drop ship guide

The Drop Ship Business

The drop ship business is a service business. It serves catalog companies, web catalog companies - and by that we mean e-commerce stores - as well as single product sites. It is an outsourced solution where a retail seller goes to a third party to ship inventory either owned by the seller or by a distributor.



For a retailer, it is not a business. It is aimed it is a means of order fulfillment. Retailers do not start a drop shipping business. They start a business and use a drop shipping order fulfillment service to have their inventory delivered.

If a company wants to get in to the drop shipping business, it is fairly simple.

First one finds a factory that has products of interest. A distribution agreement is made.

One further finds a fulfillment house where the products to be distributed will be stored for shipment.

Inventory is then stocked in that fulfillment warehouse and the inventory is offered for sale through dropshipped directories where you notify people that you have products available for drop shipping.

Additionally you can create your own drop shipped program and promote that drop shipp programs either individually or through an affiliate program.

The buyers for your products will generally be people who cannot afford to own their own inventory.

In some cases you may offer your product to or through large megastores such as Amazon.com or many of the other stores that you see selling in the Yahoo Shopping Network

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