Wholesale & dropshipping

How dropshipping works:

1. Find a dropshipper. First, find a dropshipper with the product range you want to sell. This we solved using Salehoo that holds the largest (and in our experience the best) database of dropshippere around the world.
2. Add items up for sale. When you have come into contact with a dropshipper, you can start adding the items up for sale on the Internet. Do you own online store, you can include the items in your store, but if you do not have it, you can also use an ebay account or for that matter use finn.no or something as basalt as classified ads in the newspapers.
3. Receive order order and start making money. All the orders you receive, you should forward to the dropshipper. How payment is solved in practical vary, but the standard procedure is to first receiving payment for a product from a customer and then you pay the dropshipper for the item to be sent out directly to the customer. What you earn in dollars and cents is the difference between what your customer pays you, and you must pay the dropshipper for the same item.

Example of how to start a dropshipping and wholesale business:

Register at Salehoo, and then find a company that offers drop shipping deals directly from their warehouse. This provider specializes in electronics, and you find that you want to sell different from their range of tablets.

You can find several different models tablets from different manufacturers, adding these up for sale on eBay. You will then receive orders. An order comes from Canada, another from South Africa, and several orders from the United States. After a week you have received 10 orders from all over the world.

Has relayed the orders to your supplier, who in turn packs all the goods and ensure that goods reach the right customer. Packaging of goods and shipment is thus something you do not need to worry about.

Have received payment from your customers, let's say this was 15.000 million in total. Your price provider, for this order, however, only 6.500 million. The difference, which is what you earn is then 15,000 minus 6.500, which is 8.500 million.

As you can see it is just as easy to sell goods to customers anywhere in the world using this method. The risk is minimal compared to the purchase of goods themselves and then sell these goods on.

How do I find products to sell?

As mentioned, there is a good database of all the world's dropshippere online. It is located at Salehoo and use the service, you have the best possible position to succeed with this.

How much can you earn dropshipping?

There is no limit to how much you can earn. Income limited to, the sales volume and order volume. How much you earn depends therefore on how many orders you get, and what a difference you have between the sales price and the supplier price.

Important for sales volume and vendor price

It's easy to make money dropshipping when you start to increase sales volume, because then you can negotiate good prices with the supplier.

Consider the following example:

• SITUATION A: If you sell one tablet to 1000 dollars, and supplier will have 900 million for the purchase, packaging and shipping, then you're left with a net profit of 100 million.
• SITUATION B: But what if you sold the same tablet to 1100 dollars, and negotiated your way to a better price with the supplier, so you have to pay a unit price of only 850 million. Net profit is then 250 million.
• Difference between situations A and B in the example is 150 million (£ 250 - £ 100). For a single order is not that much, but what happens if you increase your order volume from 1 to 1000 orders orders?
• Sit.A earn 100,000 increase in net profit ($ 100 x 1000 orders).
• Sit.B earn 250,000 dollars.

Difference is quite large between these two situations, but we will look at it realistically, so the order volume is reduced in Sit.B since the price of portable tablets has been set up with 100.

Price: Does it pay to sell expensive or cheap?

It is important to note, then, is that even if you increase the price of the tablet (Sit.B) can allow you to sell fewer units and still make as good or better than if you had sold the lesser of (Sit.A).

Fact you only sell 400 units with retail price in Sit.B to make as much as you would on 1000 orders in Sit.A. Then we have not even taken into account administrative costs, so in reality you'd probably be sold just under 400 units as well, and yet earned as much like you would for 1,000 units.

So raising the price can be one trick, but you must therefore find a balance. Prices you far too high it will have a major impact on the order volume, and then the business unprofitable.

Negotiate vendor price

As you can see from the above example, your selling price affect the order volume. But it also should think about is the sale price you set, also indirectly affect the price the supplier is willing to give you. This is because there is something called Quantity discount.

We have shown that the selling price affects the order volume. As is also the case that the order volume may affect the supplier's willingness to give good discounts. It is clear that one who submits weekly orders worth 1 million will get better discounts than another player who only sends orders to 10,000 per year.

Therefore you see order volume in a larger context.

What price you can give to your clients for maximum profit, again influenced by what discounts you get at the supplier and it will affect your competitiveness in the market.

Why dropshipping? Here are the main benefits

There are many advantages of running with dropshipping, here are the main way we see it:

1. Small risk. Unlike those who buy the goods themselves, there is almost no risk of dropshipping. You do not risk burning inside with own inventory that you never get sold. If you can not sell the vendor's products, you may have wasted some time, but that's all. Advertising expenses if you use ebay or find the only risk, but it will almost never be difficult to sell the goods if you praise you close drop shipment price, so you can anyway expect to get back ad affordability. More likely is it that you are going to make money at the first order you receive.
2. An easy way to make money. If this was so easy, why are there so few who are doing this? The argument is invalid, because the truth is that there are few who are doing drop shipping, but this is actually one of the most prevalent business models in the world. So many of the products available in both online stores and on eBay today sold by distance selling, ie drop shipment appointments. For those who master it, this is a very easy and comfortable way to make money. Some might object to this, but the threshold for success here is really low compared to many other opportunities online.
3. Packaging, shipping, returbehanding - forget it!By forwarding of goods through drop shipping agreements need not spend time to pack and ship out the goods. You do not really spend time on anything at all if you have created an effective system. Order processing can be fully automated, so you can free up time for other things, such as linking you even more drop - shipment agreements or negotiate better deals so that you make even more money. The rich get richer, and nowhere is it so clear that in dropshipping
4. Opportunity to earn big money. Do you dream of being Rich? We will not claim that it is easy to be rich, neither in drop shipping or something else, but it must also be said that if you manage to get the ball rolling, so there are few business models that are equally effective for individuals who within dropshipping. There are individuals who earn tens of millions this year, and some of the richest people in the world owe their fortunes thanks to dropshipping. In dropshipping is really good opportunities to make money, you just have to first get through the first barrier.
5. Accumulation of income. The hardest thing is to start it all, once you've begun, this is more like a play than regular work. Eventually, you can set up automatic systems which include new auctions on eBay set up automatically, and you can use your time to find other products that sell well. What happens then is that the proceeds from ausksjoner that has already proven to be profitable to continue, and maintained automatically, while increasing revenue by constantly find any products and other markets. Your earnings accumulate for each week, and it left many positive implications for your business. The effect can be further enhanced by outsourcing all or part of your business (see what we've written about freelance and outsourcing), so you can free up time for new business adventure.

As you can see from the above offer dropshipping on rare good business opportunities. We shall conclude by seeing exactly how to begin to put it into practice.

To start making money dropshipping

It does not take very long to succeed with this. A week's time will be required to get started, but it does not take long to get it all the time, and eventually you can get very far.

Let's sum this up by telling you how to start making money in dropshipping:

1. Find a dropshipper by using the database on Salehoo. Select a dropshipper (or " wholesaler ") that has the products you want to sell, at the price you are willing to pay.
2. Start to test - sell a selection of items (i own online store or on eBay, find, etc). Try different pricing strategies and learn what works best.
3. Receiving orders: When you receive orders, send these directly to the dropshipper. As you get into many orders daily will reduce any administrative fees dropshipper requires and your profit margin will increase significantly as a result.
4. Snowball effect: Once you have started to make money drop shipping sales, it will be even easier to generate more orders, because you can reduce costs and be able to put down prices, become more competitive, and as a result I order your volume, which in turn reduces sales affordability further and provides better forhandligsvilkår to get even better prices, which in turn provides the basis to reduce prices, and the circle continues then with constant increases in order volume and constant reductions in costs. Economies of scale is called, and when the snowball has begun to roll, it is not long to get there.