Want To Start Your Own Successful Drop shipping Store? Selling on the internet as a dropshipper has cut down 50% of my operation expenses such as office lot rental and utility bills. Therefore, as a seller I am able to offer a price lower than the market range for products. Getting a similar product for a lower price is what most people are seeking for and this is why people are addicted to online shopping.

1. Start You Own Successful Drop Shipping Business
By:Andrew Williams

2. How to Start a Drop Shipping Business (with
Pictures) - wikiHow
Choose a niche. There are hundreds or more drop shipping businesses
and it can be difficult to compete on price alone. Accordingly, you need to
find a niche and decide what sets you apart from the competition.
Find a niche where you can add value. For example, you can sell
electronics equipment and run a blog that shows people how to put
the equipment together.[1] Or you could sell pet supplies and
accessories on a website where you blog about the topic.
Plan on selling products that are hard to purchase locally but instead
are bought online.[2]
Your products shouldn’t be too cheap. Ideally, a good niche is one
where the products cost $100-200. This price point allows you to
make a solid profit from each sale without having to provide a lot of
customer support. When you charge more, customers usually want
to talk to a person before buying.
Identify suppliers. After choosing your niche, find suppliers who are
willing to drop ship. There is no one place to look to find suppliers.
Instead, try the following:

3. Search online for “wholesaler” and then the product you want to sell.
Because wholesalers don’t invest much in online advertisement, you
might have to dig through 20 or more pages to find results. If you
can’t find anything, then swap out “wholesaler” for other terms like
“distributor,” “bulk,” “reseller,” and “supplier.”[3]
You can also look through your Yellow Pages under Suppliers or
Wholesalers to see if there are any in your area.[4]
If you know the manufacturer of the product, then you can contact
the manufacturer directly and ask for a list of distributors.
Check which suppliers your competitors use. One good way to find a
reliable supplier is to locate your competitors and then find out who they
use. You can find other drop shipping sellers by searching the Internet. If
the business has only one location listed on its “Contact Us” page, then it
is probably a drop shipping business.[5]
They may even highlight their bestselling brands. Chances are these
are reliable suppliers you also can contact.
If they don’t highlight any brands, then scroll through the products
that they offer. Write down the names of any brands that offer
products you want to sell.
Ask suppliers questions. After identifying possible suppliers, reach out
to them and ask if they handle drop shipping. Not every supplier is
willing. Suppliers might be hard to reach, so plan on sending emails and
making regular phone calls until you reach the right person.[6] When you
do, ask the following questions:[7]
How long does it take them to ship after you’ve placed an order with
them?
What shipping methods do they offer? For example, ask if they ship
overnight or internationally.
Do they offer warranties on their products? If a product is defective,
then you want them to replace it.
What quality control systems do they use?
Do they set minimum advertised prices? Ideally, they will. If not, then
other drop shipping businesses could lower the prices too low for you

4. to compete.
Do they charge a monthly or annual fee? If so, then you might want
to avoid them.
Can you put their product photo on your website? Preferably, they
will allow you to use their picture.
Choose the best-selling products. Once you’ve found a supplier, you
should go through their product pages and see what items you want to
sell. Ideally, you will want to sell products that are in high demand. You
can use a couple of different techniques to gauge a product’s popularity:
Perform market research. You can find out the demand for the
product by using Google’s Keyword Tool. This tool provides data on
the number of people who have searched for a term.[8] For example,
if you want to sell cat sweaters, then check how many people have
searched for that term.
Look at the completed listings on eBay. Go to “advanced search” and
check the “completed listings” box. Then enter keywords and
category. As you scroll through the pages of listings, check items that
sell 60% or more. These items are usually popular.[9]
Create an account with the supplier. You should call or go online to set
up your account. Some suppliers will require that you complete an
application. They may also request a copy of your reseller’s certificate,
business license, or other document.[10] In that situation, you should
form your business first.
Also discuss payment methods. You can pay upfront or pay on terms.
When you pay upfront, you pay at the same time as you place your
order. With pay on terms, you pay all of your orders at a later date,
such as at the end of the month.
Because you are just starting out, suppliers might only agree to work
with you if you pay upfront. After you establish your reliability, they
might be willing to change their billing.
Select a business structure. Every business has a certain legal
structure, and you must get your government’s permission to create

5. some of them. In the United States, you will register with the state where
you are located. Each structure has advantages and disadvantages,
which you should discuss with a lawyer or accountant:
Sole proprietorship. This business is run by one person and is easy
to set up. Most drop shipping business are probably sole
proprietorships. You don’t need to file paperwork with your state to
form a sole proprietorship. Instead, you can use your Social Security
Number as your business ID and report business income on your
1040 form. You are personally liable for all of your business’s debts.
[11] This means that if your business is sued, you might lose personal
assets like your car or home.
Limited liability company. You can form an LLC by filing Articles of
Organization with your state’s Secretary of State. An LLC is a
separate legal entity and shields its owners from personal liability for
business debts.[12]
Corporation. You form a corporation by filing Articles of Incorporation
with your state. Like an LLC, a corporation shields its owners (called
shareholders) from personal liability for business debts. Corporations
pay their own taxes.[13] However, if you form an S corporation, then
the business’s profits and losses pass through to the shareholders.
Obtain necessary licenses and permits. To find what you need, visit
the Small Business Administration website at
https://www.sba.gov/starting-business/business-licenses-permits/state-
licenses-permits and click on your state.
Don’t forget to get a reseller’s certificate. Suppliers will usually want
to see that you have either a state sales tax ID or a resale certificate.
[14] This certificate exempts you from paying sales tax when you buy
items from your supplier.
Not every state requires a reseller’s certificate, but most do.[15] It can
go by different names, such as certificate of resale, reseller’s permit
or license, or resale license.
If your state doesn’t require the certificate, then tell the wholesaler.
They could have paperwork you need to fill out.

6. Apply for a federal tax ID. You need to pay taxes to the federal
government, so you need a tax identification number (also called an
employer identification number). You can apply for one here:
https://www.irs.gov/businesses/small-businesses-self-employed/apply-
for-an-employer-identification-number-ein-online.
If you run a sole proprietorship, then you can use your Social
Security Number instead.
Select your selling platform. You have two options. You can create
your own eCommerce site, or you can sell on an existing online
marketplace, such as eBay, Amazon.com, or Bonanza.com.[16] Selling
on an existing marketplace will require less work, but you might get lost
in the crowd of sellers.
You can create your own eCommerce store using websites such as
SaleHoo. Alternately, you could purchase a domain name and create
your own website.
If you choose to sell on an online marketplace, then diversify and list
on several. Not everyone buys on eBay.
Set up your website to accept credit card payments. Marketplaces
like eBay and Amazon will process payments for you. However, if you
create your own eCommerce site, then you will need a merchant account
and a payment gateway account so that your clients can pay with credit
cards.[17]
Several companies offer both as a bundle. Contact CyberSource,
Verisign, or Authorize.net.
PayPal might be the easiest way to process payments. Go with
PayPal and avoid getting merchant and payment gateway accounts
altogether. Instead, you can add their Shopping Cart feature to your
website for free. Your clients can then pay with credit cards or their
PayPal account.
Obtain a toll-free number. You’ll look more legitimate as a business if

7. you have a toll-free number customers can call to lodge complaints or
ask questions. You can buy an 800 number from many different
providers. Look online. Some providers even allow you to link the
number to your cell phone.[18]
If you don’t want to use your home address as your business
address, then get a mailbox at a post office or at a UPS store.
List your products for sale. Pricing right is important. You don’t want to
price too high and lose customers to competitors. However, if you price
too low, then you won’t make much of a profit. Always factor in how
much you must pay your supplier when setting your sale price.
Remember that your supplier also charges for shipping.[19]
Also remember to clearly tell your customers about your shipping and
return policies in your listing.[20] Customers need to know that
information upfront.
Online platforms, such as eBay, will require you to identify where the
product is located. For example, if your supplier is in Mexico, then
include this information in your listing.[21]
Purchase from the supplier when you get a sale. As a drop shipper,
you wait for a customer to order from you. Then you turn around and
order from your supplier. Make sure not to delay, since your delay will
only cause a delay for your customer.
Pay the supplier using a rewards credit card. In this way, you will
reap all of the points for the purchase.[22]
If you receive a tracking number, then hold onto it and track the
product so that you know when it has arrived.
Notify your customer when their product ships. You should stay in
contact with the customer after they purchase a product. Send a follow-
up email telling them when the product has shipped. Also provide your
contact information so that they can contact you if a problem arises.[23]
Troubleshoot problems. All kinds of problems can arise in the drop

8. shipping business. For example, a supplier might not be trustworthy and
will mail something too late. Or the supplier doesn’t package the product
securely and it breaks on the way to your customer.
You can protect yourself by having multiple suppliers for most of your
products. This way, you’ll have a fallback option if your primary
supplier can’t deliver.
When a product is sold out, you can give the customer an upgraded
product for free instead of cancelling the order outright.[24]
Remember to stay in contact with your suppliers. You want a good
working relationship with them so they will help remedy problems.
Market your business. There are many ways you can reach potential
customers, even if you are selling on an auction site like eBay. You
should try several marketing techniques and find out what works best.
You can create a mailing list customers can sign up for. Put a link in
your email confirmation after the sale, and tell them to sign up to
receive special email offers. You can use MailChimp to build and
keep track of your mailing list.[25]
You can also run Google or Facebook ads, though these can be
expensive.
Another way to increase your visibility is to run a blog or to guest
blog. Look for blogs in your niche, and include a link to your website
or your email address.

9. How to Set up a Drop Ship Business on eBay:
6 Steps
Create a seller account on eBay. Part of your investment in this
business will be in listing fees on eBay.[1]
If you're not familiar with eBay, read How to Sell on eBay
Research drop ship companies, also known as suppliers. Choosing
suppliers that are in the same country as your intended customers will
likely make shipping easier.[2] Use a directory or other drop ship source
such as Worldwide Brands, Doba or SimpleSource - they do the work of
finding legitimate suppliers for you.
Watch out for scammers who pose as suppliers but are really just
middlemen themselves. They'll take their own cut of the profits, thus
reducing yours. If they require a regular fee for using their service,
consider that a very bright red flag![3]
Decide what you want to sell.[4] It's important to check whether there's
enough demand (and not too much supply) for the products you want to
sell. Here's one way to find out:
Go to eBay
Click "Advanced Search"
Enter product (e.g. Art decorating lamps)
Sort by "Price Highest First"
Select "Completed listings only"
Click "Search"
Make note of the best selling products
Establish an account as a retailer with the supplier. E-mail, call, or
send a letter asking how to become a retailer of their products and ask if
they will drop ship to your customers. You'll also want to find out if they'll

10. put a custom return label (with your store name and address) on the
shipments, so that the customers assume you sent it.
Don't be surprised if the supplier you contact for a retail account
requests a tax ID. In order to purchase products at a wholesale cost,
many will require this information.
List the items on eBay. Upload images and descriptions from the
suppliers' websites. Make a detailed, professional looking listing. For
better results, provide your own descriptions and pictures of the product
you're selling (if you have samples).[5] The price should be low enough to
compete against similar items, but high enough to give you a good profit,
once you account for listing fees.
Read How to Advertise Effectively on eBay and How to List Items on
eBay for tips.
Contact the distributor when your items sell.[6] Give them your
customer's shipping address. They will send the product directly to your
customer. Follow up to make sure the shipment came on time, and as
described.

11. How to Start a Distribution Business: 14
Steps (with Pictures)
Decide what type of distribution business you will run. Distributors
can be split into two categories based upon who they serve. First, retail
distributors buy from wholesalers or manufacturers and sell products
directly to consumers (end-users). In contrast, wholesale merchant
distributors buy from manufacturers and resell the products to retailers or
other distributors.[2] Which one is right for your business will depend on
your goals and experience.
Decide what you would like to distribute. You could focus on a
specific product or offer a variety of items. Your decision could be based
on a passion or on a product that is hard to find in your own personal
experience.
While many large companies are served by equally large distributors,
these distributors are unwilling or unable to serve smaller, more
specialized business. A good idea, especially in a crowded market
like beverage distribution, might be to provide niche products to
these specialized retailers.[3]
Put together a business plan that lays out the full vision of your
new distribution business. A business plan allows you to follow a

12. direction for making your business a success. This plan will included the
type of distributor you will be, the products you plan to offer (at least
initially), the name of your company, your target customer base, shipping
method, and a general strategy. This strategy can be as simple as
focusing on fast and effective service, or more complicated, such as
specifying a way to offer specialized products that are unavailable from
other distributors.
Writing a business plan can be the most complicated part of starting
a small business. For more information, see how to write a business
plan for a small business.
Estimate your startup costs. In addition to a business plan, you will
also need some idea of how much money it will take to get your business
up and running. As a distributor, your single biggest expense will be
inventory. This means that your startup costs will vary widely depending
on what you are planning on selling. You will also need a place of
business, office equipment, and some warehouse equipment (like
forklifts if you have heavy products or shelves if you have lighter
products).
For an example of how much costs can vary, two successful
business in different markets started with $700 and $1.5 million,
respectively. The first, a tie company, started with such a small
amount because the business was run from home, started with low
inventory costs, and didn't require any equipment to manage. The
second, a fine wine retailer, had expensive product to buy, had to
rent a large warehouse, and had high operating expenses like
temperature-controlling the warehouse and investing in equipment to
transport the product around the warehouse and to customers.[4]
The advent of online distribution has also created new options for
distribution businesses. One of these, drop-shipping, allows for
distributors to avoid all inventory control and shipping issues by
never taking physical possession of the product. Never taking control
of inventory means that your initial investment can be much lower.
However, this a crowded market that can be difficult to make money
in.[5] See how to start a drop shipping business for more information.

13. Figure out how to sell your products. This will depend largely on who
your customers are and what type of products you're selling. In any case,
your goal should be to let potential customers know about your business
and what you can offer. This can mean anything from advertising to
personal meetings with store owners to search-engine optimization
(SEO).
As part of selling, put together a marketing plan so that you can
promote your services. This may include the costs of printing
brochures, creating catalogues detailing your offerings, and placing
ads in trade journals or magazines. As a small business, you can
expect to do a lot of marketing for the first few years until you have a
good-sized customer base and have established a reputation.[6] See
how to create a marketing plan for more information.
Determine how you will be funding your business. With low startup
costs, you may be able to purchase your inventory and get your business
started with money you already have. However, more expensive startup
costs may require you to take out a loan. See how to get a small
business loan for more information.
Form your company legally. If you're planning to operate as a
corporation, LLC, or any other type of company, you'll have to legally
create the company before you can do business. Check with your state
regulations and see if you need to create an operating agreement or
another type of founding document. Gather any business partners you
have for this venture and have them sign any legal documents you fill
out.
The primary advantage of forming a company is that your finances
will be legally separated from those of your company. This minimizes
risk to you in the event that your business is sued or goes into
bankruptcy.
Make your business official by getting it licensed and registered.
You will have to register your "doing business as" (company) name with
your city or county business office. Other legal steps may be required to
get your business started. Contact your local Small Business

14. Administration office for more information.
Find a location for your business. The size of the space you need to
hold your inventory will be determined by the size of your product and
your delivery method (you don't need inventory space for drop-shipping).
You should consider starting off small as your business builds a
reputation. As your business grows, you can move into larger facilities
that can accommodate your inventory needs, such as a distribution
warehouse.
It is conceivable that a successful distribution business could be built
and run from your home. This depends on the physical size of your
inventory, however.[7]
Contact manufacturers or wholesalers of your products. You will
need to find sources from which you will buy your product. To locate
manufacturers and wholesalers, contact the National Association of
Wholesaler-Distributors or use an online resource like
http://thomasnet.com.
Purchase inventory. Once you've found a source for product, it's time to
place your first order. Unless you're using the drop-shipping model, you'll
need to purchase however much inventory you think you can sell. Keep
in mind not only your budget and space constraints but also how many
items you will likely sell at first. This is especially true of products with a
short shelf-life. When ordering inventory, keep the following tips in mind:
Don't buy too much inventory, especially at first.
Try to estimate your customer's needs before you invest in inventory.
If you can get away with low overhead (storing items at home or at a
cheap location) at first, go for it.
Purchase inventory to a point where you can sell that inventory
before you have to pay the manufacturer or distributor for it.[8]
Create a website for your business. In addition to simple contact
information, this website should describe prices and product offerings.
This is especially important if you sell directly to consumers.
You can also invest in search engine optimization (SEO) that directs
potential customers directly to your website by placing it higher in

15. search engine results. See how to improve search engine
optimization for more information.
Design a catalog that lays out your products. You can send these out
to potential clients so that they can see what you have to offer. Another
option is to highlight a few items, and then lead your potential clients to a
website that shows off your full inventory.
Market your product to potential customers. Send out your catalog to
potential customers in your area. You can also make cold calls or place
ads in trade publication relevant to your products. With some luck and
salesmanship, your first orders will be coming in soon!

16. How to Start an Online Store (with Pictures) -
wikiHow
Decide what you want to sell. If you want to start an online store, you
probably already have an idea for a great product to sell. Keep in mind
that certain things are conducive to selling well online, while other items
may be more difficult to sell when they can't be viewed in person. In any
case, you should believe passionately in the value of your product -
otherwise, it will be hard to connect with customers. Here are some
questions to consider:
Is it a physical product that needs to be shipped, or is it a digital
product that can be sent through the Internet?
Are you going to have an inventory (more than one) of each product,
or will they be one-of-a-kind (e.g. artwork, vintage items)?
Are you going to want to sell a wide variety of products, or do you
plan to specialize, like selling just t-shirts or books?
Are you creating the product yourself? If so, make sure you'll be able
to keep up with demand. Form a relationship with a reliable supplier.
If you don't plan to make the product yourself, you'll need a good
manufacturer. Research different companies to find the one that
works for your business idea.
Decide how your product will be shipped. Create a plan to ship the
product from your home efficiently, or work out a storage and
shipping plan with a warehouse. You could also look into drop-
shipping if the product is being manufactured by a third party.
You are going to be intimately involved with your product or service.
In order to effectively spread the word and market your store, you are
going to need to socialize with people from this industry. Make sure
the product is something you can get behind for the long haul.
Find a niche. Knowing what product you want to sell is only part of
creating a successful online store. You'll need to figure out what
differentiates your services from all the other similar services people can
choose, both in person or online. Why should a customer buy your hand-
knit sweaters when they have 100 other online shops to choose from?

17. Size up the competition. Don't just jump into selling a certain product
line until you've looked at the websites you'll be competing with.
Consider the main online marketplaces you plan to advertise your
products; and check out the competition within those portals.
Offer something truly original. If you're selling handmade crafts or
works of art, the originality of your work may itself be the draw that
sets your product apart. Try to strike a balance between something
that is highly original and also has general appeal.
Offer expertise. Perhaps the quality that sets your company apart
from the rest will be your expertise on the type of product you are
selling. Maybe you're a former baseball pro selling a line of baseball
gloves, for example. Make your passion and expert knowledge part
of the package.
Offer a user-friendly purchasing process. Even if your product is very
similar to other things for sale online, you can set your store apart by
making the shopping experience fun and easy. Make sure your
website is easy to navigate and fun to share. Be responsive and
provide great customer service where others don't.
Test the waters by selling your items on a small scale. In the real
world, it'd be wise to try selling your products through other, low-
commitment avenues (consignment, flea markets, craft shows, etc.)
before taking the plunge and starting an entire store. The same is true for
selling online. Try selling your items individually on eBay, Craigslist,
Half.com and the like. Here's what you'll want to look for:
Who is buying your product? Offer a discount coupon or free gift if
they answer a brief survey. Find out where else they shop online.
How much are they willing to pay? Experiment with different prices.
How is customer satisfaction? This is a good time to test how well
you can get your product to the customer. Are you using good
packaging? Is the shipping method reliable? Are they happy with
their product? Did you describe it well?
Make a business plan. Before you start the process of opening your
online store, take the time to draw up a detailed business plan, whether
or not you're planning on getting outside funding from investors. It will
help you plan the steps you'll need to take to make your business

18. successful. Figure out your cost of operation and map out a marketing
strategy. You'll want to take these factors into account:
Production costs, whether you're creating your product yourself or
contracting with a manufacturer.
Shipping costs.
Taxes.
Employee wages, if applicable.
Fees for reserving your domain name and web hosting service.
Register your business according to your state's laws. When you're
ready to make things official, you'll need to come up with a business
name and fill out the necessary legal and tax paperwork to register your
business.
Register a domain name. Choose a name that's short, catchy, and easy
to remember. It should also be unique, since the most obvious names
are already taken. Look up a domain registration company and try
different names until you find one that satisfies you and isn't already in
use.
If the name your heart is set on is already taken, get creative. Spell
numbers out, add a small extra word or try hyphenation.
The domain registration service will provide suggestions for close
alternatives if the name you want is taken.
Choose a web hosting service. It's worth finding a good service for your
website, since the site is the backbone of your online store. If it's finicky,
sales will certainly suffer. Free web hosting services are available, but
since you're selling products online, you'll need to pay for a service that
offers the options you need.[1]
You'll need enough space for growth if your business does well.
Choose a hosting service that allows for customization if you're
planning on doing your own programming.
Design your website. Either design the website on your own or hire a
web designer to create it for you. The emphasis should be on

19. showcasing your product and making it as easy as possible for
customers to make a purchase. Don't fall into the trap of making the
website too flashy - the more straightforward, the better when it comes to
online shopping.
Include a way to gather email addresses, so you can send
advertisements and special offers.[2]
The customer should have to make no more than two clicks to check
out with a product.
Choose just a few colors and fonts to use.
Choose e-commerce software.[3] This allows customers to view products
and make a secure purchase. The software stores customer information
and financial information. In some cases, e-commerce software factors
into marketing, since it can be used to send emails to customers. Take a
lot of time to research companies before making a choice, since the one
you choose will play a huge role in your customers' experience and your
company's success.
Set up a merchant account. You'll need to set up an account with a
bank financial institution so that your customers can pay with credit
cards. Going with a bank can be pricey, so many small online store
owners go with PayPal as a less expensive option.[4]
Research all-inclusive e-commerce services. If you don't have the
inclination to set up your own website from scratch, there are plenty of
services that offer a platform for an online store you can set up in just a
few hours, for a very low cost. This way you will not have to learn how to
code or hire a web designer, and you'll have all the tools you need to
start selling your product right away.
All-inclusive services usually take a small cut from each sale you
make.
The services have benefits, but there are also limitations, since you
have to operate within their systems. Get familiar with the different
services before choosing one. If you don't find one that suits the
business model you have in mind, reconsider starting a new online
store on your own.
Consider general e-commerce services. Companies like Shopify and

20. Yahoo! Stores will allow you to set up professional-looking online
storefronts when you ship your own inventory. Hosted e-commerce
solutions go further to provide storefront design, secure payment,
hosting, mailing lists, selling statistics, customer support. This is
attractive for those who don't want to do their own programming.
Look into reselling products for a profit. Affiliate store services such
as Amazon eStores LLC allow you to resell products carried by Buy.com
and other merchants by writing reviews of products and focusing on a
theme that makes consumers' lives easier. Amazon eStores stores allow
you to get running quickly, but don't allow you to carry your own physical
inventory.
Take eBay to the next level. If you've already sold some stuff on eBay,
and you're confident that most of your customer base will find you there,
then you can "graduate" to an eBay store to save money on listing fees.
If you haven't used eBay before, this approach may not be for you,
since it's best to start with an existing customer base. Your
customers will need to be web-savvy enough to feel comfortable
using eBay.
Note that eBay tends to attract people searching for bargains and
one-of-a-kind items.
Consider Tips for general sales. Tips is an online marketplace where
you can post one item or create an entire catalog for free. You upload
some photos, describe the items and price them to sell. It's free to post
goods for months without having to update the listing. When the item
sells and is $35 or less, it's a 5% fee. If the item is $35 or more, the fee is
3%. On top of putting goods up for sale you can embed videos, blog
about your products and services and connect to your Twitter account
directly from the site for free.
Try Cafepress if you're selling customized items. Cafepress is a
service worth considering if you're selling mostly t-shirts, and other stuff
you can "stamp" with your unique designs, such as mugs, stickers, and
buttons. Customers browse your store, order their stuff, and Cafepress
processes the order and the items for you. You can start a basic shop for
free, and pay a monthly subscription for more features.
Sell crafts on Etsy. Etsy is a popular choice for people who make what
they sell. There's a 20 cent charge for every item listed, and Etsy keeps
3.5% of your sale price if the item is sold. You get paid directly and are

21. responsible for shipping the item. You're charged fees (depending on
what sold) on a monthly basis.[5]
Try selling on Instagram. Instagram is world's most rapidly growing
social network with highly engaged audience that is great for selling
fashion items, handmade goods and products for home. Upload pictures
of your items for sale to Instagram and then sync your account with
inSelly.com to create personal online shop from Instagram pictures.
Payments will be powered by PayPal, service doesn't take membership
fees or sales commissions.
Promote your store on Facebook and Twitter. Social media platforms
are an important way for businesses, especially online businesses, to
market themselves. Start an account and encourage people to "like" and
"share" your store's page to spread the word.
Offer incentives for customers to promote your store. You could offer
a discount or a free giveaway for those who participate.
Be sure to keep the accounts up to date with information on new
products and deals.
Start a blog. Pairing your products with expert knowledge is a great way
to attract more people to your site. If your product is fashion-related, start
a style blog that features some of your products from time to time. Find a
way to participate in online conversations related to the product you are
selling.
Some all-inclusive services offer a blog feature as part of your
"storefront."
Feature other companies' products on your blog, and ask them to
feature yours in return. This is a common practice among small
online vendors.
Send samples of your product to prominent bloggers or websites that
do product reviews.
Do guest posts on other people's blogs. For example, if you're selling
homemade cookie mix, debut your product on a prominent baking
blog.
Email customers about promotions. Use an email program like
MailChimp to organize customer email addresses and send well-

22. formatted email blasts informing customers about special deals. Don't
abuse this method of getting in touch with customers, though - they may
end up unsubscribing if you send emails too often.

23. How to Make Money As a Wholesaler: 14
Steps (with Pictures)
Decide what you want to sell. The name of the game for a wholesale
dealer is buying large quantities of goods for a relatively low per unit
cost, and then selling them on in smaller quantities at a mark-up price.
For this to be successful you need to buy things that will retain their
value and enable you to sell them on for a profit. Do some thorough
market research to see which types of goods are suitable for your
business.
If you have specialist knowledge in a particular area, then use this to
your advantage. If you have experience of working in a particular
industry this could be a significant advantage.[1]
A large part of what makes a good wholesaler is good salesmanship.
If you believe in the products you are selling you are more likely to be
a convincing seller.
Consider what type of wholesale business you will run. There are a
number of different types of wholesale business, so before you get too
far down the road you need to be clear about the nature of the business
you want to run. The most common type is just known as "General
Wholesaler." A company that sells large quantities of goods from one or

24. more suppliers, and sells them on in smaller amounts at higher per unit
costs will typically be in this category. Other types of wholesale business
include:[2]
Speciality wholesalers may have numerous suppliers and buyers, but
will specialise in a particular industry or product line.
Specific product wholesalers only buy and sell one particular product,
for example, shoes.
Discount wholesalers supply discounted goods, often because they
are refurbished, discontinued or returned.
Drop ship wholesalers are businesses which buy and sell goods like
any other wholesaler, but without actually handling the goods.
Instead, they have it dispatched straight from the supplier to the
buyer.
Online wholesalers are those businesses which are just based online
and don't have a physical store. This can be a cheaper way to run
the business, but limits the amount of stock you can handle.
Evaluate your finances. Once you have conducted market research
and are developing a clearer picture of the type of wholesaler business
you would like to develop, you need to appraise your financial situation.
The kind of access to capital you have will have a large influence on the
sort of business you can establish and maintain. You should be aware
that a wholesale business can take two to five years before it begins to
turn a substantial profit.[3]
If you have limited funds at the start, consider beginning with a small
online business and build up your knowledge and experience at the
same time as building up some cash reserves.
Once you have more available liquidity you can begin to expand your
operations.
Do not to try to expand beyond your finances. Going into debt to start
a business adds additional risk to the business and should be
avoided.
Draw up a business plan. An essential element in every successful
business is a thorough and well-considered business plan. You need to
have one of these in place to firm up your strategic plan. You will also

25. need to define the core values of your business and how you intend to
operate. The plan should include an analysis of the existing marketplace
as well as a full projection of how you want to develop your business.
You need to include information on the products you want to buy and
sell as well as your strategy for doing so.
Include a summary of the finances and how and when you intend to
turn a profit.[4]
You can look at some examples of wholesaler business plans online
to get you started.[5]
Develop your online presence. When you have planned out and
researched your business and market it's time to develop your trading
presence. Purchase a domain name and build a website that is attractive
to both your prospective buyers and prospective suppliers. You can get a
domain quite quickly and cheaply.[6]
Don't forget to develop a presence on social media as well and link
up all your different online elements.
Take care of the legal and regulatory requirements. Before you start
actually trading you need be sure you have all the necessary legal
permits and licenses. This means you have to secure a business license.
This involves setting up your business as a legal entity as well as getting
a Federal Tax Identification number (also known as an Employee
Identification Number, or EIN). You can apply for an EIN online.[7] To
register your business, visit the US Small Business Administration site.[8]
You may need to obtain further licenses and comply to other
regulations that are specific to your state. You can look up all the
details for your locality online.[9]
Understand different suppliers. If you want to start selling, you need to
secure deals with reliable suppliers. This is an absolutely crucial aspect
to your business, and how you you approach it will depend on the type of

26. wholesale business you are developing. Be sure you understand the
different types of suppliers.
The four main groups of suppliers are comprised of manufacturers,
independent craftspeople, import sources, and distributors.
Distributors are often other wholesalers who buy from a variety of
sources and sell on for a profit.[10]
Take time to fully research suppliers and understand how they
operate, who they already supply to, and in what sort of quantities.
Evaluate suppliers. Once you have a clear picture of what suppliers are
out there, you need to try to match suppliers to your business. You need
to think about more than just the price you are being offered by the
supplier. The cost of doing business with a company is more than just
the price; you should figure in reliability and speed of order fulfillment, as
well as the quality of the goods themselves.[11] These can be hard to
determine at first, so look for testimonies from other firms and a record of
good business practice.
Other factors to consider include the location of the company. If they
are a manufacturer based abroad you are adding an extra layer of
potential costs with shipping as well as the extra time goods may
take to arrive.
Extra costs may be negated by lower purchase prices, but be sure to
take all of these factors into careful consideration.
Obtain physical premises if necessary. Depending on what type of
wholesalers you are operating, you may need to have a physical site that
processes orders and stores inventory. If you are starting small, you can
probably run a wholesale business from your basement or garage.[12]
One way to lower your overheads is to run the business from home and
thus cut out costs for rent and rates.
Improve your marketing. Once you are a going concern, you should
consider what steps you can take to boost your profits and make more
money from your wholesale business. The first thing to think about is
how you can increase your sales by improving your marketing. This isn't
just a case of increasing your visible presence and promoting your
business through social media, although you should be doing these

27. things.[13] You should think of ways to improve your offer to customers
and communicate more clearly.
Consider focusing on one product at a time and developing specific
promotional campaigns for specific product lines.[14]
If you are selling to other businesses, ensure you are involved in
good business-to-business (or B2B) networks and portals. There are
numerous forums and registries to which you can sign up and
increase your presence in business circles.[15]
Adjust your pricing strategy. Changing your pricing strategy can have
a significant impact on your margins. You can encourage larger orders
from customers by introducing tiered pricing. This is particularly relevant
if you are selling to retailers or other businesses rather than to individual
customers.[16] Take time to carefully figure out a good pricing approach
for your business. A tiered pricing strategy could look like this:
If the buyer purchases 100 units of Product A, the cost is $10 per
unit.
If the buyer purchases 50 units of Product A, the cost is $12 per unit.
If the buyer purchases 10 units of Product A, the cost is $15 per unit.
Consider drop shipping to streamline your business. One way to
increase your profits is to decrease your costs of doing business. An
increasingly popular way to run a wholesale business is by drop
shipping. If you do this you can very low costs as at no point are you
actually handling the goods.
You take the sale and pass it on to the supplier who then ships the
products. This can be a way into a market that requires relatively little
initial funding.[17]
Although your costs will be lower, so will the margin on each unit. Do
plenty of research and contact suppliers about the prices in order to
determine the returns you can generate.
Change your suppliers. If you feel like you could get a better deal from
different suppliers, or you are finding juggling multiple suppliers too

28. difficult, you can consider limiting the number of suppliers you do
business with. Having closer more developed relationships with a smaller
number of suppliers can improve efficiency, lower costs and save time.
Consider a supplier's reliability, overall cost (not just unit price), and
their willingness to develop a strong partnership with you.
Also think about whether this supplier is developing their product line
and business practices. If they seem slow or out of date, they may be
failing to adapt and develop within their industry.[18]
Making new deals with suppliers. As well as looking for new deals with
new suppliers, you should always investigate the potential to improve the
terms of your deal with your existing suppliers. This doesn't necessarily
mean renegotiating any contracts, but rather inquiring about available
discounts, special offers, and lower rates for larger orders. Businesses
that sell to other business are often much more flexible about pricing
than a retail business would be.
If you have a long relationship with a supplier you may be able to get
a considerable discount on the costs of your order.
If you order over a certain amount a discount could kick in and save
you money.
Speak with a contact at the supplier to be sure you know about all
the possibilities to lower your purchase costs.[19]

29. How to Start an eBusiness
Research eBusiness models and strategies before you dive in. Yes,
you can easily put items up for sale on eBay or Etsy and run a no-frills
eBusiness in no time. If your goal is to create a sustainable, scalable
eBusiness, however, it pays to do your homework first! Get a clear idea
of what you want to sell, then look into the most efficient and profitable
ways to make, sell, and deliver your products or services. Some basic
questions to ask yourself include:[1]
Do I want to focus on one or a few products/services or offer a wider
range?
Do I want to create my own eStore or sell through existing retailers?
Do I want to produce and ship what I sell or run a drop shipping
business?
Who are my customers? My competitors?
Do I want this to be a side job or grow into something bigger?
Which business model(s) suit my plans and goals?
The 4 basic models include B2C, B2B, C2C, and C2B. The Business-
to-Consumer (B2C) model is the most similar to the typical brick-and-
mortar business model: your eBusiness sells your products or services
directly to your consumers. But many successful e-business operate on
one or more of the other 3 models, so they’re definitely worth
considering:[2]
Business-to-Business (B2B): Your business sells your products or
services to other businesses, which (in most cases) turn around and
sell them to consumers.
Consumer-to-Consumer (C2C): In this case, you are both buyer and
seller in interactions with other buyers/sellers, most commonly on
intermediary sites like eBay or Craigslist.
Consumer-to-Business (C2B): This typically refers to influencers on
sites like YouTube or Instagram. As the influencer/consumer, you
market your connections to your audience (followers/subscribers) to
businesses.

30. Consider selling niche products that interested customers will seek
out. Avoid trying to compete directly against eBusiness giants by selling
a wide range of products. Instead, focus on selling handmade or niche
products that draw in customers looking for those specific things. This is
a great way to start small but leave yourself avenues for expansion over
time.[3]
For example, say you’re skilled at crafting miniature figurines and
decor. Instead of trying to market a wide array of items related to this
field, consider setting up a shop on Etsy that sells miniature decor for
fairy gardens!
While it’s fun to dream of coming up with the “next big thing” that
makes you an eBusiness titan, focus first on marketing the talents,
interests, and products or services you have right now.
Look into marketing your own expertise instead of selling stuff. You
might be your own best business idea! For example, if you have skills in
web design or search engine optimization (SEO), you can market those
skills to businesses. Or, you might offer services as a tutor, technical
writer, resume writer, small business consultant, or social media
consultant on freelancer sites such as Guru.[4]
Make it easy for them to find, buy, repeat buy, and tout what you
sell. Many traditional business strategies, like coupons and loyalty
programs, also work well for eBusinesses. That said, it’s important to
adapt the strategies you use so that they suit your eBusiness model.
Overall, aim to make the customer experience as easy and seamless as
possible with strategies like the following:[5]
Highlighting new or especially relevant products.
Offering convenient and secure payment options.
Offering coupons and other discounts.
Setting up a customer loyalty program.
Providing free or discounted shipping and returns.
Highlighting positive customer reviews.
Draw up well-researched summaries of your current situation and
future goals. Spend some time looking over reliable online articles that

31. provide tips and templates for writing a business plan, especially for an
online business. Then, take some more time to research, analyze, and
just plain think about your business—as it is today and what you plan for
it to become. While there’s some room for variations, good business
plans often contain the following sections:[6]
Executive summary: a one-page summary of your overall vision for
the business. Put this first but write it last.
General company description: a quick overview of your business.
Products and services: a detailed description of what your business
offers.
Marketing plan: a concrete description of how you’ll reach your
customers.
Operational plan: an overview of your business’ day-to-day
operations.
Management and organization: a nuts-and-bolts breakdown of your
business’ structure.
Financial plan: a clear breakdown of your current situation and future
needs.
Not really—you can get by with just a computer and some basic
web skills. If you have the tech skills to shop on sites like Amazon and
Etsy, you can handle setting up a seller site on them as well. Likewise,
there are a wide range of affordable web hosting platforms (such as
Dreamhost and SiteGround) that make it easy to set up your own
eBusiness website.[7] Or, if you have the funds, you might decide to just
purchase an existing eBusiness operation![8]
Sure, you can build your eBusiness operation from the ground up,
website and all, if you have those skills. However, you’ll likely find it’s
worth your time and money to hire freelancers to handle areas like
graphic design, coding, search engine development, content
creation, and so on.
Startup costs can range from a few hundred to thousands of dollars
monthly. It’s not very satisfying to answer this question with “it
depends”—but unfortunately it’s the truth! If you run a solo operation,
build a small website for free on an option like WordPress, and either

32. provide services or use drop-shipping for products, your costs may be
extremely low. However, if you build a ground-up site, pay vendors for
services like marketing and payment processing, and hire any
employees, your startup costs can increase rapidly.[9]
Consider “testing the waters” with a less expensive setup instead of
going all-in right from the start. See if there’s a market for what you’re
selling and room for growth.
Not if you’re a sole proprietor, but you might want to form one
regardless. In the U.S. at least, forming a limited liability company (LLC)
adds some more government red tape to your operations, but also offers
greater liability protection for your personal assets (as opposed to the
LLC’s assets). While laws vary by state in the U.S., you’ll probably have
to form an LLC if your business includes any additional members or
managers. Check the website for the Secretary of State in your state to
get details on the registration process and related requirements.[10]
If you don’t have any co-members or managers, you can usually
operate your business as a sole proprietorship. You’ll save some
money, and some time on paperwork, but this also means that your
personal assets are exposed to liability for your business. So it may
make sense to form an LLC right from the start, especially if you plan
to grow your business.
The rules and terminology are probably different if you’re outside the
U.S. Inquire with your relevant government agency or consult with a
business attorney.
They can be, especially if you limit your competitors by finding your
niche. While eBusiness competition—from both big and small players—
can be fierce, you may find a path to profit by exploiting gaps in the
market. If you sell products or services that customers are willing and
able to seek out, and provide an exceptional customer experience, you’ll
have a better chance of achieving profitability.[11]
Somewhere around 80%-90% of eBusinesses fail within around 4-6
months, which is higher than the failure rate for brick-and-mortar
businesses. This doesn’t mean you should immediately give up your

33. dream of building a successful and profitable eBusiness; but it does
mean you should accept the challenge with your eyes wide open.[12]

34. How to Buy Direct from a Wholesale
Company: 15 Steps
Establish your business entity. You should set up the legal form of
your business, such as a corporation, limited liability company,
partnership, or sole proprietorship. You may have to file forms with your
state’s Secretary of State’s office (or an equivalent office).
To form an LLC, file Articles of Organization with your state and pay
the necessary fee.
To form a corporation, you will need to file Articles of Incorporation
and pay a fee.
Obtain a tax payer’s ID. You’ll need to pay taxes to the government, so
you should get a taxpayer ID number. If you are a sole proprietor, you
can use your Social Security Number. Otherwise, you should apply for a
Federal Employer Identification Number (FEIN) with the IRS.
Apply for your FEIN here: https://www.irs.gov/businesses/small-
businesses-self-employed/apply-for-an-employer-identification-
number-ein-online.

35. Get a reseller’s permit. This permit allows you to buy goods from a
wholesale supplier without having to pay a sale’s tax. Instead, you
charge and collect sales tax when you sell to the public. If you buy from a
wholesaler without becoming a reseller with the necessary permit, you
end up paying taxes to them.[2] Furthermore, some wholesalers won’t
even sell to the public because they don’t want to bother collecting taxes.
This permit or license goes by different names, depending on the
state. It might be called a resale permit, resale certificate, reseller’s
certificate, sales tax ID, or sales tax permit.[3]
Contact your state’s taxing authority to ask how to get the permit.
Generally, you’ll need to complete an application.
Some states might use your taxpayer ID as your sales tax ID,
although others won’t.
Search online. The easiest way to find wholesale companies is on the
Internet. You should search by the product you want to buy and include
your zip code to narrow the results.[4]
For example, if you want to buy T-shirts and are located in Brooklyn,
you can type “t-shirt wholesale Brooklyn.”
You might also check online wholesale directories, such as
Wholesale Central.[5] You can search by location and merchandise
using advanced search.
Visit trade shows. Many wholesale suppliers attend industry trade
shows. You can find upcoming trade shows by searching trade show
directories such as 10times and TSNN.[6] Search by location and
industry.[7]
For example, if you are in the bridal/marriage business, then don’t
search for trade shows catering to the insurance industry.
However, think broadly. As part of your bridal business, you might
use extensive printing and graphics. You could attend a trade show
for the graphics/printing industry if you need to buy printing supplies
in bulk.

36. Read trade magazines. Your industry might have a few standard trade
magazines. You can find them in your library or research them online.
Try to locate a physical copy of the magazine or journal and look at the
ads. Wholesale advertisers often put ads in these magazines.[8]
If your library is small, it probably doesn’t carry trade magazines.
However, ask the interlibrary loan department if you can get a copy
from another library.
Get referrals from business owners. Other business owners will know
the best wholesale suppliers you can buy directly from. Ask around and
write down the names and contact information for the suppliers.
Obtaining referrals this way can be tricky because competitors don’t
want to let you know where they get merchandise for rock bottom
prices. However, you can try to connect with other business owners
at out-of-state networking events.[9]
Also ask business owners in a slightly different industry. For example,
you might sell T-shirts as part of a youth apparel business. Someone
else might use T-shirts as a free giveaway when consumers
purchase computer services. You aren’t direct competitors, though
you both use T-shirts.
Contact brand manufacturers. Generally, brand manufacturers only
sell directly to large businesses because manufacturers sell in large
volume. However, you can still call and ask who you can buy from as a
small business. The manufacturer can give you the names of distributors
or small wholesalers.[10]
Look for the brand manufacturer’s contact information online.
Alternately, you can look at the packaging for some of the products,
which may contain a manufacturer’s contact information.
Assess potential wholesale suppliers. It can be hard to find
information about wholesalers. Unfortunately, there are plenty of shady

37. middlemen who hold themselves out as wholesalers. You should analyze
the following:[11]
Is the wholesaler selling to the public? Legitimate wholesalers only
sell to retail establishments.
Are you charged a monthly fee? Legitimate wholesale companies
don’t charge a monthly fee. However, they will charge a fee if you are
running a drop-ship business.
Create a wholesale account. Once you find a wholesale company you
want to do business with, you should tell them you want to create an
account. They will request information from you to find out if you are a
legitimate business.[12]
For example, they will want to see your reseller’s permit, tax ID, and
legal documents.
You’ll also have to be approved—possibly before they will even
negotiate with you about prices.
Get quotes from multiple suppliers. Don’t go with the very first person
you find. Instead, get quotes from at least three different wholesale
companies.[13] That way, you can be sure to get the best deal.
This isn’t always possible. If you need a certain brand, then you
might be stuck going with one distributor or wholesaler.
Discuss price. Price is tricky, especially if you are a small business.
Wholesalers reduce the price per item when you buy a large number.
However, as a small business, you might not be able to store thousands
of products at one time.
If you are an established business, prove it to the wholesale
company. They are more likely to do business with someone who
has a track record of selling large quantities of products.[14]
When negotiating, tell the company you are getting other quotes.
This knowledge might create an incentive for them to lower their
prices.

38. You can negotiate by offering to pay a higher deposit. If you pay 50-
70%, you might have more leverage in the negotiation.
Be suspicious of extremely low prices, which might be a sign the
goods are low-quality. For this reason, you should ask for samples
before settling on a contract.
Lower prices by negotiating other terms. If the wholesale supplier
won’t budge on price, you should try to negotiate other favorable terms
which can collectively lower your price. For example, try to get a better
deal on the following:[15]
Faster shipping for free. You can improve your client satisfaction by
getting the products faster.
A more comprehensive or longer warranty.
Larger discounts when buying in bulk.
Analyze other key terms. Pay attention to the following terms in the
wholesale contract. You need a contract that works for your business,
and you should be prepared to negotiate changes to the following if
necessary:[16]
Delivery schedule. Will the wholesaler send the goods when you
need them? For example, if you can only accept goods in the
morning, check that the wholesaler doesn’t only deliver after noon.
Minimum orders. Some wholesalers might require a minimum
purchase, e.g., 5,000 items. Check that the minimum is reasonable
for your business, otherwise go with someone else.
Return policy. The products might be defective or not what you were
expecting. Make sure the contract allows you to return goods for a
refund.
Hire a lawyer to review any wholesale agreement. Find a business
attorney and schedule a consultation. Show the lawyer the contract and
ask if anything is missing or how else you can protect yourself.
You can find a business lawyer by getting referrals from other
business owners. You may also contact your local Chamber of

39. Commerce and ask if they can refer you to anyone.
Alternately, you can contact your nearest bar association and get a
referral.

40. Go to Drop Ship Market Global
Copy and Paste link: https://bit.ly/3haGujF You can use any web
browser to create a store on Shopify.