Drop shipping is a great work at home opportunity and requires very little up front commitment. Since you don’t have to stock any inventory, you can focus all your time and money on marketing and selling your products. This low overhead makes it possible for nearly anyone to get into drop shipping. Unfortunately, there are a lot of hurdles out there as well which end up ruining most drop shipping businesses. The vast majority of new drop shippers will fail within the first year. As this industry grew (and is still growing) so has the sub industry of middlemen and scammers. Many new drop shippers go to Google to start searching for drop shipping suppliers. They will almost certainly sign up for a middleman program that offers marked up ‘wholesale’ products and charges monthly fees or drop ship fees to access inventory and sell products. Not to mention that these products are generic and completely saturated.
They’ll head over to eBay where they plan to flip this merchandise and make big profits. Unfortunately they will find that there are thousands of others selling the same exact stuff, probably for less money. The market is saturated. The problem with this is that there are far too many people selling the same thing in the same place. You wouldn’t try to sell sand in the desert, would you? In order to succeed, you need to come up with a strong business and marketing plan, like with any other business. You need to know who your audience is, what they want, and how to get it in front of them. By this I mean you need to find a niche and source products for that market. You need a quality wholesale source and unique products. Don’t run straight to eBay to unload your goods either. eBay is very highly trafficked, but it is also very competitive and comes with extremely high fees. The fees they charge to list and sell products will eat most of your profit margin.
Try to find more clever ways to reach your audience. Open an online store, advertise on shopping comparison sites, learn search engine marketing. There are so many great ways to market your products; you’re really limiting yourself by relying on eBay. You’ll also find that eBay is not fond of drop shippers. This is because of the common ‘out of stock’ issue. Very often, when using a popular drop shipping source, products go out of stock often and without warning. If you sell something on eBay and then go to your supplier to find it is out of stock, you are in trouble. The buyer will complain, you’ll get negative feedback, and eBay may ban you. It’s really not worth the trouble.
The key to making money drop shipping is a strong marketing plan. Find your audience, deliver a product, and provide value to the customer so they keep coming back. Provide a good shopping experience to your customer and you’ll have a customer for life.
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