How Drop-Shipping Works

Drop-shipping is a technique used in home-based businesses and other types of businesses that involve selling products online. It’s the simplest way to handle sales, either for your own products or for any affiliate products you sell. So how can you make the most of your decision to drop ship? Follow these tips and guidelines.

How to Drop Ship Products


Drop shipping involves allowing another company to handle storage and shipping of your products. In short, you sell the products through your website or another online retailer like EBay, Amazon, or Clickbank.

Then the order goes to your dropshippers, who then locate the item in the products you have stored with them and ship it out. This technique has made it easier than ever for anyone to have a legitimate home business that involves selling products online.

You no longer need to reserve a space in your home for storage, and you don’t have to make frequent trips to UPS, FedEx, or the Post Office.


Drop-Shipping in Affiliate Sales


One of the most common places you’ll find this retailing practice (sending items from a manufacturer or wholesaler directly to a customer) in use is in affiliate sales. The idea is very simple.

You sign up to sell a brand or line of products by creating your own website and / or selling them through a well-known online retailer like Amazon. Then the company whose products you are selling handles the storage, fulfillment, and shipping of all your orders.

Wholesale Drop Shipping for a Legitimate Home Business


Even if you are not selling affiliate products, you can still find a wholesale drop shipping company that will handle this process for you. One of the simplest ways to do this is to set up a shop on eBay, Amazon, or another well-known online retailer.

Many of these retailers will ship products for you if you supply them with the items. For example, if you’ve ever shopped at Amazon, you’ve probably noticed the difference between retailers who were fulfilling their own orders and those who used Amazon to fulfill their orders.

Products that are coming from Amazon’s warehouse are eligible for free shipping if the purchaser buys more than a certain minimum quantity. However, items sold by retailers who are delivering their own products more often do not apply free shipping because the retailer is paying for this service on their own.

Usually this is indicated by a disclaimer the retailer puts next to the product, which would say something similar to “Sold by XYZ and fulfilled by Amazon.”

Locating Dropshippers


If you decide to look into this type of home-based business, beware of scams that involve purchasing a list of dropshippers for a “low price.” Most of these lists are outdated or filled with companies that will not give you a fair deal.

Instead, the best place to look is with the manufacturer of the products you sell. If you’re making your own products, then finding dropshippers will be more difficult.

Try looking at trade magazines that report on the niche your products fall into. Another possibility includes signing up for, or a similar subscription service that keeps its list of drop-shipping companies up to date on a regular basis.

Drop-shipping is certainly a practical business strategy you could use to help build and grow your home business or any other type of business where selling products both offline and online is key to your business success.


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