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How to Build a Successful Online Drop Shipping Business in 6 Simple Steps

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The popularity of eBay has inspired many people to start a business. And for those entrepreneurs who don’t want to invest in a ton of inventory but still want to set up shop, drop-shipping is a logical solution.

Before you get started, there are a fee things you might want to consider.

Step 1: Choose a product to sell. The very first step in any sales process is deciding what product to sell. Many factors should be considered before you make the decision, but for now, let’s say that you’ve decided to sell CD players on eBay.

Step 2: Locate a supplier who will drop-ship for you. Using a research tool like Google, ThomasRegister.com or an industry-specific resource like The Ultimate eBay Dropship Power Pak, you can search for and find a company that will drop-ship CD players for you. If the company offers you a 35 percent markup over cost, which means that itu will supply the CD players to you for $100 each, then you should be able to retail them for $135 apiece. Make sure the drop-shipper has a good stock of CD players on hand so you don’t end up selling a product that must be back-ordered.

Step 3: Set up an account with the drop-shipper. Now it’s time to set up a reseller account with the company that will supply the CD players. This can often be done online or by phone, but some companies will require that you complete and return a reseller application to open an account. Some may also require a tax ID and a business license.

 

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