Wednesday, January 16, 2008
Dropship Business Inexpensive and Easy to Start
Starting an online internet business can be easy if a person has all the right facets in place. Nothing is ever guaranteed, but more and more consumers are turning to internet shopping for convenience as their primary vehicle for purchasing goods. TK Clothes is an example of a simple online apparel store focused on selling name brand casual clothing. This company is completely online and was started for around $6,500. The primary cost has been the website development. Monthly fees to operate the site are minimal. Monthly operational costs are around $400. (Every budget is different depending on the desires of the store owner.) Why is this? Primarily, overhead expenses are low. This business is actually one computer linked to a wholesale casual clothing distributor. The distributor has warehouses across the United States which provide for quick delivery and inventory storage of quality name brand products. The process is simple. The clothing store owner places an order which it receives through the e-commerce website, and the distributor dropships the product directly to the customer. Payment is processed through the website s e-commerce gateway. Thus, operating costs are kept at a minimum. This benefits the store because it can always offer low prices and daily discounts which keep it competitive. This provides for a huge price advantage. Plus, it still can offer free shipping which is an eye catcher for internet shoppers over $50. Most competitors start at $75 or higher. This store is a little unknown secret to shoppers. It sells quality merchandise like Adidas, Columbia, Outerbanks and more. Most brands that consumers can find in local retail stores. The prices that it offers beat a majority of the major competitors. This store encourages customers to compare prices. The biggest expense is advertising. How much a clothing store owner decides to spend on marketing for the website depends on the budget. Through experience, the website is ineffective without advertising so a store owner might want to think twice about the allotment for marketing. This business can operate as a full-time or part-time operation. It is a great idea for entrepreneurs who do not have a lot to spend on the initial start-up costs. As in any business venture, profit is not guaranteed. Opening one of these stores carries the same risk as opening any small business. Success depends all on the individual store owner. In conclusion, if an entrepreneur is interested in a low cost start-up, easy to operate, and the potential to make large profit income then he/she should investigate dropship internet businesses. It is important to make sure to do the research and link to a reputable distributor. There are several other dropship opportunities besides the clothing industry. The best advice is to check them all out before deciding. This article was written by Theresa K. an entrepreneur who has been researching the opening of her own small business. She received her master s degree in Business Administration and proceeded to research dropship businesses for quite some time before opening her clothing store. The business is challenging but has great opportunities. She invites you to stop by and check out her store at http://www.tkclothes.com
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