Want to start a drop shipping business? Or do you even know what this is??
This business allows you to work from home building relationships with your customers, identifying their needs, solving their problems, managing their order process, and then working as a liaison with the supplier to get the products shipped direct to your customers.
All of this without ever being involved in the manufacturing, inventory, and shipping processes simplifying your process and expanding your resources as a small entrepreneur.
If you love building the relationship with your customers, but don't want the expense or hassle of handling the physical products; this may be a perfect "fit" for you.
With this business model, you identify a business partner (manufacturer or supplier) and then work directly with your customers helping identifying their problems and solving their needs with good quality products.
You are the expert in your field working directly with folks who want your products. Once you've helped identified the perfect product for your customer, your customers can place the order online or you do it for them with your supplier.
They do the rest . . . manufacturing the order, filling the orders, and shipping it.
Your supplier actually handles all of the manufacturing, inventory, and shipping for you by sending the products ordered directly to your customers.
Drop shipping is really a great method for keeping your business costs to a minimum as you start your company since you don't need to purchase large quantities of products, manage your inventory, and wait for someone to buy it from you.
Instead you get the order from your customer, notify your manufacturer, and they make the product and ship it directly to your customer.
This type of service provides you with the following benefits:
Do Drop Shippers Charge Fees?
In most cases, yes, drop shippers do charge fees for their drop shipping service. Below are the type of fees you can expect to find with most drop shippers. Although there is old information out there saying that real drop shippers don't charge fees, that is simply not accurate. We have found that more and more suppliers do charge a fee for their drop ship service.
Remember drop shipping is a very valuable service and is worth paying the drop ship fee. With drop shipping you don't buy any inventory upfront, there are no minimum order requirements and you don't have to warehouse and ship the items yourself. The drop shipper takes care of all of that for you for a fee. You will find suppliers that charge a per order drop ship fee, one time account set up fee, and monthly/annual membership fee. All suppliers are different and the ones that do charge a fee, will more likely than not, choose one of these main methods with their drop ship program.
Remember, drop shippers are in business to make a profit on their services. Since they are handling the manufacturing process (in most cases), the cost of carrying inventory, and the shipping costs; it's important for them to be paid for their services (or they will be out of business).
For your small enterprise, these services are invaluable! It's unreasonable to expect a quality drop-shipper to provide these services to you for FREE. And if they are, then they are charging you somewhere else in their process so they can make a profit. It's that simple!
For more business ideas, get FREE instant access to a variety of quality drop shippers covering multiple products categories at www.findadropshipper.com.
Access to quality, reputable suppliers. A computer, telephone, fax machine. An office space to work in (at home or on the road). Organization system for taking and tracking orders.
Time Required: 5-15 hrs/week; can work full-time 30-40+ hrs/week
Find quality suppliers and work directly with them to determine what they need from you for you both to have a successful partnership.
Market: Consumers – driven by the products you choose to
Home Based: Yes
Location: Local, Regional, International
Start-Up Costs: $50 - $1,000
Minimizing Start-Up Costs:
In order to minimize the start-up costs for your drop shipping business, identify a space in your home where you can work on your drop shipping business undisturbed, contact suppliers to determine what products they offer and find our what their specific costs will be, what services you will receive, and if there are any hidden costs.
Weigh your options carefully to keep your drop shipping expenses to a minimum and increase your bottom line profits. Also, you'll want to choose a quality supplier who can perform – it may cost a bit more, but will be worth the price if they can meet/exceed your customers’ expectations.