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What is Drop Shipping?

Sell what Sells, NOT what's Cool

The Wholesale Misconception

Don't Get Taken by a Fake Suppli...

Wolves in Wholesale Suppliers' C...

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Don't Get Taken by a Fake Supplier!

by Chris Malta

If you want to start your Home-based Internet Business for very little money, you need Wholesale Suppliers who Drop Ship.

Why? Because working with drop shippers eliminates the need for you to carry expensive inventories. You don’t have to rent a warehouse, hire employees, establish accounts with UPS and FedEx, etc. You can sell the best brand names on earth from your home computer, and make good money at it.

Wholesale Suppliers who drop ship send the products you sell directly from their warehouse to your customer, with your business name on it. All you do it take the order from your customer and pass it to the distributor. You keep the difference between the wholesale price the distributor charges you, and the retail price you sell to your customer for.

Of course, there are a lot of places out there that want you to THINK they are wholesale drop shippers. They’ll set up accounts with, say, 10 real drop ship suppliers. Then they’ll call themselves something like “GetYerStuffHere.com”, and claim that THEY are the wholesale drop ship supplier. Then it’ll go like this:

1. GetYerStuffHere.com will place advertising all over the Internet proclaiming to be the greatest source that ever existed for all kinds of great products, and they’ll drop ship all those products to your customer.

2. You’ll get all excited because YOU can actually place everything from Sony electronics to Coleman Camping gear on your web site and sell it.



3. GetYerStuffHere.com will charge you an account setup fee, to cover their “processing”. (Note: REAL Wholesale Suppliers almost NEVER charge you an account setup fee).

4. GetYerStuffHere.com will send you a nice, shiny list of products and show you where to get the product images and descriptions to place on your web site.

5. You’ll get all excited, and put all this great stuff on your site, set your prices so that you can make a profit over what GetYerStuffHere.com.

6. You’ll launch your site, and you hardly sell a thing.

Huh? What happened? Nobody’s buying! You can’t survive on just a few orders a month!

Disappointed and discouraged, you start to go out and check other web sites that carry the same products. Maybe they have better images.

Maybe they have cooler descriptions. Maybe their pages look nicer. You find that it’s none of those things. So what DO you find?

The other sites’ PRICES are lower. A LOT lower.

You just got nailed by one of the most popular scams on the Internet.

GetYerStuffHere.com took you for a couple of hundred dollars in exchange for a CD full of product images. They may have even locked you into a contract where you have to pay them every month to be a “member” of their “distributorship”.
Oh, GetYerStuffHere.com DOES ship the products they claim to. Of course they do. It’s just that when they get an order from you, they turn around and place your order with the REAL Wholesale Supplier, and take a profit. By the time YOUR price is calculated, you’re paying not only wholesale, you’re paying GetYerStuffHere.com’s extra markup of anywhere from 10% to 30%.

In order for YOU to make a profit, you naturally have to mark up the prices you get from GetYerStuffHere.com. By the time you do that, you can’t compete on the ‘Net. Your prices are just too high.

At this point, you can do one of two things:

1.

You can lower your prices to the point where you’re making mere pennies on your products in order to compete.

2. You can bypass these jokers and go to the REAL sources.

I’ve been in Systems Engineering for 19 years. I’ve been involved in ECommerce since it began. In that time, I’ve seen this scenario played out over and over with companies I’ve done work for.

The real sources can be hard to find. They don’t market themselves as Internet Wholesale Suppliers. They are established wholesale companies who have been supplying big chains like Sears and Kmart for a very long time.

Many of them are now realizing that a good part of their future lies in Internet sales, and they are establishing drop ship and light bulk wholesale programs. There are even a few big name manufacturers who are beginning to supply Home-based Internet Businesses right from their factories. That’s where YOU need to be. In direct contact with the actual Wholesale Supplier or factory source.

When you’re looking for a drop shipper, here are a couple of things to be careful of:

1.

Any company that tells you that they’ll set up your entire web site AND PROVIDE THE PRODUCTS FOR YOU will NOT make you rich. They’ll make THEMSELVES rich on your setup and hosting fees, and you’ll piddle along with thousands of other small sites all selling exactly the same things at the same prices.

(NOTE: Don’t confuse this with companies who just offer to set up your ECommerce web site. There are a lot of great places out there that will build and host sites for you. It’s when they tell you that you HAVE to sell the products that THEY provide that you should run for cover.)

2. Any distributor who wants you to pay a “membership” or “setup” fee is probably not a true Wholesale Supplier.

3. If it sounds too good to be true, it’s too good to be true.

 
Archive List

ARTICLE ARCHIVE LIST

 

What is Drop Shipping?

Sell what Sells, NOT what's Cool

The Wholesale Misconception

Don't Get Taken by a Fake Suppli...

Wolves in Wholesale Suppliers' C...

Working Within the Process

Is Santa's Sleigh Big Enough for...

Beware of Drop Shipping 'Agents'...

Direct From The Factory?

4 Strategies for Seasonal Sellin...

3 Tools for Product Sourcing on ...

Tradeshows the Right Way - How t...

Tradeshow Sourcing - When the Sh...

Preparing for the Holiday Season...

What a Wholesale Supplier Expect...

Product Sourcing Using Trade Pub...

Tips for Finding and Getting Goo...

Storage Units Auctions - Buying ...

Starting an Antiques and Collect...

How EBay PowerSellers Source Pro...

How to Build Your Online Consign...

Dangerous Mindsets - Changing th...

Sourcing Customer Returns - Buyi...

Product Sourcing Strategies - Ne...

6 Common Product Sourcing Questi...

Increasing Your Profits through ...

Importing Basics - What You Need...

Selecting and Changing Your Prod...

The Inside Scoop on Trade Shows ...

How to Make Product Liquidation ...

Shopping with Uncle Sam - A Brea...

One Man's Trash... Could Be Your...

Our Town - Sourcing Products Loc...

An Intro to Closeouts - A Produc...

How to Find Authentic Suppliers ...

Beyond Borders - Sourcing Overse...

Heads or Tails? - How to Find Yo...

Five Holiday Trends - What Every...

Seeing the Whole Picture - A Who...

Drop Shipping Pros and Cons - th...

Far From Home - 4 Keys to Succes...

Product Sourcing Strategies for ...

The Ins and Outs of Importing - ...

How to Choose Your Product Lineu...

The Fine Art of Product Sourcing...

Sourcing The Secondary Market - ...

Local Sourcing Techniques - Prod...

Global Sourcing - Importing for ...

A Foreign Affair - Preparing to ...

Choose Wisely - How to a Pick Pr...

Made in China - Importing Option...

The Color of Money - How Color T...

The Nuts and Bolts of Liquidatio...

How to Break Into Importing - An...

Trend or Fad? What to Ask Before...

What Your Country Can Do for You...

Opportunities Abroad - China Sou...

Trade Shows Year-Round - What Pe...

5 Product Trends for 2008 that E...

Successfully Negotiating with Yo...

5 Strategies for Safely Sourcing...

Informed Compliance for e-Tailer...

Locate Qualified Drop Shippers f...

What is Product Sourcing? The So...

Where Do I Find Products to Sell...

Tips for Finding and Working wit...

A Beginner's Guide to Buying Dir...