Everyone knows that drop shipping is a way to lose a fortune because all drop ship suppliers are crooks, swindlers or con-men or so you might think from the information on the Internet. The truth is rather different. While some people have had unpleasant experiences with drop shipping, many new businesses start each year, and as a result of the many advantages of drop shipping many people find a way to make a good income, free from the confines of their sunless office cubicle.
Starting a business can be like a new lease of life, financial freedom can bring both a new confidence and location independence and it's partly because so much can be achieved that the myth has grown. Sadly it's easier for people to believe that the opportunity they see is a scam, than that they can have what they always wanted. Drop shipping is a great way to start an Internet business, but it doesn't lead to overnight success, and it doesn't remove the need for hard work. It does however outsource one part of the business (supply) so you can concentrate your efforts where they make the most difference - making sales.
Drop shipping is the ideal way to start your first Internet business for a number of reasons, but the main one is that the risk involved is very low. Although building a website is a major expense (unless you are able to do it yourself) a web site is far more than the products within it. If the web-store is created carefully it can be used for many different types of product with only a few simple changes.
Drop shipping is ideal for one person businesses with only a small start-up capital because there is no need to buy stock, hire staff or lease premises. Everything can be done from a computer at the kitchen table or a laptop and the sofa. All you need is your legal business structure and licenses, your website and a merchant account to allow you to accept credit cards.
How Drop Shipping Works
Once you've decided what type of product you want to sell, you find a drop ship supplier. This is someone who supplies products to you when, and only when, you sell to a customer. You make the sale, your supplier ships direct to the customer. The customer deals only with you and should in most cases be unaware of the drop shippers existence.
Where It Can Go Wrong
The most crucial part of the whole operation is the choice of drop shipper, and this is where the myth comes in. There are 'businesses' on the web who claim to be drop shippers but actually provide no product or service. They are simply middle men between the genuine drop shipper and you, taking a cut of the profits, which of course reduces yours. Others demand fees to set up accounts and then simply disappear. It is extremely important that you get your information about drop shipping from a reputable source, but as long as your choose a reputable drop shipping company there is no reason why you should not have a very successful business using this method.
Some build a customer base and move to holding stock and handling shipping themselves, others expand by building more stores and sticking to the drop ship model. With a good source of drop ship information, some common sense and some work to promote your site, there's no reason why you shouldn't have a low cost, easy to run, location independent business using the drop shipping model. Don't forget when we say work, you can do it poolside, from the balcony of your cruise ships stateroom or anywhere you have Internet connectivity. Doesn't seem quite so much like work when you put it that way, does it?
The drop shipping myth - busted.