subject: Is Drop Shipping An Easy Way To Make Money Online? [print this page] The use of a drop shipping supplier can make the life of an Internet retailer very much easier. There is no picking or packing to do. No problems with postage or parcel tracking. There is no need to store inventory, and best of all no need to buy it.
Drop shipping provides a simple way to get started in a new market, one where you don't know which colors or design variations of your particular widget sell most, where you have only a sketchy idea of the demographic your product serves, and you may even be a little vague on exactly what the product is used for.
Ideally, you won't be vague about any of these things, but if you are, working with a drop shipper will give you some breathing space where you can learn.
But, is drop shipping an easy way to make money online?
Businesses which use drop ship suppliers are closer to the mythical 'sell while you sleep' model of Internet business. Customers buy without any intervention from the store owner, and if all is set up properly, the order is sent directly to the drop ship supplier.
On a good day, all that happens is the store owner takes a break from sipping his Mai Tai by the pool and looks at all the money amassing in his bank account.
Reality of course is a little different.
Things do, from time to time, go wrong. Complaints must be dealt with and queries answered, but none of this is difficult. It seems idyllic, all except for one thing. The role of the store owner is to find the customers and bring them in.
Customers do not arrive on web sites armed with credit cards and ready to surrender. Most often they don't arrive at all. The process of bringing traffic to the site is one which requires a lot of work in marketing and promoting the site on a constant basis.
One stark fact governs all internet income; no website traffic means no sales. Drop shipping is a great process, but some website owners do have unrealistic expectations of the products they choose to sell.
A business seeking $5000 a month in turnover needs to sell only 5 products if these sell for $1000 each. With an average conversion rate of around 2% this means that for every 100 visitors, two will buy.
To make five sales this means 250 visitors are required per month, not a huge number. However, the majority of items on the internet sell for a lot less than $1000.
If the product sells for $5 then you have to sell 1000 products a month, which means you have to attract 1000/2 * 100 or 50000 visitors, a much bigger problem.
Drop shipping is an easy way to make money on line because it allows the web site owner to specialize in one area; finding and converting website traffic into customers. The other aspects of the sale, such as supply, are dealt with by others.
Finding and attracting web site visitors is not, however an easy task. It requires dedication and a degree of consistency to market and promote the site on a constant basis. But finding a drop ship supplier for your product is a great way to start.
by: Kirsty Hale
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