Better Than Sliced Bread? Drop Shipping, The New Home Business Craze

Many of you will probably remember the days when the only way to start a successful home business was to join some sort of multi-level marketing program or sell makeup at parties. In those days, people would have to buy a membership in the 'program' along with an inventory of sample products that they would then sell to friends and coworkers at 'parties.' Most people were not very successful at this and made very little money and usually alienated their friends and family. In the 1990's however, all of that changed for the better with the advent of the Internet and a retail delivery method called wholesale drop shipping.

Wholesale drop shipping is when a wholesale distributor or manufacturer agrees to send out single unit products to customers for a retailer. Many will also even include the retailers name on the invoice so that the customer is never even aware that they got it from anyone else but the retailer. This, along with the Internet has changed the whole dynamics of home businesses in America, making it easier and more cost effective to start your own business.

Home business owners are now able to launch a business without purchasing any inventory up front and are able to open a 'store' without ever having to find a place to setup shop. Millions of Americans have setup ecommerce sites on the internet selling everything from Personal Computers to lawn care equipment all using wholesale drop shipping. As a matter of fact, according to eBay over forty thousand people make their full time living on their auction site alone; many of these are using drop shipping as their main method of product fulfillment.

The only problem for today's small business owner is how to find wholesalers to drop ship. In general wholesale distributors don't make it a habit of getting out there and advertising; obviously the whole reason they are in wholesale and not retail is to get away from doing all of that work. So it makes it very difficult for someone who has little or no business experience to make contacts with distributors when they aren't even sure where to start looking.

To help out those small business owners I'd like to offer some advice for finding wholesale distributors:

  • Look for trade organizations and magazines to help you make contacts. Many trade organizations out their produce some sort of listings of their members, many of whom may drop ship.

  • Contact manufacturers. People don't realize that if you call the manufacturer they will provide you with a list of their distributors; so if you are looking for a particular product, ask the manufacturer. The down side of this route is that they may have hundreds of distributors that you may have to contact before you find one that is willing to drop ship.

  • Find wholesale chat rooms and message boards. There are many message boards on the Internet today that are devoted to a wide range of discussions. You may find boards on wholesale, distribution, supply chain, etc. All of these may lead you in the direction of a wholesale distributor.

However, if you want to get up and running fast, or just don't have the time to go on a search for wholesale distributors much less ones that drop ship, then the way to go is drop ship directories. These are usually pay services that search out drop shippers for you then give you access to their contacts; there are many of these on the Internet today, and many are very good. As with anything on the Internet you must be very careful of the scams out there. Many drop ship directories will end up giving you an outdated list of wholesalers, or when you contact them you will find that they are a true wholesale distributor but they do not drop ship.

Here are some pieces of advice when looking for a quality drop ship directory:

  • Stay away from the cheap ones! Obviously with everything else in this world you will get what you pay for. If you find one out their for three dollars, you probably are not going to get a good product. In general the one's that offer the best information are charging $60 or more for a six month membership.

  • Look for one's that will do specialty searches! If you get into a drop ship directory and find that they do not have any products that you would like to sell, or think you can sell, then make sure they will go out and find it for you. If they do not do specialty searches then you will end up being stuck with whatever listings they have no matter what.

  • Find one with a Satisfaction Guarantee! There are several drop ship directories out there that offer a guarantee that all of their listings are true drop shippers, but in my opinion this is not enough. If you get into their directory and find that they have five hundred listings for widget suppliers and they are all real wholesalers you are out your money and only have access to one product. Make sure they guarantee your satisfaction with their product no matter what, especially if you are going to shell out seventy dollars of your hard earned money.

  • Look for ones that are going to help you out as well, not just give you a list. Do they offer articles and help material on starting your business or are all they just going to give you listings and nothing else.

However you choose to find wholesale drop shipping, keep in mind that as with anything else in this world knowledge is power. Try and find out as much as you can before you jump in to get your feet wet. It will make your startup smoother and help you get the profitability stage much faster.

About The Author

Tony Keeler is the founder and publisher of The Drop Ship Connection - www.dropshipconnection.com - The web's only drop ship directory with a step by step guide for the home business owner. He is also the owner of MAR Services which publishes these great sites:

2DollarSoftware - www.2dollarsoftware.com - marketing, advertising, and internet software.

DingleHopper.com - www.dinglehopper.com - Funny Name, Cool Products.

tony.keeler@dropshipconnection.com

More Resources

Top 10 Free Online Wholesale Resources
By the time that a product has made it to your local retail store, it's probably changed at least three people's hands, possibly even more than that. And each one of those people had to mark up the cost of the item to cover their investment and make a profit.
eBays Hot Selling Books, Find Out Which Books Sell & How To Find Them
Selling books on eBay can be a very lucrative business! There are eBayers who sell only books and make a nice little income doing it. Where do they get these books to sell? At thrift stores, estate sales, flea markets, book fairs, yard sales, library sales, grandmas attic, etc.
Join the Home-Based Business Revolution
Greetings, Friend. So you've decided to go into business.
A Picture Paints a Thousand Words and Creates Auction Euphoria on eBay
Ever since I sold my first item on ebay I have been addicted to the site and I have steadily developed it as a supplementary source of income over the last two years. As I gained experience from listing items, I rapidly became aware that the inclusion of pictures in the listings was a major selling point as buyers could literally see what they were buying and as such create a greater interest and desire within them which in turn led to greater selling prices.
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.
Snipe Your Way to Auction Success
Bidding for a bargain is all part of the exciting eBay experience. But what can really disappoint is when you're all set to win that fantastic, gold plated gizmo and someone else just beats your bid in the very last minute.
Importing Products to Sell on eBay
The interesting thing about online buyers is they are extremely price sensitive. A survey done by Forrester Research shows that 73 percent of surveyed online buyers expect prices on the Internet to be cheaper than in stores.
Better Than Sliced Bread? Drop Shipping, The New Home Business Craze
Many of you will probably remember the days when the only way to start a successful home business was to join some sort of multi-level marketing program or sell makeup at parties. In those days, people would have to buy a membership in the 'program' along with an inventory of sample products that they would then sell to friends and coworkers at 'parties.
Are You an Ebay Shopper?
As I write this article, I am keeping an eye on an item on eBay. Do I have to keep an eye on it? No.
Negating Negative Feedback on eBay
Taking some pride in my one hundred percent positive feedback score on eBay, I was horrified to see a negative feedback appear against me.What had I done wrong? Had I overlooked an auction win and failed to deliver product as promised? Had I given poor, slow service? Was I rude to the auction winner?Certainly, if I had been guilty of any of these things, the negative feedback may have been deserved.
How to Generate Extra Cash in an Instant
With so many out of work, laid off or staying in dead end jobs to make the ends meet, we need creative ways of generating extra income. Here are a few simple, innovative ideas to get the cash you need quickly.
6 Reasons Why an eBay Business is the Easiest and Safest Home Business to Start
Calling internet auctions an "Entrepreneur's Dream" isn't poetic license or part of the get-rich-quick rhetoric. Net auctions are the simplest, easiest way on this planet for the little guy to make money.
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".
How To Write a Traffic Pulling eBay Auction Title
Selling an item on eBay should be simple but it is surprising how many people make some very silly mistakes.As a buyer this is fantastic, you can pick up some absolute bargains by finding poorly listed items.
eBay The Mega Marketplace For Everyone
eBay is one of the world's largest market places with over 35 million visitors per day. That first sentence is worth repeating because I want you to realize that eBay gives you the ability to reach a customer base of millions and millions of people which is beneficial to you.
The Top Ten Tips For Auction Success!
If you were to look through eBay, or any other online auction site for that matter, you would find that many people make some very basic mistakes. And, they repeat these mistakes over and over again.
Taxing Your eBay Profits
As a small business person-slash-advice columnist I dread the first quarter of the new year. Not because in my mind my own business fortunes start at zero again every January or because I have already dismissed every New Year's resolution I made when the clock rang out the New Year.
When is Wholesale Really Wholesale
You've finally found the wholesale source for the high demand widget that is selling like hotcakes on the Internet. Thoughts of watching the money pouring in and celebrating the new found success selling widgets has you so excited that you can't wait to buy 5 widgets at wholesale and double the investment.
How to Sell on eBay Internationally without Risk
eBay allows you the opportunity to sell all over the world. It is exciting to communicate with a customer from England, Australia or Japan via email.
The Secret To Real eBay Success
Q. I hear so much about people who started selling on eBay and eventually turned it into their full time business.

More Auction Information:

Related Articles

Importing Products to Sell on eBay
The interesting thing about online buyers is they are extremely price sensitive. A survey done by Forrester Research shows that 73 percent of surveyed online buyers expect prices on the Internet to be cheaper than in stores.
Buying At Auction: 6 Hints to Make You a Successful Bidder
Buying at auction, be it for stamps or coins, antiques or even cattle, can be one of the most exciting and profitable experiences possible. It can also be expensive and utterly frustrating.
Drop-ship or U-ship: That is the Question
For small Internet retailers, drop-shipping is one of the best innovations since sliced bread. How else can a start-up offer a wide variety of products and convince customers that they have a fully-stocked warehouse-while investing virtually nothing in inventory or warehousing? Before you jump right onto the drop-shipping bandwagon, however, there are some pitfalls to avoid.
eBay Auction Bidding Strategies--Overcoming the most Frustrating Situation on eBay
The Problem..
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.
Five Tested Ways To Find The Perfect Drop Shipper
You've heard about it many times in recent months. Being the business-minded person that you are, you most probably got curious and did a few research of your own.
From Ebay Zero to Power-Selling Hero: Using Feedback Effectively
When I talk about feedback to new Ebay sellers, I usuallycompare it to having one note posted on the door of a brick-and-mortar business for every transaction. At almost any business--no matter how bad the service--you would have a lot of positive transactions; and thus a lot of positive notes.
Online Auctions: The New Way of Shopping for Mauritians
Since their introduction several years ago, online auctions, such as eBay, have been one of the hottest destinations on the World Wide Web. Auction sellers are attracted by the prospect of a broad venue for their products and the possibility of high profits.
The Webs Best Online Auction Sites
The best online auction links for buyers and sellers are - not surprisingly - eBay, eBay and eBay. eBay began the entire wacky world of online auctions back on the Labor Day weekend of 1995.
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.
eBay Listing Service : Make Managing Your Auctions Easy
Do you want to have a lot of auctions going but don't have time to keep track of them all? Trust me, you're not alone. With more and more people making significant portions - if not all - of their income from their eBay auction websites the need has arisen for many people to have someone manage the listing of their auctions for them.
How To Sell On Ebay: The Money Is In The Back-End
Many people who sell on Ebay completely neglect the follow-up process. They post an auction.
Attract eBay Buyers Like Crazy!
As an ebay(TM) seller it happens very often (too often) that listings close without any bids. Did this happen to you? Many sellers are frustrated and quit their eBay(TM) business.
3 Unusual Formats For Auctions on EBay
eBay users are accustomed to only two "standard" formats forsales on eBay: either the 'regular' auction which involvesbidding and waiting; and the Buy It Now, which is an instantpurchase.But there are three other formats that are less well known.
Do You Sell Tires By Mail? Maybe You Should eBay
I just received an interesting email from eBay and it got me thinking..
eBay Online Auction Sniping Secrets
Since their introduction several years ago, online auctions, such as eBay, have been one of the hottest destinations on the World Wide Web. Auction sellers are attracted by the prospect of a broad venue for their products and the possibility of high profits resulting from emotion-driven bidding wars.
Selling through Auction Marketplaces
Consumers are increasingly feeling more comfortable in buying products through the Internet. According to a report released recently by the Department of Commerce first-quarter retail salesrose 23.
Use Auction Templates For eBay Success!
Auction templates are simply a must for successful online auction selling. One day I spent approximately 45 minutes writing a listing for an item that would make me about $5 in profit! I suddenly realized the stupidity of what I was doing.
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.
Get More for Your Money Shopping for Designer Shoes on eBay
The worlds online market place.In just a few short years eBay has become a household name and millions of people are registered users benefiting from the enormous variety of auctions listed every day.