Drop Shipping FAQ
| Next: What Is Drop Shipping?
What is drop shipping?
Drop shipping is the process of shipping a product from the warehouse to the customer, bypassing the retailer who processed the order. Here is a more detailed answer on what drop shipping is.
What are “drop ship distributors”?
A drop ship distributor is a wholesale company that will ship one product at a time directly to your customer for you, right from the warehouse (usually with your label and return address on the package).
What is a reseller?
A reseller is someone who takes a product from a drop ship distributor and sells it to someone. This could be via an online store, an online auction, or from a catalog. When you buy the Drop Ship Source Directory and start selling the products, then you are a reseller.
How do I become a reseller?
That’s a good question. I can’t answer it completely for you, since the answer varies from state to state. Usually you need to get a Sales Tax ID (sometimes called a Reseller ID, or a Seller’s Permit). In Maine, you need to get your D/B/A certificate (Doing Business As) from your local town office, and then apply for a State Sales and Use Tax ID. All total, it cost me around $15 dollars. Check out the Drop Ship Resource Center. They provide additional information and links about getting your Tax ID.
I don’t live in the US. Can I still become a reseller?
Sure. Since you live outside the US, you do not need a Tax ID number. One of the easiest ways to resell products if you live outside of the US is on eBay. I recommend this book by Jim Cockrum – The Silent Sales Machine Hiding on eBay if you want to sell on eBay. (the link will open in a new window)
How do I sell on internet auctions?
The key to auctions is finding what to sell, and how to write your auctions so people want to buy what you have to sell. eBay is the largest auction site, but you might want to sell at some targeted niche auction sites as well.
How do I get paid?
When you sign up with a drop ship distributor, you will be given prices for the products. You then take this price, add your markup and sell them. The difference is the wholesale price (what you are charged from the drop ship distributor) and the final sale price is your profit. You are paid directly, since you keep the difference.
top