Wholesale Drop Shipping Business

Drop shipping is the shipping of merchandise from a supplier directly to a retailer's customer. This means that the retailer can ship to their customers directly from the suppliers' warehouses. This process minimizes risk because the retailer does not need to buy the product until it has sold. Suppliers take care of the warehousing, packaging, and shipping of products, saving you a great deal of money.

The product selling process

1. Find products to sell from a wholesale dropshipping Product Catalog.
2. List those products on a web site or auction (use the descriptions and images on our site).
3. After the product sells collect the money from the buyer.
4. Place the product order through your wholesale dropshipper after receiving payment from the buyer. The difference between what the sale and the costs is the PROFIT to keep.
5. The product is shipped directly to the customer.

An internet wholesale dropshipping business requires no handling of inventory, warehouse space, shipping/receiving or product returns.  You decide which products you want to purchase at wholesale and sell them at retail.  There's no handling or maintaining the products.  The wholesale dropshipping company takes care of that for you.

If you don't have a product of your own, dropshipping is a great way of getting started with an online store.

Getting started building your Wholesale Dropshipping Business

Before preselecting products for dropshipping, find a niche market.  Don't be all things to all people.  For instance, if you want to sell gift products, don't include every kind of gift you can think of.  Find a specific type of gift such as office professional gifts, baby gifts or sporting gifts. 

The most profitable sites on the internet are those that deal in specific niches. The Nichefinder Keyword Research tool provided unlimited research for helping you brainstorm and find specific niches that people are looking for.

Research the demand for your products. Know and study your competition.  Use the FREE Google search tool by typing in keywords that you think people will use to find your products.  This will give you a good idea of the interest.  Don't let competition discourage you.  Simply look at what's out there and make it better.

Obtain a Resellers License
Wholesale Dropshipping means you will be selling product online, so you will need a resellers license, also referred to as a seller’s permit. It is issued by your state agency and obtained from your local Board of Equalization.  You can make a visit to your local office and complete the paperwork or simply click here to apply online.  The cost is about $50 but can vary from state to state.

Price Your Products
This is where you need to know your competition.  To make a profit you must also be competitive.  Once you price your product competitively I recommend providing free shipping. It's a great competitive edge. You can simply work the shipping cost into the price of the item. It works very well for dropshipping.

Build your website
You can Build your website yourself,  or use many of the affordable tools available.  Either way, keep your website professional and offer as much information about your products as possible  including clear pictures along with complete product descriptions.  The more information you can offer the better your chances of a sale.

Hint:  Set up your wholesale dropshipping site so that viewers can click on each item to enlarge the pictures, the larger, the better.  A potential buyer will want to see as many details of the product as possible. Typically your wholesaler will provide access to all the pictures. Be sure the pictures are clear and easy to see.

Select Payment Methods
Before you can accept orders you will need a way of accepting payment online.  Applying for a merchant account will allow you to accept credit cards. If you're just starting out, I suggest using Paypal.  Membership is free and they only require a small percentage of each transaction as payment.  It allows you to accept credit card payments from virtually anyone.