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Sunday, January 27, 2008 at 8:33 pm

What is Drop Shipping?

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Drop shipping has been around for over 100 years, and has become a term associated with the internet because of all the eBay sellers and online stores. Most people looking to start an online business would think that it started because of the internet. The fact is the Sears & Roebuck Catalog used dropshipping as part of its business model over 100 years ago after it first started selling watches. Drop shipping allows companies to handle orders on an economical and efficient basis.

Drop Shipping as defined at Wikipedia.org:

Drop shipping is a supply chain management technique in which the retailer does not keep goods in stock, but instead transfers customer orders and shipment details to wholesalers, who then ship the goods directly to the customer under the retailer’s name.

The Sears catalog when it first started was a company that used drop shipping as method to increase product assortment and decrease cost structures. It allowed Sears to offer more products, while not having to warehouse or handle the merchandise before the product was sent to the customer via the post office. Sears would take the order and then have the manufacturer, wholesaler or distributor ship it direct to the customer. In fact they even sold build it yourself houses in the same manner. So weather you want to sell salt and pepper shakers or houses, drop shipping business model can work. The key to a successful online drop shipping business is to find trusted sources that can perform and do what they promise.

Drop shipping allows you to start a business at minimal cost. All you need to do is find good dropshipping sources that have products you know will sell. Determine where you will sell your products. You can sell the product on eBay, open and online store or conduct house parties.

We are in the process now of reviewing the major online dropshippers so watch this category on wholesalereview.com for all the information you need to start a successful drop shipping business.

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