Drop Shipping Explained

Drop shipping, in many ways, is a marketer’s dream. Wholesale Drop Shippers enable you to sell a limitless variety and quantity of products without having to go to the trouble and expense of purchasing and storing and shipping those products.

 The basic formula is delightfully simple:

Conduct an online auction with a reputable auction house such as eBay, and when the sale is made, get paid, and then, and only then send the payment to the drop shipper for the wholesale price of the product.

 What is left over is your profit, and you get to choose your price. Obviously the idea is to put a lower than expected retail price on your product so that the benefit of purchasing from you online can be seen by your customer. You don’t have the hassle of shipping to your customer, or the expense of buying and storing inventory. All that work is done for you.

 You do not suffer from the limitations imposed by having to work within a budget with regard to your stock. For example, if you feel that you would be able to sell 100 plasma televisions, using the drop shipping method this presents no problem with regard to stock, but if you had to actually purchase the inventory prior to (maybe) selling the TVs, then the expense would be prohibitive for all but the largest of businesses. As I said before, drop shipping is a marketer’s dream.

 There are four basic steps that you will need to take:

1. You need to access the drop shippers themselves. One of the best drop shipping directories is available here. This directory gives you instant access to thousands of the best drop shippers in the business.
2. Register with online auction houses such as eBay and Amazon. You can even open your own store within these sites and others, so that you have an ongoing storefront for your customers to access anytime, so that you can be selling 24 hours a day.
3. Arrange your auctions and open your stores.
4. Collect your profits.

 Advantages of Drop Shipping:

1. No expenses involved with buying, storing, insuring and shipping inventory.
2. You can start a business with virtually no expense.
3. You never have unsold inventory.
4. Flexibility in deciding what and when to sell (You may wish to sell the big-ticket items like televisions and computers, or you may prefer to sell jewellery or crockery or something that relates to your interests or hobbies.)
5. You can work from your computer in the corner of your bedroom in your pyjamas.