CLEAR BUSINESS HORIZON
Chapter 3 - Dropshippers

Make $1000's Using Dropshippers


This ad is all over the internet. This is more of a misrepresentation than a business scam. There  are many websites that tell you you will make a fortune by using dropshippers.

What is a dropshipper? A dropshipper is a company that ships products to your customers for you. Lets say that you have a website that you sell products from. Instead of buying a lot of products and storing them yourself, you use a dropshipper. The customer pays you, you send the cost of the product to the dropshipper, and they ship the product to the customer. You keep the profits.

Most dropshippers are legitimate companies. The problem is that many people mistake them for wholesalers. They are not the same.

 A wholesaler sells products from the manufacturer to the retailer who does not have the buying   power to buy straight from the manufacturer. Most wholesalers require tax id numbers from people    who want to buy from them.

A dropshipper usually buys from wholesalers or obtains bulk closeouts and does not require a tax id number from you. Their prices are generally marked above the wholesaler.

The above ad is from companies that will sell you a list of dropshippers for a fee. Your cost of the products is usually barely below what you can sell it for.

  • Always do your research - find products you can make a profit on.
  • Make sure the dropshipper has plenty of product in stock so your customer does not have
    to wait on backorders.
  • Find out how long they take to ship out the products.
  • Check to see if there are any hidden fees or costs for shipping

Always double check all the costs and procedures of any company you deal with and you will
lessen the chances of being duped.

 

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