The Internet has made drop-shipping a much more feasible option for consumers. Rather than buying their goods from a retailer that has been forced to add a large markup, they can arrange to make the purchase from the manufacturer. A number of home based businesses connect manufacturers with end consumers. If you are interested in starting your own home based drop-shipping business, then the following facts will help you out.
Quit Making Excuses!
A lot of people are hesitant to take the plunge and create their own drop-shipping business. You will probably hear them make a lot of excuses, such as not having the time or money.
The truth is that it doesn’t take a lot of money to get started. Maneesh Sethi of Hack The System put together an epic blog post about it and showed that it’s possible to create a drop-shipping business in one day by spending less than $30.
Of course, his feedback is a bit optimistic. Some people need to spend more on advertising to meet their goals if they struggle to build an organic following from social media and other online platforms. However, he is absolutely right that anyone can create a drop-shipping business. You need to put the negative mindset behind you and make things happen.
What Do You Need to Get Started?
You need to do some good prep work before you can get your drop-shipping business off the ground. Here are some things that you will need to do.
Find Some Manufacturers
You will need to identify some great manufacturers to work with. Make sure that you work with reputable partners, because your own reputation hinges on your ability to deliver quality products to your customers. You can consider creating a drop-shipping business with Amazon or eBay, but make sure that you find good merchants to work with.
Identify Your Target Customers
Who do you expect to market your products to? You will need to come up with a list of customers so that you can know how to target them effectively.
Make Sure that the Manufacturer has a Good Supply Chain Strategy
Customers are depending on you to deliver goods on time. They will be just as unforgiving towards you as the manufacturer if you can’t deliver on your promise. Therefore, it is imperative that you make sure that the manufacturer has a good supply chain system in place.Find out how long it takes for them to make deliveries. If they are selling low ticket items, then you may want to make a purchase yourself to test their order to delivery turnaround. You should also find out if they are using a supply chain solutions provider, such as Landstar, because these companies are generally going to be more reliable than companies that handle their supply chain strategy entirely in-house.