Simple Guide To How Drop Shipping Works

Drop shipping is where the product distributor manages all of the shipping and delivery for you. As opposed to purchasing inventory in bulk, the supply stays with the distributor then when you make a sale, they package  the product and send it directly to your customer along with your company label on the box.

Drop shipping is excellent if you are fresh to online selling mainly because it means there is minimal to no start-up cost and hardly any risk involved, since you won't be required to purchase a bulk lot of items which you aren't 100% certain will sell. Making use of drop-shipping companies also eliminates the problem encountered by numerous online sellers: exactly where they'll store their goods – there's no need to rent any storage space meaning major savings for you!

Drop shipping does have some downsides. First of all, drop shipping is a bit more costly than purchasing in bulk. Normally a drop shipper will add US$2-US$5 dollars on top of the price of the item to take care of their expenses of processing the item. This usually means that keeping up with and staying competitive in high profile categories like electronic products and clothing could possibly be challenging but it surely does not necessarily mean that you are unable to earn money whenever you drop ship, it merely suggests that choosing a specific niche market will be all that much more important.

The Five step guide to drop-shipping:

Step One: Choose A Drop Shipper

This can be done by either Googling your item name + “drop shipper” or you can check out online wholesale directories.

Step Two: Create an account with your drop shipper

You might have to pay for a modest account set up fee – even though this isn't generally ideal, it's a very common policy for some drop shippers. You should be careful, however, of companies who insist upon you having to pay monthly or yearly service fees.

Various drop shippers have different kinds of accounts that you can set up. You can either credit your account and apply the credit to fund items you purchase for your consumers or you can pay as you go and apply the revenue you obtain from buyers to order the products

Step Three: List the products you would like to sell on your website, eCommerce store or an online auction marketplace such as eBay. You'll be able to list as much as you like since you don't need to pay for them until they sell! Make use of the pictures and product descriptions that your particular drop shipper supplies to enhance your listing.

Step 4: When the item has sold and you have received payment from your buyer, log on to your suppliers web site and purchase the item you have sold and have it sent out to your buyers address. If your drop shipper does not have an eCommerce site set-up which you can buy directly from, simply send them an email with the details of what you want and where to send it to.

Step 5: It's all up to the drop shipper now! They will package and ship the item out to your awaiting buyer.

Hopefully this will help you understand how drop shipping works!

You can get great Free training from the Salehoo website, just follow this link to How Does Drop Shipping Work.

And if you really want to get started fast without needing any technical skills you may want to have a look at Salehoo's Stores where you can get up and running in no time!