Saturday, 19 January 2013


ECommerce sites are basically shopping sites. Think of Amazon as the ultimate ECommerce site. It may be a store for sports supplements, wedding decorations, or cat furniture, but it’s a store set up online for shopping.
Drop shipping is when you outsource the actual manufacturing and inventory to a factory that you have no affiliation with.
For instance, let’s say I want to start a business that sells scarves. I can outsource the actual manufacturing of the scarves to a factory in China, and then connect them to my US-based online store. So when someone orders on my store, the factory automatically churns out the product and ships it over.
There’s a lot of logistical hassles involved in drop shipping businesses. There are also higher start up costs and more ways things can go wrong. One must be certain that there’s a strong market demand for whatever product they want to sell or you can lose money quickly.
But once drop shipping businesses are off the ground, they’re usually sustainable and consistently profitable. It’s how Tim Ferriss originally made his money. It’s also how TropicalMBA founder Dan Andrews makes his.
I suppose you could say it’s the kind of online business that most resembles a “real business”. And if you have a family like mine, that could be a good thing. Happy Holidays.

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