DropShip Business Model - How Drop Shipping Works
Drop Ship Business Model
The drop ship business model is a revolutionary business solution that has been around for decades. Individuals and large corporations alike use drop shipping to gain access to brand name products wholesale prices.
How Drop Shipping Works
Drop shipping involves two key players:
Drop ship service provider, also known as a supplier.
Entrepreneur, also known as a seller or business owner.
Research, Sign up, and Gain Access
Entrepreneurs select a reputable drop ship provider to work with, and sign up for service. The entrepreneur then gains access to an online catalog of wholesale products, which can be accessed at any time – day or night. Entrepreneurs also receive access to additional selling tools, such as eBay listing tools, data feeds, and how-to business guides, if they select Drop Ship Access as their product sourcing partner.
Browse, Research, and Sell
First, entrepreneurs browse through the online catalog to find products of interest. Then they research the market to determine that the products they want to sell are earning favorable profit margins. Finally, sellers list the products on eBay, their website, or both.
Collect Money, Order Products, and Enjoy the Profits
Once a product sells, the entrepreneur collects money from the customer, and orders the product from the supplier. The supplier ships the order directly to the entrepreneur’s customer. The entrepreneur keeps the difference between the amount they sold the product for and the wholesale price of the product. For example, an entrepreneur sells a digital camera for $99. The camera has a wholesale price of $69. The entrepreneur makes a $30 profit off this one sale!
Profits start adding up quickly when entrepreneurs list multiple products at a time. Since entrepreneurs can list as many products as they want – without buying them first, there is no reason not to list many products. Similarly, selling big-ticket items, like high definition televisions, becomes much easier. Storage doesn’t even present a problem. All inventory and shipping is handled by the drop ship supplier.
Discover how successful entrepreneurs are Cutting Costs with Drop Shipping! Browse additional business guides at the Drop Ship Access Education Library.