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:
http://www.merchant-account-service.com/drop_shipping.html
For a review of Site Build It - the leading website
building software for home and small business:
http://www.merchant-account-service.com/sitebuildit.html )