How does dropshipping concept work- Best Dropshipping program

Discussion in 'eCommerce' started by designventures, Nov 9, 2010.

  1. #1
    Can you guys explain how does drop shipping work?

    Also can you name few programs- Paid and FREE programs
     
    designventures, Nov 9, 2010 IP
  2. caves

    caves Peon

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    #2
    Basically the short of it is.

    Customer orders product from you.
    You order product from Merchant/Supplier.
    Merchant/Supplier ships to your customer.
     
    caves, Nov 9, 2010 IP
  3. arwa

    arwa Peon

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    #3
    Dropshipping provide inventory and send directly to your buyer if we can make the sale as a (re) seller.

    Dropshipping:
    Doba, worldwidebrands, salehoo, Dropship Direct, Shopster, etc

    cheer :D
     
    arwa, Nov 9, 2010 IP
  4. designventures

    designventures Active Member

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    #4
    What are the risk involved? I mean customer returns the product or disputes... who pays the price
     
    designventures, Nov 9, 2010 IP
  5. arwa

    arwa Peon

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    #5
    return policy.
    customers who wish to return an item, will be charged a fee is usually 15% and pay ship returns.
    It has become a general rule

    cheer :D
     
    arwa, Nov 9, 2010 IP
  6. verdecove

    verdecove Member

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    #6
    How dropshipping works has been explained above and also some dropship companies have been named.
    World Wide Brands is NOT a dropship company but a directory for you to find wholesalers and dropshippers - for a fee of course.
    Just type in google wholesaler and you will find 100's if not 1000's of companies they will be all happy to dropship for you.
    well, sounds good huh? But what sounds too good is mostly not true and if you will find one true wholesaler who dropships for you under those 1000 MIDDLEMEN so you already could consider yourself lucky.
    Those guys are sub-wholesaler they mark up the products so high already that there will be not much left for your markups if you want to be competitive on the market with your product prices.
    The same counts also for DOBA, SALEHOO and aboved named companions. They in addition will charge you even a monthly fee which mostly ranges from $19.95. $49.95.

    Dropshipping still can be a good business but never will be as good as if you could really buy in bulk from a wholesaler and take care for storage and shipping yourself.
    If your site and the orders really will grow, then you could source the storage and shipping part out to a fulfillment center.

    Now how can you find true wholesalers who dropship is a well kept secret or you can pay for a directory access like World Wide Brands.
    Or, you also can invest a lot of time and do some research on the manufacturers of the products you are intend to resell, contact them and and ask for distributors or sales reps, get with them and ask them if they offer any dropship service or if they know anybody who does.

    Cheers
    verdecove
     
    verdecove, Nov 10, 2010 IP
  7. Xelpher

    Xelpher Member

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    #7
    Drop shipping is basically a 3 step process.
    You find a site that sells a particular product for a cheap price.
    You create an Amazon or Ebay account and place the product up at a higher expense.
    Your customer pays you for the product, you then buy it from the site you originally found at a cheaper price than the customer had paid.
    Profit.
    DropShipping websites are hard to come by, be wary of chinese based sites that could possibly be selling replicas. Those could get you in trouble.
     
    Xelpher, Nov 10, 2010 IP
  8. josh18ua

    josh18ua Peon

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    #8
    Most of the time, you can make more money purchasing the items yourself and then doing all the inventory. Drop shipping is easier, and a good way to test out niches.
     
    josh18ua, Nov 11, 2010 IP
  9. digitalroadwarrior

    digitalroadwarrior Peon

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    #9
    There are ways of finding American drop shippers but it takes a lot of research. Honestly, I used to half ass my research and only come up with DOBA, Salehoo, etc but if you know where to look things fall in place nicely. I suggest looking at all kinds of forums you'd be surprised what you may find if you look deep enough.
     
    digitalroadwarrior, Nov 11, 2010 IP