Drop Ship Company – Understanding the Basics

Hello friends, and welcome to my first post about a drop ship company. I’ll try and give you some insight on what a drop ship company is and how you can best make use of dropshippers generally and Ebay dropshippers in particular. I’m an Ebay powerseller so that’s where I make most use of wholesale drop ship companies. Though I must confess that I’ll be starting my own storefront soon to see how that goes. I think there’s some good money to be made in that if you know what you’re doing and you have the right niche.

But let’s get to the basics of what a drop ship company is. Basically a drop ship company is a company that will ship or mail products on your behalf. So let’s walk through an example. On Ebay for example, let’s say I’m selling candelabras. I’m not, that’s not my niche, but it’ll work as an example. I probably have 5 or 6 different candelabras that I sell. A customer comes by and places a bid or buys it now from my Ebay listing and as soon as the money hits my PayPal account I get a notification. I then send my drop ship company or wholesale dropshipper a message with the mailing address and name of my customer and the candelabra they bought. I pay my drop shipper and they mail off the candelabra to my customer under my Ebay name.

It really is that simple. The trick is that you need to find the best and most reliable drop ship companies out there. That’s where it pays to use a service, like the one that I recommend. There is a small fee for this, but it is well worth it in order to find a reliable and inexpensive drop ship company.

Remember, the dropshipper is invisible to your customer, so if they mess up, your name and image is at stake. One of the first things to look at in a drop ship company is can you make a profit on their prices they charge you. In my candelabra example. If my online dropshipper is charging me $20 for the candelabra then I need to make sure that I can get at least $25 from my customer for it.

I like to make sure I can increase the price by at least 20% to 30% from what my drop ship company is charging me. This is just a ballpark, but you need to make it worth your while.