Wholesale Drop Shipping
Dropshipping is an internet business
model that 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 dropshipping company does 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. Here's how to get started:
- Select the
product or products you wish to sell by finding a
wholesale dropshipping company
- Find a wholesale
dropshipping company
(not all of them provide dropshipping services)
- Obtain a resellers
license
- Price your
products competitively
- Build your
website
- Select payment
methods (merchant
account)
What are the advantages of a wholesale drop
shipping business?
- Low capital to start. You can
become a retailer without needing to invest large amounts
of money which provides little risk to you.
- You don't have to inventory or
warehouse products. If the product doesn't sell, you never
have to buy it.
- No
Minimum Order Requirements. You can dropship as little as
1, 2 or 3 items at a time.
- You
purchase products at wholesale
prices and set your own retail
prices.
- Your
dropship supplier picks, packages and ships the orders to
the customer and most often with your business name on the
merchandise.
How the
wholesale drop shipping Process Works
What you will need to
get started:
A federal tax ID or an EIN
number
This is the business equivalent of a Social Security number.
Don't use your social security number it's better for you to
use your EIN number rather than your personal
information.
In the US, you need a state tax ID,
otherwise the dropshipper must charge sales tax to you (if
applicable) and you don't want to cut into your own profits for
this. U.S. residents are responsible for collecting taxes from
their own state and in some states; gross sales must be
reported to the state and county for business
licenses.
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.
For those outside of the U.S., check
your local requirements.
Create a website and Merchant
account
In order to sell products online you will
need a place to showcase them. This is done through
creating a website. Your site will display the various products
that you will be selling along with product pictures,
pricing and ordering pages.
Your website will also need a way to
collect the money from buyers. A merchant account will allow
you to collect various credit card information and submit
deposits into your bank account. This is done by subscribing to
a merchant account service. There are many services offering
merchant accounts.
One of the more popular ways of
collecting money online without going through a merchant
account service is through PayPal.
When
you signup for PayPal, you can start accepting credit
card payments instantly and it's completely free to sign
up.
Finding Drop Shipping
Suppliers
- If you're selling on eBay it
helps to have a eBay
certified drop shipper.
- Whatever your dropshipping business,
go with a company that provides advanced eCommerce training and
doesn't just toss you in the ring with no help
whatsoever.
- Always start with a free trial,
that way you'll know whether a company is right for you, if
they're not you haven't lost anything.
Click here for a Wholesale Dropshipper
that offers all those things and
more...
| 