Dropshipping is a tried and tested and increasingly popular way to make money by selling goods on the internet. The great thing about drop shipping is that you only have to pay for merchandise once you’ve sold it. In addition, you don’t have the chore of packaging and posting or finding storage space for lots of stock as this is all dealt with by the dropshipping company. They will usually provide a photo of the merchandise for you to use too.
This basic concept of drop shipping is as follows:
Find a dropshipping company
Choose a product (s) to sell.
Promote and sell the product(s) your website and/or Amazon and Ebay.
Customer places order with you and pays you for the goods.
Place the order with the dropshipping company.
Pay the drop shipping company for the order.
Order is shipped directly to the customer.
You keep the profits.
The key to successfully making money with drop shipping is to choose a reputable dropshipping company and find out all the costs involved so that you can calculate your profit margins accurately. You need to be confident that the dropshipping company will provide a good service to you and your customer. For instance, if there is a problem such as an item being out of stock or on back order can you rely on them to communicate this to you ahead of time? Research the market place thoroughly and choose items that are definitely going to sell.