Drop Shipping has now become one of the most lucrative sources of business online. People are looking to dropship, act as a retailer of merchandise for one or more wholesale companies, and try to sell the merchandise to retail customers. Just type any product you can think of into a search engine and see how many pages of websites come up – most of them are retailers who make their living selling products online via drop shipping!

Why drop shipping is lucrative

Dropshipping has suddenly caught everyone’s attention because it’s simply the most efficient way to retail on the Web. This is how drop shipping normally works:

• A prospective buyer browses the Web looking for a product and makes a purchase.
• The website owner (retailer) passes that order on to their direct distributor or wholesaler.
• The wholesaler processes the order, ships the product to the buyer with the retailer’s name on the package. The buyer believes that the website owner has sold and shipped the product to him.

Here the profit margins are phenomenal for the retailer. This is because the retailer himself purchased the product at wholesale prices and then sold it to the customer at the best possible price he could offer.

But there are some more advantages to this. Dropshipping requires no overhead as there are no rents, labor, or salaries to pay. There is no inventory to maintain, since the wholesaler stores, manages and ships all the products; in fact, this is more lucrative than even a Walmart model. You see, Walmart also follows the same principles of buying in bulk and selling at fixed prices, but it has to take on inventory and a lot of operating costs, so it makes a better profit per sale than Walmart.

Drop Shipping Secrets

Veteran e-retailers don’t even bother spending time and effort to promote and operate their own e-commerce website, which is too time consuming and troublesome. It’s almost like reinventing the wheel. They use eBay, where they list their products at retail prices, offering “discounts” and other freebies to attract buyers. eBay receives millions of clicks and retailers don’t have to worry about maintenance, shopping carts, etc. eBay takes care of all this.

It’s no wonder people make entire careers off of dropshipping and eBay. Maybe you should give it a try too, who knows, you might be on your way to success and wealth!