What Is A Drop Shipper?

 

Drop Shippers are whole sellers who are willing to do the shipping part for you.

 

 

what is drop shippingMany are curious today about Drop Shipping and what it implies.  So, what is a Drop Shipper?  Drop Shipping itself has been around a long time.  Amazon, eBay, and even Home Depot utilize these types of whole sellers to get product to their own stores.  

Many other major companies we know of today are also utilizing this service to sell products, and have been for many years.  Drop Shipping is a system which whole sellers and manufacturing companies alike use to get their products to market in higher volume. 

A Drop Shipper is a middle man, providing a shipping service to your customers.  When you list their products (whole seller) and sell them as a reseller, they will in turn ship that product to anyone you wish.

 

 How To Sell Using A Drop Shipper

 

For instance, let us say you want to start an online store.  But you do not want to stock, inventory, or ship any products yourself.  What you would do is contact a Drop Shipper, which is a whole seller.  Now many wholesalers do not offer this service. (More about this later.)  You would register at their website.  And as long as you meet their requirements, you are able to resell their products by listing them on your own store website.  Without having to touch the product itself.

When you sell a product listed on your store website, which is really their product, (you just have a picture and description of it) you email the Drop Shipper and show them which product you just sold.  And send them the money of course. 

Once you send them the money you have received for the item, you also give the Drop Shipper your customers mailing address.  Most people do not realize when they buy a product online, that the product itself is not actually there at the moment.  It is a picture only.

The Drop Shipper in turn processes and ships the product to your customer.  Many Drop Shippers charge extra fees for this service.  Or the price for this extra service is built into the product price itself.  Just don’t be naive and think they are doing this for free.  They are not.

 

How To Find The Best Drop Shipping Company

 

Know which ones to stay away from, is what you need to learn first! What you don’t want to do is contact many of the so called middle-middle men who are only training companies set up to help you get started with a website, and offer you a list of free drop shipping suppliers.  These so called middle-middle men get paid commissions by companies who can get their products sold quicker. You will see their ads in the search engines because they spend a lot on marketing to be there.  Problem is, this money was their customers training money at one time.  Your money.

These companies pray on innocent people looking to get started with a business on a low budget and they take advantage of you, buy offering you so many free things, just for 19.99.  Or a free 7 day trial.  So they hook you into thinking this is the way you needed to proceed, when in reality their products are marked up way beyond the price which one would sell.  A list of these below of which I’ve checked out,  and hope you will stay away from.  Some of these I’ve joined at one time or another.  Only to cancel later when I found out how they operate.  And there are even more then I have listed here.

  • shopify.com
  • doba.com
  • bigcommerce.com
  • Dropshippers.com
  • aliyoyo.com
  • simplx.com

Beware of Low Quality Drop Shippers And Middle Men

 

Beware of these companies listed above…saying they can get you going and make you a success.  I’ve used several over the past years and whatever profit you make…they tend to take back.  That is how they make their money.  Off of you.  If their system actually worked, they would get their own store and sell products themselves!

How to find the best drop shipping companies out there is a matter that will take you time and research.  Others will not give this information away as you become their competitors.  Make sense?  Word of mouth is a good way.  Also searching on the web, being careful you now know what to stay away from.  Also I have listed some below to get you started with.  Sign up, or register, read about their policies, and start selling!  You have to build a relationship with your suppliers and this is going to take plenty of time.  But to get started selling today?  Start with my list below.

 

Whole Sellers are Drop Shippers

 

Whole sellers buy huge amounts of a product to get them discounted.  They then sell these one at a time with increased price to make their profit.  By offering a Drop shipping service, they get resellers, (you and me) to help them sell these products as well, at increased volume creating much of their own profit.

So many whole sellers do not drop ship.  The trade in bulk only.  They believe it is too much trouble to sell one product at a  time and the effort is not worth the extra revenue.  And this is how middle men get involve.  They offer to move the product quickly so the companies give them the chance to do so.  So not all whole sellers are Drop Shippers. 

You can think of these whole sellers as the middle men.  And these Drop Shippers are middle men that provide this extra service to resellers, with training, so called support, and a quick lesson and quick build up of a store system.  Which by the way they do not help you with the marketing part.  Which means they give you a store and then tell you to go and do the work.

 

What Are The Benefits To Using A Drop Shipper?

 

how to find the best drop shipping companyThere are many benefits to using Drop Shippers.  Take for instance Drop Shippers within the US.  This saves time in shipping.  Some of these Drop Shipping companies are in the US, and some are located over seas.  Like China. 

Just remember, you can get a better price from foreign Drop Shippers, but it takes extra time to get your product to your customer as well.  So the benefits to using a Drop Shipper range from saving you time, to saving you money and worry. Also the risk involved in having a bunch of product stock piled in your house.  With no insurance.

  • No investment capital needed to buy inventory.
  • No housing needed to store products on hand.
  • No using your valuable time in shipping or packaging.
  • No added insurance costs.
  • No product inspections or climate control warehouse.
  • No limits of products to showcase.
  • No long time table to get your investment back.
  • No limits to selling thousands of different products.

 

What Are The Risks Of Using Drop Shippers?

 

The downside list can be about as long.  From the Drop Shipper running out of stock and not notifying you, to the time it takes to get the product from them to your customer.  Many Drop Shippers will expect you to already have a store or website up and running for up to six months before allowing you to resell their products. 

This makes since as there are  thousands out there wanting to do this now and are wanting to start with a shoe string  budget.  This does not help the Drop Shipper who needs to move his product in large quantities.  So it is a waste of their time if you do not have traffic built in already with your website store.

 

  • Products not available when you need them to be.
  • Products not shipped in a timely fashion.
  • Products being the wrong product shipped.
  • Products not arriving.
  • Added costs some Drop shippers require.
  • Returns and Warranties maybe less then satisfactory.
  • Quality of products you receive.

 

Can I Make Money Using Drop Shippers?

 

I think the more relevant questions should be…can I make money with my online store, using Drop Shippers?  Using Drop Shippers is just a small part of what goes into being successful running a online business.  There are many people who make money every day from using this exact same system.  As Drop shippers do allow you to start a business  with very little start up costs.

 

Where Can I Sell Drop Shipped products?

 

I started my first Drop shipping Business on Ebay in 2005  selling Drop Shipped products.  It is easy to start there.  Open a free account and start reading their instructions.  Very good practice also.  My first Drop Shipping companies were:

  • chinavasion.com
  • Tmart.com
  • Moteng.com
  • Bangood.com

I later opened an eCommerce Store where I sell many Drop Shipped products today.  You can set up an eBay store and get involved at first to see if it something you are interested in.  You can also benefit from the free training on how to build a website below.

 

Starting Online

 

Before I started selling on eBay I learned some well needed training on website marketing from a program called Wealthy Affiliate.  There I learned the basics of how to build a website and also manage one.  One thing about selling online using any means,  is being able to get traffic to your web store. 

An online store has no address, so in order for people to find you, you need to know how to get the word out.  The Wealthy Affiliate Training Program provided this for me.  Check out the revue if you would like.  Wealthy Affiliate.

 

Using a Drop Shipper is the easiest way to do eCommerce today. Or selling online.  Please check out my article “Tips For Selling on Ebay.”

If you have any questions on Drop Shipping, or Selling online….leave a message below in comments.  I will be happy to help you.

 

 


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4 Responses

  1. Damon

    I read a lot of interesting posts here. Probably you
    spend a lot of time writing, i know its as lot of work. So good job.
    Thank you.

    • Rick

      Yes we work very hard at making money online. One thing about it though the money keeps flowing long after we
      slow down and only work a few hours each week! That is the wonderful thing about Wealthy Affiliate.
      Lots of work up front, but then a few years from now I can retire!
      Rick

  2. Tim Goodby

    This post was great! I learned a lot about drop shipping and how I could get it started for my own online business. Before this article, I never really knew the true benefits of drop shipping but it all makes sense now. Thanks for also listening other companies other than the big names like Amazon, it’s great to have variety!

    • Rick

      Well my job requires me to help others in this field of online marketing, and I help others by showing the scam programs and helping them save their money for a better programs that actually work, like Wealthy Affiliate.
      Thanks for stopping by!
      I appreciate the comment.
      rick

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