Internet Business - Drop Shipping Flaws

By craig | June 27, 2008

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Hi All,

I hope you’ve had a great week so far! As always, feel free to ask a question or leave a comment, as your participation is always welcome. Thanks for dropping in, no pun intended :) , and I hope you enjoy today’s post.

You have probably seen a number of ads for drop shipping services. Some of these ads promise the ability to make significant income via online auction sites or direct website selling. Honestly, most drop shippers are legitimate businesses. However, the claims to make huge income are often a bit overstated. This is why it is important to venture into a drop shipping agreement with both eyes open.

Drop shipping is essentially an online wholesale variant of consignment selling. For example, you sign up with a drop shipping service (for a fee) and then you will have access to their inventory. You then place the items for sale on a website or on Ebay at a price higher than the drop shipper is charging. (You also charge shipping and handling as well) When you sell the item, you notify the drop shipper and have them ship the item after you have paid them for it. Since you are paying them less than what you are selling the item for you earn a profit. Well, that is the general idea. Yes, many people have made lots of money drop shipping while other has nothing to show for it. There are a number of reasons for this both logistical and intangible. But, on a baseline level, it is critical to sign up with a drop shipper who is not selling junk no one wants!

If a drop shipper is offering bric a brac and garage sale like products, it is doubtful there will be much interest in purchasing these items. This is just common sense and we all realize this. However, many drop-shipping sites do not make their inventory available to potential members until after they sign up. Don’t go for it! Be sure to read reviews of the drop shipper and see what those in the know on message boards and see that the buzz is about. This will save valuable time, money and opportunity coasts by avoiding a less than stellar drop shipping service.

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To Your Success!

Many Blessings,

-Craig

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