Tuesday, November 26, 2013

How Much Can You Earn From Drop Ship Business

The question as to how much you can earn from drop ship business is not easy to answer but the most probable answer is that you could earn as much as you may work for. Drop ship business is not a magic that will give you easy cash and although this is not ruled out, the bottom line is that you have to work for it. There are lots of marketing tactics required as well a strategic business planning. You need to identify the right products to sell. You also need to have a good marketing strategy.

There are numerous aspects which will determine how much you earn in a drop shipping business and they are;

•    The marketing approach you apply.
•    The goods you are selling.
•    Competency of the wholesale distributor.
•    The margins of commission you get from every sale.

It is estimated that only about 10% of drop shipping retailers make money and this is because there is a big competition in the market. You have to put everything right as far as marketing is concerned. Marketing is the cornerstone in succeeding on your drop shipping business.


There are different ways you can market your products. You can create a website which drop-ships to the product’s suppliers. This means that you have to post content on the website with descriptions of products. The descriptions have to be unique from those of the suppliers and other retailers. In this case, the quality of content will market your drop shipping business. If you submit very informative and interesting content on the website, you will create confidence with your buyers and this translates to more sales.


In addition, you will also need to create a blog. Because managing a website may be costly for a beginner in this business, a blog would be appropriate. Hosting a professional blog may not be costly as hosting a website. In addition, you have to use social media marketing to create social signals that will help increase the ranking of your website or blog. This means that more traffic will be generated on the blogs and this is connected to the supplier’s e-store you have been allocated.


Moreover, you may also use other methods like email marketing in order to make follow up on leads that have bounced. Search engine optimization is very essential when you are doing drop ship business.


You also need to write a few articles per week about the products and relevant topics. These articles are posted in major directories and will help drive traffic in your blog site or website from where visitors learn more about the products you are selling. The quality of content submitted to the directory and authority site will also help install confidence among the buyers.


You also need to select sellable products. There are many products you can sell through the drop ship business. These items range from diet pills, cell phone boosters, and power tools, garden equipments like lawn mowers, home appliances, kitchen equipments and toys. You may search for the “hot selling” items from sites like eBay in order to know, which products you go for in your drop ship business.


Another aspect which will determine how much you earn is the drop ship company you deal with. The wholesaler you are dealing with must demonstrate competency in offering the services. Since the company handles the shipping, it is important that when orders are made, the shipment process is done in time.


Your business image will largely be determined by how professional the wholesaler executes the shipping process. In addition, the wholesaler should be able to provide timely information on stock levels. Selling a product in your drop ship e-store only to realize that it is out of stock is quite frustrating for the buyers. The wholesaler should have a data feed system where you are able to get updates on quantities of stock.


The margin of commission of the sales also determines how much you are able to earn. If you only get 2% of commission, it means that you will have to close sales of 1000 items per month in order to earn a total of $2000 in that period. The kind of products you are selling will also determine the overall commission amount. If you are selling used low mileage automobiles from Japan, you will not get the same commission as selling used children clothes.


In essence, there are many aspects which will determine how much you earn. The most important thing is identify the most selling products and do a lot of homework in your internet marketing strategy. This way, the returns will be good. Also remember to engage with a professional drop ship wholesaler who has sufficient stock and is able to deliver goods in time. The shipment process must be done professionally in order to build loyalty with your customers. These are the same customers who will make a repeat purchase. They will also spread a word-of-mouth of your business to other prospective buyers.


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