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What is Drop Shipping?
Drop shipping is a revolutionary way or doing online business. It allows you to do business with out needing much front money. If you have a computer and the internet, you pretty much have all you need. It is extremely low risk. This is how it works:
Decide what you want to sell. Make yourself a niche-angled shop. For example, become a luxury goods store. You sell things like diamond watches, Cashmere sweaters and anything else high-end that you can think of. You can do this with out making a single purchase or even owning the products.
First, get yourself an online internet store. Make one that has the shopping cart feature and can accept major credit cards.
Now you find a distributor that has the items you want to sell. For luxury goods, go to http://www.private-sales.com. They are the largest dropshipping wholesaler of luxury goods online.
They will then email you images you need to promote the products you want on you online web store.
Now you promote your store and someone decides to check it out. The customer browses through your high-end goods and finds a bracelet that she just can’t live without. The bracelet is gold and has diamonds every other link. The price on your web store is $400 dollars plus shipping.
The customer then puts in her credit card information and shipping address and clicks the “buy” button on her shopping cart.
Now the order goes directly to the dropshipping wholesaler, http://www.private-sales.com, and they package it and ship it to her address with you companies name on the package. The shipping company charges your credit car card $250 dollars for the item and shipping.
Now you just made $250 dollars with out owner a gold diamond bracelet. You didn’t need to have a warehouse with a large stock of inventory. You didn’t even have to leave you apartment to make that $250 dollars.
That is the beauty of using a dropshipping wholesaler. They provide a service that allows you to own a business with out all the hassle of renting a building, hiring employees, having long business hours or anything else that comes with your standard company.
This method of business also allows you to not only purchase your goods at a wholesale price, but also set the retail value as you see fit. You can charge as much or as little as you want, it’s your store.
Sometimes a customer will decide that can’t afford an item right now and cancel the order. That doesn’t affect you at all. The credit card order is cancelled and the wholesaler doesn’t charge you anything.
So, to sum it all up, dropshipping is a low risk, high return, method of doing business. The high return is all based on you and how much time and effort you put into getting traffic to your store. However, the merchandise aspect of it is completely taken care of and covered by your wholesaler.