How Drop Shipping Works
When someone makes a purchase from your page, they pay you at the time of purchase. You then order the product from the supplier’s website, paying for it with the money the customer already paid you, and enter your customer’s shipping address instead of your own. It’s a bit like making a gift purchase from a site like Amazon. You pay for the product, but you have it shipped directly to the buyer.
Okay, you probably have a whole bunch of questions running through your mind right now. We’ll get to most of them shortly. But yes, it really is that simple. The first thing you’re probably asking is, “Why not just order the products from Amazon if it’s that simple?” Well, there are two BIG problems with that. First, you’d never make much of a profit doing that. Products on Amazon are being sold around retail price, so making a profit would be pretty difficult unless you somehow manage to get into a niche market with a lot of demand where you can charge a premium price and still have buyers. Second, Amazon puts their own promotional material all over everything they send out. While you might get one order from a customer, once they realize the products came from Amazon, they’ll go there, discover the product was much cheaper there, and never order from you again.It’s just not a smart way to build your own brand.
With drop shipping, most companies won’t put their materials or branding on or in the boxes, and some may even put your promotional material into the packages for you, if you ask!
Example: I’ve purchased coder stickers from a popular programmer online and while he’s transparent about the fact that he purchases the stickers from a drop-shipper in China, when the package arrived every sticker package had his branding and logo on the box! I would have never known it was a drop shipped package from China. And that’s the point. You are selling products as though they come directly from you, even though you never have to bother shipping anything out or tracking packages. You simply receive payment, order the item, and let the company handle delivery.
Are you starting to understand why so many people love dropshipping?