Thursday, July 3, 2008

Dropshipping Business Model Basics

Dropshipping may provide the means for you to get ahead on the Internet by offering top products, even name brand products without having to invest thousands of dollars of inventory, shipping products or manufacturing.

Dropshipping offers the means of running a home-based business solely from the Internet.
A wholesale dropship directory helps a person to enhance the business prospects in the area you deal in. Given below are some of the basic steps to find the best of dropship and wholesale sources:

Step 1: Begin to cultivate your niche area. Try focusing on offering distinct, unique and best products to your clients. The best way when deciding on what to offer your clients, try choosing unique products.

Step 2: Find the best dropship suppliers around you. The whole process involves a lot of time and research on your own. In case you are very lucky, you may find a local wholesale supplier who would be willing to dropship products for you to your customers. The way is to consult a wholesale dropship directory. In this case, you would not require doing much of a research and investing your time. The wholesale dropship directory would help you find the type of products you would like to offer your clients within your area.

Step 3: Research your niche on eBay. If possible, learn how to use Terrapeak to help research not only the niche, but specific items and sellers to figure out what will likely work the best for you.

Step 4: Build an e-commerce website. You may be able to use wordpress to run a simple ecommerce site, and most hosting offers you a free shopping cart. However, it may be necessary to hire someone to help set up one of the free shopping carts to work with your site. Don't be afraid to start with a simple model and then expand as your business begins to make sales.

Step 5: Build a list of contacts and customers. The real value of a customer can be enhanced in a drastic way once they become a repeat customer. Try concentrating on this and you can easily be able to get new customer and make him your permanent customer.

Step 6: Upselling your contacts or customers, would make you expand your business and earn great profits. The process is not complicated. All you have to do is to utilize the list of customers you have gathered in order to provide specials, deals or inform them about new products. Try sending them tips and information about the benefits of the products they are being offered.

Step 7: Try expanding your product base. In case you add new products to your items and the customers would hit your website again for something new you would be offering.

Now, the question that may really be on your mind is whether or not Salehoo can help you with any of this. It is our opinion that for a one time membership fee of $67 that it is a bargain, but then again, it is important to understand that Salehoo can only offer product distribution sources, contacts, and leads. It is not in itself a source of products. Salehoo does not dropship or offer wholesale or liquidation goods. It is only a directory and, we think, a very good community resource for contacting distributors. If you are curious, try out a video tour of Salehoo.

By the way, if you want more information of whether or not Salehoo is a scam, please see:

The Salehoo Scam Question

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