Drop shipping is really not that complicated. It basically is a three-step process:
- Customer purchases product from your website at your cost
- You buy product from drop shipper at their cost
- Drop shipper sends product to your customer
It’s even little less complicated than that, because usually you can set up your website so that when the customer places an order, the process of them paying and then the item being ordered from the drop shipper is automated and simple. You just set it up; in most cases you don’t physically have to order the product for your customer.
In order to start a drop shipping business, you have to find the drop shipper, or a wholesaler who drop ships. This can be tricky. Most people who are in the business say that legitimate wholesalers and drop shippers never charge a monthly fee or set-up fee, but there are a few who do charge monthly fees if you don’t meet minimum sales requirements once you sign up with them.
To find legitimate wholesalers who drop ship, you may need to join a club or buy a list. But, this is not the same thing as paying a monthly fee to a wholesaler or drop shipper. It’s just a way to save time on research. Companies like WorldwideBrands.com offer such a list of legitimate drop shippers at one lifetime price. This is a good way to circumvent the research process and get started even faster with your new drop shipping business.
To get started with a drop ship business, you need to do the following:
Get a Business License
Most drop shippers aren’t going to do business with someone who doesn’t have a legitimate business license, and in the USA you need an Employee ID Number even if you aren’t going to hire anyone. You can get that free at the IRS website.
Contact an insurance agent who is knowledgeable about business insurance and purchase the right policy based on the type of products you plan to promote and sell. Travelers Business insurance is a legitimate company you can look into.
Build a Website
Set up a website working with the drop shippers of your choice to try to make the process as seamless as possible. Working with a company like Shopify is a great choice to integrate the different aspects together.
You can’t have any type of business without marketing. You’ll need to figure out how you’ll promote your website and the products you plan to sell. You can use Facebook Ads, Google Ads, blogging, webinars and more.
Starting a home business with drop shipping is an excellent opportunity to have the business of your dreams. It takes just a small investment of money and a little time to get started.