Before we start talking about how to do drop shipping let’s talk about why drop shipping? In the current scenario at some point, we are all somewhere tired of listening to hard demands of our bosses and being ordered. In the present era, people are mostly attracted towards independence and freedom. They want to be their own bosses. The best way to do so is E-commerce. People find it more comfortable to earn money on the internet, sitting on their armchairs from their home where they can work according to their own will and can earn a good amount of money. If you are thinking the same let us help you out and suggest you some good ideas. The most successful way of doing it is drop shipping. Why drop shipping in particular?
The reason is that it is growing with the fastest speed among the existing population as it provides you more business opportunities online and if you are already good at business ideas you can take your success to the next level.
Let us first learn that how drop shipping works in a home-based business at the very first place. First of all what you do in drop shipping is that you import different products on your website from a good digital marketplace. Once the customer is ready to buy the product, the original market will send the product directly to the customer. In this whole process of sending the product, you have nothing to do with that product.
Now let’s move on have a look at the benefits of drop shipping. First of all, let’s look into the fact that drop shipping’s biggest benefit is that it is an internet based business that anybody can start. You don’t need any human support because even a single individual can start it very easily. The other huge benefit is that you don’t need to do any investments as well because when the product is already sold after that you purchase it.
The other best factor is that this internet home business has the lowest risk in it. Every business has its own risks and before starting any business it is mandatory for you to take those risks but in drop shipping, the amount of risk is least. You don’t have to keep any stock if in worst case scenario things don’t turn out the way you planned you don’t have to deal with those piles of stored products and you are still tension free at the end of the day. It also gives you the opportunity to experiment with different products and at the end, you can stick with the product that suits you the most.
Drop shipping has another huge benefit that is you can sell a wide range and variety of products as compared to other online businesses. You always have the opportunity to swap your existing products with the products that are more in demand and all this within no time and in this way you’ll get more profit and success.
The biggest benefit is that you get online business opportunities from home. You don’t have to go out of your comfort zone and look for jobs at different places and sit on those hard chairs. You don’t have to unwillingly follow someone else’s instructions. In short, you get a lot of freedom, relaxation, and flexibility.
Although drop shipping has a lot of benefits and ease but it never means that it doesn’t require your dedication. It demands a lot of research and marketing. It can give you less pressure than other online business but that doesn’t mean at all that you become tension free and stop putting an effort in your work because the only way to gain success is to put effort into it.
Now let’s move towards the methods of earning money from drop shipping. To start a drop shipping business you need to take the following steps:
Finding a supplying body:
First of all what you need to do is to find a good supplier. It is very hard to find a suitable supplier but is important at the same time as well. It is not impossible to find a good supplier you just need to look for some specific qualities that a good supplier should have. For example, he should have a good knowledge of drop shipping business, he should have an understanding of the importance of drop shipping, he should be responsible enough and he should do his work on time.
Let’s make it simple. Before finalizing your supplier ask him some questions like: What is the shipping time of an order? What method does he offer? And ask questions about their quality control system and warranties. A very important question that you must ask for sure is that if you can use the pictures of their products or not. If you are satisfied with all the answers then you should definitely go for that supplier but again be very careful while choosing any supplier.
Finding best-selling products:
Your next step should be finding the right products for yourself. Try a variety of products and you’ll come to know about the suitable products by the rate on which they’re sold. You can also take help from different services like there are services that do all kinds of research for you when you put in some certain keywords. This is the best way to gather reliable information on products which will at the end be helpful in choosing the right products for you.
Another method for finding the right products for your drop shipping business is going through the finalized lists of already selling website. After visiting those websites what you have to do is that you have to see the selling rate of different products. The products whose selling rates are above 60% that means that those very products are suitable for you to choose for your drop shipping business and will help you to become successful and in gaining more profit in the longer run. The more right choice of the product, the more are the chances of you being successful in your drop shipping business.
Getting a tax ID:
Tax ID is basically not a compulsion because not all suppliers require this but some suppliers do require a tax ID before they finalize any sort of deal with you. Tax ID is also known as retail or reseller’s license so, therefore it carries a lot of importance so you should always be ready for the worst case scenario and should have it to be on the safe side. Plus tax ID is compulsory if you’re running a business from US or Canada. In both these states, you can’t run your business without a tax ID. However, there are some regions of US that don’t require a tax ID.
Getting a tax ID is not a difficult process at all. You can get it very easily within less time and applying process is also very simple. Another benefit of Tax ID is that it is also not very expensive and is affordable for almost everyone. In order to get a Sales Tax ID, following things are required which you should have:
- business entity;
- a company or a sole proprietor (which applies to a lot of at-home online businesses),
- and to have a Federal Tax ID number.
Selecting a platform to sell:
There are a number of auction sites available that provide you the best-selling platform and are getting a prominent amount of traffic. The best point is that most of these sites are free and there is no harm in giving them all a try. What would happen as a result is that you will be able to see the difference between those sites very clearly and you will not have to believe biased views of people, this will help you in selecting your platform with no risk and best choice possible.
Sellers can also make their own sites. Many drop shipping business holders do that because it is beneficial in a way that it provides you diversity and freedom of choice. There are stores that help you in opening these sites as well as they give you trials of different periods totally free of cost so you can satisfy yourself in every way. Therefore, you can absolutely make your own perfect platform instead of instead of wasting time on finding it and trying all other platforms because having a right platform is very necessary for your online drop shipping business.
Management of lists:
In an online drop shipping business, the method of your listing is same as it is when you have stock on hand but the only difference is that here you have to disclose your lists to your customers.
Drop Shipping orders work in a slightly different manner than other wholesale orders. Let’s have look at the method of a drop shipping order.
First of all, you have to choose your item from a supplier. Having done that you will list those items on your e-commerce site. After the item is sold what you have to do is that you’ll collect the money from the person buying that product and then you’ll pay it to your supplier after keeping your earned profit because you sold that product from your site. Then the supplier’s job starts. He will send the bought product directly to the customer without even bothering you. You do this for a while and very soon you will get to know that which products are being sold in a higher quantity and which are being sold in a lower quantity which will help you adjust more in this business.
These were some of the necessary things that you need to know about home based online drop shipping business. Now you need to know that why an online drop shipping business is better than any other business. You see how comfortable one feels while sitting in a blanket, in a warm room doing his work and earning money. No matter how much comfortable any office is but it can never beat the comfort of your own home.
Another very important factor is that drop shipping business is a kind of portable business. Where ever you go your business moves with you and keeps you stress-free and healthy both mentally and physically. In third world countries where we already have fewer jobs, we believe that these kinds of online businesses play a vital role in making the economy of a country better and helps in the greater good of the society.
Moreover how it gives you more room to grow as an individual. You bring forward your own innovative ideas and how you are your own boss in this business you don’t have to work on anybody’s commands or orders. The most important factor is that how risk factor is very less in this model which gives you more confidence and courage to take this business forward.
Keeping all this ease and these benefit factors aside online drop shipping never means that it’s an easy go and you earn by doing just nothing. No business can ever flourish unless you put effort into it be it drop shipping or any other business. This article shows you all the necessary things that how to start a home-based business but how you take it forward, put effort into it and make it successful is what actually matters. You will have to give it your time and energy otherwise it will not flourish. I hope this article helps you in all possible ways and I wish you a very good luck with your home based online drop shipping business. Happy Reading!