Dropshipping: Starting A Home Based Business Without Keeping Any Stock And Succeeding
So you're thinking about starting up an Ebay business from home but don't have the space to keep the stock, or even the finances to purchase the stock as a bulk?. That is the same situation that a lot of home based businesses are faced with when starting out, including our own company "Yours Essentially" and it's because of this that a majority of these people either end up spending more than expected or move onto something else all together. There is no need for this, thanks to the helping hand of Dropshippers.
Dropshippers are companies who provide you with great products at discount prices for you to resell at more expensive prices in order to gain profit. You don't even have to keep any stock. You simply put the orders through on the dropshippers website or via the telephone and they process and ship the products for you.
Let's say for example, the dropshippers are offering resellers/your company a brand new sports watch for £18.50 which has a street value of £28.00 and you put this on Ebay for £26.50. When someone buys the watch from you, you make the order with the dropshipper with the customers delivery address and the item that they ordered (a brand new sports watch in this case) and they will process the order and ship the product for you. This not only brings the relief of not having to hold any stock but also the extra relief of not having to package and post the item yourself which can save a lot of time and money.
So, just from someone ordering that brand new sports watch that you listed, you have profited a total amount of £8.00 and has given the customer a saving of £1.50 from not buying it on the highstreet. They save, you profit and the dropshipper get's rid of another item from their stock. Everyone is a winner.
It really is simple, but how do you succeed?.
Let's face it, there's not many people that want to purchase new and expensive products from someone that has just started out on Ebay. Would you?. The best way around this is as simple as the dropshipping technique but a little more time consuming. You simply need to build up respect within the Ebay community and the way to achieve this is to build up positive feedback from buyers and sellers on Ebay and if you are planning on setting up a business, you should register on Ebay as a business seller and open an Ebay shop. Fee's and requirements do apply but I can assure you that it will be worth it. With an account in good standing order and good things said about you're company, people won't think twice about purchasing products that you have listed on Ebay's market place.
To start off, we recommend selling low cost items such as unwanted books and games that you have lying around you're home in order to get the positive feedback that you desperately need to succeed. Once you have built up you're feedback then in return, buyers will have more respect for you increasing you're chances of a sale. You should also try and purchase items from other Ebay sellers just to build up you're feedback. Cheap 0.99p items are perfect for this.
O.K, so now you've grasped the idea of dropshipping and know that building up respect within the Ebay community increases you're chances of making sales but what else do you need to know?. There is a few other important things that you need to take care of but I won't be including them in this article. Instead I will provide you with a few important keywords for you to research yourself. I am sure that you will find guides on Ebay for these keywords. The keywords are:
- Advertising and Promotion
- Making a Website
- Sales and Traffic Analysis
Other things that you should keep in mind:
- Include a link to you're Ebay store wherever possible. Ebay related message boards, blogs and e-mail signatures are perfect.
- Tell friends and family about you're Ebay store
- Keep you're products and information up to date.
- Take advantage of Ebay's powerful relist feature
For more information on registering a company you should have a look at the H&M Revenue and Customs website.
Good luck with you're business and happy profiting.
Visit our Ebay shop: Yours Essentially Shop ( http://www.stores.shop.ebay.co.uk/yours-essentially-store )