FATTEN YOUR ONLINE PROFITS WITH DROP SHIPPING...

Original Article © Copyright 2002-06 Thom Reece / On-Line Marketing Group All rights reserved.
Drop shipping, for those who are unfamiliar with it, is a system whereby you promote the products of a particular manufacturer, wholesaler, importer, or factory source, take orders directly, and the manufacturer/source handles all the inventory and fulfillment functions for you.
In a nutshell, here is the drop-ship system:- You generate and accept theorder.
- You take your profits out of the sale price.
- You forward the order and the wholesale cost to the drop shipper.
- The source manufacturer, wholesaler, importer, or factory ships directly to your customer.
- No inventory cost to you.
- Substantially higher profits to you over what most regular affiliate programs allow.
- The ability to quickly set-up inexpensive, highly targeted, niche or mini-sites to test and promote diverse products.
Drop shipping is, I believe, a virgin un-tapped storehouse of profits for todays internet marketer.
On-line directories exist which reveal essential contact information for drop shippers of over 2,000,000 products and 4,000 brands. Most legitimate drop ship sources will require that you have a state tax reseller number in order to approve you to sell their products and give you the wholesale pricing you are looking for.
Beware of any drop ship source which requires you to pay a fee in order to become a drop-ship dealer... or requires a membership. These are generally organizations which make their money selling "drop ship licenses"... and are, for the most part, scams. Legitimate drop shippers and factory sources never charge you any fees other than the actual shipping costs of the products you sell.
Another caveat... always make sure that you have a written agreement with the source factory that you own the customer! The factory or drop ship source should agree in writing not to solicit your customers in any form. This is very important to you. Your customer list is one of your most important assets. If the factory you are dealing with balks at this request... use another source who will agree.
Almost every conceivable type of product is available from a drop shipper willing to ship products in single units under your companies name. Pick your interest area... electronics, consumer products, agricultural & industrial products, office equipment & supplies, hobby gear, recreational / sporting goods, clothing, furniture, etc. The list of available products from drop shippers is almost endless.
The products actual source is invisible to the consumer. The seller (you) is able to build a database of customers that he/she owns and controls (by agreement with the manufacturer) and has all the direct marketing advantages that accompany that arrangement... while eliminating the need for maintaining expensive inventory.
This arrangement offers maximum flexibility and cost savings for the seller. If a product does not sell well online you can pull the advertising (web page or mini-site) instantly with very little cost to you outside of the actual time it took to build and test the web marketing effort. Or, since this type of page/mini-site is so inexpensive to maintain and host... you can simply leave the pages online and take whatever orders trickle through... while you move on to the testing and promotion of new drop ship products.
The manufacturer benefits from this relationship by gaining a legion of active marketers promoting their products... at little or no cost (other than those small costs involved with supporting the marketer with online marketing materials like product images, sales materials, etc).
As a marketer you are looking for several key components in developing the drop-ship relationship with a source factory or wholesaler:
- High Quality Products
- Blanket Product Liability Insurance (if applicable)
- A clear guarantee and return policy
- High Quality Marketing Materials ... product images (gifs, jpegs, etc.), selling copy, other suitable web graphics, etc.
- A Customer Service Department that will work with you to develop the best selling situation for you.
If you are an online marketer interested in offering high profit products to your niche market (your website visitors) without incurring high front-end development or inventory costs... then drop shipping is for you.
Internet marketers are uniquely positioned to take profitable advantage of the drop ship arrangement and should give this system a serious look.
Thom Reece
Drop Ship Source Directory
Here is Thom Reece's personally recommended resource...
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It's a totally on-line resource that gives you direct contact with manufacturers, wholesalers, and distributors who will drop-ship products for you in quantities as low as one each.
It's an essential sourcing tool for any type of business. Build an online selling business and never have to stock inventory. Just take the orders and put your profits in the bank.
You do the selling... the manufacturer ships directly to your customer for you. You have NO INVENTORY to invest in. No shipping hassles. Your customer never knows that it wasn't you shipping the product.
Simply take the orders and send the shipping information, and the wholesale cost to the drop shipper. You keep the difference between the wholesale cost and the price you sell it for.
If you ever expect to make real profits on the internet or in mail order... you simply have to start buying from the source!
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