Drop shipping has become more and more common as the Internet grows. Manufacturing companies realize they can reach more people and have more products sold if they allow other people to sell their product for them, place the order with them afterward, and the manufacturer then ships the item/order to the small business customer for them.
There are companies who deal straight with the manufacturers and then offer their drop shipping services to the small businesses. Some of these companies ask for a drop ship fee per order, some don’t. These companies are typical “middlemen”. They are easier to find and sign up to but the profits for the small business owner are smaller than straight from the manufacturer. For a business just starting out who has no idea of how or where to contact manufacturers, these companies come in handy. If you can sell enough products with a smaller profit margin, it is ok for the learning curve. There is only the web hosting fees(monthly $5-$40), domain name(annually $6-$15), and any marketing fees incurred(PPC(0.05-1.00 per click), paid ezine ads($5-$40 a month), targeted traffic($10-$30 for 10,000 hits)etc., that you have to worry about per month.
There are so many different companies these days competing for your business. Research is key to finding the best options for your specific needs.Just because a company is cheap does not mean it is the best solution. I remember finding a really affordable web hosting provider that I scooped up instantly. I ended up canceling a month later when I realized the control panel and site building tools that came with the service were way over my head in comprehension. What good is a cheap site, if you can’t work with it? I know most of you don’t have web programming experience or training, I have basic HTML, and have picked up a few other things along the way, but not enough to build a fancy, standout, knock ’em dead, website without the ease of a built-in script site builder. It can cost $2,000-$100,000 to get someone to build a site for you without it. But luckily there are lots of services that offer the ease of a built-in site programmer. All you have to do is design your site, pick a premade template, use their widgets, write your content, and there you go.
Over time I have found and compiled a list of drop shippers available for little or no fee per order. Most of them are good because they offer the suggested retail price, then give you the price they will sell for. As long as you can make $5 an item minimum, I usually find it is ok to go with it. There are some things that don’t allow that option, so depending on what you really want to spend, you may want to just settle for $1 or $2 profit and aim to sell a lot of them. Always make sure you research other sellers prices online before you make the final price. You know your visitors will. Creative marketing can get you the exposure you need to start getting people to buy.
I will also offer good wholesale sites I have found. If you can afford to go that route, the profits are better, but you need the space to store the merchandise yourself, and then you have to ship the products to all of your customers on your own. Most people who start, start off with minimal stock and sell on eBay or other auction/sales sites instead of setting up a website full of a whole huge inventory of stuff you have no idea if people will purchase. You should be doing research on the products you are interested in too to see if they will sell.