How To Create Multiple Streams of Online Income E-Course
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Part 7. How To Dropship Your Way To Online Success
The popularity of eBay has inspired many people to start a
business. And for those entrepreneurs who don't want to invest in
a ton of inventory but still want to set up shop, dropshipping is
a logical solution.
Before you get started, consider these seven steps involved in
starting a dropship e-business:
Step 1:
Choose a product to sell. The very first step in any sales
process is deciding what product to sell. Many factors should be
considered before you make the decision, but for now, let's say
that you've decided to sell CD players on eBay.
Step 2:
Locate a supplier who will dropship for you. Using a research
tool like Google, ThomasRegister.com or an industry-specific
resource like The Ultimate eBay Dropship Power Pak, you can
search for and find a company that will dropship CD players for
you. If the company offers you a 35 percent markup over cost,
which means that itu will supply the CD players to you for $100
each, then you should be able to retail them for $135 apiece.
Make sure the dropshipper has a good stock of CD players on hand
so you don't end up selling a product that must be back-ordered.
Step 3:
Set up an account with the dropshipper. Now it's time to set up
a
reseller account with the company that will supply the CD
players. This can often be done online or by phone, but some
companies will require that you complete and return a reseller
application to open an account. Some may also require a tax ID
and a business license.
Step 4:
Advertise the product for sale on eBay. Now that you have your
supplier lined up and you know that the product is in stock, it's
time to make a sale. That means it's time to advertise the
product using an eBay auction. Since you know what you must pay
the dropshipper for the product, you also know what minimum
amount you will take for the product. In this case, you could
start your auction at $100, since that is your cost. If you are
confident that you can get more than $100 for the product, you
can start with a lower price, but remember that if the product
goes for less than what it costs you to fill the order, you will
lose money. Also remember that the dropshipper will charge
shipping, so make sure to figure that into your sale.
Step 5:
The product sells. Great news: your CD player has sold for $135,
and your customer pays you with a PayPal instant payment. I
highly recommend that entrepreneurs use PayPal or some other
online processor to accept instant payments. This allows the
customer to pay you faster, which lets you place the order with
the dropshipper faster, which gets the product to your customer
faster.
Step 6:
Place the order with the dropshipper. Once your customer pays
you, you should contact the dropshipper immediately to order the
product on your customer's behalf. The dropshipper then ships the
order to your customer under your company name and address.
Step 7:
Follow up after the sale. This is where many new e-business
entrepreneurs drop the ball. Just because your customer has paid
you and you've placed the order with the dropshipper, does not
mean that you are out of the loop. Quite the contrary: If there
are problems with the order, you are the one that will be held
responsible in the eyes of your customer.
It's best to be proactive in your customer relations. Follow up
with customers to let them know when a specific item has been
shipped. Offer yourself as the personal contact for any issues
that may arise. This is also a great way to sell customers more
products. Invite them to check out your eBay store or Web site,
if you have one.
Many people are afraid to use dropshipping as a method of sales
due to the horror stories that fill the Internet about
unscrupulous dropshippers who take the money and don't fill the
orders, merchandise that is eternally back-ordered, unscrupulous
middlemen posing as dropshippers and so on. Make no mistake, the
dropshipping industry, like most other industries, does have its
share of shady characters who would rob you blind given the
chance, but there are also hundreds of honest dropshippers who
can help you build a profitable eBay dropship business.
Are you interested in using dropshipping or wholesale
merchandising to start your online business?
Then I invite you to check out The Ultimate eBay Dropship Power
Pak Website, my members only website that I have created just for
folks like you.
Well, that's it. Congratulations on making it all the way
through!
You have learned how to create multiple
streams of online income. I hope you now put what you have
learned into practice.
If you would like to learn more about building your online empire
please visit me at any of the websites below.
Here's to your success!
Tim Knox, Founder
http://www.dropshipwholesale.net
http://www.prosperityandprofits.com
http://www.smallbusinessqa.com
http://timwknox.blogspot.com
