What Is Dropshipping
Dropshipping, in simple terms, is order fulfilment. It is not something new, has been used for many centuries and is being used by some of the biggest online operators, Amazon is one of the many. Using a dropship supplier allows you to offer products to your customers without having to purchase goods in advance. We do recommend however that resellers purchase a sample item from their supplier to check product quality and delivery times. This not only tests the supplier but also builds the confidence of the reseller.
Below we have provided a description of how dropshipping works:
- A reseller (retailer) connects with a wholesale supplier or manufacturer who is willing to send orders directly to the resellers customers. This supplier is called a dropshipper or dropship supplier.
- The reseller promotes and markets goods or services of that supplier through their own retail outlet. This could be their own online shop , an auction listing or retail outlet (yes, even bricks and mortar businesses use dropshipping).
- The reseller takes an order from their customer with a retail payment and provides a sales invoice.
- The reseller then passes the order to the dropship supplier with the wholesale payment.
- The dropship supplier then delivers the goods ordered to the resellers customer, with a delivery docket provided by the reseller.
- The dropship supplier provides an invoice with the wholesale cost to the reseller.
- The reseller profits from the difference between the amount paid to the dropship supplier and the amount they received from their customer. Example: Item purchased by reseller's customer = $120. Amount paid by reseller to supplier = $80. Profit = $40.00.
Dropshipping can be this simple with a legitimate dropship supplier. When choosing a dropship supplier, resellers should gather as much information about the supplier as possible before proceeeding to do business.
If you have any question please contact us and we will try to help. To see sites that you could sell your items please visit the Auction and Sales Sites List .