Better Than Sliced Bread? Drop Shipping, The New Home Business Craze

Many of you will probably remember the days when the only way to start a successful home business was to join some sort of multi-level marketing program or sell makeup at parties. In those days, people would have to buy a membership in the 'program' along with an inventory of sample products that they would then sell to friends and coworkers at 'parties.' Most people were not very successful at this and made very little money and usually alienated their friends and family. In the 1990's however, all of that changed for the better with the advent of the Internet and a retail delivery method called wholesale drop shipping.

Wholesale drop shipping is when a wholesale distributor or manufacturer agrees to send out single unit products to customers for a retailer. Many will also even include the retailers name on the invoice so that the customer is never even aware that they got it from anyone else but the retailer. This, along with the Internet has changed the whole dynamics of home businesses in America, making it easier and more cost effective to start your own business.

Home business owners are now able to launch a business without purchasing any inventory up front and are able to open a 'store' without ever having to find a place to setup shop. Millions of Americans have setup ecommerce sites on the internet selling everything from Personal Computers to lawn care equipment all using wholesale drop shipping. As a matter of fact, according to eBay over forty thousand people make their full time living on their auction site alone; many of these are using drop shipping as their main method of product fulfillment.

The only problem for today's small business owner is how to find wholesalers to drop ship. In general wholesale distributors don't make it a habit of getting out there and advertising; obviously the whole reason they are in wholesale and not retail is to get away from doing all of that work. So it makes it very difficult for someone who has little or no business experience to make contacts with distributors when they aren't even sure where to start looking.

To help out those small business owners I'd like to offer some advice for finding wholesale distributors:

  • Look for trade organizations and magazines to help you make contacts. Many trade organizations out their produce some sort of listings of their members, many of whom may drop ship.

  • Contact manufacturers. People don't realize that if you call the manufacturer they will provide you with a list of their distributors; so if you are looking for a particular product, ask the manufacturer. The down side of this route is that they may have hundreds of distributors that you may have to contact before you find one that is willing to drop ship.

  • Find wholesale chat rooms and message boards. There are many message boards on the Internet today that are devoted to a wide range of discussions. You may find boards on wholesale, distribution, supply chain, etc. All of these may lead you in the direction of a wholesale distributor.

However, if you want to get up and running fast, or just don't have the time to go on a search for wholesale distributors much less ones that drop ship, then the way to go is drop ship directories. These are usually pay services that search out drop shippers for you then give you access to their contacts; there are many of these on the Internet today, and many are very good. As with anything on the Internet you must be very careful of the scams out there. Many drop ship directories will end up giving you an outdated list of wholesalers, or when you contact them you will find that they are a true wholesale distributor but they do not drop ship.

Here are some pieces of advice when looking for a quality drop ship directory:

  • Stay away from the cheap ones! Obviously with everything else in this world you will get what you pay for. If you find one out their for three dollars, you probably are not going to get a good product. In general the one's that offer the best information are charging $60 or more for a six month membership.

  • Look for one's that will do specialty searches! If you get into a drop ship directory and find that they do not have any products that you would like to sell, or think you can sell, then make sure they will go out and find it for you. If they do not do specialty searches then you will end up being stuck with whatever listings they have no matter what.

  • Find one with a Satisfaction Guarantee! There are several drop ship directories out there that offer a guarantee that all of their listings are true drop shippers, but in my opinion this is not enough. If you get into their directory and find that they have five hundred listings for widget suppliers and they are all real wholesalers you are out your money and only have access to one product. Make sure they guarantee your satisfaction with their product no matter what, especially if you are going to shell out seventy dollars of your hard earned money.

  • Look for ones that are going to help you out as well, not just give you a list. Do they offer articles and help material on starting your business or are all they just going to give you listings and nothing else.

However you choose to find wholesale drop shipping, keep in mind that as with anything else in this world knowledge is power. Try and find out as much as you can before you jump in to get your feet wet. It will make your startup smoother and help you get the profitability stage much faster.

About The Author

Tony Keeler is the founder and publisher of The Drop Ship Connection - www.dropshipconnection.com - The web's only drop ship directory with a step by step guide for the home business owner. He is also the owner of MAR Services which publishes these great sites:

2DollarSoftware - www.2dollarsoftware.com - marketing, advertising, and internet software.

DingleHopper.com - www.dinglehopper.com - Funny Name, Cool Products.

tony.keeler@dropshipconnection.com

More Resources

Buying At Auction: 6 Hints to Make You a Successful Bidder
Buying at auction, be it for stamps or coins, antiques or even cattle, can be one of the most exciting and profitable experiences possible. It can also be expensive and utterly frustrating.
When You Need Extra Cash Ebay Fits the Bill
We all have items in our closets and stuffed in drawers that we no longer have a use for. Some of us use our free time to manufacture craft items that we give to our friends and families for gifts, and still others of us buy candles and other items in bulk to sell to family and co workers for a little extra cash.
A Picture Paints a Thousand Words and Creates Auction Euphoria on eBay
Ever since I sold my first item on ebay I have been addicted to the site and I have steadily developed it as a supplementary source of income over the last two years. As I gained experience from listing items, I rapidly became aware that the inclusion of pictures in the listings was a major selling point as buyers could literally see what they were buying and as such create a greater interest and desire within them which in turn led to greater selling prices.
Finding Products to Sell on eBay
Do you know how many people in US are earning their livelihood with the help of eBay? According to a new survey conducted on July 2005 by ACNielsen, a leading research firm, an astounding 724 thousand Americans respond that they rely on eBay for their main or supplemental income. Apart from these professional sellers, another 1.
5 Ways to Drive Traffic Away from Your EBay Auction
eBay is a one-stop solution to any one who wants to make money online. Whether you just selling a few unwanted items from around your house or your want to develop a work from home business, eBay removes many of the obstacles for you.
Drop Shipping Is Your Perfect Home Based Business Solution
Drop Shipping Is Your Perfect Home Based Business SolutionDrop shipping is one of the greatest businesses to operate from home. With drop shipping you sell another company's products, use their warehouse and shipping facilities, and they provide you with the sales tools you need like product descriptions and images and more - free of charge!Drop shipping is great for small businesses because you can start with literally nothing & gradually increase to higher levels of success.
Everything You Need To Know About Ebay Money Making Opportunities
Ebay money making opportunities are simply the best thing to come along since the wheel. Seriously, everybody from grandmothers to middle school kids are cashing in on what's been called the $14 billion ebay pie.
Top Internet Businesses
The internet is packed with web businesses jockeying forthe attention of regular users. Selling everything underthe sun and offering a substantial array of services, theinternet is quickly becoming the favorite of users,surpassing traditional catalog and store shopping.
Garage Sales, Flea Markets, and Special Events... Oh My!
The activity chart is an ingenious way to find, in order, events happening in your community throughout the day. Plug in 'www.
Do You Sell Tires By Mail? Maybe You Should eBay
I just received an interesting email from eBay and it got me thinking..
The Powerful eBay Bidding Strategy That Claims A 99% Success Rate
Don't you just love it?You've found that special item on eBay that you've just got to have!No If's Ands or Buts, you've got to win that item.You've checked and double checked the "End Of Auction" time and date and you're at your computer, signed in and raring to go at least 30 minutes before the auction ends.
Auction Image Hosting for Ebay Auctions: Free Single Most Recommended Tip
It is a well known fact that the more pictures taken of an item, the better it will sell. Not only will you get more bids, but you will make a superior final profit.
Boosting Your EBay Auction Profits: Just Add Audio
According to a recent report, adding audio to your eBay auctions could increase bids by as much as 22% over auctions without audio.A recent trend showing up on a lot of websites is the addition of an audio clip.
When It Comes To eBay, Don't Follow The Herd
Q: I want to start an online business. Since I don't know anything about ecommerce and building websites and such, I'm thinking about starting out selling products on eBay, then pay someone to build a website for me once the money starts coming in.
Instructions on How to Put Picture on Ebay
Like many folks, you have heard of online auctions. Heck, even non-computer users have heard of Ebay.
The Effects of eBay on American Merchandising
With one brilliantly simple idea, eBay was born just a few short years ago.From its humble beginnings in the Collectibles business, it went on to achieve the lofty heights it enjoys today.
The Down Side Of Using Dropshippers In The Ebay Auction Arena!
Ok, let me just say right up front that I am not against drop-shipping! I love the concept. If you are dealing with a particular wholesale drop-shipping distributor that is serving your Ebay ambitions well, then hold onto that company with bonds of steel, for truly good drop-shippers are hard to find!Drop-Shipping sounds like the utopian business model.
The Benefits of Buying and Selling Locally
Shop at a flea market in Oaxaca, Mexico. Trade with a vendor in London, England.
Selling on eBay - Have You Found the Magic Formula Yet?
Selling on eBay can be very profitable and a great way to make some cash while clearing your house of unwanted items at the same time. It's quite simple, just describe and photograph your items and seven to ten days later you'll get a payment though paypal or by cheque posted to you.
So What Are YOU Going To Do About eBays Fee Increases?
Unless you have been hiding under a rock, I am sure that by now you have heard that eBay is raising its fees. So what's a small merchant to do? Here are some suggestions.

More Auction Information:

Related Articles

Fundraising Ideas Using eBay
Have you thought of using the online auction site eBay as your next major fundraiser?I have, and it was a huge success!Like many other businesses the fundraising business has seen an incredible change since the internet. Everyday there are new tools, softwares and websites that are making fundraising not only easier but a lot more fun.
The Top Sellers On eBay & What We Can Learn From Them
A fascinating eBay case study is the number one seller on eBay, a little outfit called Marie's CDs, but is better known under its old name "1 Cent CD." Jay and Marie, current ID "jayandmarie", are an institution on eBay and are a big part of what makes eBay such an amazingly popular phenomenon.
Selling on eBay - Have You Found the Magic Formula Yet?
Selling on eBay can be very profitable and a great way to make some cash while clearing your house of unwanted items at the same time. It's quite simple, just describe and photograph your items and seven to ten days later you'll get a payment though paypal or by cheque posted to you.
EBay Feedback, 5 Key Things All EBayers Should Know
eBay's user feedback system is one of the site's most important components. Without the conscientious comments recorded by both buyers and sellers, there would be no way for anyone to build up a trustworthy reputation in the nearly anonymous realm of cyberspace.
eBay - Getting More Bids Using An Auction Preview
If you sell in small niches as I recommend and are organized enough that you know what you will be listing on eBay 1 to 2 weeks ahead of time, you should give serious thought to previewing your upcoming auctions for your customers. The result can be increased sales and higher final bids.
Doing It eBay: An eBay Business Means Fun and Profits in a Global Marketplace
In 1995, when Pierre Omidyar introduced an online business venue that was essentially a virtual garage sale with auction pricing, no one knew a retailing revolution was about to occur. That site became known as eBay, and it's hard to find someone today who hasn't at least heard about the popular online auction company.
To eBay or NOT to eBay
FACT: eBay's Gross Merchandise Sales (GMS) 2003 - GMS, the total value of items sold, was a record $24 billion, representing a 60% year-over-year increase from the $15 billion reported in the full year 2002FACT:Over 79 million times a day, eBay users find products and brands of their choice.FACT:In the final quarter of 2003, reported and increase of 41.
The Webs Best Online Auction Sites
The best online auction links for buyers and sellers are - not surprisingly - eBay, eBay and eBay. eBay began the entire wacky world of online auctions back on the Labor Day weekend of 1995.
eBay - The Basics
I began selling on eBay in 1999 and have found it to be an enjoyable and profitable experience. I had owned a retail computer store for a few years and decided to close it.
An Introduction To eBay Consignment
After I started selling on eBay, I was approached by friends without computers who wanted me to sell their items for them. They had heard stories about the outrageous prices items some ebay auctions brought.
10 Tips to Starting a Financially Successful Ebay Business Startting Right Now
Ebay is Perhaps the easiest and fastest way to start a home based online business. Here are 10 Tips to starting a Successful Ebay Business1 - Become an Ebay ShopperBuy a Few things on Ebay.
Smart Ways Your Business Can Benefit From Online Auctions
It seems as if everyone is talking about online auctions. And why not.
eBay Auction Sellers Guide to Finding Hot Money Making Products
You might be one of the thousands of individuals who open a trading account with eBay and dream about making auction selling a full-time home-based business.However, before that dream can become a reality, you need to do many important things while running an auction business.
Mistakes to Avoid in your eBay Auctions
Online auctions continue to grow in popularity as an easy and efficient way to make money on everything from unwanted household items to rare and expensive collectables and even to bulky items like cars.Log on to eBay and you will see countless auctions on any item you can imagine.
When is Wholesale Really Wholesale
You've finally found the wholesale source for the high demand widget that is selling like hotcakes on the Internet. Thoughts of watching the money pouring in and celebrating the new found success selling widgets has you so excited that you can't wait to buy 5 widgets at wholesale and double the investment.
Four Reasons Why You Should NEVER Use Animations In Your eBay Auctions
Inexperienced auction sellers, or those lacking in confidence, often want to make their auction listings more dramatic and exciting. They dread the possibility that buyers will be bored by their auction and turn away with indifference.
Top Secret Ebay Powerseller Technique: Classifieds Produce Auction Power
I was browsing through all of the classified sections, and stumbled on Wanted to Buy. I noticed that people were placing ads for items they wanted to purchase.
Selling through Auction Marketplaces
Consumers are increasingly feeling more comfortable in buying products through the Internet. According to a report released recently by the Department of Commerce first-quarter retail salesrose 23.
2 Step Secret Reveals How You Can Find Wholesale Suppliers
Have you spent hours on the internet searching for a viable wholesale source? I did. I spent money on self-professed in-depth Wholesale Supplier directories and membership sites.
How To Find Tons of Hot Items Selling On EBay ...In Less Than 10 Minutes
There are many ways to start a home business online, and few are easier than eBay - the world's largest online auction site. However, there is one critical condition - you have to know what to sell and how to sell it.