drop shipping

An example would be

Adidas make a pair of trainers for rrp £60

They sell them to a drop shipper (esentially a wholesaler) who buy says 100 pairs for £30 each

What you do is then set up your own web site or sell the trainers in e bay for £40 , and only order from
The drop shipper once you have sold an item
So it's low risk and you don't have any stock
You only buy from a drop shipper one you sell an item
 
This is my understanding of drop shipping:

People/businesses who don't have space to store stock use drop shipping companies as the stock remains at the drop shippers warehouse. As far as i know you also don't have fork out investment wise on the products you want to sell, you find a drop shipper which supplies the products you want to sell and put the products via your own business on the market.
When a customer comes and buys a product from you then the goods go directly from the drop shipper to the customer and no need for you to package/ send off anything.

The margins however are not as good as if you bought your products to sell and store them/ package them yourself but then again you save on your own warehouse costs.

Again thats how i think it works.

http://uk.alibaba.com/
 
ayia napa blues said:
An example would be

Adidas make a pair of trainers for rrp £60

They sell them to a drop shipper (esentially a wholesaler) who buy says 100 pairs for £30 each

What you do is then set up your own web site or sell the trainers in e bay for £40 , and only order from
The drop shipper once you have sold an item
So it's low risk and you don't have any stock
You only buy from a drop shipper one you sell an item

Low risk until you start getting returns/complaints and the company isn't willing to help you out. Be careful.
 

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