Drop Shipping Business
Are you considering a drop shipping business if so this article will give you a much better idea if all the extra hassles is worth it to you. A drop shipping business is very time consuming, you must research and learn as much as possible about the products you will be promoting and how to market them the most effectively. Really need to know your customers and how to get your products and services in front of them to succeed, the average business start up for this type of business begins at about $1000.00. Just setting up your website with your products and descriptions plus business taxes and your shopping cart is very demanding for the first time drop shipper, this is only the beginning read more to find out what else you must consider before going into this type of business.
How To Get Started
Before you even worry about finding drop shipping wholesalers you have some things you must take care of first, you need to decide what type of business entity you wish to claim with the IRS? Your choices are sole proprietor, LLC or a corporation. Sole proprietor is the simplest but if by any chance anyone sues your business, you are totally on your own, the good part is you can file your earning on your personal income tax form. LLC gives you a little more protection if sued, you will have to file additional earnings forms depending on where you reside. Corporation you have the most protection, but there is the possibility of double taxation.
The IRS wishes to know you are starting a business and you must fill out a form to get your business EIN number from the IRS, this is your own little business identity number the IRS will use to keep tabs on you and your business. Once you receive this number, you will wish to open your business bank account since you will be doing business online you really should also get a business credit card. By the way you will have to contact all your shippers and sign up with an account with them such as the United States Post Office, Fed Ex and any other you might be considering using to ship from your drop shipping supplier to your customers. Also, you more likely will need a local business license, this you will have to find out from your local government agency.
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The directories do charge a fee for their list of wholesale suppliers, but going this route you are sure the suppliers are legitimate. If you wish to go out on your own to find suppliers my first recommendation is to contact the manufacturer of the products you desire to sell on your website. There is also the option of doing Google searches and going through pages and pages of searches for suppliers, another option is for you to locate your competition and place a small order with them. After you receive your order, use the return address of the shipper to contact the shipper to arrange them being a supplier for your business as well.
Now your business is set up with your products and their descriptions and all you need now is customers, you will wish to do some research on paid advertising is your wish to go this route which most people with this type of business does. Open accounts with your business name on social media, business forums and any business communities related to your product niche. Making good business contacts can get you customers, someone in another business just might refer a customer to your website. Google Adwords is used by millions of business owners, you should check this out and see if it is something you wish to do. Focus on your customers, consider hobbyists, other business owners and focus on customers who has the potential of being repeated customers.
What Is On My Mind Today
Most of you will more likely either choose a drop shipping business or an affiliate marketing business, which one is the best all depends on you. If your brand new to the internet business I suggest considering the affiliate marketing business, with this you focus on promoting your business website with links to your affiliate partners and they do the rest. If you have experience then possibly drop shipping is right for you, I tried drop shipping in the past but for me the hassles just was not worth it. With affiliate marketing there is a very low investment required to get started, with drop shipping you do need some start up cash at least $1000.00 to really give you a good start.