run, than if you sold cars online.
People who buy online are taking a risk, because no matter how honest and reputable you are, you are still online and not face to face with them. Therefore, they don’t really know if you are going to run off with their money or not and it is much more of a risk to spend thousands than it is to spend less than a hundred. Plus, people buy baby clothes much, much more frequently than they buy cars, or any high ticket item for that matter.
What price do you intend to charge?
The price of your product can also determine the amount of sales you receive. Like it or not, in America we have a sort of social class system, which I will not go into for obvious reasons - but will mention only because it is relevant, so the price is very important. The social status of the product is also important because America is a middle class nation, as a whole, who happens to be after the “American dream”. Status is important to us, whether we like to admit it or not. So when you market your product make sure your product and price are appropriate to your demographic.
What niche do you plan to fill?
If you are planning to specialize remember to target only those in your niche when advertising. (If your product spreads to those outside of your niche than you have bonus sales, but focus primarily on your niche.) This is your customer base and without it you will not see nice profits.
How are you going to get your product?
When searching for a supplier you want to ensure they are reputable, reliable and trustworthy. Research them like you researched your product. Once you find a supplier you will want to ensure the price they offer you is below or at the industry standard for your market. It is also a very good idea to make sure they only use the U.S. Postal service, FedEx or UPS for their shipping, as you will want your customers product to arrive in a timely fashion and in one piece!!
Do you like your supplier’s representative?
This is only important if you plan to stay with this supplier for any length of time. The reason it is important, if you plan to stay with the supplier, is because good working relationships in this business can often lead to better business opportunities and more lucrative contracts. Plus, it’s just nice to have someone you like on the other end of the phone when doing business.
Once you have a product supplier, how are you going to let people know about it?
This is the most important question you will answer in business. Advertising is key to business because without advertising there are no sales. A few things to be conscious of are how much you are going to spend on ads, where you are going to advertise, and how often, and what ads are relevant to your demographic. There are many more details you need to be concerned with but the aforementioned should be your main concerns for now. As you get into advertising you will learn which fonts, styles, colors, etc…sale the best to your demographic.
What is your business going to be called?
Make sure the name of your business is relevant to your product and that it is “catchy” and easy to remember.
Who is going to host your website?
Your web host is very important to your business. You need to ensure they offer some free tools for site maintenance, they are helpful when you have problems, and their price is at or below market value for the services they provide, and that they do not have downtime often. Ensure they have excellent security for your site. Also, you will need to find out if you need to learn html or will they help you with your site. Ensure they are reputable. Also, it is a good idea to choose a web host that offers a lot of bandwidth for the price and a lot of storage space. You never know when you might need it, and if it isn’t there when you need it your site will be in trouble. Some web hosts offer free services or even help you to get traffic to your site. It is advisable to choose these kinds of web hosts. Do not ever choose a free hosting service, if you can help it, as they are unreliable and can put your business at risk.
How could you improve your site?
You will need to test your site, once it is up and running, from a few different computers so you can determine the average load time. If you plan to use a lot of graphics, make sure you do it tastefully. You do not want your site to be a chaotic cluster of banners and ads that interfere with display of your product. It is also prudent to ensure your text is truly informational and not just there to take up space.
Would you honestly recommend this site to your friends and family?
If you can answer this question with an honest yes, than your business is ready to launch!
Once your site is launched you must maintain good relations with your customers. Make their shopping experience with you as convenient and as easy as is possible. Good customer relations is paramount to your success! Word of mouth can kill your business or explode your business, the choice is yours. Good luck!
My name is Christian Fortenberry. I have 10 years sales experience, and along the way I have found more than a few things which are excellent earning tools. To learn more about me or my business’s you can visit one of my sites http://www.gibline.com/superdeb http://www.jdcfortenberry.com or my blog at http://authoringsuccess.blogspot.com Enjoy them, work smart and be profitable.
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