IM Business Model: Drop Shipping

IM Business Model: Drop Shipping

That last business model, involving becoming a reseller on eBay, is something that will appeal to a lot of people. This is a business model that is simple and easy, it makes sense and it involves selling tangible, real products. 

The only downsides of that method are that you need to make that initial investment in your first order and you need to both store and deliver all your items. If you’re not a fan of wrapping parcels, then this can get very old, very fast. 

But what if I told you there was another option out there that allowed you to skip over all the boring bits while still doing essentially the same thing? Well, that business model exists and it’s called ‘drop shipping’.

Here, you are essentially acting as something between a reseller and an affiliate and you’re cutting out the middle man – in this case eBay.

What is Drop Shipping?

So what drop shipping essentially involves is selling products on behalf of a wholesale supplier. You promote the product just as you normally would and then process the payment. Then, all you do is pass the shipping details on to the supplier and pay them their share.

In many ways, drop shipping is the perfect business model. You get to sell real products that appeal to a huge range of potential customers and at the same time, you don’t have to worry about fulfillment or inventory. 

Better yet, most of your customers never need to know that you’re drop shipping. ‘Private label shipping’ means that you get to ship the product from the wholesaler with your branding and return address on the packaging!


How to Get Started Drop Shipping

The only downside of drop shipping as a business model is that it can be somewhat difficult at times to find willing wholesalers who will play along. This means you may need to do some extensive searching in order to find a company that supplies what it is you’re hoping to sell and that will offer the drop shipping service. 

Fortunately, there are some tools you can use to more easily find drop shipping wholesalers:

  • Alibaba – Search a global directory of products and seller contacts
  • Worldwide Brands – Paid membership directory of verified wholesalers
  • Direct Contact – Look up product manufacturers and reach out directly

It never hurts to try!


Creating an eCommerce Store

If you’re going to become a drop seller then creating an ecommerce store will be highly helpful when it comes to generating sales. What’s more, an ecommerce store can also be very helpful when it comes to several other of these business models. 

An ecommerce store is essentially an extension of your website or blog through which you can sell products. This will list your items and allow people to easily buy them and will then manage your sales – for you to pass on to your manufacturers/wholesalers.


Tools to Build Your Store

Just like creating a membership site, you can often create an ecommerce store by adding a plugin to your WordPress site. Options include:

  • WooCommerce: WordPress plugin that’s ideal for small to medium-sized stores
  • Magento: Standalone eCommerce system that supports large inventories
  • Shopify: Hosted solution with easy setup and less technical maintenance

Each has trade-offs between control, scale, and ease of use. Choose based on your business size and tech skill level.

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