Ever thought about starting a company but don’t have anything of your very own to promote? Maybe you considered starting an online business however, you don’t really know what to market or you know what you would like to sell, you just don’t have the cash for warehouse costs. A new business model is catching on quick and you will be a part of it. It can be called drop shipping business opportunities.
What exactly is drop-ship? Drop ship is a straightforward method for people to set up a business if they have no product to promote. I actually have undoubtedly you might have seen drop-ship products for sale. Perhaps you have even bought one. There is certainly no problem with this. All you are doing is assisting the economy.
Drop-ship takes place when a businessman, for example yourself get into an “agreement” by using a supplier or distributor. All you do is advertise then sell this product for that supplier. The individual purchases the product from you to the price you add. After the order has become made you forward an order for the supplier together with what the cost is you are acquiring the product for. The supplier ships the merchandise straight to the individual. You never view the product. You happen to be middle man as they say.
Still confused? In case you are don’t worry, I found myself too when I first learned about drop shipping business opportunities. Perhaps you have ordered something from say Sears, or JC Penney for delivery and so they say “it is going to ship directly from the company?” Well that is drop-ship.
“But how do I make money using drop-ship”? Which was the question I asked myself. Thus I decided allow it an attempt and discover what happened. Is how it worked when I tested drop-ship. I would put up an auction on eBay for product XYZ. I set the merchandise price at $9.95. Shipping was set at $4.95. That meant total price was $14.90 the individual would pay me. Now for product XYZ my cost from my supplier was $1.95 plus $7.95 for shipping. I had been paying $9.90 to my supplier. This left me using a $5.00 profit for each sale.
I understand perhaps you are thinking the exact same thing I did so, “Five bucks, problem”. Five dollar profit isn’t much. But when you have your own website and can generate enough targeted traffic to sell 10 XYZ (that is certainly $50 profit per day) what can you say then? At $50 every day with thirty days inside a month, basic accounting calendar, that is $1500 per month. For most people that is not sufficient for people like us to have off from. For most though it must be enough to make a house payment.
Drop-ship is one method to get involved with business. You need to be mindful if you begin trying to find a supplier to use the drop shipping business opportunities. Your good name will probably be connected to that supplier. In case the supplier fails to make good on his end in the business transaction the consumer is going to be looking to you to definitely repair the problem or refund them their money. And they also will smear your name all over the internet. Ever notice everyone likes to write down negative reviews rather than many positive reviews? It would happen though. Deciding on a supplier is just like getting a new car. Research prices and talk to the potential suppliers prior to commit. It will save you big dividends over time.