Archive for the ‘drop shipping’ Category
Introduction to Drop Shipping
Your market research has probably helped you select a product or category of products that you would like to specialize in. The next question is how will you go about obtaining products to resell?
One place you may want to check is the wholesale area of eBay itself. Items can sometimes be bought wholesale on eBay and then resold.
An even simpler solution is drop shipping. Drop shipping is basically selling items you don’t own. Suppliers will ship merchandise directly to your customers. You don’t have to have space for inventory or spend time packaging and shipping products. Your profit is the difference between the wholesale price plus the cost of shipping and any listing fees.
Some companies advertise themselves as drop shipping companies, but they are really middlemen. They don’t actually have any products in stock themselves. They are making their profits from membership fees or handling fees. This is why market research is so important. If you sign up with a drop shipping company that is really a middleman, you will find that they are selling you items at the same price they are being sold at on eBay or Amazon. You will make little or no profit from this type of company.
Working directly with a manufacturer will allow you to get the best price and make the best profit. The question is how do you go about finding manufacturers that will work directly with a small business, such as the one that you own? There are quite a few manufacturers that will drop ship for you, but finding them may not be easy.
The most highly recommended way to obtain sources for drop shipping is through a company called WorldWide Brands. They are not actually a supplier, but they maintain a list of wholesale sources that agree to work with small business owners and eBay sellers. They charge a one-time fee for lifetime access to their database. Once you are a member, you will have access to over 7,000 wholesale suppliers for your business.
Learn more about WorldWide Brands at http://worldwidebrands.com/.