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Drop Shipping Defined

Drop shipping is the shipping of merchandise from a supplier directly to a retailer's customer. This means that the retailer can ship to their customers directly from the suppliers' warehouses. This process minimizes risk because the retailer does not need to buy the product until it has sold. Suppliers take care of the warehousing, packaging, and shipping of products, saving you a great deal of money.

The product selling process

1. Find products to sell from our Product Catalog.
2. List those products on a web site or auction (use the descriptions and images on our site).
3. After the product sells collect the money from the buyer.
4. Place the product order through Doba after receiving payment from the buyer. The difference between what the sale and the costs is the PROFIT to keep.
5. The product is shipped directly to the customer.

Drop Shipping Basics

The term has started to catch on in the mainstream but there are still a lot of people out there that don't know exactly what drop shipping actually is. Basically, drop shipping is sales. Let's say that company A sells product X. Now company A does not sell directly to the public but you can buy their products at stores around the country.

In drop shipping, you become the retailer. The interesting thing about drop shipping is you do not need a store or even an inventory to sell your products. With the help of the Ebay business machine, you actually don't even need a website either.

But stores, like the Ebay business machine, operate to make a profit. Therefore, they must charge more than they paid for the product in order to make their profit. So, they either buy the product X directly from the manufacturer or from a distributor at wholesale price and then turn around and sell the product at retail price. The difference between those two prices is their profit.

So how exactly does drop shipping work? First of all, you find a wholesaler that is selling products you are interested in reselling to the public. After setting up an account with them, they send you product descriptions of all their products or at least those you are interested in selling. If you do not have a website, you can post these product descriptions on the Ebay business website.