When you start an internet business as a retailer, you need products to sell, and you need to trade products to sell on your website. and you need to first pay to get the products to the trading company and then you sell the products later.

But if you choose dropship business, you have these advantages below,
You don’t have to trade alot of products to sell.
You don’t have to carry stock in your place.
You can order to your dropship company when you get customers on your online store.
The dropship company will ship your order to your customer directory.
You pay the order amount to your dropship company when you get your customer and after you made the sales.
You don’t have to prepare alot of budgetto trade products to sell.
You don’t have to ship the orders.

It’s also called ” Stockless Retailer” . I chose this internet business method when I started, and so far my dropship business is going very well.I believe everyone can get profits once they get the point.

How to start a dropship business ?

1. Find a dropship companies lists to dropship products.
2. Decide what to sell for your dropship business using profitable keywords.
3. choose dropship company for your dropship business.
4. Find a web hosting company and register the domain name .
5. Build your online store.
6. Apply for the merchant service to accept credit card payment from your customer.
7. get traffic to your website.
8. email marketing.

Step 1:

Find list of dropship companies to dropship products.

Where to find the list to do dropship business?

This company is offering tons of dropship companies lists and more than 2,000,000 products are available and more Suppliers with more Products are added daily!
You can search with products , brand name, and company name.
Also they are offering free dropship business ebook.
The free ebook explains everything about dropship business.

Step 2 :

Decide what to sell in your dropship business using profitable keywords.
While you are looking at the dropship companies lists, you can check the products keywords for the profitability.

You must choose good attractive products that have high demand and profitability , low supply.
You can check the keywords here,

Click here check the keywords
They are offering free trial and you can use it until you found good keywords.

Step 3.

Get tax ID and business license and open a business bank account !
In order to apply for a dropship company and a merchant service which we can accept credit card from the customers payment, we need to prepare those three.

Also when you apply for a wholesale company or affiliate merchant service ( some mechant service don’t need tax ID ) they will ask your tax ID.
Where to get them ?
Tax ID – I got my tax ID for free here.

Step 4:

Decide dropship company for your dropship business !
Once you found good products that have high demand and profitability, low supply, you need to apply for the dropship company.

They will send you their dropship program information. Most of the dropship companies offer about 50% to 65% discount as a wholesale price to the dealers.

Some companies offer dropship fee ( $1.00 to $5.00 for each order) and also some may offer minimum order about $150.00 in the first time order.

Please make sure to check all their dropship program information. I’m measuring at least 60% profits from the wholesale price. Your profit = retail price you set up in your store – wholesale price – transaction fees

If the dropship company offer dropship fee in each order, you can add the dropship fee in the retail price when you set up the price.

Step 5 :

Find a web hosting company and register the domain name!
Yahoo Small business merchant solution

I started from this service because I chose drop ship method for my business. Yahoo Small business merchant solution is good for beginners who are planning to open online store ( ecommerce store), selling drop ship & wholesale products.

Domain name registration, online product Catalog manager and Inventory Management, shopping cart. They updated their templates for online stores which look much more professional looking than before. and you can create your own yahoo store by doing easy 3 steps.

Also you can transfer your web page if you already made it from Microsoft Front page or Dream waver.Automated UPS shipment processing, tracking, and shipping label generation.

You can check where your visitors came from, what keywords the visitor searched using Yahoo store manager. They have three optionals that are for
Starter $39.95/mo
Standard $99.95/mo
Professional $299.95/mo
Set up fee $50.

Easy to make and edit online products catalogue pages. inventory manager, UPS calculator for shipping option page , payment method, etc..

If it is for only web hosting ,
Starter $11.95/mo
Standard $19.95/mo
Professional $39.95/mo
$25 set up fee.

Step 6 :

Build your successful online store!
Yahoo offers free download instruction to build your yahoo store. However for beginner’s, it may be litttle bit confusing to build the yahoo store using only their instruction.

I found great ebook Online store profit/ build a yahoo store written by Andy Jenkins and Audrey Kerwood when I was struggling to build my yahoo store, it helped me alot.

They are great teachers and they explain everything about how to build Yahoo store by step by step system. Fun to read and easy to understand.
They are also running their yahoo store, selling replica medieval swords and are earning more than $18,306 a month.

Step 7.

Apply for the merchant service to accept credit card payment from your customer!
Electronic Transfer, Inc
I’m using this company to accept our customers payment with their credit card.
This company offers very low transaction fee rate. Visa, Master – 2.25% and $ 0.29 per transaction fee, American Express – 3.5%.

Also quick apploval time it will take only 1 to 2 days and they have high approval.

The customer support is very friendly and helpful. The price we paid for this service when I applied for it was $58.95 ( one time secure gateway fee $49 + monthly fee $9.95 )

Advanced credit system

This company also offers great tool. One time set up fee $125.00 , Visa Master – 2.21% and $0.25 per transaction fee, American Express 3.5%, $5.00 a month, Discover – 2.38% and $0.30 per transaction fee. no monthly fee. Quick and high approval.

Step 8.

Get a traffic to your site !
After you set up your payment system in your online store, you need to get traffic to get visitors to your site.

I collected many information about internet marketing to increase the number of visitors for my online store.

What you need to learn to get a lot of traffic to your site ?
Search engine optimization
Article marketing
How to make a visitor’s list and email marketing
How to use Pay Per Click advertising service ( Google adwords, Overture, etc..)