to Wholesale Drop Shippers. The mission of this
site is to offer free information to anyone wanting to educate
themselves about this increasing way of doing business online and also
The schema to the left illustrates the chain of action that happens
What you will find on this website:
1. Detailed profiles of drop shipping companies
2. Articles relating to drop shipping, product sourcing and also online
selling and marketing
3. Forums for the discussion of drop shipping and online commerce with
What is drop shipping?
Drop shipping is a method of retail sales that allows the retailer to
sell products they don't have in stock and then have the distributor
ship the product directly to the consumer (usually with the name of
the retailer on the box). Traditionally, drop shipping existed mostly
for out of stock items at the physical or mail order company; it allowed
the retailer to still sell the product to the consumber instantly while
having the product ship directly to the customer's door saving time
and hassle for the consumer.
With the increasing number of home businesses and the number of these
selling on the internet, drop shipping became more and more popular
over the past few years. The reason is simple; home businesses usually
don't have the money, time, ressources or space required to hold inventories.
Using drop shippers allows them to sell products without purchasing
it in advance! Selling venues on the internet are mostly the entrepreneur's
e-commerce store and auction sites (ebay, yahoo, etc).
What are the advantages?
-No inventory. This is the biggest advantage of drop shipping,
it gives you access to products without having to stock a single one!
Saving time, money and space.
-Access to millions of products. With the increasing number of
companies that now drop-ship, it gives you access to almost anything
you can dream of selling!
-No shipping. This also saves time and money. Imagine the ressources
needed to fulfill hundreds of orders if you have to ship them yourself.
Now imagine using a drop shipper.
-No handling of returns. This is true with most drop shippers,
they will handle item returns! Again saving time and money.
So again, drop shipping saves time, money, space
and ressources... all of which the entrepreneur can put towards his
selling efforts instead. This is why drop shipping is increasingly popular.
What are the inconveniences?
-You are liable. Unlike, for example, affiliate programs where
you promote a company's products or services and receive a commission
on sales, you are the one who is selling to the consumer and you have
to assume all liability related to that.
-No control over the inventory. Because you don't have the items
you sell in your control a few things can happen if you don't plan ahead.
The best example to illustrate this is to allow yourself to imagine
you've put widget "A" for sale on ebay for a 7 day auction.
You didn't bother checking the stock level at the drop shipper first
and they are not sending you update emails or you are not reading them.
7 days later, you've sold the item! Great! You think. You go to purhase
the product at the supplier and oops.. it's no longer in stock and won't
be for a while... or worse.. might never be in stock again! You try
to explain to the buyer, but he thought you had the item and that's
why you were selling it. You land negative feedback and have to refund
your customer. This has cost you negative feedback and auction fees
for no profit. This is a worse case scenario which you can avoid by
preparing yourself in advance and keeping youself up to date on the
stock levels at the drop shipper.
-No control over shipping. This is also related to having no
control over the inventory. If you had the item in your possession you
might be able to ship the item the same day you sell it making the customer
very happy. However, if the drop shipper only ships 2-3 business days
later or more, it means more waiting time for your customer.
-Market Saturation. Because of the nature of drop-shipping, many
sellers may be doing business with one company. If this drop shipper
only has a few products, it might be hard to sell because too many people
are selling the same products and are competing; creating lower and
lower costs until eventually it is no longer profitable to sell this
product. The trick is to find products that there isn't much competition