Those that go into e-commerce businessesare aware that there is more to their succeeding than just their products and storefront. There are factors that need to be considered such as:
The setting up cost (about $3360) of a merchant account for card payments, which is expensive and challenging for a new business.Dealing with fraud and dispute resolution with time converted to cost oflabour that could amount to $960 every year.Providing apt and informed customer support (online and 1-800 service) with telephone lines costing up to $600 every year, excluding the time and work to handle the calls.

Licensing theSSL Certificate (Security) and hosting the web are binding and can amount to cost $1100 every year.Understanding search engine optimization and marketing strategies.Return and refund policy in which time converted to cost of labour to deal with product returns could amount to $600 every year.Dealing with drop ship companies which has a set-up fee that ranges from $100 to a $1000.
How Does Drop Shipping Work?
Drop shipping involves finding a wholesale company to help you ship your product directly to customers.
It doesn’t require the payment of an item except it is sold.
No inventory is stored, no packaging or ship merchandise.
All you do is place an advert on a site.
When it is paid for by the customer, you take your profit and pay the product cost to the drop ship company.
Losses are not made with drop shipping.
You choose your retail price and pay the wholesale price to the drop ship company.
For every time a customer pays, profit is guaranteed.
One benefit of dealing with drop ship companies is that no money is needed to invest in the merchandises.
The only money needed is for advertising the products on your web store, eBay or any other auction sites.
One can easily get started by getting acquainted with online services with acomprehensive online business solution for people.
They provide the resources, products and tools, for a monthly fee, that can help you run a wholly functional and profit making business.
Before you sign up,check a top e-commerce site with complete inventory.
From their warehouse, you can select the products you want to sell.
If you make a sale, they would ship it directly to your customers.
You are free from dealing with any inventory and would profit from the difference between the retail price you sold it and the wholesale price of the warehouse.
It is important that you are in partnership with a service that offers complete customer assistance not just for you but also for your customer.
By doing this you are sure to avoid the need to install extra phone lines, and numbers or even be stuck at home dealing with queries.

All the returns and replacements, frauds and any other issues or costs that may arise should also be handled by them, not you.