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Understanding Dropshipping

Aug 17, 2007
One of the hardest parts of online businesses is the ability to find a partner that is willing to not only supply you with the product but ship it to the customer as well.

Drop shipping has made its way on to the scene and in perfect timing. This is a great way to ensure that you have the product to sell, once you have the client to sell it too.

This is where you do nothing other than advocate the product, set the chain in motion and reap the benefits of the sale.

There is no handling product, no shipping the product and no loss of profits for storage facilities or shipping costs. This may sound like a dream come true, or even too good to be true, but the fact remains that it is true.

Anyone can get into the drop shipping action if they really want to. Let's say for sake of argument, that you are selling digital cameras, knowing that it is not really an option for you to have 200 of each model in a brand name in your home taking up valuable space this could easily become a problem. What happens if you make the purchase, and by the time you are ready to sell these items online, the new models have come out, making it very hard to sell what you have. You in turn will be losing the money, not the distributor.

Or you can do it this way, by signing up for a drop shipper, for the cameras. The supplier will give you an entire list of all the products that they can supply you with, you set the promotion online by advertising the product.

Once you have found a customer willing to buy, you will send the details to the distributor. If you have the item listed at say 200 dollars, you then go to the distributor, give them the information, and buy it for 150.00 and the sale is then out of your hands and you have just made 50 dollars for virtually nothing.

The drop shipper will then send the product to the customer, usually by ground shipping and will include your company information as well as their own for possible refunds or exchanges. Now if you can do this nine more times, and without breaking your back as you can see you have just netted 500 dollars profit.

It is easy to see at this point why drop-shipping business is one of the easiest methods of making money online today.

You set the price that the customer pays, and the drop shipper sets the wholesale price that you pay, it is that simple. Either way you come out with profit. Give it a try and see for yourself, just how easy it really is.

Just remember, as I said at the beginning of this article, one of the hardest parts if finding a reputable drop shipping company. Do the proper research before you sign up with any of them.
About the Author
Enrique Villalobos is the owner of MakingExtraMoneyAtHome.com, which provides free articles and resources about working from home. Visit it now and download the free ebook "Dotcomology: The Science of Making Money Online".
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