Conclusion

As you can see from above, setting up a dropshipping business is an excellent way to get
started with an online business, and if done correctly, should not be an expensive project.
As you will soon discover, there are hundreds of companies who are willing to provide dropship
products to you. Whether it is gifts of items for the home, to power tools and furniture, the choices
are immense. Certainly, dropshipping will offer you many advantages if you are only starting up an online
business with very little or no capital. One of the main ones being that the product you are
selling does not need to be paid for until it is actually sold, and as you are paid for it by the
customer, then the outlay you make to the dropshipper supplier is nothing. Along with not
having to make any outlay to the supplier in order for the product to be sold on your site, you also
do not have to worry about storage and handling costs, as this is all covered for you by the
dropship supplier you are using. Plus, by setting up a site where your goods are
supplied to you by a dropship supplier, you can offer a much wider variety of items, from a number
of different suppliers, and your customers will never know any different.
Unfortunately, there are some downsides to running a dropshipping business, and the main ones are that
you do not have any control over the inventory management, whether the product is readily
available and if the orders can be fulfilled and shipped on time to the customer who has ordered
them. But if you are still interested in setting up a dropshipping business in order to earn an extra
income online, then carry out as much research as possible.
The best thing of all is that, when setting up such a business, it does not need to be expensive or
time consuming.

Selling through an eBay Store

You will soon be surprised at just how many sellers there are on auction sites, such as eBay, who use
dropshipping in order to earn an income. Certainly, if you are looking for a good way of
gaining experience when selling online, it is by setting up an eBay account. The great thing is
that you will have millions of potential customers who may well be interested in your products. In
this chapter, we look at just what you need to do in order to get your dropshipping business up and
running on an auction site such as eBay.

As previously discussed in other chapters of this book, you need to find yourself a reputable and
reliable wholesale company that also provides a dropshipping service. Also, choose products from
the wholesale company that are not already abundantly available online. Once you have found
your wholesale company, you then need to find out about their dropshipping program, along with the
fees that they charge for this service, and how they handle both the payments that you make to
them, and the way in which the products are shipped. Then, once you are satisfied with what
they are providing, and you have got your account set up with them, now you can move on to the next
stage, which is signing up to the auction site of your choice and get ready to start selling.
When you sign up to an auction site, you are now able to start selling the products you have
available through their auctions. When setting up an auction item, you should ask your dropshipper to
provide you with stock images that you can use, along with descriptions of the items in question.
It is important, though, that any items you are selling are placed into the correct category, and
that you carry out as much research with regard to the price of them compared to what your competitors
may be offering them at. It is also important that the description you provide helps it stand out from
that of your competitors. A great way of doing this is by looking at a few of the power sellers on
these auction sites, what they have and how they have set them up. Also, never price your products
too low at the start of the auction, as you will need to factor in fees for posting the items, as
well as ensuring that you making some profit on it yourself. Certainly, if you find that the winning
bid is much lower than you expected, you can soon find yourself losing money rather than making it.
So carrying out research with regard to the product you are selling is very important before you start
posting any items. But if you want, rather than just selling the items through an auction, you can set yourself up with a store, such as an eBay store. This can certainly be more cost effective because the fee for listing
items in this way is much more affordable. However, one disadvantage to this method is that
your store may not get the same sort of exposure as an item that you have put up for auction. But if
you are really clever, then you can utilize both of these methods in order to bring more customers to
you. But what is really important if you do decide to
use this route for selling products from a dropshipping business, is that you provide a good customer service facility, as well as quick shipping. Soon you will find that by being able to
provide a quality service, these customers will return time and again to purchase from you.
Also, eBay has a great email marketing feature, which means that you are able to email all your
repeat customers who have decided to opt in to your email list with just one click on the mouse.
So as you can see from above, setting up a dropshipping business using an auction site such as
eBay can be very painless indeed. However, it is vital that you research your product thoroughly, as
well as finding a reliable and reputable dropship supplier.

How to Find a Reputable Dropshipping Supplier

Probably one of the best ways of finding a reputable dropshipping supplier is through
contacting the wholesalers direct, and asking if they operate a dropshipping service.
However, the other way you can find details regarding reputable dropshipping suppliers is
through the internet, and this is probably much easier than having to ring round hundreds of
different wholesalers. First, the best thing you can do is search the
internet using the terms “drop shipping”, “dropshipping”, “drop ship” or “dropship” and
include with this the product that you are interested in. Normally by doing this, you will
find the results that you get are pretty good. Also, take a look at some of the sponsored links
that you find in the results search pages that are offered up by such sites as Google and Yahoo.
These will often give you a good idea of some of the more up to date dropshippers that are around.
Join a dropshipping forum, and there you will be able to chat to many like minded people who can
provide you with details and information on the best dropshippers for a product that you are
particularly interested in. Then there are dropshipping directories. These are
probably the easiest way of all for finding dropshippers. However, it is important that you
only use the more reputable ones such as WorldWideBrands or Drop Ship Source Directory.
Even though you may have found a good dropshipping company, one of the biggest barriers you may find
is the cost. There are some companies which will charge you a monthly membership fee costing
hundreds of dollars, and there are others which require you to have a business license before you
can apply for membership. Also, there are many people around who think that
dropshipping is a scam, and this is simply not true. Again, there are a few companies who are
willing to exploit us, but these are in the minority rather than the majority. If you were to
look closely at this subject, you will find that more than 1.1 million people around the world have
been able to utilize dropshipping effectively in order to earn an income.
Also, you may be one of the lucky ones who finds a company that does not want any up front fees in
order for you to get started.

How to get Started

It really is very easy to get your dropshipping business up and running. The main pieces of
equipment that you will need are a good computer, and also a good quality internet connection.
But not only is it fairly easy to get your business up and running, you will find that there are very
few barriers which will prevent you from getting started, and the cost for starting out is very low,
so you should not need to invest much money up front initially.
However, below these are the steps that you will need to take in order to get your dropshipping
business up and running.

• 1. Set yourself up an online shop, either using one of the many online shop builder programs available, or by building your own site, or setting up an account with an auction site such as eBay (if you choose to use eBay as your primary selling place, I recommend getting a good auction template that you can simply plug your information into to save time).
• 2. Find your wholesale supplier who has the product that are looking to sell, and who offers a dropshipping service.
• 3. Once you have found the company that you want to deal with, you can open an account withthem.
• 4. Next thing you need to do is start building your site, using both content and images that the dropshipping supplier has provided, or that you have produced yourself (I recommend the latter, as it will distinguish you from other sellers who may be utilizing the same dropshipper).
• 5. Set up a system on your site so that you know when an order has been placed for a particular item, and so payment can be taken.
• 6. Pass on the details of the order directly to your dropshipping supplier. Once they receive the order, they will then bill you at the price that you have both agreed upon, and then they will arrange for the item to be dispatched. In most cases, the dropshipping supplier will provide labels which refer to the business or website where the order has come from, rather than from their own business.

The Advantages and Disadvantages

Although dropshipping today is a very hot topic being discussed among many retailers, and it does
have many benefits, it may not be the best option for every business. However, in this chapter we
will take a closer look at some of the advantages, as well as disadvantages to be had from running an
online dropshipping business. First, if you are just starting out in setting up
an online business, and do not have much operating capital, then this may be the best option for you
to go with. The great thing about this particular type of business is that you do not need to hold
vast stocks of the products that you are selling. Instead, this is all done for you by the
dropshipping supplier you have gone into partnership with. This results in you eliminating
a significant cost in order for your business to be set up and to get it running.
The site you set up can be produced very quickly, and so be providing the product to those people you
are targeting. As you are getting the customers orders before you actually order the goods from the supplier, this means that you have little or no initial investment to make. Because you are not actually holding any of the inventories yourself, then you do not need to pay either for storage facilities, or having to invest
in expensive merchandise which you may not in fact sell. Setting up an online dropshipping business provides
you with the chance to diversify what you are actually offering to your customers. In fact, you
will only be limited by not being able to find the right dropshipper for the product or items that you
wish to sell. Although there are plenty of advantages to setting up a dropshipping business, there are many
disadvantages as well. First, as you do not own the inventory that you are selling, then you will usually find that you have no control on how the product is packaged. Also, you will not be able to include any coupons or offers in to the package which can help in increasing the amount of return business you get.
Every company which offers their dropshipping services will have a different fee structure, so
carry out as much in depth research as possible. In fact, you do not want to end up with high
shipping costs, as this will only make people less reluctant to purchase their goods from you.
With dropshipping, because you are only ordering one item at the time rather than bulk amounts, then
you will not expect to get the same kinds of discounts. If you decide to sell multiple products that are supplied by multiple dropshipping companies, then you will also see a significant increase in the
fees that you pay to the dropshippers, which, in turn, will need to be passed onto your customer in
order for you to make a profit. There are many suppliers who will be able to provide you with dropshipping services that you can use to integrate their products into your website. However, you may find that you will be charged a fee for using a particular service through them, so be sure that you carry out your research thoroughly before opting for one particular dropship supplier. One major drawback to be had from setting up a dropshipping business is that not all manufacturers allow for dropshipping. This is because they will
need to employ more staff (extra costs) in order for them to process these individual orders, and could result in delays in their normal shipping and receiving system. There are other companies who
will only supply in bulk, so this means that it is impossible for smaller outlets to get custom orders
provided for them for select numbers of items. However, when dropshipping is available, certainly
many small as well as internet based businesses find that it can solve many more problems than
those it may create.

Things to Consider

As you will soon discover, dropshipping is an extremely effective business model for anyone who
wants to start an online retail business. You caneither run it through your own website, or through
some other outlet, such as an auction site.
However, because this form of online business has become so easy to do, and because of its increased
popularity, many prospective dropshipping businesses have become targets for the less
reputable people online, such as scammers. Unfortunately, many people who do not really
understand what dropshipping is about only see it as a way of getting rich quick. Because of this,
there are plenty of people out there who are ready to exploit them. In this article, we will look
more closely at the things you should consider before you decide to go ahead and set up a dropshipping business for your self.
                                            

•  1. You need to carry out plenty of research with regard to dropship sources. It is best if you avoid using search engines when doing this, as they will also offer up a list of the less reputable companies around, as well as providing you with page upon page of links which are completely useless. However, once you have found a reputable source for the information that you require, and then the real work begins.
• 2. Avoid any companies which expect you to pay them an up front fee (membership or monthly). Also avoid those which offer you a fully featured dropshipping solution that provides you with a website and everything else that you need in order to get your business off the ground.
• 3. Ensure the dropshippers you are looking at  require a valid wholesale certificate from you. You will gain this through a business license, so avoid any that don’t have thatrequirement at all costs. Unfortunately, most of the companies which are willing to do business with an illegal business will usually be middlemen, who then send your order through to the wholesale company, and will end up taking a cut of the profits that you are trying to make. 

           The best way to find a legitimate dropshipping company is as follows:

                a.  If you have seen a product which you are interested in selling, then contact
                     the company producing it direct. Enquire if they have a dropshipping facility, and if they don’t,                        then they are likely to be a light bulk seller. This means that they will only normally sell their                            products wholesale with a minimum of say around $200 or so (in many cases, the minimum                            number is much higher).
                b. Another way is looking at such directories that have been set up and deal directly with                                   legitimate dropshipping companies only. One such directory is WorldWideBrands. Such
                    directories offer you an extensive searchable list of products, and which companies supply                             them. So if you are looking for a way to save yourself time
                    in searching for good quality products to sell through your online business,
                    then these directories are certainly the right way to go.

• 4. However, once you have found a company that does offer dropshipping facilities, you will need to get a valid reseller/wholesale certificate. Yet, what the exact requirements are in order for you to obtain this certificate will vary from state to state. But the minimum requirement for starting any dropshipping business online is that you have a business license. 
• 5. Now you need to contact the dropshipping company in question and set up an account with them.    Unfortunately, you may find that because your business is new, and you are not able to supply any references, then you may find that you need to set up a pre-paid account with them. Normally, this means that they will charge your purchases to a credit card instead of providing you with a line of credit. In order for this to be done, you will need to fill out a credit card form, an account application and provide them with your wholesale certificate. Once this has been received, they will then provide you with a wholesale catalog and anything else that you need in order to get your business up and running with their products.
• 6. Also, do not be fooled by those sites offering you a dropship directory for a fee (normally around $5 to $15). Unfortunately, these are normally copies of the more legitimate lists provided by reputable directories, and will often be out of date. So really, you are better off going to one of the more reputable directories and paying them a little extra in order to get a regularly updated list.
• 7. Now that you have found the product which you are interested in selling, and you have made arrangements with the dropshipper in question, it is time to get your site up and running, or your account set up with one of the more reputable auction sites, such as eBay.

Reasons for Starting a Dropshipping Business

If you are looking for one of the best opportunities to be had today for running a
business from home, and cost little if anything to set up, then a dropship business is probably the
answer for you. Not only can you run this business from the comfort of your own home, you will not
have to worry about keeping large amounts of inventory in stock and you will not have to worry
about getting the products shipped to your customers. Plus, you can still run this type of
business while working in your normal day to day job. However, if the business really does get off
the ground, then you can become a work from home mom or dad instead.

In order to get your dropship business started, you will need either your own website, or you can sell
your products on eBay. Then once an order is received and has been paid for by a customer, you
send the order over to your dropship supplier and they then send the order directly to your customer
while you still make a profit. Also, you will need to set up an electronic payment system such as
those provide by PayPal. If you were to carry out a search of the web today,
you will be amazed at the number of people who are making money through a dropshipping business.
There are even some who are actually earning a 6 figure salary from theirs, and others who are just
doing it part time in order to earn a little extra cash to provide them with a better way of life. In
fact, many people often start their dropshipping business as a part time business, and it is only
after the business has really taken off do they decide to do it full time instead.
The great thing about setting up dropshipping business is you do not need any special skill sets
in order to get it started. All it really needs is a person who is willing to dedicate their time to
ensure that the business succeeds, as well as having a computer and this being connected to the
internet.
But the first thing you need to do once you decide to set up a dropshipping business is to form a good
relationship with your dropship supplier. Once this has been formed, then you can start selling
their products online, either through your own website, or on one of the many auction sites such
as eBay. What you are actually doing is acting as a
middleman and bringing together those who want to buy a particular product and those that are selling
it, while still collecting a profit for you. The greatest benefit to be had from setting up this
type of business is that you do not have to worry about inventory or paperwork as with a normal
retail business, as this is all the worry of your dropship supplier instead.
The other great thing about setting up a dropshipping business is that you should find
yourself almost making money instantly. If not today then tomorrow or the next day, but it
certainly will not be long before you should start to see your first profits.
All you need to do is find a product that you feel people will buy, find a reputable dropship
supplier, and then start advertising the product on eBay. By using this method, you will find it costs
very little in order to get your business up and running.
However, as with any business, it is best that you ensure that the products you are supplying are of
the best quality possible, and also provide the best customer service that you can. So if you are
selling your products through an auction site, then make sure you keep in touch with what is happening.
If any of your customers have a question, then make sure that you respond as quickly as possible and
follow up afterwards to ensure that they are satisfied with the information you provided to them.
Also, always select products that there are not thousands of them selling on the internet. By
doing this, your business will not only be much more fun, but will also be much more profitable.
So before you start selling any products through a dropshipping business, you should do as much
research as possible first. Look for those products which have not saturated the market, or
that has very few people competing for the customers, and therefore, the sales.
But what you do need to remember is that starting a dropshipping business is very easy, and you can run
it from anywhere, especially out of your own home. Also, such a business can be run from anywhere in
the world, and will cost you very little in getting it started.

Five Golden Rules to Dropshipping

If you want to ensure that your dropshipping business is profitable, there are a number of
things you need to remember. In this chapter, we will look more closely at these five golden rules
to ensure that you can run a profitable business. In order to make your business as profitable as
possible, you need to find a product which will sell in sufficient quantities, as well as one which
will provide you with a good mark up, in order for it to be truly profitable. Therefore, it is
important that you try to determine what the demand for the product is, and also what competition, if
any, there is for this particular product. Also, if you can, take a look at what your competition is charging for it. You may find that some businesses will have a much lower profit margin than others,including you.                                                         
It is best when first starting out selling products using dropshipping, that you only sell a select
few. Plus, also that those that you do select are related, or can be targeted and sold to the same
market set. It is important that you do not try to sell every dropshipping product that you find, as
this will help you concentrate more on marketing your goods, as well as keeping your own costs to a
minimum. Plus, you are more likely to make an impact in the market place as well.
Due to its increased popularity, it is important that you find a reputable dropshipper for your
business. Unfortunately, over recent months there have been many scams that have come to light in
this particular industry. Avoid those people who are offering to sell you lists of dropshippers for
100’s of dollars, unfortunately many of these are middlemen who are posing as dropshippers
themselves, and will then charge much more than you actually should be paying. Remember, the whole
idea of using dropshipping is to keep your costs down rather than raising them, but also still be
able to make a profit at the end of the day. Also, if you are able to, avoid the “turnkey”
internet businesses which are willing to sell you a package of products, e-commerce and marketing for
an exorbitant membership fee or charge you a monthly fee. These types of businesses, you will
soon find, do not actually help, but rather hinder, and you will soon find that you are not making any
profit whatsoever, while they are. However, do not let what we have written above
frighten you off, instead just be aware of these pitfalls. However, one of the best ways of finding
a reputable dropshipper is through looking at such directories as “Chris Malta’s Worldwide Brands”.
This provides you with a whole list of legitimate, as well as reputable, dropshippers that you may
wish consider using. You will still need to deal with the problems
associated with back orders and returns. Unfortunately, not all the hassles associated with
running a normal retail business can be eliminated from a business that is run online. There will be
times when you find that a product your customer has ordered is not in stock, and so will not be
available for dispatch immediately. Therefore, you will need to work out these matters with your
dropshipper ahead of any of these problems occurring. This will then provide you with answers
that you can provide to your customer should such an event occur.
Finally, it is important that you treat your business just like any other business, so do not
spam people. Also, do not use either a personal or free web page address for your online store, and
also ensure that you register the business with your County Clerk. It is also important that you
register with the Tax office so that you have a Tax ID number…and be prepared to file taxes each year.
As long as you start off by expecting that your business is going to make a decent profit, then the
chances are that you will automatically see an increase in this.