Drop shipping is the practice of selling merchandise on behalf of a wholesaler. In the digital age, an entrepreneur can launch an e-commerce website, market the wholesaler’s merchandise, and take orders and forward them to the wholesaler. Drop shippers hold no inventory, which makes it a low-cost business option for new entrepreneurs.
To start a drop-shipping business, you must research products that have a high probability of selling. Typically, you have the most success selling sought-after products that aren’t readily available in popular brick-and-mortar and online stores. Review wholesaler directories to find ones offering the best quality merchandise and sales terms. You may also need a business license and a business bank account to do business with some wholesalers.