Begin Drop Shipping Online

By selfemployedblog | January 22, 2007

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One of the many online business ventures I have tried my hand at was running an online store using a wholesaler that drop shipped. If you are not familiar with how drop shipping works, I wrote about it in a previous post which you can read by clicking here. I ended my online store because I began pursuing other ventures and it became hard to juggle an online store along with my new projects. However, it can still be a lucrative option for starting an online business if your goal is to sell products online. There are several things to consider before opening up shop:

Do you require a reseller’s license?
Many wholesalers require that you have a reseller’s license before they’ll conduct business with you. You’ll have to check with your own state on how this works but they are typically easy to obtain. You’ll also have to learn about collecting sales tax and you can find out more when you apply for your reseller’s license.

What do you want to sell?
This is the big question and with the drop shipping method you have a wealth of options. You’ll begin with finding a reputable wholesaler drop shipping list. I recommend One Source because they offer legitimate wholesalers who drop ship and an up to date marketing analysis so that you know how much competition you’ll be dealing with. They are also an eBay Certified Solution Provider.

Where do you want to sell?
Online is obvious but how? Do you want to own your own branded online store, sell through auction sites, or both? I tried both and had the most success through eBay simply because the traffic was there unlike a regular store in which you have to work harder to market. If you have time to market your online store, then by all means, that is the better way to go. You save on fees and are more likely to have repeat customers. Owning your own online store is much more effective in the long run and I recommend Zen Cart. It has worked out quite well for one of my clients.

Registering a domain name
Spend some time thinking about a good domain name. Definitely choose your business name if it is available or at least a variation of it. You may also wish to consider a domain name that contains keywords for the products you are selling. The trend used to be (and it may still be the case) to stay away from domains with hyphens such as: your-business-name.com, however, many sites with hyphens in their URL can still gain tons of traffic if marketed well. It’s really a preference that I stay away from hyphens if I can.

Find good web hosting
You’ll definitely want to find reliable web hosting with enough space to handle your needs and a high percentage of up-time. The last thing you need is for your site to be down every other day. If you’re starting out, the basic plans may handle your needs and you usually have the option to upgrade your plan at most hosting companies.

Will you need to outsource help?
If all of this is sounds baffling because of the technical side of things, you may want to consider outsourcing help for setting up your web site. Shop around for prices and ask for referrals. You can even place ads for help in exchange for a service that you can offer in return.

These are some of the major things you’ll need to consider and trust me, you’ll learn a lot as you go along. Once you get into the flow of running your online store using drop shipping, it won’t be as daunting as it first seemed. It is all a learning process but it can be done! Take some initiative and learn all that you can. Good luck!

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