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How to
Start a Drop Shipping Business.
Free information - No Charge.
Create a Lifestyle of Total
Financial Independence!
Dropshipping: The Secret of
Success
Drop shipment or drop shipping is a type of retailing where the retailer does
not keep goods in stock, but instead passes the customer's order and shipment
details to the wholesaler, who then dispatches the goods to the customer directly
without an invoice, only a delivery note. The invoice is sent to the
you.
You make your profit on the difference between the wholesale and retail price.
Drop shipping is one of the fastest and easiest ways to start a business on
the internet. The start-up costs are low, the risk is low and it is very easy
to find products that sell well. Because it is so easy, many people try drop
shipping on the web. Like any business, however, drop shipping is not the
whole solution to success.
A drop shipping business has to be built on a solid
foundation and it must be properly promoted. Starting your drop shipping
business should include preparation of a detailed advertising plan as one of
the first things on your schedule.
Using an advertising plan will separate you from most of your competition
because most people simply ignore writing an advertising plan. Getting
products to drop ship is easy, so most people rush forward, helter skelter and
sell little or nothing. But those who write and advertising plan and follow
their plan are most likely to succeed. Your success with drop shipping, in
fact, depends mostly on your advertising plan.
As a drop shipper you know that
you can change your product offering very quickly without regard to inventory
and stocking considerations. So it is not so much as to what you are selling
by drop shipping but how you are finding customers. So critical in your
planning process for your drop shipping business you must set up a detailed
advertising plan. If you are operating a drop shipping business on a limited
budget, you are best advised to spend most of your money on your advertising
plan rather than spending it on a complex or fancy web site.
A well advertised simple web site that is only a couple pages deep will make
you a lot more money than a beautiful, complex web site that no one visits.
(Set up your hosting here) Your
goal should be to get customers to your store and to get them to contact you.
Then you can sell them. You do this by advertising. Search engines are the main
source of customers that most people running drop shipping businesses consider.
And it is the first thing to which you should pay attention for your
advertising. It is extremely important that you get your company name into the
search engines, in particular the Google search engine, to start the aging
process.
This is important because your web site may not be shown in the Search Engine
Results Pages (SERPS) for up to a year after you put it into the search engine.
Why a year? A new web site has to age before some of the search engines consider
that it is real and not a spam site of some sort. The search engines do this by
putting your web site into what is euphemistically called "the sandbox."
Your
web site will not come out of the sand box until it is properly aged.
So for all
practical purposes, your drop shipping web site may as well not be effective for
you to find clients during your start-up period unless you understand that the
sandbox exists and do something to work around it. (You can find a lot about the
sandbox by searching the web using sandbox as your search word.)
The solution to
your drop shipping business not being visible in the search engines lies with
pay per click advertising. With pay per click advertising you can have
information about your company displayed in the search engines within about 15
minutes of the time that you place your advertisement. And with pay per click
advertising you can pay as little as $.01 per person that clicks on your
advertisement and who visits your web site. So in your first year of business,
you are likely to be reliant on pay per click advertising to find customers.
Those who learn to use it step way out in front of the competition.
Get Free Google Adwords adverts for life
You should also consider other very effective ways to advertise. Ezines are good
places from which you can get customers. There are many that you can find that
will have customers for your niche. Beyond the ezines, however, advertise in the
small consumer newspapers that deliver hundreds of thousands of copies of
newspapers filled with classified advertisements. These small newspapers can not
only attract people to your web site, they can attract people to your off line
shop. When you consider that almost two thirds of all buyers look at products
off line before they buy, you will have the advantage of building personal
relationships that overcome the typical fear of buying from someone on the
internet. As you do your research into how it is best to advertise for your
special situation you will find other channels, like post card marketing, home
parties, telemarketing and more. You should look at all of these and set up a
priority list through which you will march. In all, as you move forward with
your business, you will soon see why the key to drop shipping success is how
well you promote your business as compared to everyone else, commonly called
your competition. So start early and make a drop shipping advertising plan.
Don't accept that the first drop shipper you come across will give you the
best deal you should shop around.
Drop ship fees and charges
It's important to know all the costs involved so you can calculate your profit
margins accurately. Any wholesale company that wants to charge you a regular
"participation" fee should be avoided - the only time you should have to pay a
dropship company anything is in connection with a specific order.
Shipping
Is the drop shipper using a reputable shipping company o deliver the goods?
Where will they ship to?
Accounts
Will the drop shipping company automatically debit your credit card on each
order you submit, or can you get monthly payment terms?
Support, returns and refunds
The last thing you'll want is to be caught up in a nasty situation where you
have a number of returns - and have to foot the bill. Ask the dropshipping
company about their returns policy, what kind of support they'll offer you for
their products and about any guarantees associated with their products - and get
it in writing.
How do I get started dropshipping?
Its fairly easy to get started, the barriers to entry are low and you should not
have to invest much money up front.
* Set up a online shop (easywebstore online shop builder is perfect)
* Find wholesale suppliers of products you wish to sell that will drop ship
* Open an account with the company
* Build your site, using content and images provided by the drop shipper or
produced by yourself
* When an order is made your site should alert you and take payment
* Pass the customer details to the wholesale drop shipper
* The drop shipper should then bill you at the special price you have agreed
upon. Fulfils the order (in most cases with labels referring to your
business/web site instead of the drop shippers)
How do I find drop shipping friendly suppliers?
You can always contact wholesalers directly asking them if they operate a
dropshipping program. You can usually find details by searching on the internet.
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