Today we are going to explore, drop shipping, another excellent home based business opportunity.
Now, what is drop shipping you ask?
Drop shipping is a technique where distributors, wholesalers, manufacturers and/or importers sell their products through you. Basically, you create your own online storefront that sells their goods.
However unlike a traditional storefront, you wouldn't have any inventory on hand. This is because the other parties involved handle the logistics. Essentially when entering online drop shipping you enter a partnership, where the drop shipper does the dirty work.
Like with affiliate marketing your are responsible for driving the traffic and turning it into sales. Once you set up your store front all that is left is to receive and forward the orders, That, in a nutshell is how drop shipping works.
With that said, let's talk about pros.
* As you do not handle inventory and there would be no stock carrying expenses to worry about.
* There is no need to invest money to buy the product because you only pay after you get paid by the client who bought it.
* There is no quota as to how many products you must sell. It doesn't matter if you sell just one item each time.
* Your drop shipper would be the one to handle all the necessary specifications and images that you would need. This way, you won't have to spend time and money on making your own.
* You get to put your own selling price on the product which is extremely convenient if you have extensive knowledge of your niche market.
* You are not limited to working with just one supplier. You can open a web store that offers various products from multiple drop shippers.
To start a drop shipping operation the first thing you need to do is find the products you want to sell and the drop shippers who can supply you with them.
Some of the most popular items include books, shoes, clothing, toys, music, movies, accessories, bed and bath items as well as video games. Of course this is by no means a complete list. Just like with affiliate marketing, we strongly recommend that you look into products that you have a passion for.
Of course, drop shipping does have its own set of drawbacks such as lack of control of inventory levels, discontinued products and turnaround time.
Fortunately most of drawbacks can be limited with the use of a reputable drop shipping service.
Some thing that determine the reputation of a drop shipping service include:
* Their readiness and willingness to ship one item at a time.
* Free membership
* Should be reputable and has had experience in the business.
* Is okay with using your name or your shop's name as the shipper.
* Is willing to enclose an invoice from you.
* There should be no indication on their packaging that points to them as the drop shipper.
* Is willing to accommodate other specifications from you.