| Ever thought about starting a business but don't | | | | Here is how it worked when I tested drop-ship. I |
| have anything of your own to sell? Maybe you | | | | would put up an auction on eBay for product |
| thought about starting an online business but you | | | | XYZ. I set the product price at $9.95. Shipping |
| don't know what to sell or you know what you | | | | was set at $4.95. That meant total price was |
| want to sell, you just don't have the money for | | | | $14.90 the consumer would pay me. Now for |
| warehouse costs. A new business model is | | | | product XYZ my cost from my supplier was |
| catching on quick and you can be a part of it. It is | | | | $1.95 plus $7.95 for shipping. I was paying $9.90 |
| called drop-ship. | | | | to my supplier. This left me with a $5.00 profit for |
| What is drop-ship? Drop ship is a simple way for | | | | each sale. |
| people to start a business when they have no | | | | I know you are probably thinking the same thing I |
| product to sell. I have no doubt you have seen | | | | did, "Five bucks, big deal". Five dollar profit isn't |
| drop-ship products for sale. Maybe you have even | | | | much. But if you have your own website and can |
| bought one. There is nothing wrong with that. All | | | | generate enough traffic to sell 10 XYZ (that is |
| you are doing is helping the economy. | | | | $50 profit a day) what would you say then? At |
| Drop-ship is when a business owner, such as | | | | $50 a day with 30 days in a month, basic |
| yourself go into an "agreement" with a supplier or | | | | accounting calendar, that is $1500 a month. For |
| distributor. All you do is advertise and sell the | | | | most of us that is not enough for us to live off |
| product for the supplier. The consumer purchases | | | | of. For most though it should be enough to make |
| the product off of you for the price you set. | | | | a house payment. |
| Once the order has been made you forward the | | | | Drop-ship is one way to get into business. You |
| order to the supplier along with what the price is | | | | must be cautious if you begin looking for a |
| you are purchasing the product for. The supplier | | | | supplier to use the drop-ship business model. Your |
| ships the product directly to the consumer. You | | | | good name will be attached to that supplier. If the |
| never see the product. You are a middle man so | | | | supplier does not make good on his end of the |
| to speak. | | | | business transaction the consumer will be looking |
| Still confused? If you are don't worry, I was too | | | | to you to fix the problem or refund them their |
| when I first learned about drop-ship. Have you | | | | money. Plus they will smear your name all over |
| ever ordered something from say Sears, or JC | | | | the internet. Ever notice everyone likes to write |
| Penney for delivery and they say "it will ship | | | | negative reviews and not many positive reviews? |
| directly from the manufacturer?" Well that is | | | | It will happen though. Picking a supplier is just like |
| drop-ship. | | | | buying a new car. Shop around and talk to the |
| "But how do I make money from drop-ship"? | | | | prospective suppliers before you commit. It could |
| That was the question I asked myself. So I | | | | save you big dividends in the long run. |
| decided to give it a shot and see what happened. | | | | |