Virtual shopping sites and dropshipping

Photo by Angels GateWhat Is Drop shipping?

Drop shipping is simple; you place products for sale on your own eCommerce web site. You don’t stock any of these products. Then you take orders and payments directly from customers. Once you have made a sale, you simply collect your customer’s payment.

After you have taken the order and your customer’s payment, you place the same order at the drop shipper’s or wholesaler website to “Drop Ship” the order directly to your customer’s address. Your customer assumes the order came directly from you.

You sell the product to your customer at the price you choose and you pay the wholesale price. The difference is your profit.

The entire wholesaler inventory is available for you to use and offer for sale. Their merchandise is priced for you to profit from. You can markup the price as much or as little as you want.

Dropship Benefits

Two main benefits of drop shipping are – no up front inventory to purchase and positive cash flow.

Other benefits of drop shipping include:

• Only one warehouse will pick, pack, and ship the product thereby reducing costs in the supply chain.
• Reduces total inventory management and shipping costs which can be passed on to the customer.
• If you are just beginning your own online business and don’t have the money or the space to keep your own inventory use a “Drop Shipping” service.
• This method allows you to start selling right away!
• YOU DON’T USE YOUR OWN MONEY
• YOU DON’T KEEP PRODUCT INVENTORY IN YOUR HOME

Even if you already have an established business, Drop Shipping can expand your current product line with no extra expense allowing you to increase the service and products you provide to your customers.

How Does this Business Work?

1. Customer visits your website
2. Your customer places an order
3. You receive payment directly into your account (PayPal, Merchant, etc.)
4. You place the same order for the same product(s) at the drop shipper website using your customer’s address
5. The product is shipped to your customer and you keep the price difference

Setting up an account with a drop shipping service is easy!