5 Secrets to Launching a Drop-Shipping Business in a Day

Karleia Steiner

January 27, 2015

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A successful drop-shipping business has very little overhead. As one of the easier online businesses to launch with minimal overhead, it is fairly easy to set up a company in just a day. Here are five secrets to launching a drop-shipping business in a day.

Set up a business banking account.

Set up a dedicated business banking account. A common mistake made by many business owners is using the personal account for business expenditures. The IRS scrutinizes companies that engage in this type of activity. Any business liability should be handled completely through a dedicated business account. All revenue should be deposited directly into the business account. The accounting practices will be simpler using a business banking account.

Research and identify good wholesalers.

Search for reputable wholesalers. Wholesalers are to be judged differently than other types of businesses. Some businesses have great, professional websites but lack poor customer service. The opposite could just as easily be true. Reaching out to wholesalers directly to learn more about what they have to offer and making an effort to really get to know the company is important in developing a drop shipping company.

Work with multiple suppliers.

Once multiple wholesalers have been reviewed, several of them should be selected as suppliers. Some suppliers have multiple product lines that can serve the drop shipper. It’s never a good idea to rely solely on a single supplier. This is one way to minimize chances of ever running out of stock.

Develop a sound tracking system.

Sound tracking practices are also recommended. All that is needed to get a business started is a CSV or XML file. Tracking information received should be documented in the data file, and customers should be notified immediately. A tracking system is necessary for fulfillment and communication practices.

Establish a customer feedback protocol.

Make customer feedback a priority. Offer customers a discount for filling out surveys. Encouraging customer reviews after purchases are made can be very helpful in building trust among newcomers. Positive reviews added to a website can do wonders for a brand’s social proof. Take the customer feedback collected to be added to different portions of a website.

Setting the dropshipping business up can be set up in the matter of a day. The systems can take a little effort in terms of tweaking, but the systems are easy to maintain once they are set up completely. Many people are able to run a profitable venture a year into this type of business in working with a distribution solution like Commonwealth Inc.