1. Thorough Market Research is the Foundation for Success:

Meticulous market research doubles your likelihood of making a tidy profit from the wholesale goods you buy. Begin with a list of about 5-10 different concepts. Then check completed listings searches on eBay to figure out what the item generally sells for and the sell-through rate for each one. Use Yahoo’s free keyword tool to find out how many individuals are searching Yahoo for your product each month. You can double this figure for Google. Add the numbers together. If there are 10,000 or more searches a month for an item, this indicates vibrant market.

2. Determine theTRUE Cost of Your Item:

One big reason why people fail at the wholesale game is that they don’t do the stats. In other words, they don’t treat wholesale like a real enterprise. To accurately discover your accurate profit potential on an item, you need to add the shipping cost and insurance, eBay fees (or equivalent for other advertising), Paypal and/or credit card fees (these can be a real profit killer), packaging costs and labor involved packaging, and any storage costs to the cost of your item. Know your numbers if you want to make money in this business! PERIOD!

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1. Plan Your Work: Like every major money making business you need to put some thought into what you want to get out of being a drop shipper. You need to determine how hard you want to work which reflects the level of success that you will get to. This is a very easy business to set up and run and you can generate income on auto pilot once you have set this up correctly. Some of the things your going to need to do upfront in no particular order are…

* Find a domain name

* Get hosting for your website

* Build a website (if your not going to use eBay or amazon or you can do all three)

* Get a PayPal account

* Sign up with eBay

* Sign up with Amazon

* Open a business account

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