Dropshipping is an online business sales model where the seller of the products does not actually warehouse or store the products themselves. They are the “middle-man” and just facilitate the sale of the products through their own eCommerce website and make money on the “spread”. This works well for many online sellers because it requires a minimal initial investment or startup cost and generally has less risk. All you need is an eCommerce website and a good supplier.
Dropshipping can be very profitable! The main challenge with drop shipping is finding the right supplier(s) that will “white-label” and ship the products directly to your customers with your return address on the box; and give you good enough pricing so that you can mark up the cost of the products when you sell them so that you can make a profit. A good rule of thumb is to mark your products up by 10%-20% over the actual cost of the product from the supplier. We also recommend looking for drop ship suppliers that offer Free shipping to your customers! This helps you compete with large online retailers such as Amazon and eBay.
How do I find a dropshipping supplier you ask…. Well this question comes up quite a bit and the answer to the questions really depends on your target market and industry. We recommend doing your own research, attending trade shows, speaking with manufacturers and distributers to find suppliers in the country that you plan on making your target market. This makes shipping to your customers faster!
If you are still unsure of how to find your own dropshipping suppliers then we can help. We have several Dropshipping suppliers that we have used in the past which we have listed below. Be cautious of any drop ship supplier that wants to charge you a monthly fee or signup fee! Any good drop ship supplier will want your business bad enough to offer their products and services to you for free. The list drop shippers in the list below do not require signup fees or monthly fees to join.
Once you have your idea of types of products you want to sell and your drop ship supplier selected the next thing to think about is what eCommerce platform to use for your Dropshipping which we will talk about in our next article!
Stay tuned and feel free to contact us for more information on how to get started with Dropshipping!