5 Steps to Starting a Successful Dropship Business

The explosion of the internet in the last two decades has provided potential home based job opportunities that have never been available before. The auction giant eBay has gone from a simple idea to a billion dollar business with millions of dollars changing hands every day. Many people have become “power sellers” on eBay and have created great home based businesses from listing and selling items on eBay. While everyone hears the stories about the person who finds a rare diamond or antique baseball card in an old dresser, there are far more sellers that have built up legitimate businesses by using a dropship model of buying and selling goods.

Using a dropship method of selling online is a great way to sell goods, as you never have to physically have an item to sell it for a profit. How dropshipping works is that you find an item from a company or manufacturer at a certain price, you then sell that item online for a higher price and the company that you purchase the product from delivers the product to your customer straight from their business. This is a “win win” for both yourself and the company that you go through as they sell an item and make a profit and so do you.

Many “virtual” stores that often look like large warehouse are simply someone that is dropshipping items to customers from the comforts of their own home. If you are interested in starting your own dropshipping company or business here are some things that you may need to do before starting your company.

5 Steps to Starting a Successful Dropship Business

Establish a business: Do research and establish a business entity that will best serve your purpose. To establish a business identity you must fill out proper paperwork through your state and pay a small fee before starting. This will be your first step as many companies that offer dropshipping services will not do work with “individuals”, but only companies.

Do Market Research: Do market research on items that you are interested in selling and see what prices are for these items online. When doing dropshipping it is often better to stay with items that will sell for more than $100 as smaller items offer little profit for a dropship business. Look at major appliances, televisions, and any other items where you can plan on making at least $25 or more for each sale.

Contact Major Manufacturers: For every retail item that you are interested in selling it is a good idea to contact the departments of the major companies that sell these items. When you call make sure to represent yourself as a business and ask if you can open a corporate account with their company. Also, make sure that they offer dropshipping as paying double shipping costs will not be worth your time or effort.

Develop an Online Presence: The best way to start is by setting up an account on eBay and listing your items individually. After you have found items that sell well or if you want to specialize, many people often set up an online store either through eBay or by creating their own website.

Market the Products: Do thorough research of others who are having success online and follow their format. If you are having trouble writing advertisements or listing products, search on a “Power sellers” page and use their advertising as a guideline for how to sell items. Also, join forums and talk to other people who have had success with a home based business or who are interested in being an entrepreneur.

With the dramatic growth of the internet, average people are becoming millionaires every day. One such way is by developing a profitable home based business. Follow these steps and develop your own dropshipping business today.

Does Your Business Have A Purpose or Mission Statement?

When we often start out in business, we do our business plan. We check to see there is a niche market, that there is actually a need for our product or service that we wish to provide. Then we check our resources, what materials or facilities we have to start this business with. Also we make sure that we have good financial fitness and make sure our bank account is full of vitamins so to speak, or that our financial situation is in peak health to be able to fund such a business.

All this is great action to take when starting a business. But often we forget what our business actually means. What is the direction that our business is taking and what purpose does it have to drive it forward into the future to ensure its success? It’s rather a long question to ask, and sort of a few questions all rolled into one, but really this is the sort of thing a business owner must ask themselves, because every company needs a mission statement.

When you think about the mission statement of your business, you want to ensure that the statement you are making about your business is one that is positive, something that recognizes what contribution you are making in the terms of the difference to the lives of people around you. Is it something that you can always look to uphold the credibility of your business and what it does for people or its clients? Often business and companies put an element of community or what they are doing to “give back to people” which is also nice to consider.

Because when we think about it, businesses do have a certain role to play in the community and it is nice when they can support and give back to the customers and clients that in turn support them. Some businesses when they write their purpose or mission statement, they then often put what they are stating about the healthy contribution and what it provides to the community, its clients and the people around them, into the procedures and they way they conduct their business so that it is a complete supplement to what they first state about their business. So, you’ve written your mission statement about your business.

When you have finally decided what the message is that you want to convey across to your clients and more importantly the staff that work for your business, you really should consider the basics.

Keep the message succinct and clear, and try not to complicate your goals.

Is it positive? Make sure it has a happy or inspiring focus.

Is your goal or purpose realistic and achievable through normal everyday operation?

What is your business doing for others, or what are you giving back?

These basic points will start you in the right direction for creating and energising and healthy mission statement for your business. Of course there are many more other things to consider when writing the purpose of your company and what it strives to do through its daily operation. However this will be a good framework for which to start and then add to later on.

Your mission statement will give your employees something to think about also. It will help them think about how they perform their work and how it relates to the company direction. It will help drive your business towards a common goal for the future.