What is dropshipping?
Dropshipping is a popular method of starting a home
based business via the Internet. With
minimal start-up costs, no stock to buy, no posting/packaging and no storage
space required dropshipping has helped people start trading
online via auction sites or their own websites.
How does it work?
Once you have signed up to
dropshippers you can
advertise their goods as your own (i.e. via your website, online auctions or
offline etc). Once you have made a sale you simply pass the order details onto
the dropshipper. The dropship company then posts the goods (under plain wrap)
directly to the customer.
How do I make money?
As a member of a
dropship company they sell
their products to you at a discounted price. Your profit is made by selling
directly to the end consumer at a higher price.
What are the advantages of dropshipping?
Low investment | Buy
products AFTER you've made a sale | No stock to hold | No posting/packing |
Access to hundreds of products at trade prices | No minimum orders | Low risk -
never be left with surplus stock you can't sell
What are the disadvantages of dropshipping?
Lower margins compared
to buying in bulk | Less control over posting/packaging (i.e. delivery time) |
Problems can arise if you sell an item which is out of stock.
What Should I Do Next?
Now you have some answers to the most frequently asked questions
you can
decide for yourself if dropshipping is for you. Compared to affiliate schemes
there is generally a lot more money to be made, however, there is more work
involved. Dropshipping offers a true home based business opportunity with the
potential to earn a decent second income.
If you still have questions about dropshipping post them
here.
If you are ready to join a dropship company please
read the reviews on this site (left menu) and submit any queries you have about
certain companies.
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