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.