More than simply reducing risk, however, drop shipping can enhance existing brick-and-mortar operations with valuable partnerships and improved customer service. Get started with three easy steps:

1. If you don't already have them, get a business license and tax ID number, as a drop-shipping business must be treated as a real and legitimate business — complete with all the tax and legal precautions that you would take in opening a traditional business.
2. Choose reliable wholesale drop shippers and surefire products that will sell in volume and which have wide appeal.
3. Market your drop-shipped products on your own Web site and on Internet auction sites such as eBay, leaving you with immediate profits before you even buy anything.

Tips & Tactics
Helpful advice for making the most of this Guide

• Choose wisely. Select your drop-shipping partners carefully by reading reviews. Make sure they're not just one in a line of middlemen, which will add cost to your product.
• Self-promote. Use articles you or others write on your Web site to attract readers and position yourself as an expert.
• Do your homework. Advanced searches will help you find and sort products based on price, brand name, suppliers and other features.
• Stay in touch. Some drop shippers will provide email alerts to let you know when orders have been received and when merchandise leaves the warehouse.