Home Internet Business - Drop shipping |
Dropshipping has been around for years and is by far one of the most popular types of home Internet business. In a nutshell you act as a middleman between the customer and the wholesaler. Here is an overview of how dropshipping works.
Manufacturers of name brand products typically sell their products to wholesale distributors who in turn sell the product to a middleman or directly to retail stores. Neither the manufacturer nor wholesale distributors sell directly to the consumer. At each link in the chain cost is added to the sale of the product. For example; manufacturer of product "A" sells the product to a wholesale distributor for $5 a case. The wholesale distributor then sells the product to a retail store for $10 a case, if a middleman is used there would be additional costs, once at the retail store they apply their percentage of markup, such as 25%. You can see that by the time product "A" has gone from the manufacturer to the consumer the price has increased by 150%.
Here is where your home Internet business comes in. By finding wholesale distributors to work directly with small home Internet business you can obtain products at a lower cost buy cutting out the middlemen. You then add your own markup to the product and sell them directly to the consumer. The best thing about dropshipping is:
- No inventory to carry
- No packaging or shipping
- Offer products at competitive prices
- Thousands of products to choose from
- Low overhead costs
- Small start-up investment
Here is a more detailed description on how a dropshipping home Internet business works. First you need to find a trusted supplier of wholesale brand name products to sell. Use caution when looking for wholesalers, many are not who they claim to be and you may not be getting the best deal possible. Worldwide Brands is a great source for finding real wholesalers who have agreed to work with home Internet business owners. WorldWideBrands for wholesale supplier information.
Once you have a product(s) you open an Internet store and add a shopping cart with the ability to accept credit cards. PayPal works great for this. Sign up for a PayPal account here.
The wholesaler will supply you with images and descriptions of the products for you to post on your website. When you make a sale you send an email to the wholesaler with the shipping and product information and they will dropship the product directly to the customer with your business name. They do all this for a small fee however, it saves you time and money and the fee is typically very minimal.
That's it! For more information on product sourcing and dropshipping along with additional tools and resources to start a home Internet business check out the following free e-books.
 |
Get Your Free eBook Now! This EBook is opened with Acrobat Reader. To get your FREE Acrobat Reader now, click below:  |
 |
Get Your Free eBook Now! This EBook is opened with Acrobat Reader. To get your FREE Acrobat Reader now, click below: |
 |
Get Your Free eBook Now! This EBook is opened with Acrobat Reader. To get your FREE Acrobat Reader now, click below: |
