Last time I checked this book was about $5 USD. I recommend making a small investment like this because you can lose money if you buy the wrong product, do not know how to list it etc.
Do you want to be counted among the most successful merchants without ever dealing with the hassle of maintaining an inventory? Drop shipping is the best option for you. It is as easy as purchasing the product demanded by the customer from a third party and shipping it directly at his footstep. This article will provide you with a step-by-step guide on drop shipping from popular platforms like Amazon and eBay with the minimum startup capital.
There is also the Amazon FBA program. Fulfillment by Amazon
This is where you buy wholesale and ship the products to an Amazon warehouse and list the items on Amazon. When an item is sold Amazon ships it out. For a fee of course but many times, it is worth it.
You can do it yourself and ship items from your house when they are sold. This is what my wife does with eBay. It can get overwhelming if you sell a lot.
(1). Choose the Right Product
This is indeed the most important step as a bad product choice will always lead to failure even if best choices are made in terms of other factors like competitive pricing, high-quality images etc.
The characteristics of an ideal choice are-
• The sale price should be under $49 usd for impulse buys.
• The weight of the product should be preferably under 500 grams.
• Fragile items are not the best choice for this purpose.
• Avoid seasonal products. Always go for year-round products.
• Have a look at the products which are currently on sale on eBay and Amazon. Choose a similar product.
• The profit margin should be between 25-50%
(2). Find a reliable supplier
Before starting your hunt, ensure that you are well armed with the Tin/VAT no. of your business and a copy of the Company Pan Card & registration. This is required as a proof of you being a serious retailer and not just another consumer.
Look on Alibaba.com and find the Chinese version I have another article on these sites and how to use them.
https://steemit.com/minnowsupport/@davidwardlow/what-is-amazon-fba-can-i-do-it-in-my-country
Now, what are the qualities you need to look for in the perfect drop shipper?
• Are they the manufacturer or wholesaler?
Make sure that the drop shipper you opt for has inventory of his own because when will you sell the stock yourself, the time frame of delivery, profit margin earned and the discount offered will attract future customers and are thus of utmost importance.
• Prices
Browse through Amazon and e-Bay and see the cost of similar products yourself. If you want to sell your product, you need to ensure that the supplier product cost is lower than the other products.
• Discount
Be it e-commerce or any retail business, margin can make or break dreams of higher profits. Aim for a profit margin of approximately 20% to run a successful business venture.
(3). Choose the right platform
It is then entirely up you to utilize the product feed files offered by your drop shipper in the CSV/XML/XLS form and make huge profits. Platforms like eBay, Amazon and ShopClues offer the easiest way to proceed with the same.
The steps to sell your product on e-Bay are as follows-
• Firstly, log into your e-Bay account.
• List the items you want to sell.
• Carefully decide the prices as this will determine the sales. The choice of drop shipper plays an important role here.
Drop shipping online can in fact help you in saving thousands on inventory. Thanks to the lack of inventory required, the overhead expenses are also extremely low. Drop shipping business is so easy that it can be started by almost from anywhere across the globe. You don’t even need to incur additional charges for the wide variety of products offered by you and moreover greater sales simply do not mean greater workload.
However, drop shipping online is not all rainbows and butterflies. To ensure a profitable drop shipping business, follow the steps listed in this article and steer clear from low margins, inventory issues and shipping complexities.
Please let me know what you think in the comments below. If you liked this be sure to follow me and let your friends know and feel free to share this post.
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Helping others become entrepreneurs by finding their passion and changing their mindset from employee to entrepreneur!
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