Start A Drop Shipping Business
With Guest Blogger:  D. Matteson

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:

  • Ability to work from home (or while traveling)
  • You don't need to be involved in the manufacturing process
  • You can take orders from your computer or telephone and forward to your suppliers.  
  • You build and maintain the relationship with your customer base.
  • The inventory is maintained and shipped by your supplier.
  • You make money without ever needing to be involved in manufacturing, inventory, or shipping.

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.

Read the full article here, "Do Drop Shippers Charge Fees?", by D. Matteson.

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!

N2 - Niche Notes

Niche Notes!!


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This is another business idea, that is totally open to your interests/expertise.   There are fantastic ways to get your drop shipping business up and running based upon your knowledge and interests.  

As with other types of businesses, it's good to pick products you are interested in and are willing to learn about over time (as they change and adapt).  Some interesting ideas include:

1)  Baby clothes -- there will always be babies and a need for clothes.   They are also easy to ship and weigh very little.   You might want to consider products such as cloth diapers.  

2) Women's clothing is another great niche.  Or consider working with a designer who has clothes for rent and start your clothing rental business.  

3) There are also companies who can provide your customers with beautiful gift baskets -- keeping you from having to physically make these baskets yourself. 

4)  Vitamins or other health products in support of your personal training business.  

5)  Identify a need within your industry, design your own product(s), get the patent, and identify a drop shipper who can handle the rest of the process for you and your customers.

Get other drop ship ideas and identify top selling products at www.DropShipSource.com

For more business ideas, get FREE instant access to a variety of quality drop shippers covering multiple products categories at www.findadropshipper.com.  

Identify:

  • Real Drop Shippers
  • Suppliers with No Minimum Order Requirements
  • U.S. and International/U.K. Drop Shippers

Drop Shipping Business -- What It Takes?

Interests/Skills:  

  • Interest in customer service and building relationships
  • Marketing skills for your product(s)
  • Understanding of how drop shipping works with your suppliers
  • Computer/telephone skills
  • Organization Skills

Resources:           

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

Training:              

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 market.    

Home Based:       Yes

Internet:              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.

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