What is Dropshipping and how to earn on it?
Wandering over hills and dales of the WWW one often finds brand new ways to make money. The other day I came upon a word which is rarely used in Slavonic languages, without a surprise, as it’s even understood by a bunch of people (mostly, English speakers). However, behind the word hides a huge empire of business. That’s dropshipping.
Problemless and untroublesome, you can sell various goods through the Internet by means of service known as dropshipping. Companies and people employed therein are called dropshippers. The term is literally translated as direct supplies. The technology is more than 100 years old since its appearance alongside with mail closure.
What is meant by dropshipping?
THe dropshipping service is the special relationship and agreement between the distributor or the manufacturer and the retailer (you). After sales you send data about the order to the supplier and the ordered product is received by the customer.
Let’s exemplify this process simply:
Manufacturer is the company which develops and produces any commodity. As a rule, they neither retail their lineup nor sell it to other retailers. The manufacturing companies prefer to distribute their products via official dealers supplying the goods for discount prices (e.g., 5$ apiece).
Official dealer (synonym to dropshipper) buys products in lots straight from the manufacturer for wholesale prices. Thereafter, the dealer sells the goods to the next mediators (you) for 7$ apiece.
End seller (you) retails the product in mass public. You sell it for 13$ apiece. After sales, you send info on the order to the dealer, and the buyer gets it. As a result, your benefit makes up 6$ per one item.
The dropshipper sends goods on behalf of yourself. Therefore, the clients gets the package with your label (your firm’s title, address and logo) and never knows, that you didn’t even pack the product.