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What exactly is drop shipping and how does it work? Can you really make money selling products without purchasing in bulk and keeping inventory? Discover how drop shipping can eliminate the problem faced by many online sellers: where to store inventory. Read this 5 step guide to discover what drop shipping is and how it works!

Drop shipping is a practice of retailing where a distributor stores the inventory and handles the shipping for you. It is a good method for people who are new to selling online as there is little to no start-up cost and virtually no risk involved. One of the drawbacks of drop shipping is that your cost will usually be higher than if you were buying in bulk. This means that staying competitive in the higher profile categories like electronics and clothing may be a little harder but it does not mean that you cannot make money drop shipping. Below is a 5 step guide to drop shipping – what exactly is it and how does it work.

Your 5 Step Guide For Drop Shipping:

Step 1: Find a Drop Shipper

Start by searching for your product name + “drop shipper” or researching online wholesale directories in your preferred search engine. You will discover there are a variety of companies online and will need to choose one that will best fit your needs.

Step 2: Set Up An Account With a Drop Shipper

A good means of making sure that you find genuine drop shippers is to use a wholesale or drop ship directory. Do not fall for scams! Be sure to do your research on any supplier or directory before making any commitment! Read all of the fine print and make sure there is a way to get your money back if it doesn’t work out! A standard practice for drop shippers is to charge a small account set up fee. You should be wary of suppliers who insist you paying monthly or annual fees.

Step 3: List the Items You Want to Sell

List items on your own website, e-store or an online auction site such as eBay. Your drop shipper will usually provide you with the photos and item descriptions for the items you are selling. List as many as you like since you will not have to pay for them until they sell!

Step 4. After The Sale

Congratulations, you have made a sale! After your sale is complete and you have received payment from your buyer, you will need to log in to your supplier’s web site, purchase the item you have sold and enter your buyer’s shipping information. Instead, if your drop shipper does not have an ecommerce site which you can buy from directly, you will simply send them an email with the details of your purchase and your buyer’s information.

Step 5. It Is Now Up To The Drop Shipper

After your drop shipper receives your order, they will box up and ship the item to your buyer. You have just completed a sale and never had to handle or keep any inventory!

It may take a little time to learn what drop shipping is and how it works, but it is absolutely a great substitute to purchasing and storing inventory. Take the time to do your research and you will be making money with drop shipping in no time!

Why store your own inventory when you can ship directly from the distributor? Discover more about drop shipping! Stop wasting time! Learn how to make money online!

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