Since I know a little bit about drop shipping and get emails about it everyday I decided to pull some information and research together to help wannabe drop shippers find some suppliers and understand how a drop shipping business works.
Since I know you are eager to get browsing I will start with my list of drop shippers.
NOTE The first thing I noticed after my distributor research was that there are VERY FEW good fashion apparel drop shippers. Drop shipping doesn’t appear to be anything most good wholesale clothing companies want to deal with at this time. Which makes sense considering a wholesaler would have to take on shipping individual pieces and deal with customer service and returns when they decide to drop ship.
However being that I think drop shipping is only going to grow as ecommerce grows I suspect more wholesaler clothing distributors will begin to develop drop shipping programs, but until then the above websites appear to carry the best assortment of clothing that you can sell.
What is Drop Shipping?
Drop shipping is a fulfillment model that allows you to buy products individually from a wholesaler and ship them directly to your customer.
Instead of purchasing inventory, your object is to partner with a drop shipping supplier and list their merchandise for sale. Once you receive an order you forward it to the supplier or purchase it on their platform for fulfillment. The supplier will ship the product directly from their warehouse to your customer, and charge you only for the price of the shipped item and the cost of the shipping. This is how it would look.. A drop shipper lists a dress for $12.50 you will then go and try and sell it at something like $25 and shipping cost. Upon a successful sale you will purchase the dress for $12.50 on the drop shipper website, the drop shipper will ship it to the customer and in the end you come out with a profit of $12.50.
What are some benefits of drop shipping?
Low Capital Needed: With drop shipping, you don’t need to invest thousands of dollars in inventory. Rather, you only purchase a product when you have it sold. The costs you will need to occur will be for an ecommerce platform upon which to sell the item (ie. shopify, volusion website or facebook business page) or a monthly business subscription on sites you can sell on like Amazon and Ebay.
Expansive Product Selection: Since it is know cost to you to have more products the only thing holding you back is finding suppliers. The more suppliers you add the more expansive your selection of products and higher likely hood you will sell some merchandise.
Reduced Risk: Without thousands invested in inventory or a brick and mortar store the risk involved with starting an online store is dramatically reduced. If things don’t work out you will probably only lose a couple hundred dollars and additionally you won’t be stuck with thousands in inventory.
Did someone say work from home?: Because you don’t have to worry about fulfillment or running a warehouse, it’s possible to run a drop shipping business from anywhere, including your home.
Is drop shipping a profitable business model?
My take is that it is realistic to come away with 500-1000 dollars of sales a month and anything more then that will take a lot of good marketing and some great web design and ecommerce platform that can set you apart from other online boutiques. The only issue is that there just aren’t many drop shippers that can supply you with the type of clothing that people really want to buy.
What kind of profit margins can I expect with drop shipping?
Profit margins will vary greatly depending on the products you sell. If is is jewelry then you will be looking at a couple dollars of profit. However if you can manage to sell a couple dozen dresses and tops and double up the cost of the item then you will be looking at a nice profit and extra income.
Where do people sell drop shipped products?
Any way you can. Facebook and Pinterest just rolled the ability to sell things on your page and imagine many other social media sites will make it easier and easier to do transactions on their platform. Right now most sales come from eBay and Amazon and thousands of other people create their own unique eCommerce sites.