A drop-shipping business only requires a computer to operate.
Drop-shipping is an online selling technique that can reduce start-up costs of your new business venture. The way that drop-shipping works is that you are responsible for the marketing and selling of the products. Once a product sells, the drop-shipper mails the item directly to the purchaser. With this type of business venture, you don't need to purchase mailing supplies or store stock at your location.
Instructions
1. Make arrangements with a drop-shipper company to sell their products. Drop-shippers may charge you an annual or monthly rate to access the wholesale pricing of items. A Tax ID for your business may be necessary as well by drop-shipping companies. Drop-shippers provide pictures and descriptions for use online.
2. Determine where you plan to sell the products. Potential selling opportunities include your own website domain or online auction websites. Your own website eliminates selling fees, but professional auction sites are likely to bring in more traffic to increase sales.
3. Assign a retail price to the items you are selling. Check out other online competitors to determine how much of a mark-up you should give each item.
4. Sell the products. Receive payment directly from the buyer through Internet payment websites.
5. Pay the drop-shipper the wholesale price of an item. For instance, if you sell a radio for $135 with a 35 percent mark-up, you owe the drop-shipper $100. The $35 you get to pocket as your earnings. Once you remit payment, the drop-shipper can provide shipping details and send out the merchandise. Your business name and address is typically on the return shipping label to keep the use of a drop-shipper confidential.
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