What is drop shipping?

Submitted by jimpoo on Thu, 04/26/2007 - 01:21.

Drop shipping Definition
According to wikipedia, drop shipping 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 Drop Shipping 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:
1. Take a look at Worldwide Brands, a directory of legitimate dropshippers that has an excellent reputation, you will be finding a lot of wholesale drop shippers there.
2. Sign up for a free accessing DepotNet Drop Shipper Directory .
3. Use DepotNet to build your professional E-Commerce website at the lowest price in the industry.

DepotNet does not drop ship any products, see how DepotNet's solution simplify your drop shipping online 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. To sell online, you will need to open an Internet Store, with a shopping cart and the ability to accept credit cards.
    --> DepotNet is your ideal ecommerce service provider.
  3. To put products on your website, you will need to get the product images and other information from your vendors (your wholesale drop shippers).  Think about this, how would you be able to do this for adding thousands of products to your website.
    --> DepotNet can automate these procedures. Checkout our ecommerce website creation service package.
     
  4. You markup your own prices on your internet store.
    --> DepotNet provides tools for 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.
    --> DepotNet Store has pre-integrated over 20 payment modules that work with the most popluar payment gateways, accept online payments on your store easily.
  6. You collect the order and forward to your Dropshipper.
    --> DepotNet has Add-on modules that can export order data and forward to your drop shippers automatically (It is case by case, depends on how the drop shipper handle orders).
  7. Your dropshipper ship the product to your customer, with your store's name on the package.
  8. Your dropshipper charge you the wholesale cost  of the product, plus shipping and/or handle fees.
    --> DepotNet never enroll into the buesiness between you and your drop shippers, you deal with your drop shippers directly, you keep 100% of your profits.