I am sure many people have heard of drop-shipping- the lucrative business of sales that involves holding no inventory and only minimal investments.  Is any of it real?

I have spent several days researching this, looking up company reviews through the BBB and search engines.  I have actually found a very samll handful of businesses that are completely legit.

Here are some things to watch out for:

If the business requires money upfront before you even see what the product is- you are going in blind.  Do they have good quality products, good wholesale prices that are comparable to other companies prices, do they even have what they say the have?  This fee is nonrefundable- you won't see the money again if you aren't happy.

Do they have complaints listed with the BBB?  Even if its only a few- do you want that to be your customer and your bad rep?  How much effort and trouble does a customer usually go through before he/she files a complaint with the BBB?  I would guess quite a lot. So that means lots of headaches.

There are web sites that list internet scams- look the company up- you might get be suprised what they have to say about your potential supplier.

During my research I have discovered that there are some things that will definitely help find a legit business- 1) A business license/retail certificate- these are easy to obatin through your local state revenue department.  Some states will even do it for free on their state web site.  --keep in mind with this in your hands-you must collect sales tax for any auction that you ship to the state that you hold the license from.

2)  A debit card/credit card to pay for your order.  They don't take paypal.

I did find a web site that reviews drop-shipping companies- called ecomreview- It has some helpful information on real companies.  Read all the details and do your own work on any company you may decide to buy from.

Remember, even if you have the product all ready to go- it ain't going anywhere without bidders.  It is up to you to advertise your storefront and your auctions to achieve customers.  Don't blame the wholesaler if you can't sell the product by just putting up a picture.  Now you have to research how to make the sale.

I am anxiously awaiting my new paypal debit card so that I can get started.  Sigh.  Is it here yet?