Setting up an Internet Business? Consider Drop Shipping
By June Campbell
You've tried affiliate programs, but you'd like higher profits and more control over your business. You don't have your own products and you don't want to manage an inventory. Drop shipping might be your answer.
Mail order businesses have used drop-shipping arrangements successfully for decades. While this method of order fulfillment is not yet well known on the Internet, the potential is excellent.
It works like this.
You set up a drop shipping account with a manufacturer or wholesaler. Next, you generate orders for their products, establishing the retail price yourself. When an order is placed, you forward the sale information to the supplier. The supplier fulfills the order, sending it to the customer with your business name on the label.You remit the wholesale price of the item to the supplier.
The benefits are obvious. You keep no inventory and, since you set your own selling price, you are likely to make higher profits than you would make as an affiliate. You might, in fact, set up your own affiliate program and enlist affiliates to market your merchandise.
Drop shipping arrangements also give you the ability to establish small, low-cost web sites that are targeted to niche markets. These little sites also allow you to test and promote various products. If a product doesn't sell well online, it's an easy matter to remove the web site -- or leave it up, since costs are low.
Consider the following:
You Need a Legal Business Entity
Your Internet Store
Research your Drop Shipping Company
Your Product Mix
And finally, choose items that are neither too inexpensive nor too heavy. Experienced drop shippers say that products of over $20 and under 70 pounds work best. If you want to sell lower priced items, group them together in a package and sell the package. The shipping costs will appear to be more reasonable. Alternatively, promote products that carry similar shipping costs, or that will not add to the shipping cost.
And lastly, much success in your new business!Interested in publishing this article in your ezine, website or print publication? This article is available for your use provided you include the info box below and use a live, DO FOLLOW link to this site.
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