How Drop shipping works
Drop-shipping is a term used in reference to a type of retail sales,
where the retailer does not keep goods for sale in stock. The retailer is in charge of passing the customer’s order with their shipment details to a wholesaler, drop-shipper or third party provider,
Retailers using this sales model make their profit on the difference between the wholesale and the retail prices handled. Because the goods are not in stock.
many retailers have purchased some of those items to be displayed at their land-based stores. Allowing their customers to inspect the items, which are similar to those that they can purchase by placing an order.
Many retailers can receive from wholesalers and drop-shippers different
The catalogs to increase the number of goods on sale without , actually investing in any of those items. Although some catalogs are not for free, but always cheaper than buying merchandise to display for customers.
images of goods a retailer
On the Internet, Retailers can upload the description of the goods for sale along with pictures and other information.
This is made through the retailers’ personal or commercial website. Or listing the products at an auction site, such as e-Bay, where the potential buyers are waiting to bid.
Because drop-shipping, is a method of selling and distributing goods that the retailer does not have in stock. The listings usually include pictures and information that are available to sales catalogs.
Hence, drop-shippers are distributors that just receive the order from the retailer and send the items directly to the end user on the retailer’s behalf. Therefore, drop-shipping involves 3 persons in the selling process: the
drop-shipper. The retailer and the end user, usually targeted at auction sites.
E-Bay is a successful on-line auction and shopping website, founded in September 1995, where people from all around the world buy and sell goods and services.
E-bay is the leading on-line marketplace for selling physical and virtual goods. Services and second-hand products,
It is estimated that the e-Bay community is comprised of around 46.1 million registered users in different countries, speaking different tongues.
E-Bay is the most popular shopping site on the web, thus the most frequently associated with drop-shipping activities because of the nature of the Internet.
On-line it is not necessary to have a stock of physical goods for sale,
many items sold are digital goods, easily processed without needing to be on stock. Retailers at e-Bay usually sell small quantities of their products to other users registered at e-Bay’s website. Whether physical or digital.
Sometimes those goods are also available through a land-based store or listed at personal web pages or e-commerce sites owned by retailers.
Drop-shipping is a common practice that occurs when retailers receive a single large order for a product. And rather than route the shipment of those goods through their store. The retailers arrange for the goods to be shipped directly from the wholesaler (the drop-shipper) to the purchaser.
E-Bay retailers sell millions of collectibles, equipment, furniture, computers, appliances, vehicles, and many other miscellaneous items, which are listed, sold and bought everyday.
Because there is no limit to the number of listed items at e-Bay, a retailer can list a single book and make available 50 units. These units are not in the seller’s stock,
But available to be delivered in any quantity to the final end user after arranging for the delivery with the drop-shipper to the final user.
Selling large quantities of goods and merchandise to commercial, industrial, institutional, or other professional business users. Or individuals acting as agents or brokers in buying or selling merchandise for others.
Thus, it is more likely that goods listed by a retailer can be purchased from them at any time, while in stock.
At e-Bay, drop-shipping works as long as retailer can purchase the goods on sale from the wholesalers. However, there are rare and valuable items that can hardly be found as unique items.
If an end user wants to buy one of those rare goods.
He/she must be aware if the retailers are listing a large number of them, because users will be purchasing all items with the risk of fraud. If they have, more than one of these rare items for sale, then how rare is the item.
Although, almost anything can be sold at eBay, the listed goods must not be illegal nor violate the internal prohibited and restricted policy.
Listing fraudulent items or those misleading the buyer is absolutely forbidden. From physical and digital goods to services and intangibles,