There are quite a few ways to go about starting a small business in this day and age. Some require large start up costs, and others can be started for next to nothing. One medium that is being utilized more than ever before for businesses is the web. You have probably heard of eBay and sites like it, where people can auction goods online. One small business start up that has come out of the eBay culture is drop shipping. Here’s how it works-
Drop shipping is a very inexpensive way of selling physical goods without having to purchase a lot of stock up front. Most people who use drop shipping set up online stores, collect payments from customers, and then send the orders to the drop ship company. It is the drop ship company’s responsibility to then send the purchased goods on to the customer. The costs for using drop shipping remains quite low since there is no up front stock to buy- the drop ship company takes care of that.
The only things you will need to purchase are the shopping cart software for the web site and a merchant account to sell. If you use eBay, there will be some seller’s fees as well. You will make money off of the merchandise that you sell and that is then shipped by the drop-ship company. This is a very easy, low-cost way to start up a small business because there is effectively no outlay and no wasted product that you haven’t sold.