Wholesale Drop Shipping - How It Works
by: John Lynch
One of the most frequently asked questions on the Net is:
"What should I sell online?"
Many people know what products they want to sell.
However, they don't know how to do this. Should they
physically stock the products themselves or promote
other companies through affiliate programs?
Drop shipping may be the answer for some website owners
who want to become stockless retailers, whereby they keep
no stock themselves. Instead they promote products on their
website and get a drop shipping company to despatch these
products for them.
Here are the steps involved in drop shipping:
1) You open an Internet Store with a shopping cart
and accept credit cards on your site. You can also
sell on Internet Auction sites such as eBay or on
Yahoo Stores.
2) You find a distributor who will "drop ship" the
products you want to sell.
3) You open an account with the "drop ship" distributor(s)
you choose.
4) You receive descriptions and images of the products you
wish to sell from the distributor and put them on your
Internet Store or Auction.
5) When a customer buys from your Store or Auction, they pay
with their credit card. Your Store or Auction charges their
credit card plus shipping.
6) You email the order to the drop ship distributor with the
customer's name and address.
7) Then the drop shipper despatches the product to your
customer from the warehouse with YOUR business name on the
package.
8) The drop shipper charges you the wholesale price plus
shipping. Remember you have already passed the shipping
charge on to your customer, so the shipping costs you nothing.
So that's how drop shipping works. You don't have to buy
products in bulk and store them, hoping to sell. You don't have
to pay to have it shipped to you, and then pay again to ship it
to your customer. All you had to do was send an email to your
drop shipper.
However, you must ensure you deal with honest and reliable
drop shipping companies or your business reputation will suffer.
(C) John Lynch
About The Author:
John Lynch
For details of reliable drop shipping companies for your website: go to: http://www.merchant-account-service.com/drop_shipping.html.
March 2006
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