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    • Hi Neil,

      Just a quick thank you for the web site. I just got a phone order from it! She was ringing from Sydney!!

      Thanks heaps, that’s an order I would have missed out on if it wasn’t for you

      —Emma Cunningham

Drop Shipping

It is possible to own a business without buying a lot of stock or renting a retail outlet. Many people are operating their own businesses from home without having to buy stock in advance. They have been using a system called drop shipping.

Most people have heard of affiliate marketing, were marketers earn money by directing web traffic to online product sellers. It’s a great way to earn money, but many marketers find that their modest affiliate marketing profits aren’t worth all the effort. That’s why many online marketers are now turning to drop shipping, which goes a step further than affiliate marketing and thus allows you to make larger profits.

drop shipping

The practice or drop shipping has been around for longer than most would expect. The ancient traders conducted business using a drop shipping system. They would travel long distances to sell the products of warehouses and manufacturers. They would take samples to the retailers and when they had an order they would send a runner back to the suppliers’ warehouse and the supplier would deliver the order.

With the technology available today we are able to use the internet to operate a business and sell drop ship suppliers products.

What is Drop Shipping?

You sell products from a drop ship supplier by putting up an online store and market and sell the product yourself, you’re the store, and you’re the primary seller.

Using a drop ship supplier allows you to offer products to your customers without having to purchase goods in advance. With drop shipping, your entire inventory is stored, packaged and shipped by either a wholesaler or a company that specializes in this type of business. Basically, with drop shipping, you cut out the middleman. You’re the marketer and the seller, and someone else takes care of the shipping. 

How much can you make?

All products have a wholesale price and a retail price. Your profit will be the difference between the two. That’s why it’s best, if you can, to work with a wholesaler that can give you the lowest prices on the products.

How much you make purely depends upon how much work you put into it. If you treat it like a full-time job, you can build up a successful, highly-trafficked website that sells hundreds of products per day.

How do you sell your drop shipping products?

How you sell your drop shipping products is entirely up to you. Many people go through eBay, but there’s lots competition on eBay. Some drop shipping deals have relatively small profit margin, this can mean small profits for your business.

That’s why, for many people, the best way to sell drop shipping products is to establish a website and market it in a way that draws large volumes of web traffic. This can be a challenge, and it may be a while before you start drawing enough traffic to make a profit, but if you keep it up, people will come.

drop shipping

Below we have provided a description of how drop shipping works:

  • A reseller (you) connects with a wholesale supplier or manufacturer who is willing to send prepaid orders directly to their customers. This supplier is called a drop shipper. 
  • The reseller promotes and markets goods or services of that supplier through their own outlet (web site, auction listing, retail outlet etc.).
  • The reseller takes an order from their customer with a retail payment and provides a sales invoice. 
  • The reseller then passes the order to the drop ship supplier with the wholesale payment. 
  • The drop ship supplier then delivers the goods ordered to the reseller’s customer, with a delivery docket. 
  • The drop ship supplier provides an invoice with the wholesale cost to the reseller.
  • The reseller profits from the difference between what they have paid the drop ship supplier and the amount they received from their customer. 

Drop shipping can be this simple with a legitimate drop ship supplier. When choosing a drop ship supplier, resellers should gather as much information about the supplier as possible before proceeding to do business.

We do recommend however that resellers purchase a sample item from their supplier to check product quality and delivery times.

We also recommend joining a drop ship community and keeping up to date with new suppliers and other helpful online business ideas and advice is well worth the low cost.

drop shipping

(Links on this page are sponsored affiliate links; the owner is not a bonfire user of this product and receives commission for sales made. The info on this site is the webmasters opinion only)