What is dropshipping and how can you make $ dropshipping? There are lots of people online that tell you that you can use dropshipping to make lots of money while sitting in your bathrobe in your living room. But is dropshipping really all it’s cracked up to be?
What is dropshipping?
Dropshipping is a way of selling consumer goods online without having to buy any inventory. You post products online, whether on eBay or on other websites, and when you make a sale, you order the product from the dropshipper. The dropshipper then mails the product out directly to your customer.
Is dropshipping really as easy as everyone says?
NO! Dropshipping has never been easy. It’s a great way to get started but starting a dropshipping business is as challenging as running any other kind of business. It requires a good investment in terms of time and some money. So don’t think you’re going to set up your Internet business in a couple of hours and then just watch the money roll in.
Why should I dropship?
Dropshipping allows you to sell your products on the Internet without having to carry any inventory. You don’t need to invest money to buy a huge stock of products, and you don’t have to run the risk of having a garage full of stuff that just won’t sell.
But, you will still have to invest money to get your Reseller’s Permit and Tax ID Number, to find high quality suppliers, to set up a eBay store or website, and to market your business online.
How do I begin dropshipping?
1. Get your Reseller’s Permit and Tax ID Number
This will allow you to work with the best dropshippers and to file your taxes properly at the end of the year. If the droppshipper you are thinking about working with doesn’t ask for your Tax ID Number run away! They are not a true dropshipper.
2. Find a quality dropship supplier for whatever products you want to sell online
It is extremely important that you work with a good suppliers, not scam artists or middleman. You won’t make any money if you do.
3. Set up an account with your suppliers
This does not cost any money – you just have to give them some personal information, along with your Reseller Number and Tax ID number. The dropshipper will then email you a pdf file with their product descriptions and pictures. You can then start posting these products on your eBay store or website.
4. Start posting products online
You can sell dropship products from a personal website, on eBay, from an eBay store, even on other auction sites, or pretty much anywhere on the Internet.
How do I find a quality dropshipper to begin with?
You can look for suppliers through various search engines or by attending tradeshows and other events. Most of the people you will find on Bing or other search engines are middlemen. These guys are not the distributors or manufacturers of the product. They are someone who buys the product from the manufacturer and then sells it to you at a marked-up price. Working with middlemen like this you can’t sell your product for even more money, because the price has already been marked-up. HOWEVER – working with middlemen like this can be a good thing if you are getting started and are experimenting with what to sell (if you don’t already have your heart set on a particular product.) The easiest way to spot a middleman is they offer thousands of different products. A real manufacturer or distributor only supplies one kind of product. They don’t make golf clubs AND baby bibs AND video games AND baseball gloves. But having a variety of products at your disposal to try out can be invaluable when you are first getting your business up and started Tradeshows, by contrast, are actually a great way to meet manufacturers. Unfortunately travelling to Miami, Las Vegas, or Vancouver to attend them can be expensive.
Here’s to your success,
Learn How To – HQ