Drop ship businesses have become very popular the past couple of years. There are a lot of get rich quick classes on the Internet promising you can live abroad while working 5 hours a week.
Here are the steps you need to take to start a online web store.
1. You need something to sell. The can be an ebook, a service, a product or anything else you can think of. You just need something where people will pay you for it. We believe the best items are high dollar items with low rates of returns. While we do get a good amount of returns when we sell as an Amazon seller, we barely get any from Wayfair, Target, or Hayneedle.
2. Now you need to see if there are already people selling your item online on Amazon or Ebay. Is it an item where the manufacturer enforces MAP (manufacture's advertised price) so that bigger dealers can't advertise prices that are too low for you to compete.
3. Take a good look at the items you want to sell and see how much they are selling for online and how much popular the items are. Make sure that you will have enough transactions to make it worth you time
4. Can you source the items for a low enough cost that you can make money selling them at the market rate. If everyone is selling a soccer ball for $30.00 and you can buy it from Italy for $22 and $1 freight and $2 packing it gets to the point where you are going to lose money at $30. If you charge more than $30 you will lose sales to the manufacturer.
5. Let's assume you were able to find a bunch of items that you can make $30 per unit if you sell them. This will give you up to $29 to advertise to pay for that sale. As long as the ROI on your ad spend maintains a number you like, you should keep throwing money at it.