What Is Drop Shipping? The Perfect Solution

Drop shipping one of the greatest business innovations since products. Seriously, don't laugh! I'm not joking! With what other service can you use another company's products, their warehouse, their shipping department, and have them provide you with all the information you need? Do you see what I mean now?

Every entrepreneur who is looking for the most efficient way to sell products over the internet should be very enthusiastic about drop shipping. It finally allows you to sell nearly anything you want, be it computer equipment, toasters, billiard tables, even planter pots, all without having any inventory. And do you know what zero inventory means? It means less risk! The only time you ever buy any products from the wholesaler is when you have already sold it to a customer! And the best thing is (or should I say, another best thing), the wholesaler packages it up and ships it out to the customer for you, and usually your business name is on the box! As far as the customer knows, you have a warehouse full of products.

When you sign up with a wholesaler, they will most likely ask you for your tax license number, or a faxed/emailed copy of it to prove you are a legitimate business. If they don't ask you for this, they are either a very small wholesale company with a specific niche of products and just want to make the process easy for their clients, or they are not a real wholesaler at all.

If you ever come across a "wholesale" company that carries tons of items, ranging from Barbie's to hair dryers, and they say that you don't need to have a tax license to deal with them, then be very skeptical, because 99 to 1, they aren't a wholesale company at all.

That sort of company will just take your order only to turn around and order it from the real wholesale company at a much lower cost than you paid for it (and they did have to get a tax license to do this). It doesn't stop there either. Since you bought it at a higher price, you will need to pass this on to your customers by marking it up higher than you need to. And if you ever needed or wanted to, you would have less margin when lowering your prices to match or beat your competitors. And your competitors would probably have a tax license, so they would be dealing with legitimate wholesalers.

Seriously, be very careful about this, there are many wolves in sheep's clothing out there. So skip the middleman, get your tax license, get legitimate and you will save yourself a lot of grief and money.

Once you make an account with a wholesaler, some will mail you a wholesale catalog and price list in the mail with a CD full of product images to use on your website. The smaller companies will just allow you to copy the pictures and descriptions off their website. With this product information, you can post the products to your online store and wait for orders. It's as simple as that!

Then, when a customer places an order, you either call, email or fax your contact at the wholesaler and give them the customers name, address, and the items they want, including any other miscellaneous information the wholesaler may want. The wholesaler then charges you for the cost and shipping of the order at wholesale price, then packages it up and sends it off to the customer. All you have left to do is turn back around and charge the customers credit card for the items with your profit margin markup.

The reason this is growing in popularity amongst wholesalers is because they get to have many other companies market and sell their products, thus reaching more people and selling greater volumes. The wholesale company is still able to sell their products for the price they want, and you get to keep the profit margin as a reseller. It's a win/win situation.

Drop shipping is enabling the average person to be able to run a successful, full service online retail store from the comfort of their home. Zero inventory, no shipping department, only buy when you have already sold -- this is the perfect affiliate program.

Copyright © 2003 by Palyn Peterson

About The Author

Sign up for Palyn Peterson's FREE 13 day intensive email course and discover the 16 necessary basics and 8 advanced internet marketing techniques. You'll also receive a free $gift$. http://FutureInternetMarketing.com/guide.htm

palyn@futureinternetmarketing.com

---

The Reality Of How To Make Money In An Online Business

"Making money online quick and easy" seems to be the... Read More

Seven Easy Steps to Boost Your Professional Image With Adobe

Often-overlooked commands can boost sales and project a more professional... Read More

The Secret to Making More Money in Your Online Business: Lessons From Monopoly

Thousands and thousands of people are striving to make more... Read More

Repetition: The Secret to Visibility and Attention!

Have you ever felt disappointment and dismay when trying a... Read More

Marketing Using Minisites

When it comes to making money online, there are a... Read More

Beware the Click Without the Conversion

Why is this funny?Because in essence, a "click-through" places money... Read More

7 Quick Marketing Tips To Uplift Your Profits

1. Publish an ezine.Your ezine will help you to stay... Read More

Know The Fundamentals To Success

Internet Marketing is right for everyone. Unfortunately, not everyone is... Read More

Finding The Right Internet Marketing Technique For You

Finding the right Internet marketing technique that works best for... Read More

Overcoming The Fear Factor In Online Sales

No I am not talking about the classic board game,... Read More

Internet Marketing ? Long Term Strategy

Once your site is up and running, the best method... Read More

Become a Star: 10 Do-It-Yourself Publicity Techniques to Build Buzz for Your Online Business

Public relations is popular because it is very cost-effective and... Read More

Holiday / Vacation Time But What About Your Online Business?

For many of us, it is time to start thinking... Read More

Advertising That Yields the Best Results

In today's world, online advertising is KEY to the success... Read More

Competitor Analysis - How Writing Rubbish Can Give You an Edge

The Gobbledygook Competitor Analysis TipWhen typing cap can tell you... Read More

Website Marketing: 10 Smart Ways To Profit In An Uncertain Economy

When the economy is booming, you may do well in... Read More

The Real Truth About Making Money on the Internet

Are you thinking about starting an online business? Have you... Read More

Website Marketing: 10 Killer Website Marketing Tactics To Boost Your Profits

Here are 10 killer website marketing tactics to boost your... Read More

Don?t Let Legitimate Email Marketing Campaigns Suffer A Junk Mail Fate

Volume-based filtering may be pre-sorting your marketing messages to the... Read More

Marketing Objectives for Your Web Site

Do you have marketing objectives for your Web site? With... Read More

Ive Started My Own Online Business...Now What?

People ask me this question all the time! The "Now... Read More

Maintaining The Focus For Success In Online Business

Maintaining Focus is important for success in online business. One... Read More

Marketing - All About Focus

Marketing would appear to be the great buzz word of... Read More

Viral Marketing Strategies

Viral Marketing is allowing people to giveaway and use your... Read More

This Here Web Aint Big Enough For Both Of Us! Can You Corner Web Market Share With Negative Action

If you're a fan of Western movies I'm sure you've... Read More

Five Ways To Maximize Profit In Resale Rights Marketing

Product creation is usually one of the first concerns of... Read More

Dealing with Refund Requests ? Internet Marketing

I think we all cringe and dread when we open... Read More

Internet Marketing is Changing Right Before Your Eyes!

There's no doubt about it . . .Big changes are... Read More

Start a Fire Sale! Give Your Faithful Clients Bonuses!

When is the last time you received an unexpected gift?... Read More

X-Ray Specs, Turning 30 and Achieving Website Success

I was writing the final chapter of my book on... Read More

10 Ways To Get Your Ads Or Messages Noticed

Do you post to message boards, e-mail discussion lists, classified... Read More

Strategic Internet Marketing Is Planning

Strategic Internet marketing is a way to define your potential... Read More

Increasing The Perceived Value of Your Product or Service

Whether online or offline, small businesses often show little faith... Read More