Drop Ship Articles To Help Your e-Biz Grow
What is Drop Shipping?
To understand Drop Shipping, we should first understand product distribution.
People have been distributing products since before the first mastodon skinner traded a fur coat for a flint axe.
Here’s how it works.
Let’s say ABC Manufacturers makes a product called Mom’s Ankle Wax. We’ll say that Mom’s Ankle Wax has been around for years. It’s a very well known brand name product. It will without a doubt give you the shiniest ankles on your block, and everybody wants some.
ABC Manufacturers makes Mom’s Ankle Wax, but they don’t sell it directly to the public. They’re a manufacturing operation. They’re far too busy melting paraffin and waxing test ankles to go around building stores all over the place. They need distributors; companies who will take their product and distribute it to the places that will sell it.
For years, ABC Manufacturers has sold Mom’s Ankle Wax to a company called DEF Distributors. The founder of DEF Distributors knew Mom herself, back in the old days when she made her Ankle Wax by hand, out in the turkey barn.
Today, DEF Distributors buys Mom’s Ankle Wax by the truckload. They pay $5.00 a case for it, which is a very good price. It’s such a good price, it has it’s own name: the Manufacturer’s Wholesale Price.
However, DEF Distributors does not sell it to the general public either. They are a distributor. They distribute Mom’s Ankle Wax.
DEF Distributors works with a chain of retail stores called Wax R Us. This place was founded by a retail business visionary who saw the incredible potential of Mom’s Ankle Wax a long time ago. Today there are Wax R Us retail stores on every street corner in every major city in the country. Wax R Us buys truckloads of Mom’s Ankle Wax from DEF Distributors for $10.00 a case.
So, DEF Distributors makes $5.00 on every case of Mom’s Ankle Wax they sell to Wax R Us retail stores. This makes DEF Distributors very happy.
Cases and cases of Mom’s Ankle Wax arrive in the stockrooms of Wax R Us stores everywhere. The Wax R Us employees open those cases, and pull 12 cans of Mom’s Ankle Wax out of each case. With their pricing guns, they stick a price of $4.50 on each and every can.
Wax R Us stores make a total of $44.00 on each case of Mom’s Ankle Wax. (12 cans x 4.50 per can = 54.00, minus the 10.00 they paid for the case = 44.00).
Wax R Us is even happier than DEF Distributors.
However, the happiest people of all are the people who can stroll into Wax R Us and purchase a can of Mom’s Ankle Wax for only $4.50. They think this is a great price, and they’re walking around with the shiniest ankles in town.
Well, that’s it…basic product distribution. The manufacturer sells to the distributor, the distributor sells to the retailer, and the retailer sells to the end user (the customer). The manufacturer, the distributor and the retailer all make money because the customer is willing to spend money for the product.
Drop Shipping has been around for a long time, too. Probably as long as mail order catalogs; maybe longer. If you want to use a buzzword to impress a corporate type, call it “second party addressing”.
Above, we talked about the manufacturer-distributor-retailer relationship. When you use drop shipping to sell products on the Internet, (or anywhere else), YOU become the RETAILER in that relationship.
It should be noted here, if only to keep the Punctuation Police happy, that if you use the method of drop shipping in your business, YOU are not the “drop shipper”. The company(s) who supply the products to your customers for you is the drop shipper. YOU become a “Stockless Retailer”.
Here’s how drop shipping works.
1.) You open an Internet Store, with a shopping cart and the ability to accept credit cards.
2.) You find a distributor who is willing to drop ship the products you want to sell. The best place on the Internet for this is
WorldwideBrands. This is our website, and our Drop Ship Source Directory and Light Bulk Wholesale Directory are recognized as the best sources for legitimate Wholesale Suppliers on the Internet.
3.) You establish an account as a retailer with the Wholesale Supplier you choose.
4.) You receive images and descriptions of the products you want to sell from the Wholesale Supplier and post them on your Internet Store.
5.) A customer surfs into your Internet Store, and falls in love with a product that you have priced at, say, $80. They purchase the item with their credit card. Your Store charges their credit card $80 plus your shipping fee.
6.) You turn around and email the order to your Wholesale Supplier, along with the customer’s name and address.
7.) The Wholesale Supplier sends the product directly to your customer, with YOUR Store’s name on the package.
8.) The Wholesale Supplier charges you the wholesale price of, say, $45.00, plus shipping.
9.) Your customer gets a cool product from your store shipped to their door, and they tell all their friends about you, and you make even more money.
There you have it. You just made a $35.00 profit on one item. You didn’t have to buy a whole bunch of the product and keep it in your warehouse, hoping you would sell it. You didn’t have to pay to have it shipped to you, and then pay to ship it to your customer. All you did was send an email to your Wholesale Supplier.
That’s the drop shipping process in a nutshell!
Chris Malta
"Beware of Web Sites Bearing 'Free Gifts'"
If they're offered after the sale, they're NOT free!
One of my best friends, someone that I’ve known since I was a teenager (which seems like a long time ago!), had a great collection of T-Shirts with some of the funniest slogans on them that I’ve ever seen.
One of my favorites was his T-Shirt that read: “If You Can’t Dazzle ‘em with Brilliance, Baffle ‘em with Bull****” (You can probably fill in the blanks quite easily!)
There are a tremendous number of web sites selling Information on the Internet who are doing just that. Completely lacking in anything even remotely resembling brilliance, they are spending a great deal of effort, and seriously taxing their few active brain cells, in order to Baffle you into buying sub-standard Information Products.
We are in the business of providing Product Sourcing information to Home-based Internet Businesses. We publish The Drop Ship Source Directory, a Directory of brand name Wholesale Supplier who are willing to Drop Ship those products directly to your customer from the warehouse, one at a time, at wholesale. It’s an excellent way to do business without spending a ton of money on stocking an inventory. We also publish The Light Bulk Wholesale Directory; a Directory of genuine Wholesale Suppliers who are willing to sell small bulk quantities of products to Home-based Internet Businesses at larger bulk quantity wholesale prices. We’ve worked very hard for years to provide absolutely honest and complete information.
However, there are other information providers in this business who are either too lazy to do the time-consuming research this business requires, or are just outright scam artists looking to cheat you out of your money.
They have a wide range of methods they use to Baffle you into buying from them, but one of the most obvious is Free Gifts.
Now, we have to be careful here, because there are two kinds of Free Gifts.
1.) Free Gifts given to you before the sale are usually a good thing. We do that ourselves; we offer a very comprehensive
Free EBook that gives you a tremendous amount of FREE information on starting your Internet Business. We give you that for free, no questions asked, no personal information required, and you never have to buy anything from us. THAT kind of Free Gift is OK, because it really is Free!
2.) Free Gifts that are promised after the sale are the thing to watch out for. They are designed to make the offer look so attractive to you that you simply cannot turn it down. They are, in fact, given to you because the main informational product itself is so lousy that it’s creators feel that they have to suck you in with after-the-sale freebies, or they’ll never sell anything to you at all. However, in order to get all these Free Gifts, you have to buy something first.
Here’s how these scam artists work:
They pitch their junk Informational Product to you with all kinds of wonderful promises, telling you that you’re going to make incredible amounts of money very quickly.
That in itself is not true! NOBODY makes incredible amounts of money quickly on the Internet. In the real world, it takes time, patience, and work!
THEN they tell you that if you order their information, they will include “$750 Worth of Bonus Free Gifts!” with your order, or some such ridiculous statement. They tell you that you will get Marketing Information, Email Generation Software, Important Articles and Reports, Expensive EBooks, Bonus Wholesale Guides, etc., etc., for FREE, after you buy their product.
Freebies that you only get AFTER the sale are there for two reasons:
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They make you think you're getting much more that you are paying for, when in truth you are not; you can pick up that stuff for free without buying anything. All that Free Stuff is just that; it’s FREE, it’s garbage, and you can find it all over the Internet for nothing, without having to pay a cent for anybody’s products. The scam artists certainly do not pay for it; why should you?
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They are a distraction. The scam artists are counting on the very good probability that you will spend so much time with, and get so caught up in all that extra free stuff that you will forget that the original product you paid for is junk, and you'll never bother to ask for a refund!
So Beware of Informational Web Sites offering Free Gifts after the sale, folks. There is a reason for it, and it’s not a good one!
Maybe they should also offer a T-Shirt with those “gifts”…I know a guy who can suggest a good one…
Chris Malta
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