How Drop Shipping Works

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.

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.

(C) John Lynch

For details of drop shipping companies for your website or ebay business: http://www.merchant-account-service.com/drop_shipping.html.

More Resources

Game Theory, Nobel Prize, & Auctions - Auction Primer Series - Part 1
William Vickrey, highly regarded as the founder of auction theory, was an economics professor at Columbia University when he published two papers outlining his views on auctions:"Counterspeculation, Auctions, and Competitive Sealed Tenders", 1961, Journal of Finance"Auction and Bidding Games", 1962, Recent Advances in Game TheoryIn 1996 he received a Nobel Prize "for fundamental contributions to the economic theory of incentives under asymmetric information." It's important to understand that asymmetric information is an essential component of auctions, where potential buyers have varying levels of knowledge about the value of the item.
How to Win on eBay
I've bought over 100 items on eBay over three years and am ready to share my knowledge of how to win at eBay and buy from reputable sellers.1.
2 Step Secret Reveals How You Can Find Wholesale Suppliers
Have you spent hours on the internet searching for a viable wholesale source? I did. I spent money on self-professed in-depth Wholesale Supplier directories and membership sites.
The Powerful eBay Bidding Strategy That Claims A 99% Success Rate
Don't you just love it?You've found that special item on eBay that you've just got to have!No If's Ands or Buts, you've got to win that item.You've checked and double checked the "End Of Auction" time and date and you're at your computer, signed in and raring to go at least 30 minutes before the auction ends.
Royal Memorabilia -Smart Trading and Fake Dodging
This is my second article about trading royal memorabilia on eBay and other online auctions. We're going to explore just what items are really tradable, how and where to find your stock and mention some definite pitfalls to avoid.
Dropship Your Way to Success
Many people know they would like to start an Internet business, but they don't have a product to sell. The solution is often drop shipping.
So What Are YOU Going To Do About eBays Fee Increases?
Unless you have been hiding under a rock, I am sure that by now you have heard that eBay is raising its fees. So what's a small merchant to do? Here are some suggestions.
Is it Antique and is it Worth Anything?
Is it an antique and is it worth anything?Would you know?At some point in our lives most of us are going to put in a position where we have to ask ourselves the question-Which of my treasured possesions should I keep because they might be worth something and which can I throw away?Would you know??We start our own homes full of enthusiasm and with all the lovely clutter that makes up our lives and that of the family, but as time goes on, the children leave home, we decide to move to a smaller house or maybe we decide to live abroad. At that stage we have to decide what to keep and what to part with.
Start an Easy Home Business: Become an Ebay Trading Assistant
EBay's online auctions have created business opportunities for thousands of people. Now the Trading Assistant program is making it easier than ever to start a business from home.
Seven Steps to eBay Selling Success
More and more people try their luck at selling on eBay everyday. With all of that growing competition it is important that you do everything possible to make sure that you stand out from the crowd.
5 Secrets for Increasing Auction Profits
1. Include your ebay seller name, store, and website information with all items you ship.
Join the Home-Based Business Revolution
Greetings, Friend. So you've decided to go into business.
What Ebay Can Teach Us About Success
I flew back to New York from Atlanta a few weeks ago and picked up 'Business 2.0' magazine for the flight.
Internet Auction Sites : Find Good Deals on Almost Anything
You can find good deals on almost everything you need on internet auction sites. There is almost nothing that you can't find over the internet.
eBay Motors : Buy or Sell a Car on eBay
Are you having trouble finding a great deal on a car in your local area? Well, join the club. Using Online Bidding at eBay Motors can be the perfect answer you've been looking for.
How to Sell Your Crafts on eBay
Artists, craftspeople and photographers are successfully selling their wares everyday on the online auction site, eBay. According to a recent analysis of eBay sales, a crafts-related item is sold every nine seconds, a scrapbook item is sold every minute, and 40 cross-stitch items sell in an hour on eBay.
7 Simple Steps To Profit Without Your Own Product
Most people do not succeed on the internet because they are selling products no one desperately wants.If you want to be truly successful sell only things that people really really really want to buy!Sounds simple? It is.
eBay Consignments: The Giant Opportunity Hiding on eBay (Part I)
More and more, people are becoming aware that they have potential cash sitting in their closets, attics, and basements. But not everyone has the time or the know-how to tap into it, so these items remain where they are or are given away.
Ebay And Dropshipping, A Marriage Made In Heaven?
eBay is the 'BEST' opportunity you can use right now to make money online in the dropshipping business from the comfort of your own home.Thousands of people just like you use eBay auctions on a daily basis to sell and buy products on the Internet; now it's your time to START your own dropshipping home-based business and succeed in the eBay auctions 'game'!There are no special skills required for this dropshipping business, all you need is a computer, Internet access and some basic computer / Internet knowledge.
The Drop Shipping Business
You have suddenly found the perfect business and you are all geared up to make lots of money. You have see the ads about Drop shipping and it sounds great.

More Auction Information:

Related Articles

City Police Auctions of Personal Property and Autos
About City Police Departments AuctionsThe City Police Departments handle and store all evidence and property that is seized or found until it is needed for court, returned to its owner, or can be destroyed. Destruction, disposal, or return of property is determined by the property and evidence officer in accordance with federal, state, and local law.
Start Your Own Business: Sell Things on eBay
The popularity of online auction site eBay has beenlegendary. With millions of transactions completed daily,it is no surprise why many individuals who do not usuallyshop online regularly purchase items through eBay.
eBay After Sales - as Important as the Listing Itself
Your eBay listing has finished and you have made a sale, now the next important stage starts - the after sales. Again we are aiming to develop the professional image or ourselves in the customers eyes to encourage them to come back to us again and again because it is easier to sell to a current customer than it is to a new customer.
Finding Products to Sell on eBay
Do you know how many people in US are earning their livelihood with the help of eBay? According to a new survey conducted on July 2005 by ACNielsen, a leading research firm, an astounding 724 thousand Americans respond that they rely on eBay for their main or supplemental income. Apart from these professional sellers, another 1.
Ebay Auction Selling Secrets - Using Ebay to Launch Your Very Own Highly Successful Website
Launching your very own successful website is the dream of many people worldwide because it is a new way to make money and be employed by oneself with little overhead. So, once you have your website you will need traffic to make it successful.
Authentic or Fake?
1. Admit It: Old business models are no longer working.
The International Affiliate Program of EBay
eBay trades in more than 33 international countries with over 157 registered users worldwide with 75 million based in the USA and 10 million in the UK.eBay's affiliate program must be the mother of all affiliate programs as far as size and potential scope for earning an income through promoting other peoples items.
When It Comes To eBay, Don't Follow The Herd
Q: I want to start an online business. Since I don't know anything about ecommerce and building websites and such, I'm thinking about starting out selling products on eBay, then pay someone to build a website for me once the money starts coming in.
Making Money On EBay Can Be So Simple, Just Let Somebody Else Do All The Hard Work For You
OK, so you've been bitten by the eBay bug!You've ransacked the attic, the basement and every other room in your home to find things to sell on eBay.When friends and neighbors ask you where everything has gone, you tell them that you're going for the "Minimalist Look".
7 Simple Steps To Profit Without Your Own Product
Most people do not succeed on the internet because they are selling products no one desperately wants.If you want to be truly successful sell only things that people really really really want to buy!Sounds simple? It is.
How Do You Find A Reliable Dropshipping Source?
A Dropshipper is someone who will anonymously send the goods you order to your customer! There are no markings on the box and no invoices enclosed! Finding a reliable dropshipper can prove to be a strenuous task. When selecting a Dropshipper you want to be sure to find someone that has a large inventory and quickly replenishes items that become sold out!You also want to find someone that is helpful and knowledgeable about the products they are selling! Make sure to contact them before you consider reselling their items, see how quickly you get a response and how helpful the response is! Remember this is the same service you can expect once you are in business with them! If it is less than your standards consider using someone else!How do you find a Dropshipper? There are several ways to find a Dropshipper perhaps the easiest is to purchase a list from an online auction! Thoroughly read the context of the ad and ask questions if need be.
Everything You Need To Know About Ebay Money Making Opportunities
Ebay money making opportunities are simply the best thing to come along since the wheel. Seriously, everybody from grandmothers to middle school kids are cashing in on what's been called the $14 billion ebay pie.
Make BIG MONEY on eBay - Your Unlimited Cash Cow
Let me be brutally honest; until recently, I had never bought anything on eBay, I'd never sold anything on eBay, and, dang-nab-it, I disdained auctions. (Bidding wars just weren't my bag.
How To Profit Using eBays Saved Search Feature
Did you know that eBay will help you locate products you can buy cheap, then flip for a quick profit? No? Then listen up, because I am about to let you in on a little known feature of eBay that can literally stuff wads of cash in your wallet in less than 24 hours.This is an eBay tool that I use every day to locate products that I can buy and resell or buy cheap and keep for myself and my family.
eBay Bargain Hunting - Spell Your Way To Success!
Have you ever wondered how identical items can fetch such widely differing prices on eBay? Or why some items fail to receive any bids at all?Sometimes it is a matter of luck, or just timing - especially for things which are pretty unique or where there are not manybuyers.Many commentators however suggest that it has much more to dowith the quality of the item title.
The Top Ten Antique Categories On eBay!
Knowledge is Power! And this statement could not be more true when it comes to selling on eBay. As explained in my book "eBay Marketing Wholesale SourcePak", being successful on eBay all depends on being in the right place, at the right time, with the right product.
Your Junk is Another Persons Gold
Saving money can be quite hard to do if you are on a tight budget, but all of us can do it very simply by selling the things that are cluttering up our homes and which we no longer need. I am fairly sure that most of us, if asked, would like some extra cash to help pay off a loan or other debt, or to put towards something nice like a holiday or something else that you would like to save up for.
Your eBay Username - What Does It Say About You?
Have you tried to register a decent eBay username and been frustrated at the poor names left available? With over 125 million people using eBay in 2004 it is understandable that a lot of the good ones have gone.How important is registering a good eBay username (User ID) anyway? Well that depends - you may be wanting to register a username for business use so getting the right one would be important.
All Terrain Vehicles (ATVs) Sell Well On eBay
ATV auctions are healthy markets on eBay. All terrain vehicles have changed in the last few years (naturally) and the major change has been from one person ATVs to two person models.
Dont Be A Victim Of Online Auction Fraud
The Internet Fraud Complaint Center (IFCC) reported that last year 7.7 million dollars was lost through online auction scams.