What is dropshipping?

Submitted by jimpoo on Thu, 04/26/2007 - 01:21.
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Dropshipping Defination
According to wikipedia, dropshipping is a supply chain management technique in which the retailer does not keep goods in stock, but instead transfers customer orders and shipment details to wholesalers, who then ship the goods directly to the customer. The retailers make their profit on the difference between the wholesale and retail price.
In a nutshell, you market and sell a product online at a price you choose. After your customer purchases the item, and you receive payment for it, you place an order for the product you just sold with a "drop-shipper." The drop shipper charges you a wholesale price and ships the product directly to your customer. You pocket the difference between the wholesale (or near wholesale) and retail prices. The best part is that you have no inventory to hold or finance, and no shipping hassles.

Work With Dropshipping E-Commerce
Find a reputable supplier. With the popularity of dropshipping, many scams have arisen around the industry. There are sham lists of drop shippers being sold for hundreds of dollars. There are middlemen posing as dropshippers who will charge you more than you need to pay. There are "turnkey" internet businesses that claim to provide a complete package of products, e-commerce, and marketing - but for such a hefty membership fee or monthly cost that you will never make a profit. Don't let this scare you away - just be aware. To get started on the right track, take a look at Worldwide Brands , a directory of legitimate dropshippers that has an excellent reputation. And use DepotNet to build your E-Commerce website.

DepotNet does not dropship any products, see how DepotNet's DNStore simplify your dropshipping E-Commerce business:

  1. You find a distributor who is willing to drop ship the products you want to sell. --> We recommend you to check with Worldwide Brands
  2. You open an Internet Store, with a shopping cart and the ability to accept credit cards. --> DNStore is the perfect shopping cart you can use.
  3. You receive images and descriptions of the products you want to sell from the Dropshipper and post them on your Internet Store. --> DepotNet automates these procedures, so you don't need to handle this manually, you can also add your own products to your DNStore.
  4. You markup your own prices on your internet store. --> DNStore allow you to adjust prices easily.
  5. You start to promote your internet store, when a customer surfs into your Internet Store, they place order and pay you through credit card, money order or PayPal, you collect the whole payments. --> To assist you on e-marketing, DNStore generates product datafeeds and submit your online marketing accounts such as froogle, yahoo! product search, shopzilla and other marketing places automatically. DNStore has built-in payment modules that work with your merchant accounts and payment gateways, you can accept online payments.
  6. You collect the order and forward to your Dropshipper. --> DNStore can also automatically generate order data from your store and forward to your dropshipper(s).
  7. Your dropshipper ship the product to your customer, with your store’s name on the package.
  8. Your dropshipper charge you the wholesale price of the product, plus shipping and/or handle fees. --> DepotNet never enroll into this, you deal with your dropshipper directly, you keep 100% of your profits.