Do you want to make a profit from dropshipping? Of course you do, so there are certain rules that you need to apply to ensure that your dropshipping business becomes a profitable one.
First thing you will need to do is find a product to sell. Before you settle on any product however you will need to test a couple of things:
1. That there is a market for the product and that it sells in decent quantities.
2. What amount of competition you will have and if you have any how much are they charging.
If there is no market for the item you are considering or there is but they only sell in small quantities then you have to ask whether it is a market worth entering. If there is a lot of competition in the market and they are selling the item at a lower profit margin then you where looking for then, again, I would be asking myself is it worth selling.
A mistake many make when they start out is that they try to sell anything and everything. This in theory may seem a good idea but in reality it isn't. You are far better off only selling a few selected items that are also all related to one another, or at least aimed at the same market.
An example of this is if you sold a baby walker you would also sell other baby walkers or baby related items such as baby bouncers or prams etc.
The reason this works better is because it enables you to concentrate on marketing to only one market as opposed to marketing in lots of different sections. Apart from keeping any cost at a minimum this also increases the chance of getting customers that come back and use you again.
Sadly as dropshipping has become more and more popular the risk has also increased as more scam artists have aimed at the market. This means that finding a reputable dropshipper that you know you can trust is so important.
Finding legitimate dropshippers however isn't as easy as it could be. Doing a simple search using your search engine of choice won't bring up a list of reliable results. Searching in this way can bring up anything from middlemen leaving you with no room for profit all the way up to full blown scams.
You may feel that the easiest way of going about things is to use one of the many Turnkey businesses available but I would recommend you stay clear of these.
For those that don't know a Turnkey business will provide you with a package that contains products, marketing materials, possibly a free website and other similar things in exchange for a monthly membership fee. This may sound like a perfect solution but they tend to actually only hinder your business and limit your profits whilst making those providing the Turnkey packages wealthier.
A good method of protection from scammers is to use a directory. These may charge an initial sign up fee but you will then be granted access to a huge list of reputable, tried and tested dropshipping wholesalers. They also tend to have a community which is invaluable for finding sources that you may not otherwise have come across and also for picking up tips on where you can find some great bargains.
Not all the problems can be eliminated by using dropshipping as you will still have to deal with problems such as returns and back orders. However as long as you have a good level of communication with your providers these problems should be kept to a minimum and if they do occur you will have all the answers you need.
Lastly, treat your business seriously. Don't do anything that can give you a bad reputation such as sending out spam to people. Also do not use free web pages for your online presence as not only will it look less professional but you will also be putting your site in someone else's hands as free sites can be removed by there owners at anytime, meaning you could lose all your work in the blink of an eye.
For a FREE guide on How To Dropship Online which includes information on how to avoid scams, setting up a store and most importantly how to find profitable products please visit How To Dropship Online NOW!!!