What is Drop Shipping

When you think of drop shipping, you may think that “drop shipping is nothing more than a scam.” We’re here to tell you otherwise. With the right product sourcing, you can be rest assured you can make money online.

One way of that is through drop shipping, but let us explain what drop shipping is and how it works; that way you can have a full understanding before you make costly mistakes by using a “middle-man” who takes your profits. 

Drop shipping is when you eliminate shipping and inventory hassles by using a supplier to fulfill your orders for your customers. First, you focus on finding the right supplier who carries the product you wish to sell. Afterwards you then list the item on an e-commerce websites like eBay, Amazon, or one of your very own custom websites. Once a customer purchases the item, you pay the supplier the wholesale cost, in which the supplier then processes the order for you by packaging the product and shipping it directly to the customer for you. The difference between what you sold it for and what it cost you is your PROFIT. So, in a nutshell, drop shipping is simply this: Sell Now. Pay Later.

For all you visual learners, here it is again: 

List Price – Wholesale Price = Profit 

How Drop Shipping Works

We have placed a nice graphic below that summarizes and displays how drop shipping works.

How do I find Suppliers?

With a good online drop ship directory, you can find qualified and reputable wholesalers / drop shippers that have been screened. Why research all these numerous companies and spend the time doing it when we have already done it for you. Another advantage of working with drop ship directory is the mere fact that they are NOT a middle man. Again, that means that you keep 100% of the profits. They just provide you with the information that is necessary to becoming successful online. With many product niches appearing each day, it is essential that you have reliable information and an experienced company to work with who knows the pitfalls. 

Wholesale Supplier Standards

Wholesale suppliers should be rated by the following standards:

  • Profit Margin
  • Return Policies
  • Restocking Fees
  • Product Selection
  • Speed of Shipping
  • Amount of contact information – Phone, Email, Fax, Live Chat, etc.

Quality Control

If a wholesale supplier is not living up to your expectations or delivering your products in a timely manner, contact the directory. If they care about the quality of the product and the customer service you receive from the suppliers  they will resolving the problem, or the supplier should be taken out of their drop ship directory.

Think of a drop ship directory as your “little black book” of supplier contact information. There should be no hiding of contact information in the directory. Many will also provide valuable content that will teach you how to drop ship products online.

About the Author

Paul Becker is an author, entrepreneur and fitness expert. His company is a respected source for Supplement Dropshipping USA, to find out more about this unique opportunity go to http://www.trulyhuge.com/dropship-supplements.html


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