Thursday, December 25, 2008

Selling Products or Services Online

Another way of making money online is by setting up an online store. It may cost a lot to start an e-store, however, one way to start an online business with minimum capital is to deal with drop ship wholesalers. A drop ship distributor is a wholesale company that will ship products directly to your customers. There are many pros with this setup: you don’t have to store any inventory because the wholeale company will ship products directly; you don’t package and ship the products; you don’t need to pay for products unless they are sold; your customer will pay the retail price of the product and you pay the cost of the product that was charged by the distributor in which the difference becomes your profit. The cons of drop shipping services are: you are open to scams and may encounter unreliable drop shippers; you won’t get as good a deal on products due to the fact that you’re ordering products one at a time as opposed to buying in bulk; shipping costs may be high and may turn customers away. eBay is usually the best place for anyone to start selling their products with drop shipping systems.

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