Wednesday, 24 March 2010

Dropshipping Business

You must be in search of a wonderful home based business opportunity from where you can make money on the side per month especially being with your family all the time. Who wouldn't love that?

So there's one way you can make literally thousands a month online. This way to make money does not even require patience or any technical expertise like the "blogging" where you have to first develop some good traffic (which requires some technical knowledge) and then only some cash will come towards you.

The only thing you require is to have a credit card (most preferably your own), an internet connection and that's it. Now using these two tools, you can supplement your monthly income.

So what's this method actually is? Have you heard of Dropshipping? If not then don't panic. I am going to tell you that what this "Dropshipping" really mean and how it can be a good source of your monthly online income?

Dropshipping phenomenon actually is the deliverance or shipping the product to it's consumer. So how can you make money out of it? It's simple. Search for the dropshipping companies related to the niche you are passionate about. Of course the golden rule is to promote only those products about which you can write their specifications or respond to the queries related to them. You can sure find many companies which provide these dropshipping opportunities. After signing up for these companies, and choosing the product, you list the product anywhere where your potential buyers have access to your product to buy it or at least to preview it so that they can buy it. This "anywhere" could be an online marketplace, your blog, your website e.t.c.

When your buyer decides to purchase your product, he places an order and pays you. Of course he does not know that you are promoting a product of another dropshipping company (why should he?). When you receive that order and of course the payment, you quickly take out your credit card and again place an order to that drop shipping company. The shipping or delivery address is of course of your customer. You pay the company and the company will deliver that product to your customer's doorsteps and that's it.

But wait a minute! Where's the profit after all? Actually the profit lies in the price you charge to your customer and the price you are charged by that drop shipping "Whole Sale" company or in other words these dropshipping suppliers are actually dropshipping wholesalers. You got that. Actually the company charges you the whole sale rate and you charge your customer the retail rate or to gain an edge, below the retail rate. So if an item is available at $100 out there, you can have access to it at say $70 (whole sale rate). Now it depends totally on you that at what price you want to market that item.

Of course being logical the price would not exceed $100 neither you would charge any thing below $70. To gain the edge over your competitors, you decide to sell that item at $95. The customer pays this amount to you which is credited to your bank account and gives you the shipping address. You quickly place the same order to the company and pay them $70 with the shipping address of your customer. Your customer receives the item, the company makes a sale and you grab a commission of almost $25 (excluding the credit card charges).

So without the hassles of maintaining the stocks or inventory you can make some good money from this whole drop shipping business. The key is to market your product effectively and charge your customers wisely.

Definitely there are more questions to be answered, but I would do that in any other post. Until then you develop for yourself, a list of good whole sale drop shipping online companies.


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