You start drop shipping like any other retail business starts.
You decide which products you would like to offer.
You search for suppliers for your products of interest.
Do your research about competition. Will the cost the supplier quoted you allow you to price your items competitively and still make money? How much competition will you be facing? Is there a market for the products you want to sell?
You decide how you want to offer your products for sale. Amazon or eBay type selling platforms? Your own website?
You write unique, creative ad copy and take great photos so your ads look different than everyone else’s that are trying to sell the same product.
You give your potential customers some reason to buy from you instead of anyone else. Great sales copy, expert technical advice, faster service, great return policy, attractive and professionally done ads or website, anything to let the customer know you are the expert.
Sounds easy right? Drop shipping is the easy, passive way to generate a huge income, right? No, totally wrong. Any type of retail business is hard work. You must keep up with the competition regarding pricing and new market changing products. You must take care of customer service inquiries and complaints. You must process orders and send to your drop shipping supplier. You must monitor your supplier to make sure they are processing your orders properly and shipping quickly. You must keep track of your suppliers inventory to avoid back orders and make sure you keep your prices adjusted properly when your supplier changes prices.
Whew, you see so many tutorials and advertisements offering drop ship supplier lists and how to sell tips and tricks. They all will tell you it is so easy and profitable. Don’t believe them until you have thoroughly checked out the items they sell and what your competition is selling them for. Often the drop ship supplier wants to charge you almost the same price as people are selling the same item on Amazon for.
You can make money drop shipping but it is tough work. Drop ship suppliers charge you for the convenience of service and not having to carry inventory. Guess what, these fees are expensive and often add up to more than the profit you can make when you handle the actual selling.
Drop shipping works best to test an item to see if there is a market for it before you invest in inventory. Drop shipping works great for expensive or large and hard to handle items where inbound shipping charges will really hurt your profit.
Do your research.