Friday, January 30, 2009

Drop Shipping Online

Drop Shipping is an online distance business, distance means in this case that you are not buying, storing, or shipping the goods. This is the safest and perhaps the most promising way of Internet trading. Consider the following model. You can operate an Internet store with hundreds or even thousands of products, ready for online purchase. You, and only you, are responsible for the sale, and control the online store operation, and marketing of your shop.
Also can often also determine the selling price of the goods, although this is not always possible. After purchasing one of your items you then receive payment from the customer, you then place your order with the drop ship company and they will now send the order out to the customer. You can run a drop shipping business as an online store or participate in auctions, such as EBay. But, and this is the really special part about the drop shipping, the company send their goods themselves, but indicate in the delivery notes and order data not their details but yours.
This means that as far as the customer is concerned you are the owner and shipper of the goods. They deal with the transport and storage of the goods as well as shipping to the customer; they have all the expense of trucks, a warehouse, staff and so on. You just have to take the orders and cream off your profit before sending the order to the company for processing. This has the additional and decisive advantage that you do not need to provide advance financing for perhaps thousands of individual items.
Because your goods are being sent directly from the wholesaler after you have been paid in advance. You will probably pay the wholesalers 1-2 times a month for all your sales. This is the debit agreed procedure often followed; you receive a generous discount from the supplier which gives you your profit, which may have already been in your bank account for a couple of weeks.

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