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Dropshipping 101

If you have heard of the word dropshipping chance are you are involved in online auctions or you are interested in owning your own web store.

This article will educate you on the in's and out's of dropshipping and how this system is an intricate part of selling online.

Dropshipping is a term used to describe the action of a wholesale company sending merchandise directly to your customer in a manner that makes it look like the products came from you.

For example, you list an item for sale in an online auction or on your website.

Your customer would order an item from you and pay the price that you set.

You then email that order to the wholesale company and pay the wholesale price. The difference is profit for you.

The wholesale company then ships the order directly to your customer. That's the beauty of dropshipping.

Why use a dropshipper?

There are many reasons. If you have a home based business, there may be zoning laws in your community that don't allow the type of business that would involve inventory and shipping out of your home. They don't want UPS up and down the street every day.

Or maybe you don't have the capital to purchase in bulk.

Running a stockless internet store is just about the easiest home-based business you could run.

The work in the beginning involves setting up your website. Or if you decide to only sell at online auctions no website is needed.

Business Licensing:

Most dropship companies will require you to have a business license or Tax ID number (Re-sale license) in order to open an account with them. Some do not. Dropshippers who do not ask for a tax ID number are usually middle-men.

They have a resellers license and are purchasing directly from the wholesaler. They then raise the price and sell to you. Avoid these middle men.

Make getting a tax ID number first on your to do list.

State by state online help to get your tax ID number for dropshipping.

The Infamous Lists:

There are lirerally thousands of lists of a million dropshippers for sale out there. Anyone who knows how to cut and paste can make and sell a list.

The problem is that these people don't even know what they are selling. They have never even visited the links (otherwise they would know that 90% are links to non-existent websites).

The Good Guys:

There is only one directory of dropshippers and wholesalers that is very well researched and put together. It is The Drop Ship Source Directory from World Wide Brands, inc.

It is copyrighted and backed by the BBB Online Reliability Program.

If you plan on selling online and using a drop ship program, this is the one!

Chris Malta is the founder of World Wide Brands and the creator of the Drop Ship Source Directory.

Chris is an extremely honest person and his company's website is filled with fantastic articles, tips and information on dropshipping to assist you with your online business. Not to mention over 2 million drop ship products to choose from!

I never reccomend products or services that I don't completely believe in. That's why my business is listed with the Drop Ship Source Directory.

If you want to sell at online auctions or start your own internet store, you need look no farther for products.

You will find virtually anything you could possibly want to sell in this directory.

I encourage you to visit the World Wide Brands website.

They also have things to watch out for.

Scam Watch

Don't forget to get your free copy of Chris Malta's e-book.

Dog-Portraits-Inpencil.com is a proud member of the Drop Ship Source Directory.



    

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