Many people love to run a business but simply give up the idea due to capital formation problems. But there are few ways to get around this problem. Ever heard of Drop shipping? If not, it is high time you start learning it.

I found about drop shipping when I ordered a wristwatch from ebay. The seller was from USA but my parcel arrived from Hong Kong. I was curious enough to do a little research on this and I found out that most of the ebay power sellers are actually drop shippers. And they are cashing in millions thanks to this concept. Good thing is, there is no rocket science here. An average guy like you and me can very easily get in to the system and raking it in.

What’s the story here ?

If done correctly wholesale drop shipping can be a very luxurious business opportunity. What happens here is, when some one orders something from you; you contact the whole seller and give the order to him. The customer pays money to you and your seller directly ship goods to your customer. You pay the wholesale price to your seller. The difference in these prices is your profit.

This way, you do not need to have any physical stock with you. Remember, you can do this both off line and online. But if you are planning to do this off line you need to purchase samples in order to show to your potential customers. Drop shipping solves one of our biggest problem of finding capital.

Beware of scams.

Although this business sounds very luxurious, this is possible only if you have a good whole seller who is willing to do drop shipping for you. If you are planning to do this online you must make sure that your seller is not a con artist. To tell you the truth 90% of the online whole sellers do not have any stock with them. So you must select your sellers carefully.

Many people are selling drop shippers lists these days. Do not buy them. If I have a good whole seller I can make more than enough money from him not to sell out his details. I would rather keep his details to my self. These lists gives names of companies which drop ships and many of them could be the same company in different names or just an individual with a phone without any actual product with them.

If you find your seller online, it is always better to visit him. Or have someone check on them. There are lot of firms which does back ground checks on other companies for a small fee. I know this can be costly. But by doing this, you can start your marketing activities without any doubts.

If your seller scams you, eventually you will become a scammer from your customer’s perspective. And that is not pretty. That is why I insist you to chose your sellers carefully. ( Do not worry, There are plenty of good whole sellers. Otherwise there won’t be an ebay.)

How to find a whole seller for you to drop ship?
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You can find many good whole sellers who are not new to drop shipping at alibaba and at worldwidebrands. Read this article to figure out how to not get scammed by whole sellers.

One of the best ways to find out whole sellers is to do a search off line. If you can approach them and present your idea, there is a high chance that they will agree to do the dirty work for you. After all, it brings more sales to them.

However it may not be easy as finding a whole seller online, but it has more benefits and it is much more secure.

What you should sell in order to cash in ?

If you are planning to make a fortune from drop shipping keep this simple factor in your mind. Sell high end niche products with a profit margin that leaves you plenty of room to advertise! This way you do not have to worry about advertising cost. ( PPC is the best. ) If you are selling a product for $15 and it costs you $5 to get a customer, there is not much in it.

But if you are selling something for $400 and your profit margin is $100 then there is plenty of room for you to advertise. Even if you spend $25 to get that new customer, so what, you’ve still made $75.00!

Go high end niche and cash in. After all, you’re drop shipping and there is no need to carry any inventory, so go for the gold! Plasma TV’s , LCD’s, snowboards, high end phones are few examples that comes to my mind.

Let’s make some money.

Now you have a very clear understanding about how drop shipping works. Now the matter is getting customers for you to sell your products. You can proceed with the traditional way of making a web site and driving traffic through PPC. It will work; there is no doubt about it. But there are much easier ways of doing this.

You can practice this method on world’s largest online market place, “ebay”. As I said earlier, most of the ebay power sellers are actually drop shippers.

I have run few successful campaigns with ebay and drop shipped N95’s when the market was big for Nokia N95. This was back in June- September last year. I had a supplier in Singapore who supplied N 95’s @ $580 for me. Back then the retail price on ebay was $ 700-$850.

The above image you see is a picture I used in my ebay listings. I had few phones with me as samples because most buyers need some photo proof before placing an order.

I had a nice run till they introduced the N95 8GB. My supplier could not extend his deal with Nokia and our relationship ended unfortunately.

And the other great place to sell your products is “alibaba.com”. I love their market place. When you post a sales lead it is almost guaranteed that you will have at least few inquires within the few hours. And you can always reply to buyer leads and find new customers. They have a great system and the house where I am living at the moment was bought from the money I earned from alibaba.

Ebay gives you one sale at a time. Alibaba gives you $10,000 worth sales at a time. I was drop shipping Nokia N95’s and E90’s to Australia, Germany, USA, UAE and UK. And 50% of my assets in fixed deposits also come from alibaba sales.

Do your self a favor and join this great market place. It is totally Free to join and to do business. Once you are a member, download the “trade manager”. It is a chatting software like msn messenger but the difference is all your contacts are wholesale buyers and sellers.

Build your profile with correct information and post few sales leads with accurate and complete details. If you do everything right you can expect buyers to contact you within few hours. And remember, you can use the same method to find suppliers for you too.

I have given all the information you need without holding anything back. If I have not revealed anything here, that would be my current supplier’s details for gaming consoles. And I am not going to trade that information for anything.

I hope you would appreciate my effort of writing this post. You can share your thoughts in the comments section and if you like the post please give it a thumbs up. That is the best thing I am expecting from you.

Do not forget to read,
How to not get scammed from alibaba sellers.
This is too much work for you? The easy money is at Forex.

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There are 2 motives for someone to engage in blogging.

Make money from the blog.

Interact with the world.

The latter group is considerably very small when comparing with the first. And since you are already here, I believe you belong to the first group.

But the all important question is,
” Are you making enough money from your blog? ”

If you go to forums where most web masters hang around, you will see that many people complain that they are not making anything other than few change from their blogs. But the truth is, most of the Bloggers / web site owners are making a huge amount of money. Only thing is they do not have time to hang around in forums and post their success stories.

So, you must understand that most web entrepreneurs are much richer than the company Directors you see in their fancy uniforms.

If you are not making enough money from your web site, that is not a problem with the system. This system is great. Doors are open to anyone who can see things little bit differently. There has not been a better way in history for average people like you and me to become millionaires or even billionaires.

The problem might lie on the way you have monetize your site. You might be promoting wrong affiliate networks. You might be promoting wrong products. If you think you are not good enough to make at least $500 a month from your blog, take “antharjalaya” as an example.

My blog is only 3 months old.

Alexa rank is only in the 120 k’s.

Google page rank is only 3.

I do not post regularly as I have a busy life with my other sites.

I really do not care whether I make money from this blog at this point.

When comparing with my site, I bet your blog is much much better.
Yet,
in the past 30 days I made exactly $613 from affiliate commissions.

Can you see affiliate ads placed all over my blog? No.

Am I writing posts to promote affiliate products? Only 3 posts out of all posts including this one.

But I must be doing something right to earn this much with a very minimal effort. However I believe I have figured out following things correctly.

I am hooked up with the correct ad networks.

I do promote the correct product.

They are always well paid and pay for leads.

If you like to get things right at your blog, I highly recommend joining Pepperjam affiliate network. They are a network created by bloggers. So they know how to help us bloggers make money more than any other network do. To give you a head start they are giving $10 for you to just join their network. Once you are in, you will be presented with 100’s of great products which you can use to get paid for leads / sales.

For example, just for sending someone to register with alibaba market place you will get paid $3 for the lead. The registration for your readers is Free. But you will be get paid $3 every time someone sign up with alibaba.

And to make things even better, I am giving all of the accepted publishers $5 each. You can use that money to buy advertising from stumble upon and get a small traffic boost to give some more exposure to your ads.

If you have no idea on how to write your sales pitch, take this post as an example. Do not adopt ” in your face” type marketing tactics. Give your readers enough facts before providing them with the link. Just a pretty ad in the side bar will not do the job for you. Accompany it with a nice informative blog post.

And if you do not have first hand experience with the product you are promoting, Do not promote it. It may help you to get few quick cheques. But you will lose your credibility as a blogger.

If you can get these small things corrected, no one in this world can stop you from making money. You are destined to become a winner. That is why you are already doing something out of the ordinary. I bet your family and friends know nothing about making money online. At least you know there is a possibility. Whether you end up becoming a winner or not will depend on your actions.

So what are you waiting for? Start acting like a winner.

If you like my post please give it a thumbs up.

Do not forget to read,
How to cheat your visitors to sell more?

Murder your competition with killer “sales techniques”

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