If you use a drop ship business model for your home-based business, how much are you paying for the drop shipping? Most commonly, you pay a flat fee per order for the drop shipping service. Other times, the supplier prices each product higher to allow for the drop ship service. In a few cases, they will pad the shipping charge to allow for this service.
In any case, you’ll need to factor in these charges as part of your cost for the items you’re selling. When all costs are factored in, is there enough profit margin to make it worth your while? And also make sure you’re aware of when the supplier raises or changes their drop ship charge. These changes can directly affect your bottom line.
You can read more about how drop shipping is used in a home-based business in Jump Start your Home Business with Real Drop Shipping, Drop Ship Scams, and Leveraging Multiple Drop Ship Suppliers.