What is dropshipping??

27 replies
  • ECOMMERCE
  • |
Hi warriors..

had a nice talk with Frank Bruno yesterday who gave me very useful tips for my business.

Currently I work with affiliate links on my niche pages but Frank told me about dropshippers for a more unique presentation of products and better commission rates.

How does drop shipping work??

Are there directories??

Please help..

THX
#dropshipping
  • Profile picture of the author twersk
    Just search for companies that dropship...they save you from having to worry about anything. All you do is THE MARKETING and all they do is make sure that your new customers get whatever product they buy, packed and usually professional.

    You can also find companies that will drop ship independently for you. They get the product and send it out once they are notified by Paypal or whatever you use to process
    {{ DiscussionBoard.errors[136915].message }}
    • Profile picture of the author apollion
      Originally Posted by twersk View Post

      Just search for companies that dropship...they save you from having to worry about anything. All you do is THE MARKETING and all they do is make sure that your new customers get whatever product they buy, packed and usually professional.

      You can also find companies that will drop ship independently for you. They get the product and send it out once they are notified by Paypal or whatever you use to process
      Thanx!

      That means I have to implement shopping carts and paypal to my sites?

      Don´t they offer textlinks, banners etc..like affiliate merchants?

      Does it cost my any upfront to partner with them?
      {{ DiscussionBoard.errors[136919].message }}
  • {{ DiscussionBoard.errors[136935].message }}
    • Profile picture of the author apollion
      Just to get the picture..

      I gotta have a completely running shopping site with cart and payment processor.

      Then the drop shipper gets the buyers information and ships it straight to his hands, is that correct?

      Don´t get why drop shippers should pay better than affiliate merchants??

      Who knows a site working with drop shippers? I just need to view and understand.

      Thx a lot,

      Mike
      {{ DiscussionBoard.errors[138484].message }}
      • Profile picture of the author Mark Brock
        Originally Posted by apollion View Post

        Just to get the picture..

        I gotta have a completely running shopping site with cart and payment processor.

        Then the drop shipper gets the buyers information and ships it straight to his hands, is that correct?

        Don´t get why drop shippers should pay better than affiliate merchants??

        Who knows a site working with drop shippers? I just need to view and understand.

        Thx a lot,

        Mike
        You've got it absolutely right!

        Customers pay you what ever price you set for an item and then you put your order through to the actual dropshipper themselves.

        In terms of dropshipping paying better than affiliate merchants that sell physical products, I would say that yes, dropshipping pays better. From my experiences being an affiliate for a merchant that sells physical products gives at most 10% commission on sales made.

        You can get much more than 10% of the profits by utilising dropshipping.

        As said before here, Worldwide Brands is the best way to go to find dropshipping companies.

        Mark
        Signature

        AWOL

        {{ DiscussionBoard.errors[293188].message }}
        • Profile picture of the author bgmacaw
          One of the keys to successful dropshipping is to find a niche that isn't to competitive. Many people go for super hot products like iPods and can't compete on price with big retailers. Find underserved, low competition, markets and you'll make some money.

          The downside, and this is why you'll make little bit more than affiliate marketing, is that you also have to supply customer service. Often this is in the dark because you don't know what the dropshipper is screwing up. That was the main reason I stopped doing it. I was working a sporting goods niche and had backorder problems that drove me nuts.

          Worldwide Brands is a good place to start although you can find other sources for you target niches if you take the time to look.
          {{ DiscussionBoard.errors[293222].message }}
          • Profile picture of the author morwanneg
            Originally Posted by bgmacaw View Post

            One of the keys to successful dropshipping is to find a niche that isn't to competitive. Many people go for super hot products like iPods and can't compete on price with big retailers. Find underserved, low competition, markets and you'll make some money.

            The downside, and this is why you'll make little bit more than affiliate marketing, is that you also have to supply customer service. Often this is in the dark because you don't know what the dropshipper is screwing up. That was the main reason I stopped doing it. I was working a sporting goods niche and had backorder problems that drove me nuts.

            Worldwide Brands is a good place to start although you can find other sources for you target niches if you take the time to look.
            Exactly what drop shipping is all about...make sure to read worldwide brands review first before signing up with them.
            {{ DiscussionBoard.errors[294646].message }}
      • Profile picture of the author TheMagicShow
        Originally Posted by apollion View Post

        Just to get the picture..

        I gotta have a completely running shopping site with cart and payment processor.

        Then the drop shipper gets the buyers information and ships it straight to his hands, is that correct?

        Don´t get why drop shippers should pay better than affiliate merchants??

        Who knows a site working with drop shippers? I just need to view and understand.

        Thx a lot,

        Mike
        Dropshipping is a business where the middleman (mostly) sells you a product lets say for $2 and they buy from the maker at $.50 and you sell it for $4-$6 dolars , those figures just tell you how the middle buys at 2 times the cost and sells to you at 2 times the cost and then you sell it for 2 times the cost or even more, the profit margin on dropshipped product really depend on the product, how saturated the market is with that product.

        You will need a website and a shopping cart system that looks professional, you could use a yahoo store which adds instant credibility, people buy from professional, credible sites and having yahoo as a partner helps out a lot.

        Once you get a sale then you have to make an order with the dropshipper and then pay hem their cut and they will send out the product with your label/company name.

        And the last issue is just driving good amounts of traffic to your online store, you need to find a dropshipper that is reputable and one that is not having every ebay seller sell their product. If everyone on ebay is selling your product then the profit margins are slim to none and even if you don't sell on ebay and have your own store, folks will always go to ebay to find the product your are selling for a much cheaper price.

        Cheers,
        Magic
        Signature

        " You can either give a man a fish and feed him for a day OR teach him how to catch a fish and it will feed him for a lifetime"

        {{ DiscussionBoard.errors[294732].message }}
  • Profile picture of the author John M Kane
    zwhat my 2 dogs doo 2x a day
    {{ DiscussionBoard.errors[138804].message }}
    • Profile picture of the author apollion
      Originally Posted by war28476 View Post

      zwhat my 2 dogs doo 2x a day
      Oh yeah..how much money do they raise doin it?? ;-)
      {{ DiscussionBoard.errors[138832].message }}
      • Profile picture of the author morwanneg
        You may want to try Worldwide brands for your upcoming drop shipping business. Not that i'm promoting them or whatever. But i've heard some pretty good stuff about them. You may also want to check out Doba. Both are in the drop shipping industry. You may want to read worldwide brand reviews and doba reviews first before signing up with them.

        Kind regards,
        Morwanneg
        {{ DiscussionBoard.errors[293155].message }}
        • Profile picture of the author naruq
          Dropshipping is when a distributor sells a product and forwards a portion of the profits to the product owner to have the product shipped to the customer. An example, would be if the commission is 50/50. The distributor would keep their 50% and forward the other 50% to the dropshipper or product owner to have the product shipped to the customer.
          Signature

          Please do not use affiliate links in signatures

          {{ DiscussionBoard.errors[293180].message }}
  • Profile picture of the author Debbie Songster
    Just to get the picture..

    I gotta have a completely running shopping site with cart and payment processor.
    Yes - the only difference between drop shipping and shipping the item yourself is you don't handle the inventory when its drop shipped. This means you still have to advertise the products, provided shipping choices/information, process the payment, basically provide a shopping cart. The extra step involved would be you contacting the supplier and sending the customer information to them so they can ship the item.

    Then the drop shipper gets the buyers information and ships it straight to his hands, is that correct?
    Correct - having a great relationship with your drop shipper is very important. You want the customer to think the item was sent directly from you. Most suppliers who drop ship - if they do it properly - will provide a non branded return address on the shipment or they may put your return address on the box. They should also allow you to include your own packing slip with the shipment.

    Don´t get why drop shippers should pay better than affiliate merchants??
    Drop shippers don't "pay" - you buy the product from them at wholesale cost (plus most charge a drop ship fee per order) plus the cost of shipping.
    Affiliate merchants send YOU money based on a percentage of the sale when you send a customer to them. The affiliate earnings on physical products is always going to be lower then the money made doing drop shipping. However the time and risk involved in drop shipping is a lot more than promoting the product as an affiliate.
    With drop shipping YOU will be responsible for customer service, returns, credit card charge backs. You don't have any of those worries if you do affiliate sales.
    With affiliate sales you generally don't get the customer information so selling to them again is unlikely.

    Who knows a site working with drop shippers? I just need to view and understand.
    Its unlikely you will be able to "see" a site that is working with drop shippers as stores usually don't advertise that fact.
    In one of my stores I do both - drop ship and stock inventory. You aren't going to know the difference unless I tell you.
    I don't know of any sites that advertise that they drop ship - its really none of anyones business. All drop shipping does is provide a way for the store owner to sell more variety of products without keeping it all in inventory.
    When I inventory items I have to pay for them so keeping a large inventory of stock means a large investment.

    Hope that helps
    Signature

    Getting back in the grove after taking a year off following a family tragedy.

    {{ DiscussionBoard.errors[293331].message }}
  • Profile picture of the author Debbie Songster
    Another thing about drop shipping

    Most suppliers will drop ship for you if you take the time to establish a good relationship. Times are tough for a lot of suppliers so they are looking for other ways to move their inventory.

    There are companies out there whose main business is drop shipping. They don't always offer the best prices. It pays to shop around. If you are serious about selling products then go to a few trade shows and look at the selection and make contact with the suppliers. You need to do your homework if you are going to make any money doing it.

    The wholesale world is all about moving a lot of product in a short amount of time. Shop around - there can be 10 different suppliers selling the same thing but at 10 different prices.

    Even if a company doesn't advertise that they drop ship - ask them. Especially if you find one with good prices.

    In the electronics world - its very hard to compete with the big name stores who buy in such huge quantities that they get rock bottom prices from the factories.

    Pick products that are unique and interesting. Some stuff sells better online then in the stores and there are some items that just don't sell well online.
    You need to experiment.

    Personally I don't use World Wide Brands - I visit the trade shows and talk to suppliers and factories. Find someone who sells wholesale and see what you can learn from them. Its a very different world.
    Signature

    Getting back in the grove after taking a year off following a family tragedy.

    {{ DiscussionBoard.errors[293360].message }}
  • Profile picture of the author keywordguru
    I have had big successes in both Drop Shipping and Affiliate marketing. I would say that affiliate marketing is a bit easier in the sense that you are not collecting money, and then waiting for the drop shipper to ship. Dropshipping can get a bit hairy if a customer returns a product as well.

    Dropshipping is the original Affiliate marketing in some ways
    {{ DiscussionBoard.errors[293534].message }}
  • Profile picture of the author philk49
    There are companies who specialize in drop shipping such as Worldwide Brands and then also if you are in a specialized niche you can find some companies that don't have an affiliate system set up but will drop ship if you are interested in promoting their products.
    Signature
    {{ DiscussionBoard.errors[294094].message }}
  • {{ DiscussionBoard.errors[294110].message }}
  • Profile picture of the author jbreezy
    I've ran a successful dropshipping business for the past 2 years. It's a nice thing to have in your tool kit.

    My goal is to have about 10 dropshipping sites up by the first of the year!

    Like anything, you've got to find the right niche!
    {{ DiscussionBoard.errors[294332].message }}
  • Profile picture of the author volman
    Banned
    This may be a helpful site for you to check out. Hope it helps.
    Doba.com
    {{ DiscussionBoard.errors[294510].message }}
  • Profile picture of the author jazzyjeff
    The only warning about drop shipping is that you should test out the shipper with your own money first. See if they send you the product and make sure that product is real and not fake. Also, see how their delivery times are as you may not want your customers getting upset with you when their product takes 2 weeks to get to their house.

    Jeff
    {{ DiscussionBoard.errors[294687].message }}
  • Profile picture of the author cowgirl63
    Drop shipping is good if you can find a good one to work with. Takes a lot of the work out of it for you. You sell, they ship.
    {{ DiscussionBoard.errors[295891].message }}
  • Originally Posted by apollion View Post

    Hi warriors..

    had a nice talk with Frank Bruno yesterday who gave me very useful tips for my business.

    Currently I work with affiliate links on my niche pages but Frank told me about dropshippers for a more unique presentation of products and better commission rates.

    How does drop shipping work??

    Are there directories??

    Please help..

    THX

    Dropshipping is good but you should also think about White labelling
    {{ DiscussionBoard.errors[10136819].message }}
  • Profile picture of the author Roshnishrivastava
    Banned
    [DELETED]
    {{ DiscussionBoard.errors[10138957].message }}
    • Profile picture of the author Importexport
      Originally Posted by Roshnishrivastava View Post

      If you've been interested in starting your own internet business but you've been trying to avoid the hassles of things like developing and producing products, tracking your inventory, setting up warehouse space, and maintaining a confusing shipping/receiving infrastructure, then drop shipping may be your answer.
      You do not have to go through the hassles described above.

      Many people successfully operate online businesses selling physical products and do not find it confusing. They don't have their own warehouse space, they don't have to continually track inventory and they don't have to produce their own products.

      They import the products from low cost countries such as China, ship them to a fulfillment center such as Amazon FBA, sell the product on eBay or Amazon, and the fulfillment center ships the goods to the customer.

      The best part is that they make many times greater profit margin than most dropshippers.

      It could also be worth considering private labelling as suggested by MarketResearchAmazon in his/her post.
      Signature
      Use emotions and perceptions to build a great brand. Ask me about my book LabelsThatExploit. For safe sourcing and easy importing from 41 countries globally, see https://provenglobalsourcing.com
      {{ DiscussionBoard.errors[10139437].message }}
  • Profile picture of the author SandraDLaurean
    Banned
    Drop shipping is used for online shopping which help you to deliver your products in estimated time to the customers.Only you have to do is contact your nearest courier services & ask them for drop shipping your items .They will deliver your products to the destination .
    {{ DiscussionBoard.errors[10159357].message }}
  • Profile picture of the author kmjyoti
    Drop shipping is a supply chain management technique. In which the retailer does not keep goods in stock. Drop Shipping is the easiest way to sell online. Drop shipping can be run from anywhere with Internet connection.
    Signature

    One and only one Best Web Hosting Companies discount coupon code available

    {{ DiscussionBoard.errors[10165487].message }}
    • Profile picture of the author Importexport
      Originally Posted by kmjyoti View Post

      Drop shipping is a supply chain management technique. In which the retailer does not keep goods in stock. Drop Shipping is the easiest way to sell online. Drop shipping can be run from anywhere with Internet connection.
      It is no easier to sell when dropshipping than it is to sell when carrying inventory.

      If you have the ability to choose a product that can sell at a good price, you can make many times more profit by carrying inventory sourced overseas.

      It is not necessary to buy large quantities, but it is important to buy direct from genuine manufacturers. Margins can be 300% or more. One of my book users recently posted on the forum that she is selling at 5 times her cost. Here is her post: "I was gonna do dropshipping till I found how small the margins are. Now I have started importing straight from the factory in China and Im selling at 5 X my cost."
      Signature
      Use emotions and perceptions to build a great brand. Ask me about my book LabelsThatExploit. For safe sourcing and easy importing from 41 countries globally, see https://provenglobalsourcing.com
      {{ DiscussionBoard.errors[10176788].message }}

Trending Topics