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What is dropshipping and how does it work ?!

Discussion in 'Dropshipping & Wholesale Hookups' started by Afillix, Aug 6, 2012.

  1. Afillix

    Afillix Regular Member

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    Hey guys, can someone explain me, how dropshipping works ? Im not english but I understand the language very well, but it would be awesome if you could explain it to me very simple.
    greetings
     
  2. mr.brovo

    mr.brovo Newbie

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    you take the item from another seller,u mark up the price and sell to another people,..example..seller A sell iphone for $400..you mark up the price and sell it for $450..u got a buyer,then u go to the seller A and make an order,u pay $400,then seller A send that iphone to your buyer.you profit $50.
     
  3. shhhitsokay

    shhhitsokay Regular Member

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    To be precise,

    The beauty of dropshipping is not having to stock the items and directly having the purchase order from your customer shipped directly from your supplier/distributor. It's convenient because of not having overhead, as well as saving extra $$ and some time by not having to package the goods/item yourself or whoever you employ. However, dropshipping has its cons as well.

    The supplier might not always be faithful and not exactly ship out the product the day it should go out. Since you are now relying on your supplier to ship out the product, it's up to you to make sure they ship out on time. The other possible issue can be is if you ship items that have a lot of different shipping fee variations. You may charge your customer $10, but realize that your supplier charged you $12 to ship the item. Dropshipping benefits for whether your supplier is out of state, or if you are on a budget to stock items. The downside is just having to be the middleman by relying on someone else to be responsible for the goods to make sure your customer receives it.
     
  4. thepoetvd776

    thepoetvd776 Newbie

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    Does this still bring in cash?

    I've heard of companies such as Amazon who look down on this.
     
  5. theweg

    theweg Regular Member

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    It's still a profitable business,you only need to sell in the right niche
     
    Last edited: Aug 6, 2012
  6. cbs68

    cbs68 Newbie

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    It sure does!
    Gold - Silver - Fashion - Deco
    You can buy at wholesale price (around 50% of retail) + DS fee and have it shipped world-wide via DHL/FedEx (Tracking).
    No min. amount or quantity required!

    ASINs for easy Amazon [US/UK] setup & product feeds for several web shopping systems available.

    If you are interested, pm me.
     
  7. extramints

    extramints Newbie

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    To be as simple as possible.You are acting like a middle man.You just sell stuff for a supplier. The supplier holds all the stock.
    When people buy from you, you contact the supplier and they send it to the buyer.

    You will earn depending on how much you are selling the item for and how much the supplier is selling you.

    Supplier sells you for $5.
    You sell it for $8 on eBay.
    $8-$5 = $3
    You earn $3 for each sale. They will mail/drop ship it so you dont have to worry about sending it to the buyer.
     
  8. hatontop

    hatontop Newbie

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    I will try my version of drop shipping and someone can correct me if I am wrong.

    You found a best selling product and would like to offer it->find a supplier of that product -> start a website with that product->take orders from your clients that pay higher than your supplier -> order filled-> contact supplier and pay his price-> supplier delivers goods to your client->you end up with your profit.
    hope this helps
     
  9. JayWhite

    JayWhite Newbie

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    Sorry, but i have to laugh respectfully---Amazon IS a drop shipper. Nearly all of the products someone buys on Amazon is coming from businesses that have listed their products and then fill the orders that comes through Amazon. The business "drop ships" the order once Amazon has collected the sale. You want to be like Amazon and not have to stock the product--just let the company who does stock the product package and ship for you. Look for drop shippers for specific types of products (the ones you want to sell) as your source for "inventory" without the cost or risk of having it on your own shelf. You don't pay for the product until after you have been paid by your customer.
     
  10. jsmash

    jsmash Registered Member

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    Yes...I agree with JayWhite...Amazon is one of the best dropshippers as long as you are doing business in the US or UK. You can usually get free shipping and hold amazon responsible for shipping/returns, etc. This is a GREAT way to start depending on how you are marketing the items. If you need a healthy markup, this is not the way to go.
     
  11. shashum

    shashum Newbie

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    Here's the basics:

    Go to Alibaba
    strike a good product
    strike a good deal
    advertise that deal on your site
    take profit, and send cost to manufacturer and ask them to ship.