If you become a drop shipper all you are is the order taker. You don't own anything, you never take possession of anything. All you do is take the order, take the money, pay the drop shipper giving them the address of your customer. The dropshipper takes care of all the shipping and storage and hastle. Many dropshippers will even personalise the paperwork and packaging with your name. All you do is pocket the difference between what you are paid and what you pay the dropshipper.
Simple? In theory yes. However the margins on most things are not all that great especially if you are thinking of selling on EBay. There are a lot of people doing the same thing, look around on there and notice all the identical ads. The competition is fierce. Many of the coaching programs guide their clients in this direction. These so-called coaching programs will be the subject of another article.
Too make it work you really have to research your market and hope when you find a good one you can make a few bucks before the competition catches up with you.
Some points to consider.
For
No capital required, you do not pay out anything until you have been paid.
No inventory to store and take care of.
No shipping and packaging to take care of.
All you need is a computer and internet connection.
You do not even need a website if your are going to auction stuff.
Against
The margins are slim and competition fierce. I do make a little on EBay but it is a lot of work.
You have to come up with well writen copy to stand out from all the others selling the same stuff.
You have to be very careful who you team up with.
The customer is yours and the order fulfilment is out of your hands
A good source for reliable drop shippers are these guys:
An even source is to find a local manufacturer who does not have a national presence and offer to take care of the marketing for him.
This is a drop ship web site Gadgets By George
Bottom line? It works but you really have to know and research the marketplace.
