Side Money via Drop Shipping

In my quest to find ways to make money online I came across a term I didn’t know well: Drop Shipping.

My thoughts were, what is this, how does it work, is it high risk, what are the rewards, and is it worth a shot?  And can anybody really do it any better than Amazon?  Maybe there is some low hanging fruit here for me.

What is Drop Shipping?

Here is the process:

  1. Receive and order from a customer
  2. Send the order to your supplier
  3. Supplier ships order to your customer
  4. Everyone gets paid!

Sounds easy right?  No, I don’t think so.  First, where are the customers?  Do they just find me?  And how many other people are selling this same product?  Possibly at a lower price too!  Now this sounds like work, but it might be worth it if I can find the right product.

Drop Shipping makes me happy (photo credit Flickr)

Drop Shipping makes me happy (photo credit Flickr)

Who is Drop Shipping for?

In researching this further I found that Drop Shipping is for the first time sellers, its low risk but also low reward.  I found a few sites that let you start up as low as $67.  Like  SaleHoo

Oberlo is another site that lets you do a “free” trial, but we all know nothing is free.  My thought is why not try it out and see how it goes.  I’ll update this if I drop it or end up paying for it.

Drop Shipping is also good for the supplier who wants to test out a new product.  Drop shipping allows for a nice test market.

Also, if a new supplier wants to get their product out there but doesn’t have the capital; drop shipping would work for them as well.


Drop Shipping Tips:

  • Don’t sell what you think will work, or selling on a hunch, because realistically you are selling blind then.  Decisions need to be based on facts.  Utilize Google Keyword Planner, Look at Google Trends, search for your potential products on Amazon or E bay to see what the competitors are selling it for.  Check to see if are there any reviews for your product at the Better Business Bureau.
  • Don’t sell what everyone else is selling, because they will beat you out on pricing and then you are left with nothing
  • Don’t sell stuff that nobody wants – duh!
  • Sell things that lots of people want but not what other people are selling: Here are ways to research this:

Now, I just need to find some customers, a product, and a supplier...

Good Luck on your Quest!

 

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