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Is It Possible to Make Money as a Wholesale Dropshipper?

Is It Possible to Make Money as a Wholesale Dropshipper?

There is no simple answer to this question. The answer depends on quite a lot of different factors including your experience, knowledge, determination, and even luck.

A lot of your success as a dropshipper depends on research. Before you start online retailing using a wholesale shipping supplier, you need to do some research and find out for how much other retailers are selling the product you are trying to sell. If the price is about the same for all of them, you can easily see what you will be making in the business. In such a situation, you will have to focus on making the customer choose you over them. Excellent product knowledge and customer support can do just that. These will attract new customers and keep your old ones.

If you want to expand, and are looking for other products you want to sell, start with the products that are in your area of expertise and have a high potential for making a profit. This research will take time, but that is worth it.

If you are lucky, you may catch the right trend while it is on the upswing, and enjoy all of the benefits. The great thing about using a wholesale drop shipping supplier is that even if your product is no longer new or in demand, it is not stuck in your warehouse. It sits in the supplierís warehouse. After all, you did not have to pay for the item that you can no longer sell.

There are some things you need to know while calculating the possible profits. Donít look at the percentages, but rather focus on the number of dollars. For example, you may buy a beautiful cuckoo clock made in China in the Black Forest style from the wholesale dropshipping supplier for $10 and sell it for $20, giving you a 100% return on your investment. However, there are other costs that will need to come out of those $10 of profit, substantially lowering it. If, however, you purchase a cuckoo clock made in Freiburg, Germany for $500 and sell it for $1000, you get the same percentage (100%), but a much higher amount of profit. Thus, choose your products wisely.

The great thing about running a dropshopping business is that your customer pays you before you actually buy the product. Thus, you run the same risk whether you offer a low priced product or one that is high priced. Fortunately, there is practically no risk involved.