A Guide to Successful Dropshipping
Sports have always been an important part of American culture. Baseball is America's pastime, and millions of Americans watch the Super Bowl every year. The popularity of sports in America is even more widespread now that health and fitness seem to be on everyone's minds. This popularity has created a profitable market for drop shipping sporting goods. Knowing the retail and wholesale values of sporting goods as well as good places to sell them will aid you in drop shipping sporting goods.
The retail costs of sporting goods are ultimately dependent on what specific sporting good you're buying. For example, a canoe will usually cost more than a pair of hiking boots. Sporting goods are typically available in quality ranges from low end to high end. The average retail price of a low end item will be less than the average retail price of a high end item. To get a better feel for retail values when drop shipping sporting goods, you should decide which product you're interested in selling as well as the quality range in which you want it to fall. Shopping around for this product will enable you to determine the average retail value.
The Internet is a good place to look for sporting goods being sold at retail values. As always, eBay and Amazon have large sporting goods selections. Other resources might include the websites of REI or Cabelas, which are two large sporting goods stores.
Don't assume that online companies offering wholesale prices on sporting goods are all the same. You'll find that many wholesale prices are not sufficiently higher than retail prices to provide enough of a profit margin to make your business successful. For this reason, research is crucial.
Once you've decided on your product, where it falls in the quality range and its average retail value, research wholesale companies that offer it for sale. Contact as many of these companies as possible and determine their pricing. A good wholesale company should offer sporting goods that are 10%-40% below their average retail value. Remember, your goal is to maximize your profit margin. This is a function of quantity sold as well as the difference between wholesale and retail value. This means you should try to minimize your wholesale costs.
When drop shipping sporting goods, there are many places to sell online. One of the most popular, eBay, provides many selling options ranging from bidding to selling at a fixed price. Another popular option is selling through Craigslist, which is a popular online marketplace.
The most efficient online selling option for your drop shipping sporting goods business is to build your own website that is targeted around the specific product you're trying to sell. This method sets you apart from the crowd by allowing you to configure your own organizational scheme and business policies. Building your own website is most appropriate for serious business people who sell high quantities of sporting goods.
Drop shipping sporting goods is a good selling option as the sporting goods market is growing in profitability. The retail and wholesale values of sporting goods depend on the specific product and the quality range intended, which makes product research necessary. Nevertheless, maximizing your profit margin should always be your top priority.