Drop Shipping with World
Wide Brands - Onesource
What is Dropshipping ?
by Chris Malta
Understanding Product Distribution
People have been distributing products since before the first mastodon skinner
traded a fur coat for a flint axe. Here’s how it works.
Let’s say ABC Manufacturers makes a product called Mom’s Ankle Wax. We’ll say that
Mom’s Ankle Wax has been around for years. It’s a very well known brand name
product. It will without a doubt give you the shiniest ankles on your block, and
everybody wants some.
ABC Manufacturers makes Mom’s Ankle Wax, but they don’t sell it directly to the
public. They’re a manufacturing operation. They’re far too busy melting paraffin
and waxing test ankles to go around building stores all over the place. They need
distributors; companies who will take their product and distribute it to the places
that will sell it. For years, ABC Manufacturers has sold Mom’s Ankle Wax to a
company called DEF Distributors. The founder of DEF Distributors knew Mom herself,
back in the old days when she made her Ankle Wax by hand, out in the turkey barn.
Today, DEF Distributors buys Mom’s Ankle Wax by the truckload. They pay $5.00 a
case for it, which is a very good price. It’s such a good price, it has it’s own
name: the Manufacturer’s Wholesale Price.
However, DEF Distributors does not sell it to the general public either. They are a
distributor. They distribute Mom’s Ankle Wax.
DEF Distributors works with a chain of retail stores called Wax R Us. This place
was founded by a retail business visionary who saw the incredible potential of
Mom’s Ankle Wax a long time ago. Today there are Wax R Us retail stores on every
street corner in every major city in the country. Wax R Us buys truckloads of Mom’s
Ankle Wax from DEF Distributors for $10.00 a case.
So, DEF Distributors makes $5.00 on every case of Mom’s Ankle Wax they sell to Wax
R Us retail stores. This makes DEF Distributors very happy.
Cases and cases of Mom’s Ankle Wax arrive in the stockrooms of Wax R Us stores
everywhere. The Wax R Us employees open those cases, and pull 12 cans of Mom’s
Ankle Wax out of each case. With their pricing guns, they stick a price of $4.50 on
each and every can.
Wax R Us stores make a total of $44.00 on each case of Mom’s Ankle Wax. (12 cans x
4.50 per can = 54.00, minus the 10.00 they paid for the case = 44.00).
Wax R Us is even happier than DEF Distributors.
However, the happiest people of all are the people who can stroll into Wax R Us and
purchase a can of Mom’s Ankle Wax for only $4.50. They think this is a great price,
and they’re walking around with the shiniest ankles in town.
Well, that’s it basic product distribution. The manufacturer sells to the
distributor, the distributor sells to the retailer, and the retailer sells to the
end user (the customer). The manufacturer, the distributor and the retailer all
make money because the customer is willing to spend money for the product.
Drop Shipping has been around for a long time, too. Probably as long as mail order
catalogs; maybe longer. If you want to use a buzzword to impress a corporate type,
call it second party addressing.
Above, we talked about the manufacturer-distributor-retailer relationship. When you
use drop shipping to sell products on the Internet, (or anywhere else), YOU become
the RETAILER in that relationship.
It should be noted here, if only to keep the Punctuation Police happy, that if you
use the method of drop shipping in your business, YOU are not the drop shipper.
The company(s) who supply the products to your customers for you is the drop
shipper. YOU become a Stockless Retailer.
How Drop Shipping Works
1.) You open an Internet Store, with a shopping cart and the ability to accept
credit cards.
2.) You find a distributor who is willing to DROP SHIP the products you want to
sell. The best place on the Internet for this is www.WorldwideBrands.com. This is
our website, the home of OneSource, recognized as the best source for legitimate
Wholesale Suppliers on the Internet.
3.) You establish an account as a retailer with the Drop Ship Wholesale Supplier.
4.) You receive images and descriptions of the products you want to sell from the
Drop Shipper and post them on your Internet Store.
5.) A customer surfs into your Internet Store, and falls in love with a product
that you have priced at, say, $80. They purchase the item with their credit card.
Your Store charges their credit card $80 plus your shipping fee.
6.) You turn around and email the order to your Drop Shipper, along with the
customer’s name and address.
7.) The Drop Shipper sends the product directly to your customer, with YOUR Store’s
name on the package.
8.) The Drop Shipper charges you the wholesale price of, say, $45.00, plus
shipping.
9.) Your customer gets a cool product from your store shipped to their door, and
they tell all their friends about you, and you make even more money.
There you have it. You just made a $35.00 profit on one item. You didn’t have to
buy a whole bunch of the product and keep it in your warehouse, hoping you would
sell it. You didn’t have to pay to have it shipped to you, and then pay to ship it
to your customer. All you did was send an email to your Drop Ship Wholesale
Supplier.
That’s the drop shipping process in a nutshell!
BIOGRAPHY: Chris Malta and Robin Cowie of WorldwideBrands.com are the Writers and
Hosts of The Entrepreneur Magazine EBiz and Product Sourcing Radio Shows. Click
Here for more FREE eBiz info from Entrepreneur Magazine Radio !
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