Making a Profit with an Online Business (Part 3)

Let’s say you don’t have a product to sell or any service that you provide…then what? Trust me there are still plenty of options for making a lot of money online. The next one I want to suggest is one that I had a lot of experience with when I was V.P. of Operations for a sporting goods company. We did manufacture our own products, but that didn’t stop us for only selling them. We carried a huge online inventory. Key word there is obviously “online.” Allow me to clarify.

3. Drop ship it. Simple economics – The less you have to touch a product, the higher your margin will be when it’s sold. So why not sell products you never have to touch. In other words, have the manufacturer ship it directly to your customer. Thus, you become the middle man. You can carry products that are out of your price range. The idea here is that you have access to customers that the vendor doesn’t. You market and sell their stuff, getting their brand out to the public, while they do what they do – manufacture. They may sell their products as well, but you know if the market has room for you too. It’s really a win/win. You get to carry an inventory that…well, you don’t have to inventory. Not literally. Of course it’s your responsibility to make sure your vendor keeps whatever products your selling either on hand or in the pipeline. You’re the one the customer trusts and will rely on for delivery. Customer places the order online and pays you – You place the order and pay your vendor – The vendor packs and ships the order to your customer. It’s a beautiful thing.

If you’re interested in a business consultation, for more information, please refer to my Behind the Scenes Consulting. If you have questions, please email me at Robert@RobertFinkelstein.com. I welcome your comments below. Thank you.

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