Have you ever considered starting your own online business but didn’t think you had enough money to pay for inventory? This is a roadblock that stops many people from reaching for their goal of financial freedom. Fortunately, dropshipping allows a merchant to sell products online without having to stock any inventory! This has opened up the door for nearly anyone to start their own online business, including you. This article will outline all the steps required to start your own dropshipping business.
The first step is obviously finding a product to sell. When I first started out in drop shipping I spent months searching for good wholesalers. I came across dozens of middlemen, turnkey sites, and scammers. The search engines are packed with subscription sites and “dealer networks” that are essientally nothing more than middlemen. They make their profits by getting in between you and the real wholesale companies. Choosing the right wholesaler is one of the most important decisions in starting your business so make sure you get this step right.
I strongly encourage drop shippers to use a wholesale directory to find real drop shipping companies. REAL wholesale companies DO NOT advertise in search engines. You can look all you want, but you’re not going to find them. For a review of all the most popular wholesale companies and directories check out Drop Shipping for Dummies. Don’t give up your profit margins just because you wanted an easy answer.
Next you need to decide how you will sell your products. If you know nothing about web design, you may want to start with eBay. You can start an eBay store without much experience and they will handle the traffic and payment processing. eBay stores start at $19.95 a month. Amazon is another similar option as well. Both of these options are simple to set up, but they charge fees for each item that you list, so choose your products carefully.
If you decide to build your own site, I recommend using a pre-built shopping cart solution like Zencart or Yahoo Small Business. Both allow you to build an eCommerce site with minimal programming knowledge. Yahoo Small Business starts at $39.95 a month and will handle your payment processing for you. Zencart is a free open source shopping cart, but will require you to setup your own payment processing. You can accept payment without monthly fees through PayPal or Google Checkout. Alternatively you can get your own merchant account.
So there you have it, the basic steps to starting your own online dropshipping business. If I had to stress one step it’s finding the right product. Without quality products and a good profit margin, you won’t make it far. Stick with a trusted resource and you will see success.