Drop shipping?

Question

It seems like a concept that's ... too good to be true.
You just need a website to market products?
And you get whatever mark-up you want?

What's the catch?

Answer 1

Most web based companies, such as NewEgg, ZipZoomFly, Amazon, etc, are all drop shippers. Most people don't even realize they're shopping with a drop shipper. It's completely legitimate and is simply a supply chain management system. Modern computer systems, coupled with ERP supply chain management software allow efficient drop shipping business like never before.

Read more about it here:
http://en.wikipedia.org/wiki/Drop_shipping

Answer 2

The catch is that you AND the shipper need to make a profit. This raises the cost of the goods, usually beyond what it could be had for from a reseller directly. Customers are leery, I would never buy from a drop shipper, too many frauds out there. You have little control over the product either so someone else (less caring) is responsible for your reputation.

Answer 3

The catch is that you have to work your butt of to send out catalogs which are not cheap to thousands of customers and hope that you will get customers to order from your catalogs.

Answer 4

your dropshipper buys the item for 9.00
charges you 14.00
dropship charges 6.95
Shipping and Handleing 9.95
says MSRP is 49.95

You find it on Ebay selling for 11.95.

You cannot make good money using a dropshipper because of the markup they use in costs, shipping, and dropship charges.

Answer 5

i do not believe on this. if you do have a business, its much safer for you to ship it bec. the company you are ordering it from might steal your contacts eventually.

Answer 6

smc specialty merchandice does this

Answer 7

NO