If you want to make money online whether part-time to substitute your income or as a full time role, then you want to ensure that the business model is simple, effective and legitimate
One of the simplest ways is ‘selling product’ on trusted platforms like e-Bay and Trade Me.
The problem for many people is the perceived cost of setting up a business and the stock (inventory) required and this is where the idea of drop shipping helps.
Have a look at this video that explains how this works;
Of course, to make money online you need the right tools.
CLICK HERE to learn and get started.
Drop shipping is where a wholesale drop shipper (the supplier) offers you the option of selling products without buying them first. They also act as service providers who prevent you from having to:
- Store items
- Package and ship items
- Risk money on items when you aren’t sure about how they will sell
But they don’t do all that for free!
When you buy from a wholesaler offering drop shipping services, they add a fee to cover the costs involved with offering this service which means you must be careful when you think about the products you want to drop ship, as there are some items which are much more suitable for drop shipping than others.
We suggest going for:
- Deep niches such as rear brake lights for late model Honda Civics
- Low-volume sell-through rates and high profit margins – meaning you won’t sell 150 per week but you will make a decent profit on them when they do sell
- Low competition. This is important when you are drop shipping as you have to take those drop shipping fees into consideration, which makes keeping up in a competitive market really tough on sellers who are drop shipping.
Simple 4-Step Plan To Make Money Online
Step 1: Find Suppliers
You need to explore a few different possible suppliers. Try our own SaleHoo Directory which is full of reputable sellers stocking a wide range of products from cosmetics to farming equipment.
For local suppliers, try flicking through your Yellow Pages in the Wholesale or Suppliers sections. Look for ones who have plenty of experience in drop shipping and who understand the importance of sending out your items in a timely manner.
Before negotiating a deal with them, ask:
- How long it will take for an order to be shipped once you have placed the order with them?
- What shipping methods do they offer? E.g. overnight courier, or for international suppliers, which company they use and what their tracking systems are like.
- What are their quality control systems? You don’t want to be dealing with sub-standard products, it will mean lots of hassles with returns, which wastes valuable time you could spend on making money.
- Do they offer warranties?
- Can you use their product photos? Large wholesalers often have professional product photos taken which will make your listings all the more professional looking
Step 2: Select Products
This step could also be Step 1 those who know exactly what they want to sell. Start by trawling through your suppliers product range and pick out a few items which interest you and do some market research. Find the best selling items by:
- Using a service like SaleHoo Market Research Lab, which performs market research for you when you input key words into the search tool, and tells you all sorts of valuable information including the average selling price, average shipping price and sell-through rate (ratio of listings which sell in relation to those which do not). It’s free with your SaleHoo membership, well worth it to ensure you choose only profitable items to sell!
- OR The old fashioned way: Taking a close look through eBay’s completed listings. If you haven’t used this method before, follow these simple steps:
- Go to eBay.com (or your local eBay site, Trade Me etc)
- Click ‘advanced search’ (located right next to eBay’s search bar)
- Check the ‘completed listings’ box
- Enter your keywords and category and hit the search button
- Now scroll through around 5 pages of listings and count the number of successful listings (listed in green), compared to the unsuccessful ones (listed in red).
- When you find an item which sells 60% (or more) of the time you can be pretty certain that you will be successful in selling it. The easiest way to find out whether a product sells 60% (or more) is to scroll right down to the bottom of the page and make sure you’re viewing 50 items per page. Then go through and count the number of green listings. When you get to the bottom and have counted at least 30 (60%) green listings out of the 50 listed… that’s a good sign! You might be onto something so keep looking through a few more pages to make sure.
If none of your products match up, go back and find something else to research or try searching the same product under different key words and categories.
Step 3: Choose a Selling Platform
The obvious selling platform is eBay but there are plenty of other online auction sites out there which are growing rapidly and getting a lot of traffic (and some are even fee-free or much cheaper to use than eBay!)
Check out sites like Bonanza.com or Amazon.com and see if there is a market there for your product range. It’s a good idea to diversify when it comes to selling on online auction sites as each site has its own unique visitors (not everyone checks eBay first!) and with most sites being free to join, there is no reason not to give others a try.
For sellers who are really looking to diversify, consider setting up your own eCommerce site such as a SaleHoo Store which is the fastest and easiest way to open your own store.
You can get a free 30 day trial of SaleHoo Stores right now and try it for yourself.
Step 4: Manage Your Listings
When drop shipping, you will list your items in the same way you would if you had the stock on hand, but when selling on eBay (and some other sites, you must check individual policies), you must disclose in your listing to all potential buyers the location of your item.
For example, if your supplier is based in Hong Kong, you must display this in your listing so that buyers are aware that there may be longer than expected shipping times.
Drop shipping orders work a little differently than regular wholesale orders. Here’s what a typical drop ship order will look like:
- After you have chosen your items from your supplier, you will list them on your own website Store set up from within Salehoo plus list on e-Bay, Trade Me or whatever marketplace you select to use.
- Once the item is sold, you will collect the money from the buyer and pay your supplier (keeping the profit you make, of course!) by ordering the item you have just sold from their website.
- The supplier will then deliver the item you have sold directly to your buyer.
You will soon work out which products sell best so you can begin adjusting which products you list.
Part-Time Online Business
Some people make a full time income with just 2 sales per week!
If you want to learn how to make money online selling just a few products then there is training to do that too.
You can get a free 30 day trial of SaleHoo Stores right now and try it for yourself. After the 30-day trial is up you can make the decision to keep this and make money online, or try something else. The main thing is this is 100% risk free.