So you are looking for the best places to source for dropshipping businesses? Well, you have come to the right blog post for that. Drop shipping is one of the simplest and best ways to sell different products online.
The major difference between a typical retail model and dropshipping, is that the merchant or retailer doesn’t keep your inventory. Rather, the merchant buys stock from a third party – a manufacturer or wholesaler to fulfill orders.
Drop shipping is a trend that started in 1999 by Zappos. It is a trading system which began when Zappos did not have enough warehouses to keep its stocks.
The only way forward at the time was to ship directly to its consumers, and it helped the company a great deal. The advent of e-commerce and technology made it easy for Zappos to set up online structures to meet the needs of her consumers.
Presently, with the increasing growth of e-commerce, Zappos is now a favorite online shoe and clothing store in Las Vegas, Nevada. Other online stores with success stories include Amazon, Wayfair.com, Fab, and Gilt.
It is safe to say that the advancement of technology played and still plays a significant role in the growth and development of drop shipping. In the 21st century, the use of social media has helped several companies to advertise their products.
Furthermore, Tech companies and major financial institutions have created apps which have made it easy for people to shop faster. All it takes just a click or a phone call and your products will d get to your doorstep regardless of your location or personal identity.
what then does drop shipping involve? It involves 3 essential parties:
- The consumer (or buyer)
- The merchant
- The supplier
In the regular trade system, there are only two parties: the buyer and the seller, both of whom transact directly or indirectly (through wholesalers, retailers).
The seller takes it upon himself to stock goods even when the consumer does not request for them. He offers varieties of his products and bears the warehousing costs, transportation costs, customer satisfaction and so much more.
In drop shipping, the merchant or seller ships directly from his suppliers to the consumers on demand – meaning he delivers upon request.
Even though it is a retail form of trade, it does not involve any sort of stocking or inventory taking. Consequently, the merchant does not bear the costs of warehousing or transportation, which makes him unaccountable to the consumer or his supplier in the event of any loss.
He is merely the agent between them as his role is to place orders on behalf of the consumer as well as communicating shipment details to his supplier.
Traditionally, this was the method adopted. However, with changes in time and era, the system has rapidly evolved. For example, the role of the merchant is more defined.
He is not dormant – he does not retain stocks, yet he advertises what he purchased from the supplier on his own platform and charges an agreed commission. Also, he has more than one supplier as he now sells varieties of stock. He is therefore as relevant as the wholesaler/supplier.
Having understood what the drop shipping business is and what it involves. Let’s take a look at some advantages and best places to source for drop shipping businesses.
A dropshipping business has a number of advantages:
- Speedy delivery
With dropshipping, goods including perishable goods are delivered in good condition. The goods are shipped directly to the consumer without getting stocked in warehouses or stores.
- It saves time and money
Due to the fact that Dropshipping is an e-commerce business, it makes it easy for you to plan ahead and be more productive with your life since it can be operated anytime and anywhere and with ease.
Also, since this business does not involve stocking goods, it saves you money as you do not have to think about warehousing or transportation costs.
With dropshipping, all you have to do is to communicate the consumers’ order to the supplier and make sure that order is confirmed and delivered. There are no protocols to be followed – The basic turn on here is information.
Dropshipping business produces immediate gain especially if you are a good marketer. If you keep track of the latest trends in the market, that is an added advantage.
The business is not tasking. It is a self-thriving business which does not require a tremendous amount of money to begin. You can start a dropshipping business with any amount, and you will increase your income.
- Provides practicality
A retail location or storage facility is not required – all you need is a website to sell your products. You can sell a lot of products. Also, items that are difficult to store such as perishable products and large products are very easy to sell.
Really anyone can start a drop shipping business As far as you have the heart and the mind to carry the business.
Strategic and best places to source for drop shipping business:
Dropship Rocket is by far the most cost-effective option to source for a dropshipping business. dropshiprocket.com offers pre-made and custom-made dropshipping businesses for sale.
Each business comes with its own Facebook business page, free hosting, lifetime support and access to there free step by step marketing training.
Dropship Rocket even has digital service businesses. These businesses allow you to start your marketing agencies from scratch and outsource all the work, it’s like dropshippping services instead of products.
Businesses at Dropship Rocket start at $295 and are well worth the small investment for the quality and just overall assistance they provide in building your business.
Beforwarned dropshiprocket.com business model is to assist its new clients in becoming successful with there new business. However, their goal is to convince you to sell your successful business once it reaches $500 to $1000 monthly profits, and allow them to broker the sale of your business at a 15% broker fee.
Online business normally sale for 24 times its monthly profits. So a business generating $100 a month in sales could easily sell for 20k to 24k. So my suggestion is to purchase the two package deal from dropshiprock.com let them sale a store and keep the second store as a long-term cash cow.
Empire Flippers is an amazing source to purchase high end established online businesses. Unlike Dropship Rocket who supplies you with there own prebuilt or custom made stores. Empire Flippers is a 100% website brokage company.
They list websites for sale from 3rd parties and they help broker the sale of the business. Empire Flippers put investors and online business owners in contact with each other.
However, most of the businesses sold on empire flippers websites start at over the 10k mark to the millions of dollars. If you looking to start a serious money-making business that has cash already flowing in, then you may want to choose a business from Empir Flippers.
Flippa.com has been around for a long time and you can find just about any kind of website, app, domain name or dropshipping businesses for sale. Flippa functions much like an eBay. The major difference being the only product listed on the platform are websites, apps and domain names.
The starting price for dropshipping businesses on Flippa varies. For example, you can contact sellers and negotiate a deal, or pay anywhere from $50 to over a million dollars for a business of flippa.com. They have a buy it now option and auction option for interest buyers.
Just be super careful on Flippa the platform a great option, however, there have been many reports of people getting scammed on the site.
Shopify exchange Marketplace is for buying and selling Shopify stores. The prices of the stores also vary. There are some great deals on business over at Exchange Marketplace. Just keep in mind that they are all Shopify store which will require you to pay a monthly fee to Shopify. However, the Shopify platform is so user-friendly its kinda of hard to argue with the monthly fees.