Tuesday, 26 June 2012

How To Use Drop Shipping To Build A Profitable Home Based Business

Drop shipping is a concept that enables retailers to do away with many of the hassles associated with regular retailing, such as storing inventory, packaging products, and having them shipped to customers.  Instead, the supplier – known as the drop shipper in this case – ships the product directly to the customer.  This arrangement has helped retailers cut costs and maximize profits.

Because you’re not required to store inventory, you have greater flexibility with regard to the type and number of products you sell.  You can set up your own online store. You can also sell products through your eBay account.  This is a very convenient way to do business, particularly if you prefer the comfort of working from home.

Create an Online Store

First, the retailer needs to create an online store. Many retailers start by creating a profile on eBay as this is the cheapest option. If you are the more independent sort, you should create your own ecommerce website.
Whether you get a profile on eBay or have your own standalone store, you need to take care of the marketing aspect. It starts right from the site design stage. Create an attractive site that not only looks good to visitors but is easy to navigate, and therefore encourages visitors to explore. Another important aspect is searchability. This refers to how easily search engines can index and rank your website.

Find Suppliers

Many retailers have described the process of finding suppliers as the deciding factor in the success of their ecommerce venture. Unless you have access to the best suppliers, there is no way you can find the right products for your site. A retailer without products to sell cannot really hope to build a strong, dynamic business.

Instead of aimlessly browsing search engines, find the suppliers you need through a reliable wholesale directory. For example, eSources, which according to buyer reviews is perhaps the largest B2B directory on the Internet, is a great resource for retailers and the ecommerce businesses.

Esources is also a place where you can research the market before you start looking for suppliers. This is very important, considering that there are a lot of online retailers looking for that lucky break in various market segments, and therefore the competition is very fierce.

Specifically, since you will be drop shipping, look for reviews of drop shippers on the directory. ESources features a large number of drop shippers who sell everything from stationery to cell phone accessories.
 
Negotiate with Suppliers

ESources
features so many suppliers on its directory that you can negotiate fearlessly. Normally, buyers who find just one or two suppliers have no choice but to follow the terms and conditions put forward by the supplier. On eSources, you are spoilt for choice. You can negotiate for the best terms and conditions. If you are a regular buyer or buy products in high volumes, the supplier may be more willing to give you discounts.

Dropshipping is a great method to create an online business with minimum fuss. A supplier directory like this one, offers invaluable help with the process of finding the right dropshippers. Despite rumours of scam, reviews have rated eSources among the best resources for online businesses.