Start a Drop Shipping Business: The Facts

Looking to start a drop shipping business?

Want to make a profit on everyday products but don’t want to pay high rental fees for storefronts, as well as warehouse and retail space? Do you want to earn an income without all the pressure of having to store items, perform packaging, shipping and receiving duties or taking risks on products you are unsure of? If you answered yes to all three questions, then you may want to consider starting your own drop shipping business.

start a drop shipping businessA drop shipping business work as the middleman between the buying customer and the manufacturer of a product. The idea behind drop shipping is that the manufacturer and supplier give you, the drop shipper, the opportunity to sell their products without having to commit to a purchase. In turn, the drop shipper takes care of sales for the manufacturer and all the processes that are involved in between. If you are a drop shipper, you can avoid having to package and ship the products, paying fees for retail space and storage and risking your capital on random products that you are not familiar with.

Here are 3 steps to building a drop shipping business and making a profitable income every year.

Step 1: Choose Your Suppliers Carefully

Be smart and do your research. Drop shippers usually research more than a few different suppliers before they decide to take on their products and sell their items. If you are seeking manufacturers and suppliers, you can find some online through online directories. The only thing you need to be aware of is their reputation as a manufacturer. Do they get their products out on time? Do the manufactured items get delivered damage-free? Reputation is everything. Make sure you look at customer complaints about the manufacturer as you don’t want to be selling a lousy product. After all, your company could take the brunt of the sale every now and then, even if the product issue wasn’t your responsibility. If you want to find local suppliers, make sure you take a look at the Yellow Pages and look up suppliers and wholesalers. Seek out suppliers that have been in the industry for many years and who possess long term experience. Ask the supplier about delivery methods, delivery times and product guarantees etc. Know everything you need to know before making a deal.

Step 2: Choose Your Products Wisely

Start your product search by selecting a few items from the supplier’s product range. Decide which items interest you most and perform market research. This means, look up the product online and find out if many other companies are selling it, if it has a reputation, (good or bad) and what the average selling price is. Find out average shipping times as well and anything else you need to know to make your selling process of the same item a success.

Step 3: Select Your Online Selling Platform and Manage

Depending on what country you are in, you may need a tax ID number or something along those lines to build a drop shipping business. Check with your local government and small business bureaus. After that is sorted, you will need to figure out which selling platform you will want to use. Do you want to sell products via,, etc.? If you are more familiar with the working of one over the other, choose it to simplify your business building process. Many people choose as their online store. When you are building your drop shipping business and beginning to list your products and items you have chosen from the manufacturer, list the items just as you would as if you had them in stock in the back room. If your manufacturer has more of one product than the next, make sure the availability of the product is listed and that your customers are aware.

Once you have gotten your first sale, you will receive the money for the product, keep your agreed profit and pay your connected supplier by purchasing their product and giving them the delivery details. While there are many other factors to consider and steps to take in the drop shipping business, these 3 steps on how to build a drop shipping business should get you started off on the right foot. Good luck!

This guest post was written by the team at Drop Ship Strategy, the specialists at helping individuals develop an online drop shipping business. Thanks for reading!

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