Home-based Internet business has been growing rapidly since more and more consumers are becoming comfortable with online transactions. Many people with full time jobs begin to consider starting their own business in their basement or bedroom.
Today there are more options for people who want to start their own retail business on the Internet. You may have heard about drop shipping. It’s often portrayed as an ideal way to start a small or home-based business and an easier way to make extra income for you.
The idea of drop shipping is very simple. You accept orders and payment from customers for goods that you advertise on your website. However you do not have any inventory of these goods. Instead you place an order with a supplier who delivers the goods direct to your customer’s address. Normally the paperwork accompanying the delivery will make it appear that the goods were delivered directly from your business. Your customer pays the retail price fixed by you, while you pay the wholesale price from the supplier, thereby making a profit.
There are many advantages when you start a retail business with a drop-shipping supplier (wholesaler or manufacturer). You never stock any merchandises; you may start with almost no up front investment; and your business will be very flexible since you can change your merchandise as market demand changes. The best of all, your supplier deals with the shipping and packaging so you don’t have to worry about running to UPS or Postal Service everyday.
Here are some simple rules for you to follow:
1. Find a wholesaler or manufacturer who will drop ship merchandise for you. DropShip101.com offers an informative manual and directory that have detailed information for you to start with.
2. Choose a specialized area or product line that you have interests in selling. Only when you are dealing with stuff you really like, you will never get tired of conducting your business.
3. Before making your decision, do your homework; research your market potential; and make a business plan for your small business.
4. Contact the supplier and find out details about its drop-shipping program, especially policies on shipping, return/refund and possible membership fees. Some supplier may require a membership fee. Most suppliers will allow you to download merchandise photos and information directly from their websites.
5. Develop a user-friendly website to set up your own online store on the World Wide Web. Paypal.com offers a free shopping cart and can help you process credit card payments. Its shopping cart can be easily inserted into your website. To reduce web design cost, you can use a web template to design your online store. Many pre-designed templates are available at DollarTemplates.com.
6. Promote your online store on the Internet and start taking orders and making money right away. Seek professional advice to enhance your store’s web presence.
7. Always respond your customers concern and questions in a timely manner.
Just like any other small business establishments, home-based business needs a lot attention, if you operate properly, you’ll make good money. A successful small business depends on more than suppliers or order fulfillment. The business as a whole must be viable, and drop shipping is just one part of the efforts. Taking care of your customers’ needs and be responsive is your key to success.
Brian Su is a senior consultant of http://www.SmarTechLab.com – an
Illinois-based consulting firm that specializes in e-business
development and marketing strategy. He also manages a popular
microportal at www.DollarTemplates.com that provides pre-made
e-commerce and portal web templates to webmasters and net
entrepreneurs around the globe.
