Home based e-commerce businesses have been around for some time. The key to success is the ability to find the right niche for your online dropshipping business.

Dropshipping websites are a current home business model that is used by even large-scale retailers such as Sears and Pier 1 Imports. A dropship business success depends on your reliability as a middleman to manage the order from beginning to end. From the moment the customer makes their purchase, where you forward the order to the vendor and making sure the vendor delivers to the customer as expected.

This allows you to run a turnkey dropshipping website operation without the expense and overhead of a traditional company. The appeal of this type of business is that you don’t have upfront inventory costs, or a warehouse full of unsold, physical merchandise.

The Downside To A Dropshipping Website

However, there are downsides to this business model as well. Dropshipping businesses also have an enormous competition, leading to lower pricing, and lower commissions for you as the seller. Which is why finding the right niche is critical.

One of the current options available to begin a dropship business is to purchase a pre-made business that is completely set up and has an established relationship with supply vendors.

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The problem with this is value. Some pre-made established businesses available for sale are not properly valued. A good price to value would start with a cost averaging of at least eight months of income up to two years of profit.

Some of the key questions to answer before you buy a dropshipping business are the costs/value of the website set up itself, hosting fees, organic traffic, their SEO, the type of products offered, and the existing relationship with the vendors.

Get Your Dropshipping Website Built For You.

A second option available is to hire a reputable service to create a responsive dropshipping website that is a custom designed turnkey dropshipping business operation pre-loaded with products and vendors. One that is already set up for multiple online stores, such as eBay, Amazon, and Facebook store, as well as marketing set-ups for Google, Yahoo, Bing, and Facebook.

Build Your Dropshipping Website Choose A Supplier

A third option is to build a site from scratch, from creating the website, adding the proper apps for shopping carts, and apps for the customer to pay. This option also allows for choosing your own vendors, and merchandise to be listed on your website. If you have a previous history of retail fulfillment and third-party dropship vendors, this may be the way to go. However, if you don’t, then you may not necessarily understand the importance of the dropshipping vendor and their ability to provide a reliable service.

This process is more detailed and time-consuming for you as a seller because you have to find the dropship vendors yourself, then you need to create a platform to sell from, establish a Tax ID, and then upload the merchandise information directly to your new dropshipping website. If you go this route, it is recommended that you use a paid dropship directory such as Salehoo.com. It is important to use a reputable source for drop shipping wholesalers. If you don’t want a free list of dropshipping suppliers please subscribe to our newsletter.