Ecommerce Statistics According to a Forrester Inc. report, online retail sales will grow at a 25% annual growth rate over the next five years. Online retail sales will reach nearly $230 billion and account for 10% of total US retail sales by 2008. On Ebay, more than 430,000 people are making a full- or part-time living from the auction site. Many of them use drop shippers to sell their products. Although internet businesses are becoming increasingly popular for a full-time living, many of these ventures fail because the entrepreneurs lack the knowledge and expertise in starting and growing an online business. The primary purpose of this website is to help online business owners promote their businesses effectively and to source for wholesale products. What are drop shippers? How does the online drop shipping business model work? Drop shippers are simply wholesalers who are willing to ship their products directly to your customers, instead of selling a stock of products to you first. The process is as such: After conducting research on the niche market you want to target, you contact the drop shipper of your choice and register an account with them. Next, you design a website complete with product catalogue and credit-card-accepting functions. The product descriptions and images can be usually obtained from the drop shipper. After which, you drive large volumes of targeted traffic to your website with internet marketing techniques. Some visitors will place orders at your website, and pay you the retail price with credit cards or checks. The orders are then forwarded to your drop shipper, who will ship the products to your customers. The profit you earn is calculated by taking the difference between the retail price and the wholesale price. How do drop shippers benefit you?
- You do not have to spend a fortune on the HUGE inventory of wholesale stocks before you start a retail business.
- There is no need to worry about shipping your products to your customers. After receiving your order, your drop shipper will deliver your products for you.
- You make a profit each and every time, because you collect your payments upfront -- You sell your products online first before buying them from your drop shipper.
- There is no minimum quantity of products that you have to purchase from your drop shipper.
What are the other benefits of an online business?
- Extremely low startup costs. You'll only have to pay for software, guides, web hosting fee and the wholesale costs of the products.
- Automation. Your online business will generate passive income for you 24/7, even while you sleep! This is due to the ability to automate the business process with your software.
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