Dropshipping 101

[fjnjn2000]

Hi everybody,
Could somebody please explain to me all about dropshipping. It sounds like an interesting model. In dropshipping, do I pay for the stuff before people buy it, or do I only pay for the stuff when somebody buys ie. is it KIND OF like affiliate programs in that I dont actually buy the goods, but instead, the wholesale price of the goods is decucted from the retail price, when somebody buys something, and I pocket the profit. OR, is it in fact a model whereby i have to buy all the stuff at wholesale price, and resell it for retail price. If the latter model is the case, it sounds very risky. Anyway, could you please tell me about dropshipping 101. thank you.

 

[Evilhaider]

In a nutshell, dropshipping is buying something at wholessale price (or at a very good discount) and charging whatever you want for it without actually maintaining inventory. The way it works is that you have a catalog, either mail or online for example that lists the products you want to sell. When you get an order and payment from your customer, you place the order with your supplier,manufacturer, etc and pay them whatever YOUR cost is. You give them the customer's address and they ship the product directly to the customer. Therefore your profit is the difference in what you charged ur customer and what you paid to your supplier. You didn't have to maintain any inventory. Sounds pretty easy but gets more complex...

 

[Anthony]

Sounds like this is the method many eBay sellers are using...

 

[xclusive]

http://www.wholesalecentral.com/Dropshippers.html for lots of resources good luck and from personal experiance you have to be on top of your game and always updating your products.