How To Approach Drop Shipping Online.

Hey guys..We all know there are many opportunities to make money online, but what about integrating Drop Shipping? here in article as you continue to read. I will give you some valuable tips on “how to approach Drop Shipping Online”

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A) You will need products to sell. Be very careful when looking for drop shipping suppliers online there are many unscrupulous people that will take advantage of you. There are a couple of rules to follow when choosing a dropshipper. One, a real dropshipper will never charge you a fee to sell their products. Two, a real dropshipper will want proof that you are a legitimate business. They may ask for any or all of these; Business License, DBA, Federal ID (EIN), and/or Sellers Permit. A very good source of real wholesalers is the WorldWide Brands OneSource Directory. They sell a directory of REAL drop shippers and light bulk wholesalers that they have researched for you.


B) You will need a venue where you can reach prospective customers. You may want Your Own Website or to sell your products on eBay. For your own website you will need a Domain, a Web Hosting account, and shopping cart software. EZ Dropship Cart is a great cart for drop shippers. E bay is also a great way to reach perspective customers, the only problem you may run into is that some manufacturers place no auction restrictions on their products.


How To Approach Drop Shipping Online.

C) You will need a way to accept your customers payments. PayPal is a fast easy way to get started, you pay fees only when you have transactions. While credit card processors offer lower per transaction fees, they require setup fees and monthly fees that are geared toward large volume sales.


D) You will have to get Legal, this is where most people falter. They think it sounds hard, complicated, and expensive. And actually it isn’t any of those. Just visit your states website to find out what you need to do business. In most cases a DBA can be used in place of a Business License. But either way most states charge around $20.00. Some states, not all, require you to get a Sellers Permit or Resale Certificate. Either way all the resources you need should be available at you states home website, usually under a small business section. While you may not have any employees I highly recommend getting a federal id. It costs $4.99 online and you get it instantly.

By using drop-shipping firms to handle your orders, you could route all your ecommerce site’s orders to wholesalers, and they will drop shipped your order directly to customers. And you as the online retailer can eliminate the expense of carrying inventory and the risk of being stuck with the goods if these goods didn’t sell


Before you get started, consider these steps involved in starting a drop-ship e-business:

Decide to sell your products with or without your own website

You can start your drop-shipping e-business either with or without having your own website. If you decide to sell with your own domain name, then you need to get your ecommerce site up. If you do not want the hassle of getting your own ecommerce site, then you could build your online store at eBay. eBay e-store site builder allow you to build your online store easily.


Decide products to sell

Then, you need to decide what types of products to sell at your online store. You could identify a group of products such as electronic products, household electrical appliances, cell phones & etc. It is advisable to identify similar products or products under the same category to sell instead of totally different category products such as shoes and CD player. Because, by selecting products within the same category, you can give your customers more choice to choose from, and you can group two or more products in a bundle for promotion or marketing activities and you get more sales on each transaction.


Locate suppliers who will drop-ship for you

After identify your products to sell, you need to look for your drop-shipping suppliers. On time delivery is important to ensure the satisfaction of your customers; hence, be sure you check for the drop-shipper performance record before you sign-up an account with them. Discussion forum, message board and blogs are sources for you to find some hints or comment for the drop-shippers. Or you just simply key-in the drop-shipper name on the Google or Yahoo search box; you should get some information of your selected drop-shipper.


Set up an account with the drop-shipper

Once you select a drop-shipping company, you need to set up a reseller account with the company. This can often be done online or by phone, but some companies will require that you complete and return a reseller application to open an account. Some may also require a tax ID and a business license. Most drop-shipping company will charge some fee to open their reseller account.



Many online retailers failed in their drop-shipping e-business because they could drive traffic or visitor to their website and convert these visitors to the actual paying customers. To get traffic to your product page (either your website or your eBay e-store), you need to Advertise Your Products so that your products get exposure on internet and attract targeted traffic to your product page.

There are many ways to advertise your products. You could advertise on eBay, use pay-per-click (PPC) advertisement service such as Google Adword or Yahoo PPC. Or you could go for the cheapest but equally efficient way in driving traffic to your e-store: Article Marketing. You could write a review on your products in an article and put your e-store URL at the end of article or at the author resource box and submit them many article directories for maximum exposure. Many internet visitors will drop-by to your e-store via your URL links at the end of your article if they are interested to know more.


The Product Sold & Place Order To Drop-Shipper

Once your have product sold, your customer will pay you on your selling price via your online payment system such as PayPal. And you place the order with your drop-shipper and pay them via their payment system at the agreed price, which is lower than your selling price, so that you could earn the profit.


After Sale Follow up

Many e-business entrepreneurs will miss out after sale follow up portion. Just because your customer has paid you and you have placed the order with the drop-shipper, it does not mean that this is end of the loop. Because if there are problems occur, you are the one who need to responsible in the eyes of your customers. Hence, you should follow up with your drop-shipper either via phone or email to ensure that ship out your order to your customer.

You should proactively follow up with your customer to ensure they have received their order and satisfy with it. Offer yourself as the personal contact for any issues that may arise. This is also a great way to sell customers more products because if your customers are satisfied with your service, they may give you repeat orders.


In Closing

By integrate drop-shipper into your e-business, you can forget about inventory handling issues and find a shipping partner to fulfill orders for you; all will be done by your drop-shipping partners. By following correct steps to set up your drop-shipping e-business, you can save your time and efforts in getting your business started faster, obviously making fast money. Living in the USA make it easier, since you will be more trusted.

Any questions you may have on this article, feel free as always to place those questions and comments in the box below, all can join in the discussion.



7 thoughts on “How To Approach Drop Shipping Online.”

  1. Drop shipping is a very lucrative business, at one time before I heard about wealthy affiliate I was thinking about giving this business a try.

    I read a few months ago of a 19 year old young man who is a millionaire from drop shipping well if thats so then drop shipping is worth your time and investment.

  2. Hi Earl, You have provided a simple to understand step-by-step process to be effective in drop shipping. Even though this is not my preferred marketing method, it is good to learn how to do it effectively as it is a viable way of creating additional streams of income. Thanks for these insights. All the Best.

  3. Hi Earl
    Thank you so much for this insight to dropshipping – I am tempted to open an online store within one of my websites … will be taking your tips for a trial run.

  4. I guess the difficulty I have with this type of business is that I am relying on different people/companies to deliver a service or product and that means I’ll be investing into something well before I could see a return.
    The other thing that concerns me is what do I do if the product doesn’t sell? That means I may have hundreds of dollars or thousands invested in something that is setting on someone’s shelves.
    Is there any way to ensure that I will at least sell the products without losing money?


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