(Small business marketing) How To Start A Drop Shipping Business

August 26th, 2008 admin Posted in marketing |

By Carlos Scarpero

Dropshipping is an extremely effective business model for anyone who wants to start an online retail business. You can either run it through your own website, or through some other outlet, such as an auction site.

However, due to this form of online business has become so easy to do, and because of its increased popularity, many prospective dropshipping businesses have become targets for the less reputable people online, such as scammers.

Unfortunately, many people who do not really understand what dropshipping is about only see it as a way of getting rich quick. Because of this, there are plenty of people out there who are ready to exploit them. In this article, we will look more closely at the things you should consider before you decide to go ahead and set up a dropshipping business for yourself.

1. You need to carry out plenty of research with regard to dropship sources. It is best if you avoid using search engines when doing this, as they will also offer up a list of the less reputable companies around, as well as providing you with page upon page of links which are completely useless. However, once you have found a reputable source for the information that you require, and then the real work begins.

2. Avoid any companies which expect you to pay them an up front fee (membership or monthly). Also avoid those which offer you a fully featured dropshipping solution that provides you with a website and everything else that you need in order to get your business off the ground.

3. Ensure the dropshippers you are looking at require a valid wholesale certificate from you. You will gain this through a business license, so avoid any that don’t have that requirement at all costs. Unfortunately, most of the companies which are willing to do business with an illegal business will usually be middlemen, who then send your order through to the wholesale company, and will end up taking a cut of the profits that you are trying to make.

The best way to find a legitimate dropshipping company is as follows:-

a. If you have seen a product which you are interested in selling, then contact the company producing it direct. Inquire if they have a dropshipping facility, and if they don’t, then they are likely to be a light bulk seller. This means that they will only normally sell their products wholesale with a minimum of say around $200 or so (in many cases, the minimum number is much higher).

b. Another way is looking at such directories that have been set up and deal directly with legitimate dropshipping companies only. One such directory is Worldwide Brands. Such directories offer you an extensive searchable list of products, and which companies supply them. So if you are looking for a way to save yourself time in searching for good quality products to sell through your online business, then these directories are certainly the right way to go.

4. However, once you have found a company that does offer dropshipping facilities; you will need to get a valid reseller/wholesale certificate. Yet, what the exact requirements are in order for you to obtain this certificate will vary from state to state. But the minimum requirement for starting any dropshipping business online is that you have a business license.

5. Now you need to contact the dropshipping company in question and set up an account with them. Unfortunately, you may find that because your business is new, and you are not able to supply any references, then you may find that you need to set up a pre-paid account with them. Normally, this means that they will charge your purchases to a credit card instead of providing you with a line of credit. In order for this to be done, you will need to fill out a credit card form, an account application and provide them with your wholesale certificate. Once this has been received, they will then provide you with a wholesale catalog and anything else that you need in order to get your business up and running with their products.

6. Also, do not be fooled by those sites offering you a dropship directory for a fee (normally around $5 to $15). Unfortunately, these are normally copies of the more legitimate lists provided by reputable directories, and will often be out of date. So really, you are better off going to one of the more reputable directories and paying them a little extra in order to get a regularly updated list.

7. Now that you have found the product which you are interested in selling, and you have made arrangements with the dropshipper in question, it is time to get your site up and running, or your account set up with one of the more reputable auction sites, such as eBay.

Carlos Scarpero is an experienced internet marketing expert. Visit his lens about Ebay product sourcing and dropshipping.

Writing An Attention Getting Press Release
By Chris Simpson

Whether you are writing it for yourself or for someone else, a press release is not written like an ordinary article. The format is different and the tone can’t sound like a hyped up sales pitch. It should read more like a news item. Since you are likely to submit it to a press release web site, you want to be sure it meets their guidelines. To do this, avoid using exclamation points as these are considered hype tags.

To prepare yourself mentally to write a press release, it can help to imagine yourself as a news reporter covering the opening of a new store. This helps you get in the right mood and that can help you to write it the way it should be.

Like a news reporter, think in terms of writing the who, what, when, where and why of the press release’s topic. Also keep it in the third person. The writing should be objective, not subjective, so avoid using the pronoun ‘I’ and ‘we’ and don’t make it too personal with the over use of ‘you’.

No matter where you are going to submit the press release, the same basic format is used. Once you are familiar with it, it is easy to follow. Below are the different components of the format you will need to use.

FOR IMMEDIATE RELEASE

Any press release you write should have this at the top of the page. It can be done without it but press releases that begin with this header tend to be more effective than those without it.

Contact Information

The contact information can go at either the beginning of the press release right after FOR IMMEDIATE RELEASE or at the very end. It will depend on whether it is for publishing online or in print.

Headline

The headline basically tells what the press release is about in a nutshell. To make it more effective, bold it and keep it at about 80 characters.

Date and Info

People reading the press release will want to know the source, so include the name of the city and the date of the release.

Lead-in Paragraph

This is the most crucial paragraph of the entire press release. This is where you must grab the reader’s attention in order for the press release to be successful. The key information of the press release will be in this paragraph and the rest of the piece will expand on it. Remember the who, what, when, where and why that was mentioned earlier? This is where you want to incorporate it.

The body of the press release

This part of the press release may be several paragraphs and will expand on what you covered in the lead-in paragraph. Whenever possible, it is helpful to include quotes in the body. This helps to draw the reader’s attention and hold it.

Recap and conclusion

In this last part of the press release, you will want to summarize the press release and give something to make the reader think. This can be the date of the press release or something of interest about product, service, website or store.

These are the basics of writing a good press release. Just remember that you want to catch the attention and interest of the reader in what the press release is announcing or promoting. With a little practice, you will soon be writing effective, interesting press releases.

Chris Simpson is dedicated to helping people make money at home by finding honest and legitimate home based business opportunities. Find legitimate online paid surveys and other work at home opportunities today at: http://www.HomeNetPro.com

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