Basic Guide to Starting a Dropshipping Business You want to start an eCommerce store but don’t have enough capital and space to store the items? Then dropshipping is the ideal retail fulfillment method for you. Yes, for this type of retail fulfillment method you don’t have to have your own storing place. Dropshipping works on the principal where the items you are selling online are actually purchased from a third party and then directly delivered to the customers. In this way, you don’t need to spend money on buying separate storing space for keeping your products. Even when your business grows, you will not have to worry about the shortage of space. As a merchant, you will be purchasing inventory from a 3rd party, mostly from a manufacturer or a wholesaler.
Now, let’s take a look at how you can start your dropshipping business. Time and Efforts: Dropshipping does not require much time to get started, but it will require efforts on your part. You will have to get the basics right to see that there is no inefficiency. Remember, as a merchant you will be acting as an agent between the wholesaler/manufacturer and the customer. Therefore, once the order is placed, you will not have the products in your inventory; you will have to make sure that you get them on time. You will never see the products yourself and so, you will have to ensure that you trust the right wholesaler. Hence, before you set up your store, there will be a need of good research and trial and error. Our will also have to check for the wholesalers/manufactures who will offer you the best deal so that you can maximize your profits.
Another thing to remember is that dropshipping will not make you a 6-figure income overnight. It will be a slow process. It will take around 6 months till you start reaching your milestones. However, it will be an assured success with calculated risk. You can continue your 9-to-5 job while your ecommerce store is running. Your initial income may be around $1000-$2000 per month. In around 6-9 months, you can work 40 hours per week on your eCommerce store and start earning your dream income. Selecting the right business structure: Once you are aware about the time and efforts investment, you will have to determine the business structure. It is essential to choose either sole proprietorship, LLC or S- Corporation before you get started with your dropshipping business. You will also need an EIN number that is mandatory for employers and acts as your social security number.
The question for most merchants is which one among the three would be the right business structure for them. The right business structure is the one that suits your needs and financial means. If you are a small entrepreneur then going for a sole proprietorship or LLC would be the best choice. Don’t forget to apply for an EIN number and get your business registered if you are choosing LLC or S-Corporation. Is Dropshipping Right for You?
You must be aware that it is not an easy way to earn big money. It will include a lot of stress, research, and time. It will grow slowly but steadily. Get all the paperwork right and expect achievable targets. AcunasOutlet.com - Leading department stores, manufacturers, importers and wholesalers. We offer wholesale merchandise overstocks and customer returns, House Hold Items, truckloads, and pallets.