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Online trading has proved a boon for the enterprising business people. Even for startup or established retailers, online trading has proved a means of making profit by catering to niche markets. The latest addition to the profit-increasing features of new marketing trends is drop shipping. Making best of the drop-shipping opportunities on popular online auction websites such as eBay is a sure way to bring success to your business.

The concept of drop shipping:
It is essential for any business to purchase and maintain the stock, in order to attract more customers, thereby establishing your reputation as a retailer with a great variety of wares available. Even after a customer purchases the goods, the packing and shipping chores take time and money. In drop-shipping, instead of investing heavily in purchasing and maintaining the stock, you make a list of products to market from your end, select a few reliable wholesalers and start marketing and selling those items. When a sale is made, you collect the payment from the customer and at the time of shipping that product, you contact the wholesaler for that product and place the order. That order is shipped to the customerís address but via the drop-shipping arrangement, it is handed over as an ordered delivery for you, the retailer. This helps you retain your link as the retailer with the customer. Thus, in this process, you do not need to invest heavily in purchasing the stock, or spending a considerable sum on warehouse maintenance or packing and shipping activity and arrangement.

How to make the optimal use of the drop-shipping facility?
Obviously, online trading is the surest way of getting maximum number of customers, from any part of the globe. You may not know, but there exist a number of niche markets for specific products year-round. Such markets may be out of reach of your routine retail operations. However, you can cater to such new markets through drop shipping. Again, you may not be aware of wholesalers, suppliers, or manufacturers that might supply just the kind of products your customers are asking for, at an attractive price. The information about such useful providers is definitely helpful in expanding your business. All these things contribute greatly to your expansion of business, increasing the customer base, and reducing your overheads. Such helpful services are available on websites such as eBay. With a little research, inquiries, and comparing pros and cons of the suitable alternatives, you can select a list of potential wholesalers.

Though drop shipping appears to be a lucrative alternative, certain steps should be followed to become a successful drop-ship seller.

State sales tax license: This is necessary to establish your status as a legitimate drop-shipper. Most often, wholesalers are more interested in doing business with professional retailers bringing in big orders rather than individual customers trying to small quantities at wholesale price.

Finding legitimate wholesalers: Not all the wholesalers who claim to ship the goods you purchase are genuine wholesalers who would offer truly wholesale prices. Find the genuine ones and deal with them only.

Find the niche market: Find the specific markets that need particular products. These markets will get you the actual buyers ready to purchase the goods they are looking for, instead of the casual inquirers.






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