What Is Drop Shipping? The Perfect Solution

Drop shipping one of the greatest business innovations since products. Seriously, don't laugh! I'm not joking! With what other service can you use another company's products, their warehouse, their shipping department, and have them provide you with all the information you need? Do you see what I mean now?

Every entrepreneur who is looking for the most efficient way to sell products over the internet should be very enthusiastic about drop shipping. It finally allows you to sell nearly anything you want, be it computer equipment, toasters, billiard tables, even planter pots, all without having any inventory. And do you know what zero inventory means? It means less risk! The only time you ever buy any products from the wholesaler is when you have already sold it to a customer! And the best thing is (or should I say, another best thing), the wholesaler packages it up and ships it out to the customer for you, and usually your business name is on the box! As far as the customer knows, you have a warehouse full of products.

When you sign up with a wholesaler, they will most likely ask you for your tax license number, or a faxed/emailed copy of it to prove you are a legitimate business. If they don't ask you for this, they are either a very small wholesale company with a specific niche of products and just want to make the process easy for their clients, or they are not a real wholesaler at all.

If you ever come across a "wholesale" company that carries tons of items, ranging from Barbie's to hair dryers, and they say that you don't need to have a tax license to deal with them, then be very skeptical, because 99 to 1, they aren't a wholesale company at all.

That sort of company will just take your order only to turn around and order it from the real wholesale company at a much lower cost than you paid for it (and they did have to get a tax license to do this). It doesn't stop there either. Since you bought it at a higher price, you will need to pass this on to your customers by marking it up higher than you need to. And if you ever needed or wanted to, you would have less margin when lowering your prices to match or beat your competitors. And your competitors would probably have a tax license, so they would be dealing with legitimate wholesalers.

Seriously, be very careful about this, there are many wolves in sheep's clothing out there. So skip the middleman, get your tax license, get legitimate and you will save yourself a lot of grief and money.

Once you make an account with a wholesaler, some will mail you a wholesale catalog and price list in the mail with a CD full of product images to use on your website. The smaller companies will just allow you to copy the pictures and descriptions off their website. With this product information, you can post the products to your online store and wait for orders. It's as simple as that!

Then, when a customer places an order, you either call, email or fax your contact at the wholesaler and give them the customers name, address, and the items they want, including any other miscellaneous information the wholesaler may want. The wholesaler then charges you for the cost and shipping of the order at wholesale price, then packages it up and sends it off to the customer. All you have left to do is turn back around and charge the customers credit card for the items with your profit margin markup.

The reason this is growing in popularity amongst wholesalers is because they get to have many other companies market and sell their products, thus reaching more people and selling greater volumes. The wholesale company is still able to sell their products for the price they want, and you get to keep the profit margin as a reseller. It's a win/win situation.

Drop shipping is enabling the average person to be able to run a successful, full service online retail store from the comfort of their home. Zero inventory, no shipping department, only buy when you have already sold -- this is the perfect affiliate program.

Copyright © 2003 by Palyn Peterson

About The Author

Sign up for Palyn Peterson's FREE 13 day intensive email course and discover the 16 necessary basics and 8 advanced internet marketing techniques. You'll also receive a free $gift$. http://FutureInternetMarketing.com/guide.htm

palyn@futureinternetmarketing.com

____________________

Advertisement: Honest Riches - Click Here!

Advertisement: Lost AdWords - Click Here!

Advertisement: Get $1 Million A Month In Google Pay-Per-Click Ads Free! - Click Here!

Advertisement: Who Loves Money? - Click Here!

Advertisement: SEO Elite, the GrandDaddy of SEO Software - Click Here!

---

With Todays Internet, Is Banner Advertising Worth Your Time?

A banner exchange program is a network of websites that group together to promote each other's website. This is a free service and to join you simply... Read More

Have You Got Your Ear To The Ground Or Your Head In The Sand?

What happened on your website yesterday? What about last week or last month? How about in the past hour? How many visitors come to your website as... Read More

Headlines Bring Sales--Where and How to Use Them - Part 1

Headlines are short vital statements to stimulate your potential customers and clients to take action. That means sales! Since you only have 10 seconds to attract your... Read More

Forming Profitable Joint Ventures

You won't be involved in Internet marketing long before you see the term "Joint Venture." Perhaps you are familiar with the term from its application in the... Read More

Online Advertising Mistakes ? 3 Donts For Newbies

Are you new to Network Marketing? If you are, then PLEASE avoid these mistakes when you promote your business opportunity!Mistake#1. SpammingSPAM: Sending People Annoying MessagesYes, you got... Read More

How To Get An Instant Flow Of Traffic Doing What You Always Do

How DO you get a great flow of traffic for free? Well I know one way you can get great traffic doing what you do everyday you... Read More

Time Management And Organization For Online Marketers

TIME DEMON. For online marketers, time is one of their most important assets -- time spent marketing and selling their products. But often, organizing information (i.e. ad... Read More

Two Steps to an Investment-Free Online Empire

If you're like most of us, you're not on a budget that allows you to spend massive amounts of money on advertising for your Internet marketing campaign.... Read More

How The Right Domain Name Can Improve Your Sales

So you're starting a website and have visions of making hundreds, even thousands of dollars in sales a day.You've done your market research, found a profitable niche,... Read More

Online Marketing Success Formulas?

Quit your job, pack up and restart your life online. Create a website selling your talent and latest invention. To jumpstart the motor, spend a few hundred... Read More

Internet Marketing Guide

If you are considering launching a website for your business or entering the lucrative world of e-commerce by starting an online business, there are a few things... Read More

4 Reasons Why Having Your Own Product is Essential for Serious Marketers

I know what you're thinking, "Why is having your own product essential?" Quite simple really, without your own product you will never market to your full potential.... Read More

How To Make A Lot Of Money On The Internet Doing Nothing

"You can make a lot of money on the Internet doing nothing!" That's the number one Internet marketing myth.It's an urban legend, of course. But yet, that... Read More

Is There A Future For Spam?

Will you always be buried underneath a mountain of spam? Is there any light at the end of the tunnel? With the current flood of spam to... Read More

Internet Consultants for Online Sales

Beware of Internet Consultants, as many of them have never been able to promote anything of their own, yet are in a haste to charge you for... Read More

Advantages Disadvantages Of Internet Marketing: The Good The Bad And The Ugly

The Advantages Disadvantages Of Internet Marketing are many.A few Advantages Disadvantages Of Internet Marketing are:* It's on the internet so it's low cost* Very fast* And you... Read More

Subconsciously Command Your Readers To Buy

Tell your readers what they are probably thinking, feeling or doing as they read your ad copy. This strategy will usually trigger their own subconscious mind to... Read More

The 2 Best-kept Secrets Of The Internet

It's a difficult creating a website that brings you business. It's full-time job where things seem easy at first but as soon as you start to explore... Read More

What Big Pharma Can Teach You About Niche Marketing

A recent newspaper review of a new book, Selling Sickness, got me thinking about niche marketing (The Globe and Mail, Saturday, August 6, 2005, D8-D9). The book... Read More

How to Build an Asset Out of Giving Stuff Away for Free

We all do it I guess: give something away for free to stimulate interest in our online promotions, an e-book here; a report there, whatever elsewhere.But can... Read More

Analyzing Website Traffic

Analyzing your web traffic statistics can be an invaluable tool for a number of different reasons. But before you can make full use of this tool, you... Read More

Free Demographics or Updated Data?

During your search, you may encounter free demographic data. If data is data, then free is better, right? Not necessarily! Census data and commercial data do vary,... Read More

How To Get Qualified Visitors to Your Site

Having an eBusiness isn't just about getting gobs of people to your site and hope that a number of them buy. Having your little web counter screaming... Read More

Ways To Outsell Your Competition

Competition is fierce on the Internet. There are a multitude of people selling products that are similar to yours. How in the world you you get customers... Read More

Viral Marketing:10 High-Impact, Viral Marketing Strategies,To Explode Your Sales

Hello, do you have any website that is not bringing in a lot of sales?Would you like to know a few smart and sharp viral marketing secrets... Read More

I Too Was An Internet Marketing Junkie!

I spent every waking hour at my computer, looking for the 'Golden Fleece' of marketing. I spent hours, and days, and more hours in hopes of finding... Read More