A drop ship home business is great home based business because you don’t need to stock any inventory and you don’t have to worry about shipping products. It’s particularly important to have a great supplier as your drop ship supplier.
One thing to watch for when evaluating your prospective drop ship suppliers is this: will they be your competition? When you are dealing in niche product areas, you will find that a lot of the drop ship suppliers also sell to the public. While they are wholesale suppliers, they may have a separate website where they sell to the public. They may also sell retail.
This isn’t necessarily a bad thing but it’s something you need to consider. Once you have access to their wholesale website, compare the pricing to that on their retail website. Most sensible drop ship wholesalers won’t undercut their business customers so they should have a hearty margin on their retail products. But you may find a few that are selling their products too close to wholesale and that can make it difficult for you. There are other factors involved as well – for example, they may have a really awful website and then the pricing won’t be much of an issue.
You will have competition anyway, but can you compete with your supplier? Not all suppliers sell retail, but it’s definitely something to put on that checklist when you evaluate that suppler. To find product niches and drop ship suppliers that serve those niches, try the WorldWide Brands OneSource Database.