What is Dropshipping? How much you earn from it per week?

I should be grateful if someone can explain clearly and briefly the steps involved in Dropshipping.

Also, how much you can earn from it per week?

 

Here's some insight information:

And here's the full article that seems to be explaining it pretty well:
http://www.allbusiness.com/3779014-1.html

 

Here is a paste from an article on Drop Shipping..

What is Drop Shipping? Drop shipping is a method of buying-and-selling that requires very little overhead investment (aka CASH) and very little effort. Sounds perfect for the entrepreneur who is both broke and lazy!

Here is how drop shipping works (on eBay).

You look through the drop shipper's catalog to find products you would like to sell. Then, you list the products on eBay - either as auctions or buy-it-now sales. If a product sells, you forward the order on to the drop shipper who then ships the product to your customer.

You keep the profit.

The profit is the difference in price between what you pay the drop shipper and what you sell the product for on eBay. So if your drop shipper sells the iPod for $120 and you sell it on eBay for $150 you have made $30 profit. However, to determine your true profit you need to calculate your eBay fees, PayPal fees, etc. So your actual profit would be under $30.

Here is the full article: Drop Shipping will Kill Your eBay Business in Under 30 Days

If you are considering dropshipping, consider some good affiliate programs instead. You can leverage the good name and low prices of established retailers and make more money with less effort.

With drop shipping you are going to have to do customer service for products you have never seen or handled. Another company is going to represent your business. This leaves you at risk.

Either way, good luck!

 

In a nutshell, you ship the product from the dropshipper to the customer, so you don't have to keep inventory.

 

I used to do dropshipping and eaned quite a lot, but then competition became so intense now it's nearly impossible to get "rich" with dropshipping. Maybe I'm just not that good.... :S

 

Drop shipping basically reduces burden on retailers by removing inventory managment and distribution/shipping. Learn more What is Drop Shipping and how does it helps sites like Amazon

Regards
TJ

 

Dropshipping is the same as if you would sell my iPhones ! Let's say, you have a client who wants to buy a new iPhone and you know that I'm selling it for like 100$ ( example ). Now, you sell it for 150$ .. You've now a pending order and money in your PayPal ! Then you just pay me those 100$ and I ship that phone to your client - you got 50$ and did nothing ( except marketing )

 

How are your dropshipping lessons going ActiveFrost?

 

Before asking, please explain, what you are talking about ?

 

See this... http://forums.digitalpoint.com/showthread.php?t=1270428

 

Would only disagree in that the reduction of burden, is having reduced start up and operation costs from having 0 inventory. Tracking available inventory is still a major issue.

 

What do we prefer dropshipping or finding agood and reliable supllier ( that is hard to find i think )

 

Oh ! Well, I've already answered to all PM's regarding that thread and I'm not going to discuss it here.

 

If $ isn't a concern, finding a supplier and warehousing goods is ultimately better from my viewpoint. Let's you insure you have the product, you have ultimate control over everything.
Usually $ is a concern, so it has to be weighed accordingly. Dropship's real appeal is the lack of inventory on hand. Downside is you lose control over Return Policies, shipping details and you are limited in what you can use from an IT standpoint. Also dropship companies can be real good for small operations (1 man shop deal) or from someone just starting with business period. The better companies offer guidelines for using their services with suggestions and advice.

 

There is an easy way to explain what is dropshipping .
There are three parties, A B and C . You are A .
B want to buy some items you promote in your site .
Actaully C is selling the items .
So B pay you for the item . You pay C and ask C to delivery the items to B .
That is all . You earn some money from the transaction between your three parties .

 

I have done both the affiliate program and Drop-Shipping. Both look and sound good, but the truth is that if you want to make money online you are going to need to have a brick and mortar and buy wholesale, or find a niche market. The Drop ship products are too expensive for most to buy and you have to trust the affiliate program operator to ensure you get paid for the product you advertise for nothing. (It you have a site that gets less than 1000 hits a day, good luck with getting paid by the affiliate marketer) It is not easy to make money on the internet if you do not sell a quality product at a good price. And guess what? You are going to need a business bank account anyway, so you are better off just opening your own brick and mortar in most cases, and online. (Unless you can find a niche market).

 

dropshipping is way to risky for me.

 

Depends on the product. If enough margin is available dropshipping could work.

 

Manufacturer manufacture products ( eg. camera - cost $50 ). dropshipping company buy products in bulk and increases the cost of the product ( camera - increase cost to $60 ). sellers open account in dropshipping company websites and sells the product in their websites or in ebay by increasing the cost ( camera - increase cost to $80 ). buyers pays money to sellers ( $80 ) and sellers pay money to dropshippers ( $60 ). total profit is $20 for sellers. dropshipping company send the products to the buyers. thats all............

 

But how do I ensure that the manufacturer will ship my items out without cheating me?