Drop Shipping is an incredible way for anyone who wants to operate an online store without having to ‘stock and ship’ any of the products that they want to sell.
This is a great business model because YOU as the online retailer do not have to fork over any money to buy any product until you actually make a sale.
Even then, when you do make a sale, your CUSTOMER pays YOU and then YOU pay your SUPPLIER for the product your CUSTOMER purchased with the money that you received from your CUSTOMER.
Here is a quick overview of how Drop Shipping works:
- A Customer buys your product off your website at your RETAIL PRICE
- You contact your SUPPLIER and place the order at their WHOLESALE PRICE
- Your SUPPLIER processes, packs, and ships your Customers order directly to their mailing address
- The difference between the RETAIL PRICE and the WHOLESALE PRICE is your PROFIT
That is Drop Shipping in a nutshell.
This is such a wonderful business model because you never have to pay for the product up front, store the product, or pack and ship the product.
Your job is simply to promote the product, get customers, and place the orders with your suppliers.
Of course, this process is much easier said than done, but anyone who is willing to learn this business and do the work can be successful.
There are so many benefits to starting and operating a drop shipping business, and of course, there are some drawbacks.
Everything is covered here, from setting up you business structure the right way, to selecting the right niche product to sell, to finding legitimate Certified Drop Shippers, and so much more.
Drop Shipping can be a very profitable business for you but you have to become an expert at certain things.
However, before you take the deep dive, let’s take a look at the PROS and CONS of Drop Shipping.