Are you ready to become your own boss? People are turning to dropshipping as a solid business model, because the initial investment does not break the bank. Thus, many people are starting dropship businesses.
What is dropshipping?
Dropshipping is when you deal directly with a wholesaler to supply products to customers. You do not have to buy the items in bulk. You can buy them individually when the order comes in from the customer. This means you do not have to spend money on storing loads of inventory.
Advantages of a Dropship Business
- Reduce Your Monetary Risk. Since you are not investing in large amount of inventory, your risk of losing money is minimum. When you buy inventory, if you do not sell your backstock, you can be out of thousands of dollars. A dropship business does not face this problem.
- Wider Product Selection. You do not have to concentrate on selling one type of product. You can venture out and offer a wide selection to your customers.
- Low Startup Cost. You can say yes to a dropship opportunity with little capital available. All you have to do is purchase one product to fill one order and work your way from there.
Steps to Starting a Dropship Business
Here is a basic outline of the steps you need to take advantage of a dropship opportunity.
- Decide On A Product To Sell – You do not have to stick with this product, but you have to figure out what you initially want to sell so that you can move to the next step.
- Find A Local Wholesaler to Drop Ship For You
- Set Up An Account With The Wholesaler
- Advertise The Product For Sell on Your Website or Bidding Site of Choice (Ebay)
- Place The Order With Wholesaler Once It Sells
- Follow Up – Make sure that everything in the transaction ran smoothly. Most people skip this part and can potentially lose a customer if everything is not done correctly.