Drop shipping is the new thing when it comes to ecommerce on the Internet. There is money to be made for the entrepreneur and there are a slew of real and legitimate companies out there that will drop ship product for you. But, the big question; how in the world do I find them?
I can promise you that there are more people on the Internet getting scammed by "middle-men" who stand between you and legitimate wholesale companies that drop ship than there are people actually dealing with real companies. What can we do to identify the scammers and the legitimate folks?
There are thousands of real companies online that will legitimately drop ship items for you. They do not pay a fortune for advertising and a big presence on the Internet. There marketing account is not a priority as they spend their focus on a better system and dealing with the accounts they have.
If the wholesale companies do not advertise, how do I find them?
It is tough to find legitimate wholesale companies, especially those that drop ship, on the Internet. You are not going to simply be able to go to Google and type in a few magic search phrases and locate them. They do not work like that. Many of them do not even have websites. Are they that old fashioned, well, many actually are.
Drop shipping is uncharted territory and many companies are just learning to see the profits in it. Many companies simply have not even taken a look at drop shipping as of yet. They have a good system, they are making good money and they stick with what they have.
So, to find the companies that do drop ship and are legitimate wholesalers and not some slug that is standing in the middle between you and them, you must get to work. Research is the key to finding these good quality companies.
Now, you will not find a real wholesaler that will deal with you until you have proven that you are a legitimate business yourself. How do you do that? Well, you need to go to your state's taxation and secretary of state's website. Learn how to form a business and gain a license. This is your first step.
Once you have established your business, you will be the real deal, and wholesalers will want your business. The next step is to find them. I cannot recommend enough about finding a legitimate company that has done this research for you. There are many outfits that have lists of real wholesalers. They have done the research, contacted and verified wholesale companies that drop ship and will do business with you. Now, these lists come at a cost, but it is well worth it.
You can go through these lists and search for areas of interest that match what you plan for your company. I can tell you one thing, after reviewing the wholesale companies out there, you may change your mind about what you intend to sale. That is ok. Change is never a bad thing if it is taken positively.
Make a list of the companies that interest you. Call them up and talk with an account representative. A few questions will be asked of you such as your business license number, your EIN and possibly your annual sales. Do not let these things scare you. Always be honest. Tell the representative that you intend to start a new ecommerce site and would very much like to sale their product. I assure you, they will know or will find out that your company is new anyway.
I will encourage you to gain a few accounts. Do not just settle on one. Just because you have an account does not mean that you have to immediately begin selling their product. Explore what these companies offer. Go through their websites and compare prices to what you find on the Internet. You should be able to make a profit of some kind. My bottom line is thirty percent. If I cannot make thirty percent, I move on.
Do not think that you have to be the lowest price on the Internet. You do not. Just ensure that you are competitive. You should focus on good customer service and bring something to the consumer that nobody else does. This is how you are successful online and many times, offline as well.
It is not easy to find a legitimate drop shipping company on the Internet with all the scams out there. But, there are good companies available and there are many businesses that provide lists of wholesalers to help you along. Don't become discouraged. Stick with it and your success will come.
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