What is Drop Shipping and How
Can It Help My Business?
A Drop Shipper is a wholesale company or manufacturer of real products that only sell to real-legitimate business. (I.e. business that is registered with a Tax ID. Cost? About $65 depending on which state you live in).
What I mean when I say
“sell to legitimate business" is this:
You take an order from
your On-line Store for a nice set of wind chimes, or maybe a power
drill. You sell your product for $70.00 plus shipping and handling.
You then contact your Drop Shipper or Drop Shippers (You can have as
many as you want covering a wide range of product types). You buy the
product that you just sold On-line for $40.00 from your Drop Shipper for
$70.00 and then the real magic happens.
The Drop Shipper SENDS
THE PRODUCT DIRECTLY TO YOUR CUSTOMER!
Magic
The Drop Shipper also
puts YOUR COMPANY NAME directly on the shipping box that they send to
your customer.
How about that!
Drop Shipping is truly
wonderful. There are literally thousands of Drop Shippers out there
with at last count around 500,000 different products. The products
range from Blood Pressure monitors, to Gift Baskets, to DVD players to
Oriental Rugs to Patchwork Kitty Statues. You can find just about any
name brand, just about any category at just about any price point.
First, you need to
become a real business in order to work with a Drop Shipper. That means
you go to your local courthouse and register a business name. Then go to
your local IRS office and get a Tax ID number. This whole process can
cost as little a $25.00 to as much as $75.00. This is, of course, for a
sole proprietorship or partnership. If you want to incorporate or form
a LLC (Limited liability corporation) check out this site
The
Company Corporation. There are lots of advantages to being
incorporated, including liability and asset protection, but it costs a
bit more and takes more time to get started.
Once you have the all
of the requisite certificates, you then contact a Drop Shipper and
create a relationship with them. They have you fill out an application,
sign you up and send you a catalog of their products from which you then
sell on your website. Some Drop Shippers may also have a web site where
you can go and download their images and sales material directly and put
it right on your website.
The Drop Shipper sets
the price that you pay.
You set the price that
your customers pay -
The
difference is your profit!
It’s really a great
way to start an on-line business in a few short days. You can even do
it inside of a week if everything slips into place.
Having a relationship
with a Drop Shipper is FREE! And if you look more than casually you can
find some really niche products (meaning less competition for your
store)
And, when the holidays
roll around, your set for BIG DISCOUNT GIFT BUYING for the WHOLE FAMILY!
The Entrepreneur Magazine EBiz Radio Show Transcripts
Segment 1 - Virtual Staffing for your Small Business Part I
Chris: Thanks for joining us today. I'm Chris Malta. My co-host, Rob Cowie, is off on business for worldwidebrands.com, but he will be back with us in a few weeks. This segment of the Entrepreneur Magazine E-Biz Show is brought to you by LearnKey.com, just in time training to learn QuickBooks quickly. Have you ever thought that you could really use some help in your small business, but you just don't want to go through the hassle of actually hiring a person to come into your office and work there. Or maybe you work from a home office and don't have a place to put an employee. Well there is an answer. Whether you need an assistant to handle some of the more mundane chores in your business or you need more specialized professional help to build your business, virtual staffing is a concept that's really coming into its own. Gayle Buske, president and CEO of TeamDoubleClick.com is here with me today to explain what that is and how it can work for you.Segment 2 - Virtual Staffing for your Small Business Part II
Chris: Thanks for joining us today. This segment of the Entrepreneur Magazine E-Biz Show is brought to you by UnwiredBuyer.com. Never miss another auction. Sign up at UnwiredBuyer.com. Today we're talking with Gayle Buske, president and CEO of TeamDoubleClick.com about using virtual assistants for your small business.Segment 3 - Virtual Staffing for your Small Business Part III
Chris: And we're back. This segment of the Entrepreneur Magazine E-Biz Show is brought to you by MorePhotos.com, your internet sales photo solution. today we're talking with TeamDoubleClick.com president and CEO, Gayle Buske, about using a virtual assistant to help you expand your small business or just to keep it running on a day-to-day basis. |
