How to make money from Drop-ship Business
Drop shipping is a method that requires months to learn. Therefore, this course is just a beginning to the method of drop shipping. However, I think this course will be very useful regarding understanding how the system operates and whether this method of earning money on the internet is an appropriate way for you or not.
This is a matter of the fact that many people are involved in drop shipping to make money online. Those who got to the “Powerseller” status on eBay, have achieved to get this status with this drop shipping method.
What is wrong with drop shipping is that people believe those who earn money from auction sites like eBay, makes money just by selling their own products. However, that’s, not the reality, a significant portion of the physical or digital products sold on sites like eBay, were maybe never seen, stocked, packaged, sent to cargo or even paid by the vendors themselves and they managed all these processes with drop shipping system.
The concept of drop shipping is very simple. It works in the way you make sales of products on the internet by adding your own share onto the products which are sold with retail prices at wholesale prices. This practice is used not only on the internet but also in physical sales.
Drop Shipping is not a new idea; it has been used for centuries by traders and retailers. And it has been carried onto internet later. Thus it has opened a door for ordinary internet users to make money online from this business.
It has been very easy to sell products on the internet since the auction sites like eBay became popular around the world. So drop shipping users have got the opportunity to sell the products on the internet which they have already been doing physically.
Today, drop shipping has become an important income source for those who have the internet connection at home. Because this a very easy to apply system, it can be done in spare times and it is a method that does not require capital.
How Does Drop Shipping System Work?
The biggest reason why drop shipping is so popular is the fact that its operation is very easy and user-friendly. As we will consider below, drop shipping applies to virtually any product and enables you to earn money many times.
Drop shipping system‘s operating process is carried out in 4 steps as you see below:
You ( drop shipper ), do find wholesale products ( reliable drop shipping wholesale guides can be found here ) and exhibit those products on sites like eBay or on your own online store.
You get the payment from purchaser when a sale is done.
You pay the wholesale price of the product to the supplier and deliver the name and address information of purchaser to the supplier for the product to be packaged and sent to cargo.
And the gap between the price you sold the product and the wholesale price you paid to the supplier, is the commission that you earn from this sale.
As you see, you make the sale and take the money before ordering the product. So, you do not use your own money in this business. This is one of the main advantages of drop shipping system ( eBay shipping system ). Because anyone can do this job without any money.
Another important advantage of the system is that the product is sent to the customer directly. So, you give the name, and the address of the customer to the wholesaler and the wholesaler send the product to the customer. In other words, products are being shipped directly to the recipient from wholesalers.Thus, you never get the product in your hand, see it, pack it and have to stock it. And for the recipient paid you the money beforehand, you do not have to order the product from the wholesaler with your own money.
To sum up, firstly you find a product in wholesaler’s stock ( reliable wholesaler guides can be found here ) secondly you sell the product by exhibiting it on sites like eBay or on your own online store ( product can be sold many times without changing it with new ones ) and finally the gap between the purchase price and your order price remains as your commission in your pocket. This business can enable you to reach a few dollars to thousands depending on your performance.