Jun 7 2009

Make money drop shipping – Useful Information to Remember


Drop shipping is one way to start making money online. This method is still a very legitimate and profitable way of making money from the comfort of your own home. This method has all the same perks as any other online money making venture. You can work your own hours and you are your own boss.

Drop shipping is an online business where you sell products direct from the manufacturer. Before you begin you will need to do some research on trends in the market. What are people spending their money on? Then you need to find a reliable manufacturer who is willing to partner up with you.

Once you have done these two things, you can advertise your product on your website or eBay. You determine the pricing, but keep in mind the wholesale price and shipping costs to ensure you do make a profit. If the price is too steep, people will find it unreasonable and not buy. Alternatively, if it is too low, you will not make a profit and the process becomes pointless.

Once a visitor to your site purchases the product and you have collected the money, the wholesale price and shipping costs get sent to the manufacturer with the shipping details, and you keep the profit.

Like everything, it sounds easy and it is once you get the ball rolling. The hardest part will be finding a manufacturer that sells superior goods at a reasonable price allowing you to make a maximum profit. In your search for this supplier, it is essential that you are aware of the two main types of suppliers; manufacturers and warehouse companies. As with any money making plan, having less ‘people’ involved means that there can be greater profits. Making money drop shipping through manufacturers allows for greater profit because they can sell at true wholesale prices. This means that you, as the middleman, can pay less and keep more.

Drop shipping through a warehouse company adds another stage into the drop shipping process. These companies will not make any sales at the true wholesale price because they have to make a profit as well. Once you send them their quoted price and shipping fees, they have to pay the manufacturer. Therefore, the potential for high profits is limited. While selling products to you at a reasonable price, these warehouses are also your competition. They usually have some sort of online warehouse to sell the same goods as you at the same price as you.

Either one of these methods can make you money, but it is clear that the way to earn maximum profit is to pay the minimum . There are many sites and products on the Internet that will guide you towards suppliers for your drop shipping business. As in any business, it will take time and effort to begin but it will be worth it in the end when you are making money online and no longer have to work long hours for minimal pay .

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