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Ever on the creation of a company but do not have anything on your own to sell? Maybe you’ve thought about starting an online business, but do not know what to sell or if you know what you want to sell, you simply do not have the money for storage. A new business model is catching on fast and you can use a part of it. It’s called drop-ship.
What is drop ship? Drop Ship is a simple way for people build a business if it selling a product to start. I have no doubt you have seen, drop-ship products for sale. Maybe you’ve even bought one. There is nothing wrong. Everything you do helps the economy.
Drop-ship is when an entrepreneur, as you go into an “agreement” with a manufacturer or dealer. Everything you do is advertise and sell the product for the supplier. The consumer buys the product from you for the price you set. Once the order has been made, you have before you order to the supplier together with you what the price is the product for purchase. The supplier ships the product directly to consumers. They never use the product. You are a middle man so to speak.
Still confused? If you are not a concern, I was too when I first heard drop-ship. Have you ever ordered something from say, Sears, JC Penney, or for the delivery and they say, “it will ship directly from the manufacturer?” Well, that is drop-ship.
“But how do I make money from the drop-ship”? That was the question I was asked. So I decided to give it a shot and see what happened. Here’s how it works, if I drop-ship testing. Or would I give an eBay auction for product XYZ. I am the product price at $ 9.95. Shipping is set at $ 4.95. The total price was $ 14.90 meant the consumer would pay me. Now for the product XYZ my costs from my supplier was $ 1.95 plus $ 7.95 for shipping. I was a payment of $ 9.90 to my supplier. This left me with a $ 5.00 profit on every sale.
I know you are probably thinking the same thing I did, “Five dollars, big deal.” Five dollars is not much profit. But if you own a website and enough traffic to sell XYZ at generating up to 10 (ie $ 50 profit per day), what would you say then? At $ 50 per day with 30 days in the month, accounting calendar, the $ 1500 a month. For most of us, we do not live enough to get out of. For most, however, it should be enough to afford a house payment.
Drop-ship is a way to get into the business. You must be careful if you are looking for a supplier to drop-ship business model to begin use. Your good name will be connected to that supplier. If the supplier is not good on his end of the transaction, consumers will continue to expect you to resolve the issue or reimburse their money. And they will smear your name all over the internet. Ever notice everyone likes to negative reviews and not many positive reviews to write? It will happen when. Selection of a supplier’s like buying a new car. Shop around and talk with potential suppliers before you commit to. It could have huge dividends in the long run.