The Harsh Reality And Beginners Guide To Drop Shipping

So.. You've been searching online for a way to earn some extra cash and have come across the idea of becoming a drop shipper. Drop shipping can be one of the easiest ways to make money online. But there are things you need to know before you get started. This is my beginners guide to drop shipping.

The first thing you will need is a decent supplier with competitive prices. Suppliers mainly operate as wholesale traders but offer a drop shipping service on the side. But be careful there are many bogus websites out there which require you to pay a monthly or annual subscription to join there imaginary drop shipping team. I suggest you stay away from these websites as 95% of these sites are a scam. Only join a company which shows there prices upfront and dont charge a subscription fee for using there services, If they were a real company wouldn't they be making all there money from the retail of there merchandise? Wouldn't they want to get as many drop shippers as possible? So what's with the subscription charge? I'll tell you what... It's a scam. There are many reputable companies out there which dont charge a subscription and are very succesful at what they do. The best companies offer great services and excellent customer support.

Once you have found yourself a respected and trusted supplier - Stake out the competition! If you can find the product you are trying to resell on the same website for a better price - ask yourself.. which one would you buy? Be competitive! Presentation counts! use the layout of your promotion page to your advantage. Basic HTML skills can transform your promotion page this will enable you to embed videos, images and can even save you money. On eBay for example.. The first image you upload is free but every picture after that will cost. With basic HTML skills you will be able to embed your images into your item description using such free services as Flickr or Photobucket and it wont cost you a dime. This is one of many ways you can reduce your overheads and maximise profits.

It is also important to keep in mind where your goods are located - most drop shipping companies operate out of Asia. This is one thing which is overlooked by most if not all beginners and can have major consequences which can leave you out of pocket. Import fees.. Many new drop shippers overlook this crucial fact - the goods will be imported from overseas! and 90% of the time will incur import fees depending on the destination and the value of the item which is being imported this can be a big bill. It is important to make clear where the goods you are advertising are located and make it clear that any import duties which are levied are the responsibility of the customer. This can be overcome on eBay by changing the location of the item and making a brief statement regarding import duties.

Always take into account your advertising costs. These can quickly add up when you consider insertion fees, final value fees and if your using PayPal they will also charge you a fee for the transaction. This can easily rid you of your profit if not calculated before hand. It sounds complicated but this will become second nature once you get the ball rolling.

Let's be honest you wont get rich and most of the products you will be reselling wont even have a brand name. If you take into account the amount of competition you will be up against this truly is a hard graft but can be done with hard work and a lot of effort. The problem is everyone is doing it these sites must have thousands of people working for them which mainly operate on eBay. That's not to say you wont make any money because you will but dont expect four figures a month. With all that said and done I wish you the best of luck and hope you enjoy drop shipping.

By: Scott A. Mitchell