How To Drop Ship

Drop shipping is an effective method of business wherein a retailer hands over all the customer's orders and shipment details directly to the manufacturer or wholesaler who in turn, sends the commodities straight over to the buyer. The remaining amount between the retail and the wholesale price is the profit that the merchant will make. This type of transaction is most successful in small businesses and online trading. If you are interested in pursuing this kind of business technique, you need to know how to do it correctly and efficiently. Here are some easy steps on how to drop ship.

  1. Product study. In any business, it is vital to conduct a study or research about the product you are planning to sell or offer. This step is crucial because it includes analysis of your market, competitors, costs and demand. This will help you create a strong foundation for your drop ship venture.
  2. Product provisioning. This can be a bit tricky. You need to be really careful in choosing your supplier (or if you're a wholesaler, your retailer). You should start by making a list of companies that offer this kind of service. You can usually find them in various on line directories such as or Make sure you get their contact information, then verify it by calling them, then compare packages and prices.
  3. Market test. Now that you have your own supplier, it is now time to test your business. Begin by registering to one on line auction site (e.g. Buy and sell or Ebay). When sales starts to pour in, you can then make a marketing strategy that would maximize and promote your business to its full potential.
  4. Business development. As you apply your various strategies to all of your dealings, growing it will be like a walk in the park. It is extremely important to be consistent at all times. This will show customers that you can be trusted. You are now establishing a good name that would be known throughout your field. Soon enough, more people will come to you and this will increase and greatly improve your business.
  5. Business expansion. Once you have regular patrons and shoppers, they will start spreading the word, referring you to various markets. New opportunities will knock at your door opening you to numerous kinds of trading. You can then expand your business really quick by venturing to different products. At this stage, you are now at the last level, finally completing a full circle. Once you decided to open up a different service, you will go back to step one, but this time, with so much confidence and ease.

You can apply these steps not only to your drop shipping merchandise, but also to any kind of business. Just always remember, get in touch with your customers, treat them as importantly as your company. You owe it to them. Always personalize and promptly answer any inquiries. By doing this, it will earn you their loyalty and trust. Now go out there and shine your way to success!


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