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:
- Receive and order from a customer
- Send the order to your supplier
- Supplier ships order to your customer
- 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.
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...