Drop Shipping Is Your Perfect Home Based Business Solution
By Mike Nalbone
Drop Shipping Is Your Perfect Home Based Business Solution
Drop shipping is one of the greatest businesses to operate from home. With drop shipping you sell another company's products, use their warehouse and shipping facilities, and they provide you with the sales tools you need like product descriptions and images and more - free of charge!
Drop shipping is great for small businesses because you can start with literally nothing & gradually increase to higher levels of success. Drop shipping allows you to leverage other, much larger company's resources!
Any business owner who needs the an inexpensive & efficient means to market items online should look into drop shipping. Drop shipping allows you to sell almost any type of product you want with no warehouse & no inventory.
No inventory = low risk! You only purchase an item from the dropshipper after you've already made the sale! You never get stuck with a garage full of products that won't sell.
Drop shippers packages all of the products for you, they place your name on the return address of the package & then they ship it to your customer. You'll look like you're a multi-million dollar outfit to the customer!
In order to do business with a real wholesaler, some of them (not all) may require proof that you're in business & not just some consumer looking for great prices. So, you may need to file for a Resale Tax ID for your State. It's easy to do I filed my application online in just 10 minutes & even received a temporary certificate that I immediately printed out. I was literally in business within 10 minutes!
If you're SERIOUS about running a business you MUST have one! No ifs, ands, or buts. And, it's so easy to get one, there's no excuse not to.
If a wholesaler doesn't request a Resale Tax ID from you, they're a very small company or they're not real wholesalers, just middle-men.
When you find wholesale companies that drop ship many different types of products, everything from toys to electronics, and they don't request your Resale Tax ID, be aware that probably aren't a real wholesale company. Most legitimate wholesalers focus on a specific product type, like electronics or toys alone.
These middle-men companies just forward your order to the real wholesale company. You won't be able to compete on a level playing field with your competition if you do business with these guys. Chances are your competitors have Resale Tax IDs.
So be aware that you're dealing with a middle-man wholesaler who will have the real dropshipper dropship your products for you. Do yourself a favor & avoid dealing with the middlemen and get a Resale Tax ID. You'll save yourself a lot of money by be able to compete with the big-guns.
After your account is set up with the real wholesaler, you'll get a printed catalog and possibly a CD-Rom with product descriptions and images that you can use.
Middle-men usually don't provide these "bonuses". You just upload the image & description to your web site, decide on the price & wait for the orders to come rolling in!
Drop shipping will allow any person to run a successful & competitive business from home regardless of a lack of start-up funds.
Mike Nalbone is the creator of "The Wholesale Detective" http://www.nalbone.org/detective/ which is a complete resource for people seeking to utilize drop shipping to start or expand their own business.
About the Author
Mike Nalbone is the creator of "The Wholesale Detective" http://www.nalbone.org/detective/ which is a complete resource for people seeking to utilize drop shipping to start or expand their own business.
|
What Everyone Should Know About How To Buy Wholesale
By: Melanie Burns
Finding a supplier for the product you want to sell, at a price that you can profit from, can be a big task. The best suppliers for your online sales or auctions do not advertise their services and often cannot be found online.
Those that you can find online tend to be middle-men. It is often difficult to get a good enough price to make any real profit online.
Let me tell you about my simple 2 step system to find an untapped source for wholesale suppliers. This is so simple that it's often overlooked as a source for product. This system involves thinking outside the box and not letting policy stop you. (continued below)
The First Step to find a supplier is to find someone that already sells or has access to what you want to sell. This could be a website, an eBay seller, a manufacturer, a wholesale outlet, or a regular store in your city. This is the easy step. You know what you are looking for and you can search on the internet, not for a wholesale source, but for anyone already selling what you want to sell.
Another valuable source for a local supplier is your local phone book. The yellow pages are the best way to find local sources. This should be the first place you look. Doing business locally with someone that you can meet face to face is a big plus for your business.
Another potential source for your product is to find a distributor who would be willing to private label a product for you. You could get a very high quality product for a much lower price than if it had the name brand label.
The Second and Key Step is to convince the source you found to become your supplier.
Manufacturers and wholesale sources often have minimum orders that might be beyond your reach if you are just starting out. Online retailers, eBay merchants, and retail stores may be your best bet. Try to find a small store who is looking to expand.
But remember, you are dealing with a human being and they can be convinced to do business with you. Just be sure to sweeten the deal for them. One way is to offer the person you are dealing with at your new found source, a percentage of your profits from the products he supplies you.
Be sure to project it out for him. If he can see the benefit of working with you even though it causes extra work for him, you can be successful in making a deal.
You could offer him 20% of the profit from sales of his products. For example you could show him that you project to make at least $100 profit from each product, and you expect to sell 40 of them per month. The $4000 a month means an extra $800 per month in his pocket. You still make a nice $3200 profit for the month in this example.
On top of that, he will be ordering more products from his supplier and may be eligible for a higher price break from them. This way, his reward for the effort to work with you, is making money on both sides.
There are many benefits you can offer your potential supplier, but no matter how you look at it, the main thing it comes down to is MONEY. What's in it for your potential supplier to do business with you? If can you show him that, you have a better chance of making a deal with him and starting your online sales.
NOTE: When looking for suppliers around your city, don't go trying to impress the big stores with your $800 or even $3,000 extra income per month proposal. Try going to the little stores that are looking to expand their business, they are the ones that are usually more open to new opportunities.
The big stores are making hundreds of thousands of dollars per month in profits, so an extra couple of thousand would probably not impress them the least bit.
So now you see that by thinking outside the box, you open the door to many possibilities and increase your ability to make money online with your products.
About the Author:
Copyright © Melanie Burns
This article is free for reproduction but must be reproducted in its entirety including live links and this copyright statement. Subscribe to the iBusiness How2 Newsletter to receive hot tips, how to's, internet business tools, and relevant product reviews by sending an email to: newsletter@internet-business-how-to.com
|
|