Home based drop shipping business

 

 

Drop shipping provides another avenue to work from home. Drop shipping is where you sell (in retail) goods directly from manufacturers and or wholesalers to the customer.  You either earn commission or you jack up the price for your own margin.

How to

You display these goods in your own website with the review of each to drive sales. When you do make a sale, you then instruct the manufacturer or the wholesaler to ship the goods directly to the customer.

Private Label

This is another drop shipping service where you order in bulk, and get the manufacturer to repackage the goods with your own design and or label to sell directly to customers.

Pros

  • This is a sort of business that requires minimal cash flow. All you need is to create your website (learn how here), display your products and send out sales order to the manufacturer to ship directly to the customer.
  • If you are on private label, the manufacturer can be obscured from the customer preventing direct communication with the manufacturer
  • Drop shipping eliminates duplication, since it is the manufacturer who will mail direct to the customer.

Cons

  • With no private label, the customer is immediately aware of the manufacturer, and is likely to go direct in future, thereby blocking your your future sales (termed back ordering).

 

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