Drop ship distributors - Directly at your House's Door
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Drop shipping – What is it?
If you have bought products from drop ship distributors (or as you know them better – online stores) on the internet then it is easy for you to understand the notion of drop shipping. To you, as the customer, drop shipping means that you get the product delivered to your house directly, instead of picking the product up at a warehouse. Let’s see what drop ship distributors really are and what they do.
Drop ship distributors – Who are they?
Drop ship distributors can be defined in one word: intermediaries. They are the people that make the connection between the manufacturer and the client. They are not a typical type of intermediary. While the typical type of intermediary will buy products from the manufacturer, hold them in stock and then look for retailers to sell them to, drop ship distributors never buy stock. What they do is:
- Get in touch with the producer and tell the producer they want to sell a certain product
- The producer sends them a description and a picture of the product.
- The drop ship intermediary presents the product’s description and images to the possible customer.
- When the customer orders a product, the drop ship man asks the manufacturer to make the delivery.
- The manufacturer will send the product, with the name of the drop ship intermediary on the label, directly to the customer.
- The customer gets the product that s/he paid for, while the drop ship distributor gets the money.
Part of the money (the wholesale manufacturer price) is given to the producer/manufacturer and the difference is kept by the distributor. This is how the drop ship profit is made.
How do you drop ship?
Drop ship procedure seems simple and profitable, yet it you think of how many producers you have to juggle with and how many customer-orders there are to be traced you start to realize the amount of time and attention that goes into the drop ship business. It isn’t a get rich quick scheme. It is a solid business that you conduct just like any other business.
Drop ship distributors are intermediaries that help the manufacturer, who is busy with the production side, get in touch with the customer without either one of them having to learn the other side of the system. The commission the distributor gets is their profit margin and you as a customer have the advantage of finding good products and fast services without having to look very far or worry too much about details.