What Is Drop Shipping?
People have been distributing products since before the first mastodon skinner traded a fur coat for a flint axe.
Here's how it works.
Let's say ABC Manufacturers makes a product called Mom's Ankle Wax. We'll say that Mom's Ankle Wax has been around for years. It's a very well known brand name product. It will without a doubt give you the shiniest ankles on your block, and everybody wants some.
ABC Manufacturers makes Mom's Ankle Wax, but they don't sell it directly to the public. They're a manufacturing operation. They're far too busy melting paraffin and waxing test ankles to go around building stores all over the place. They need distributors; companies who will take their product and distribute it to the places that will sell it.
For years, ABC Manufacturers has sold Mom's Ankle Wax to a company called DEF Distributors. The founder of DEF Distributors knew Mom herself, back in the old days when she made her Ankle Wax by hand, out in the turkey barn.
Today, DEF Distributors buys Mom's Ankle Wax by the truckload. They pay $5.00 a case for it, which is a very good price. It's such a good price, it has it's own name: the Manufacturer's Wholesale Price.
However, DEF Distributors does not sell it to the general public either. They are a distributor. They distribute Mom's Ankle Wax.
DEF Distributors works with a chain of retail stores called Wax R Us. This place was founded by a retail business visionary who saw the incredible potential of Mom's Ankle Wax a long time ago. Today there are Wax R Us retail stores on every street corner in every major city in the country. Wax R Us buys truckloads of Mom's Ankle Wax from DEF Distributors for $10.00 a case.
So, DEF Distributors makes $5.00 on every case of Mom's Ankle Wax they sell to Wax R Us retail stores. This makes DEF Distributors very happy.
Cases and cases of Mom's Ankle Wax arrive in the stockrooms of Wax R Us stores everywhere. The Wax R Us employees open those cases, and pull 12 cans of Mom's Ankle Wax out of each case. With their pricing guns, they stick a price of $4.50 on each and every can.
Wax R Us stores make a total of $44.00 on each case of Mom's Ankle Wax. (12 cans x 4.50 per can = 54.00, minus the 10.00 they paid for the case = 44.00).
Wax R Us is even happier than DEF Distributors.
However, the happiest people of all are the people who can stroll into Wax R Us and purchase a can of Mom's Ankle Wax for only $4.50. They think this is a great price, and they're walking around with the shiniest ankles in town.
Well, that's it...basic product distribution. The manufacturer sells to the distributor, the distributor sells to the retailer, and the retailer sells to the end user (the customer). The manufacturer, the distributor and the retailer all make money because the customer is willing to spend money for the product.
Drop Shipping has been around for a long time, too. Probably as long as mail order catalogs; maybe longer. If you want to use a buzzword to impress a corporate type, call it "second party addressing".
Above, we talked about the manufacturer-distributor-retailer relationship. When you use drop shipping to sell products on the Internet, (or anywhere else), YOU become the RETAILER in that relationship.
It should be noted here, if only to keep the Punctuation Police happy, that if you use the method of drop shipping in your business, YOU are not the "drop shipper". The company(s) who supply the products to your customers for you is the drop shipper. YOU become a "Stockless Retailer".
Here's how drop shipping works.
1.) You open an Internet Store, with a shopping cart and the ability to accept credit cards.
2.) You find a distributor who is willing to drop ship the products you want to sell. The best place on the Internet for this is http://www.WholesaleTradingClub.com. Our Drop Ship Source Directory and Light Bulk Wholesale Directory are recognized as the best sources for legitimate Wholesale Suppliers on the Internet.
3.) You establish an account as a retailer with the Wholesale Supplier you choose.
4.) You receive images and descriptions of the products you want to sell from the Wholesale Supplier and post them on your Internet Store.
5.) A customer surfs into your Internet Store, and falls in love with a product that you have priced at, say, $80. They purchase the item with their credit card. Your Store charges their credit card $80 plus your shipping fee.
6.) You turn around and email the order to your Wholesale Supplier, along with the customer's name and address.
7.) The Wholesale Supplier sends the product directly to your customer, with YOUR Store's name on the package.
8.) The Wholesale Supplier charges you the wholesale price of, say, $45.00, plus shipping.
9.) Your customer gets a cool product from your store shipped to their door, and they tell all their friends about you, and you make even more money.
There you have it. You just made a $35.00 profit on one item. You didn't have to buy a whole bunch of the product and keep it in your warehouse, hoping you would sell it. You didn't have to pay to have it shipped to you, and then pay to ship it to your customer. All you did was send an email to your Wholesale Supplier.
That's the drop shipping process in a nutshell!
About the Author
Chris Malta
Worldwide Brands, Inc.
For more info, please visit:
http://www.WholesaleTradingClub.com
Why Should I Use Drop Shippers?
If the irritations of returns, shipping, receiving, handling and inventory are taking over your online business, switching to dropshippers can be a cost effective, sanity-saving light at the end of the tunnel.
Drop shippers are merely companies (usually wholesalers, distributors or manufacturers) who ship directly to your customer for you, saving you the time, fees and office space of acting as the middle man in a buy-sell arrangement. In a nutshell, this means that you can offer a wide variety of products at your website without carrying any stock in-house.
Ideally, dropshippers receive an email from you whenever one of your customers wants to purchase something. For instance, Mrs. Jones wants to purchase an Italian charm bracelet from your website, and makes an order, using PayPal as her method of payment. The bracelet costs $37, plus $6 shipping, for a total of $41. Once you receive Mrs. Jones' order, you email your dropshipper, advising them of the purchase, along with Mrs. Jones' shipping information. You also forward on a payment of only $28 to the dropshipper. Since YOUR cost of the bracelet is only $16, and you've passed along the shipping costs of $6 to the customer, you've just made a $19 profit.
Dropshippers are an excellent alternative for smaller, home-based businesses especially who don't need or have the space for inventory. Plus, if an item becomes obsolete or out-of-date, you have nothing to worry about since you aren't carrying any inventory.
Once you've found a dropshipper to work with, research the following information closely before entering into an agreement with anyone:
- What is the dropshippers' return policy? If they do not offer a guarantee, warranty or return policy, look elsewhere.oHow are you going to pay the dropshipper? Some companies offer direct, monthly billing, but most ask for a credit card payment up front.
- What shipping company does the dropshipper use? Do they offer any tracking for their packages? Are there handling fees as well, in addition to their shipping charges?oWhat is their complaint resolution policy, or do they even have one? What hours is their customer service department available?
- Take a close look at their wholesale rates, and make sure that you can offer a decent price for all of the items you plan on selling, while still garnering a healthy profit.
Not all dropshippers are made the same, however. There are a few unscrupulous practices out there that you need to avoid at all costs:
- Do not pay for a dropshipping list. You can do your own research for a lot less on your own using the Internet.
- Do not pay a monthly fee for the privilege of being a dropshippers' client. The dropshipper should be able to make money from you as you are with your own customers (by selling items at a higher price than their cost), and not by charging you monthly fees for access to their items, database or other services.
- Ask for contact information (an email is fine) from several happy clients that the dropshipper works with for testimonials. Also check with the online Better Business Bureau to make sure there are no negative reports on file.
- Don't be afraid to check the validity of a dropshippers' statements. If they say they are the only source for product A, then check the Internet yourself to make sure.
Just like any online business, using dropshippers to facilitate easier business transactions isn't something that will just one day make you millions of dollars. However, if you choose wisely, your dropshippers can save you a tremendous amount of time and energy, putting more profits back into your pocket.
Wholesale Drop Shipping Scams Revealed
Using Drop Shippers for Your Online Store? Avoid These Common Drop Shipping Scams. I lost a ton of money with fake suppliers until I found these guys. It's time to learn the truth about wholesale and drop shipping from someone who KNOWS the business!
If you want to acquire products to drop ship or wholesale, where do you look? There are all kinds of wholesale and drop ship list for sale on eBay. There's likely to be lots of decent companies right?
Not true, according to Chris Malta, the Product Sourcing Editor for eBay Radio:
When you see all these "Incredible" lists and books and packages of wholesaler suppliers and drop shippers for sale on eBay and the rest of the Internet, for anywhere from $5 to $50 or more, what you're seeing 99% junk.
There are thousands of scammers, snake oil salesmen and con artists on the Internet who are just lying around waiting to AMBUSH you when you begin looking for REAL wholesale suppliers to do business with. Believe it or not, there is a whole niche industry built up on the Net around this kind of scamming! The folks who run these scams have all the moral fiber of a box of hair, and the only reason they even recognize the word 'Scruples' is from the TV ad for the party game.
You may have even fallen prey to one of these con artists, selling you their "insider" wholesale/drop ship list of suppliers. Me too. I've purchased so many lists that I can't even recollect how many. I don't know why, but I tend to find the "good" in people, and I was "sold" by these marketing schemes time and time again, even after being scammed by the latest one. Finally, after so many disappointments, I had HAD ENOUGH. I decided to get to the bottom of this appeal we all have with wholesale/drop ship companies, and find out if there really were any LEGITMATE drop shippers for purchasing "hot" consumer goods at great prices.
I literally contacted the administrator of every wholesale drop shipping website I could find. Posing as an investor, I managed to persuade the owners that I was seriously interested in purchasing their entire website and business. That way, once the cartoonish money bags flashed in their minds, they would grant me free access to their member's areas to examine what I would be "buying". Well, I was appalled with 99% of what I found. Many of the owners actually bragged about how many people purchased their useless subscriptions. I repeatedly found:
- outdated lists
- non-working links
- links leading to other sites that asked for more money
- no help section
- no real email support
- no refunds
I quickly realized that these so-called wholesale/drop ship lists were totally pointless. And the owners knew it, yet they were laughing all the way to the ATM machine! Needless to say, I didn't respond when they asked if I was still interested in purchasing their websites. Surprisingly, while sitting through all of the scam artist's websites, I was able to locate a group of individuals that actually ran legitimate programs.
The owners were common folk like you and me that found a way to earn extra money working from home on their computers. Their membership areas were impressive, with an impressive amount of quality information on how to make $100-$200 per day on your computer doing very little work. I even chatted with a few of their customers in several online forums, and they confirmed that they were earning extra money using the information that the websites had provided them with. It was like I found a few diamonds in the rough. But don't take my word for it, you can drop by the over two dozen sites I found. See what you think.
They do charge a minimal fee for access to their program, which is to be expected for any legitimate enterprise that actually has people on staff who are dedicated to helping you get earning online. What a warm group of people! Anyway, if you do decide you are interested in any of the two dozen companies, I advise you to join post-haste, as the owners have informed me that they are getting so many new members by word of mouth referrals, that they will be blocking off membership completely by month's end. (By the way, you didn't get this news from me!) They don't have a large enough staff to welcome many more people, and they are driven to providing excellent service to each person. Well, my quest to find legitimate Drop ship companies has come to an end. I have to mention I was thoroughly disappointed with most of what I found, and I strongly urge you not to take any chances doing business with any companies other than the twenty four I will share with you.
Whatever you do, I hope you will have a healthy, prosperous year for you and everyone you love.
Take care and I wish you all the best.
About the Author
Kevin Nobleman has researched and uncovered numerous scams in the corrupt online drop ship industry. He has written special articles to help people avoid drop ship scams. With five years of experience in the online drop ship industry, Kevin has discovered over two dozen legitimate drop ship companies, wholesalers, independent suppliers and buyer/seller communities he would encourage you to do business with. He provides this report in a valuable information package on his website, http://www.restaurantandbar.org
How To Make More Money Effortlessly And Easily?
If you are a businessman, do you want to have an extra revenue source and yet put in minimal effort and cost? I am sure that the answer will be a unanimous YES. If you are working for others, do you want to have more money to spent beside your monthly salary. I am sure this answer will be the same as the above question.
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Withour further delay, i am going to exposed the answer that you all wanted to know.
What is E-Commerce?
Electronic commerce, or E-commerce , which literally means buying, selling, marketing, and servicing of products or services over computer networks, has been around since mid 90s. However, recently, E-commerce is getting more and more attention from entrepreneur and consumers, both local and international. The reason for this could be due to the highly successful operations of some well-known names on the Internet, such as eBay, Yahoo and Dell. The sales revenue these companies shown in their annual reports are without doubt, one of the biggest factors why E-commerce is important in the commercial market nowadays.
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Try now and start earning extra income the easy way. Remember!! Work smart not hard.
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