Business English. Learn Business English with a Business English Reading Prompt: Dropship; Make Money Selling Products On or Offline
So you've heard about Dropshipper companies and want to learn more. No doubt you have read or at the very least seen ads/ sites online promoting a virtual store, online shopping mall, etc. How many times are you going to come across an Ebay success story? Many people don't know that they can be a dropshipper business person easily, but you have to do the research, or have someone else do it for you.
How are these small businessmen, housewives, and students making a fortune; and how do they get the money to run an online shopping mall?
Easy. They don't actually have any inventory at all.
For the most part these virtual storeowners use what is known as a dropshipper for their needs. Money is made easily because they do not have any stock to purchase nor do they require a place to store it.
A dropshipper is a company or warehouse that will send a product directly to your customer after they have ordered and paid for it through you. Your profit is the percentage markup you add on.
How exactly does this work you ask? Well let me explain. I set up with a dropshipper and I build a website promoting a few hundred products. Mr. X comes to my site (I advertise after all) and buys a nice widget. I receive and confirm the credit card transaction. I now have money in the bank from an online sale. I contact my dropshipper via phone/fax or email and buy a widget at wholesale cost. THEY send it along to Mr. X who has no idea it didn't come from me.
-I carry no inventory
-I ship nothing (customer pays the shipping costs)
-I order the product only AFTER a customer has paid for it
-I can compete anywhere my dropshipper will send to
-Unlimited range of products
The dropship system is absolutely beautiful. A very low cost to set up; and you can choose what products to sell in what market without any logistical problems. Your only real expense will be the advertising you do to promote your products (online or conventional).
You will also no doubt have seen various advertisements offering to give you a free website full of products to sell. You make a commission of the sale. These affiliate web sites often are simply using a dropshipper themselves. They have just added a Multi level scheme to the system. You can join these and get a free website; but why give away that markup the affiliate company is making instead of you?
After all if you are going to advertise a website it should at least be your own!
You can get into this amazing industry easily and cheaply; selling products on your own website or using a dropshipper and selling on internet auction sites.
Sell 10,000+ products online from the confines and comfort of your home PC and an Internet connection. Sell anywhere the dropshipper will mail to.
Dropshipping is the new mail order industry
Remember 10 years ago? Well okay so maybe you don't but if you do, you would remember seeing magazines, monthly newsletters, newspapers full of ads for mail order catalogs. It was simple then. I placed an ad, and when I got a reply I sent along a catalog of a company I partnered with. Any orders went through me and I got a piece of the pie. Even today some companies rely on the mail order system. I am sure you can think of several companies that still use this home based system to do business. Instead of a nation wide retail chain, a company uses home based freelance, commissioned sales people to promote their products. When orders are filled products are ordered and sent. (Think candles, adult supplies, etc.)
This is still a multi billion-dollar industry.
An Internet dropshipper is just an extension or continuation of this business model. I can get paid for selling another's product (which I don't actually have). The difference is that instead of a printed catalog I have a website to promote my wares.
So how does one go about getting set up with a dropshipper? Well the first thing to note is that many do not advertise! They really don't need to I suppose as many are old mail order companies who have adapted and continued to grow. There are many companies out there selling lists of dropshippers though. That is the business. Dropshippers are compiled and some lists are sold for hundreds of dollars! Can you imagine paying that much for a list of companies and contacts? Well yeah I guess you could when you see the potential of it. I myself offer a list of the top dropshippers for a modest fee (its under $20! Click here) this is to cover the cost of doing the research and calling companies to verify information. So the first thing you need to do is get a hold of a dropship list. If you go mail order you will want to start placing ads in the appropriate places and watch your business grow!
If you are looking for a virtual online store or to work the auctions, then you need a few more things.
Get a website. Your own domain and hosting package would be nice but if you want to start small and simple try an affiliate program (http://www.hogwan.com/store is a good start).
Join the Internet auction sites. Have a look and compare some prices. If you can compete add a bid and see what happens.
Build a website, get an e-commerce account of some type to process your transactions. Add photos and descriptions of the products.
For your protection
It should be of importance to note that unfortunately for every legit and well-rounded dropship/ wholesale list there are numerous scam lists. One way to determine whish list to buy is by the amount you are charged. While it a tremendous time saver to have these lists; they are not essential. If you are prompted to pay an obscene fee for a compiled directory, my advice is to avoid it. Yes it may be a value packed list; but you really don't need to pay an arm and a leg for it. Often someone just tries to maximize profit from this hot- selling information. If you buy a list you really should not pay too much. Again this is information found free IF you spend the time to dig enough. Also check exactly what you are getting. A simple dropship list is fine; but many dropship companies have only their one product to ship. For example several I have experience with only sell wooden furniture or breath gum! Now there is nothing wrong with these products, it's just that you are limited in what you can sell online.
The list that I published is a combination of wholesale dropshippers (thousands of products); wholesale suppliers. Great for both the mail order and Internet mall business.
There is also the possibility you are buying a bogus list. Unfortunately the really is no way to know for certain what you are buying. It is buyer beware so pay attention to what the supplier says is in the list you are looking at buying.
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