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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 double check all the costs and
procedures of any company you deal with and you will
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