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Drop Shipping Your Way to Increased Profits


Drop shipping, for those who are unfamiliar with it, is a system whereby you promote the products of a particular manufacturer, take orders directly, and the manufacturer/source handles all the inventory and fulfillment functions for you.

In a nutshell, here is the drop-ship system:

==>You generate and accept the order.

==>You take your profits out of the sale price.

==>You forward the order and the wholesale cost to the drop shipper.

==>The source factory ships directly to your customer.

The benefits of this arrangement are probably obvious:

* No inventory cost to you.

* Substantially higher profits to you over what most regular affiliate programs allow.

* The ability to quickly set-up inexpensive, highly targeted, niche or mini-sites to test and promote diverse products.

This process has been around for years and has been responsible for many highly successful mail order dealer relationships in the past. Many of the top catalogers and other direct response marketers, have been using this system to increase profits for decades. If you have ever ordered a high priced item from a mail order catalog and been told that the product was being shipped from the factory... then you have experienced drop shipping first hand.

Drop shipping is, I believe, a virgin un-tapped storehouse of profits for todays internet marketer.

On-line directories exist [http://www.dropshipprofits.com] which reveal essential contact information for drop shippers of over 2,000,000 products and 4,000 brands. Most legitimate drop ship sources will require that you have a state tax reseller number in order to approve you to sell their products and give you the wholesale pricing you are looking for.

Beware of any drop ship source which requires you to pay a fee in order to become a drop-ship dealer... or requires a membership. These are generally organizations which make their money selling "drop ship licenses"... and are, for the most part, scams. Legitimate drop shippers and factory sources never charge you any fees other than the actual wholesale cost & shipping costs of the products you sell.

Another caveat... always make sure that you have a written agreement with the source factory that you own the customer! The factory or drop ship source should agree in writing not to solicit your customers in any form. This is very important to you. Your customer list is one of your most important assets. If the factory you are dealing with balks at this request... use another source who will agree.

Almost every conceivable type of product is available from a drop shipper willing to ship products in single units under your companies name. Pick your interest area... electronics, consumer products, agricultural & industrial products, office equipment & supplies, hobby gear, recreational / sporting goods, clothing, furniture, etc. The list of available products from drop shippers is almost endless.

The products actual source is invisible to the consumer. The seller (you) is able to build a database of customers that he/she owns and controls (by agreement with the manufacturer) and has all the direct marketing advantages that accompany that arrangement... while eliminating the need for maintaining expensive inventory.

This arrangement offers maximum flexibility and cost savings for the seller. If a product does not sell well online you can pull the advertising (web page or mini-site) instantly with very little cost to you outside of the actual time it took to build and test the web marketing effort. Or, since this type of page/mini-site is so inexpensive to maintain and host... you can simply leave the pages online and take whatever orders trickle through... while you move on to the testing and promotion of new drop ship products. A quick marketing test can be done on eBay or other auction site to determine if the product sells... and at what price.

The manufacturer benefits from this relationship by gaining a legion of active marketers promoting their products... at little or no cost (other than those small costs involved with supporting the marketer with online marketing materials like product images, sales materials, etc).

As a marketer you are looking for several key components in developing the drop-ship relationship with a source factory or distributor:

** High Quality Products

** Blanket Product Liability Insurance (if applicable)

** A clear guarantee and return policy

** High Quality Marketing Materials ... product images (gifs, jpegs, etc.), selling copy, other suitable web graphics, etc.

** A Customer Service Department that will work with you to develop the best selling situation for you.

If you are a manufacturer seeking to expand distribution (or an inventor with a new product ) you will find the willingness to drop ship in single units will give you a strong competitive edge while you carve out increased market share at little cost.

If you are an online marketer interested in offering high profit products to your niche market (your website visitors) without incurring high front-end development or inventory costs... then drop shipping is for you.

Internet marketers are uniquely positioned to take profitable advantage of the drop ship arrangement and should give this system a serious look.

(c) Copyright 2005 Thom Reece

Thom Reece is CEO of Online Marketing Resource Center [http://www.E-ComProfits.com] and publisher of "Thom Reece's Web Marketing Strategies & Techniques Newsletter". You may subscribe free at: http://www.WMSTDirect.com, mailto:thom@e-comprofits.com


TODAYS NEWS BY OFFICEJAX FREE ADVERTISING AND AD EXCHANGE SOLUTIONSMORE RESOURCES updated Mon. August / 03 / 2020

Charming decorative arts exceed estimates in Neue Auctions' Summer Art & Antiques Auction, July 25th - ArtfixDaily
Charming decorative arts exceed estimates in Neue Auctions' Summer Art & Antiques Auction, July 25th  ArtfixDaily

Need Fyre Festival merch? Feds auction mementos to benefit victims of fraudulent festival - MarketWatch
Need Fyre Festival merch? Feds auction mementos to benefit victims of fraudulent festival  MarketWatch

On the Auction Block with Wieman Land & Auction - Pipestone County Star
On the Auction Block with Wieman Land & Auction  Pipestone County Star

Parts of former high-end corporate retreat in Maine up for auction - Press Herald
Parts of former high-end corporate retreat in Maine up for auction  Press Herald

Junior livestock auction goes online | News | sent-trib.com - Sentinel-Tribune
Junior livestock auction goes online | News | sent-trib.com  Sentinel-Tribune

Marylou Whitney auction brings in $400K for charity - Times Union
Marylou Whitney auction brings in $400K for charity  Times Union

Former Braking Point owner's replica movie cars sell at auction for almost half a million dollars | News, Sports, Jobs - Morning Journal News
Former Braking Point owner's replica movie cars sell at auction for almost half a million dollars | News, Sports, Jobs  Morning Journal News

Art auction in Woodland Park to feature original and signed work from well-known masters - Colorado Springs Gazette
Art auction in Woodland Park to feature original and signed work from well-known masters  Colorado Springs Gazette

Highland Park estate to auction online - The Dallas Morning News
Highland Park estate to auction online  The Dallas Morning News

Founders of YouTube and Restoration Hardware to auction historic Adirondack camp - newyorkupstate.com
Founders of YouTube and Restoration Hardware to auction historic Adirondack camp  newyorkupstate.com

Auction houses adjust to online sales during pandemic - fox56.com
Auction houses adjust to online sales during pandemic  fox56.com

Auctions Are Crimped as the Pandemic Forces Them Online - The New York Times
Auctions Are Crimped as the Pandemic Forces Them Online  The New York Times

U.S. Treasury yields move higher as investors monitor economic data, auctions - CNBC
U.S. Treasury yields move higher as investors monitor economic data, auctions  CNBC

Barrett-Jackson moves Las Vegas and Palm Beach, Florida car auction to Scottsdale instead this fall - AZCentral
Barrett-Jackson moves Las Vegas and Palm Beach, Florida car auction to Scottsdale instead this fall  AZCentral

JCPenney Puts Its Original 1902 Store - In Kemmerer, Wyoming - Up For Auction - Forbes
JCPenney Puts Its Original 1902 Store - In Kemmerer, Wyoming - Up For Auction  Forbes

HiBid's Toys.HiBid.com Portal Showcases Auctions Featuring Toys, Games & Collectibles for All Ages - Yahoo Finance
HiBid's Toys.HiBid.com Portal Showcases Auctions Featuring Toys, Games & Collectibles for All Ages  Yahoo Finance

Pennsylvania cancels vehicle auction due to covid-19 - TribLIVE
Pennsylvania cancels vehicle auction due to covid-19  TribLIVE

Relay for Life heads online for auction | Area Events - Aitkin Independent Age
Relay for Life heads online for auction | Area Events  Aitkin Independent Age

Abandoned Vehicle Auction Wednesday, August 5, 2020 Joe's Towing Service - goskagit.com
Abandoned Vehicle Auction Wednesday, August 5, 2020 Joe's Towing Service  goskagit.com

2018 Ford GT Headlines Barrett-Jackson's Return To Live Auction This Fall - Ford Authority
2018 Ford GT Headlines Barrett-Jackson's Return To Live Auction This Fall  Ford Authority

HiBid.com Breaks Records in Last Week's Auctions; Fine Jewelry, Rare Coins, Vehicles & More for Sale in Upcoming Auctions - PRNewswire
HiBid.com Breaks Records in Last Week's Auctions; Fine Jewelry, Rare Coins, Vehicles & More for Sale in Upcoming Auctions  PRNewswire

Scotch Whisky Salvaged From 80-Year-Old Shipwreck To Be Sold At Auction - Forbes
Scotch Whisky Salvaged From 80-Year-Old Shipwreck To Be Sold At Auction  Forbes

Medicaid scammer's replica Batmobile, other movie cars up for auction - Business Insider - Business Insider
Medicaid scammer's replica Batmobile, other movie cars up for auction - Business Insider  Business Insider

Death Metal Legends of the Dark Knights High Auction Price | CBR - CBR - Comic Book Resources
Death Metal Legends of the Dark Knights High Auction Price | CBR  CBR - Comic Book Resources

Starlight Studio and Art Galleries celebrates 15th anniversary, holds silent auction - WGRZ.com
Starlight Studio and Art Galleries celebrates 15th anniversary, holds silent auction  WGRZ.com

Deschutes County Youth Livestock Auction goes on, despite pandemic - KTVZ
Deschutes County Youth Livestock Auction goes on, despite pandemic  KTVZ

McKeag Original Anchors Charity Auction - Rapid City Journal
McKeag Original Anchors Charity Auction  Rapid City Journal

1965 Shelby Mustang Sells For A Record $3.85 Million At Mecum Auctions - Forbes
1965 Shelby Mustang Sells For A Record $3.85 Million At Mecum Auctions  Forbes

Local auction houses feel impacts of coronavirus, turn to online sales - Wilkes-Barre Citizens Voice
Local auction houses feel impacts of coronavirus, turn to online sales  Wilkes-Barre Citizens Voice

Christie’s New Auction Technique: The Global Gavel - The New York Times
Christie’s New Auction Technique: The Global Gavel  The New York Times

Wanamaker's Releases Catalog for Second Online Auction - BloodHorse.com
Wanamaker's Releases Catalog for Second Online Auction  BloodHorse.com

Back Mountain Library auction will have a new twist - Wilkes-Barre Citizens Voice
Back Mountain Library auction will have a new twist  Wilkes-Barre Citizens Voice

Southern Conservation Trust virtual benefit and auction set for Aug. 15 - The Citizen.com
Southern Conservation Trust virtual benefit and auction set for Aug. 15  The Citizen.com

Black Hills Vintage Auto Auction opens to the public - Newscenter1.tv
Black Hills Vintage Auto Auction opens to the public  Newscenter1.tv

Banksy auctions refugee paintings for £2.2m to aid Bethlehem hospital - BBC News
Banksy auctions refugee paintings for £2.2m to aid Bethlehem hospital  BBC News

CBRS auction inches toward $600 million after round 8 - FierceWireless
CBRS auction inches toward $600 million after round 8  FierceWireless

Virtual livestock auction to help Coles County 4-H young people - Journal Gazette and Times-Courier
Virtual livestock auction to help Coles County 4-H young people  Journal Gazette and Times-Courier

Parts of former midcoast corporate retreat to be sold at auction - NewsCenterMaine.com WCSH-WLBZ
Parts of former midcoast corporate retreat to be sold at auction  NewsCenterMaine.com WCSH-WLBZ

DeCaro Auctions International To Auction Elegant Santa Barbara, California Estate - PRNewswire
DeCaro Auctions International To Auction Elegant Santa Barbara, California Estate  PRNewswire

Pony auction shatters records with $380,000-plus spent in online version - Delmarva Now
Pony auction shatters records with $380,000-plus spent in online version  Delmarva Now

Auction Report: Rolex Daytona John Player Special Sells For £1.215 Million At Sotheby's - HODINKEE
Auction Report: Rolex Daytona John Player Special Sells For £1.215 Million At Sotheby's  HODINKEE

Fyre Festival Merchandise Hits the Auction Block - Bloomberg
Fyre Festival Merchandise Hits the Auction Block  Bloomberg

Midwest FoodBank presents “Vision 2020”, an online auction benefitting children who need a bite to eat - CIProud.com
Midwest FoodBank presents “Vision 2020”, an online auction benefitting children who need a bite to eat  CIProud.com

Ahlers & Ogletree has Two Major Auctions Planned for Fall, Starting with The White Oaks Estate in Atlanta, Sep - openPR
Ahlers & Ogletree has Two Major Auctions Planned for Fall, Starting with The White Oaks Estate in Atlanta, Sep  openPR

Dallas-based Heritage Auctions sells vintage Super Mario video game for $114,000 - The Dallas Morning News
Dallas-based Heritage Auctions sells vintage Super Mario video game for $114,000  The Dallas Morning News

Chincoteague pony auction takes place online - 47abc - WMDT
Chincoteague pony auction takes place online - 47abc  WMDT

$6.99M Highland Park home at 3204 Beverly Drive up for auction in August - Dallas Business Journal - Dallas Business Journal
$6.99M Highland Park home at 3204 Beverly Drive up for auction in August - Dallas Business Journal  Dallas Business Journal

Atco Dragway set to become auto auction site, but local race fans still fight to stop it - NJ.com
Atco Dragway set to become auto auction site, but local race fans still fight to stop it  NJ.com

A Rare 1793 Strawberry-Leaf Cent Hits Auction for the Fourth Time in 130 Years - Barron's
A Rare 1793 Strawberry-Leaf Cent Hits Auction for the Fourth Time in 130 Years  Barron's

Rembrandt self-portrait breaks record at virtual auction - CNN
Rembrandt self-portrait breaks record at virtual auction  CNN

Video camera used to record Rodney King beating up for auction - NBC News
Video camera used to record Rodney King beating up for auction  NBC News

Brews for New Avenues Virtual Rare Beer Auction - newschoolbeer.com
Brews for New Avenues Virtual Rare Beer Auction  newschoolbeer.com

Threadgill's on North Lamar to Auction Memorabilia - Spectrum News
Threadgill's on North Lamar to Auction Memorabilia  Spectrum News

Artistic gems on the block during spring auction - SHINE
Artistic gems on the block during spring auction  SHINE

Cattle Baron's auction today to support cancer society - Youngstown Vindicator
Cattle Baron's auction today to support cancer society  Youngstown Vindicator

Plain sect man shares experience coin collecting; auction to benefit Mennonite Central Committee - LancasterOnline
Plain sect man shares experience coin collecting; auction to benefit Mennonite Central Committee  LancasterOnline

Annual Laugh Out Loud Charity Auction & Comedy Night Goes Virtual in September 2020 - TAPinto.net
Annual Laugh Out Loud Charity Auction & Comedy Night Goes Virtual in September 2020  TAPinto.net

City Hall's annual vehicle auction moves online due to COVID-19 pandemic - Argus Leader
City Hall's annual vehicle auction moves online due to COVID-19 pandemic  Argus Leader

Public Auction | Legal Announcements | oanow.com - Opelika Auburn News
Public Auction | Legal Announcements | oanow.com  Opelika Auburn News

Historic downtown Topeka building to be sold at auction - Newton Kansan
Historic downtown Topeka building to be sold at auction  Newton Kansan

Dodgers Opening Day Game-Worn Jerseys Up For Auction - DodgerBlue.com
Dodgers Opening Day Game-Worn Jerseys Up For Auction  DodgerBlue.com

Colorado weekly cattle auction summary | Livestock Markets | hpj.com - High Plains Journal
Colorado weekly cattle auction summary | Livestock Markets | hpj.com  High Plains Journal

Iowa weekly cattle auction results | Livestock Markets | hpj.com - High Plains Journal
Iowa weekly cattle auction results | Livestock Markets | hpj.com  High Plains Journal

Government Surplus Auctions to be hosted virtually Aug. 3-11 on TNT auction website - KLAS - 8 News Now
Government Surplus Auctions to be hosted virtually Aug. 3-11 on TNT auction website  KLAS - 8 News Now

Dodgers to Auction off Opening Day Black Lives Matter Jerseys - Dodgers Nation
Dodgers to Auction off Opening Day Black Lives Matter Jerseys  Dodgers Nation

Despite an online boost, auction houses saw a 49 percent drop in sales in the first half of 2020. - Artsy
Despite an online boost, auction houses saw a 49 percent drop in sales in the first half of 2020.  Artsy

Jimi Hendrix’s Electric Guitar Could Fetch More Than $50,000 at Auction - Barron's
Jimi Hendrix’s Electric Guitar Could Fetch More Than $50,000 at Auction  Barron's

Racing fans fear South Jersey’s Atco Dragway will close to make way for an auto auction - The Philadelphia Inquirer
Racing fans fear South Jersey’s Atco Dragway will close to make way for an auto auction  The Philadelphia Inquirer

A $3 Million Ferrari Tests a World Without the Pebble Beach Auctions - Bloomberg
A $3 Million Ferrari Tests a World Without the Pebble Beach Auctions  Bloomberg

Onalaska Boosters to host fundraiser auction online | Local News - La Crosse Tribune
Onalaska Boosters to host fundraiser auction online | Local News  La Crosse Tribune

Christie's Unveils Auction Of Michael Jordan Game-Worn Sneakers - South Florida Reporter
Christie's Unveils Auction Of Michael Jordan Game-Worn Sneakers  South Florida Reporter

St. Louis Aquarium Foundation hosting virtual auction today - KTVI Fox 2 St. Louis
St. Louis Aquarium Foundation hosting virtual auction today  KTVI Fox 2 St. Louis

Jimi Hendrix's Rare 1960s Electric Guitar Hits Auction Block - TMZ
Jimi Hendrix's Rare 1960s Electric Guitar Hits Auction Block  TMZ

More items belonging to convicted serial killer Kohlhepp going to auction - FOX Carolina
More items belonging to convicted serial killer Kohlhepp going to auction  FOX Carolina

Buoyed by Ronald Perelman’s Meditative Miró, Sotheby’s Cross-Category Hybrid Auction Netted $193 Million in London - artnet News
Buoyed by Ronald Perelman’s Meditative Miró, Sotheby’s Cross-Category Hybrid Auction Netted $193 Million in London  artnet News

Neue Auctions' online-only Summer Art & Antiques Auction is coming up this Saturday, July 25th - ArtfixDaily
Neue Auctions' online-only Summer Art & Antiques Auction is coming up this Saturday, July 25th  ArtfixDaily

George Floyd portrait for auction to benefit Third Ward art space - KTRK-TV
George Floyd portrait for auction to benefit Third Ward art space  KTRK-TV

Manheim adds 13 auctions to return of in-lane bidding - Auto Remarketing
Manheim adds 13 auctions to return of in-lane bidding  Auto Remarketing

This online car auction is getting sellers $4,000 more than trade-in - PhillyVoice.com
This online car auction is getting sellers $4,000 more than trade-in  PhillyVoice.com

County's foreclosure auction is Sept. 10 | The County Press - Thecountypress
County's foreclosure auction is Sept. 10 | The County Press  Thecountypress

Albuquerque water park up for auction - KOB
Albuquerque water park up for auction  KOB

CBRS auction starts off strong, with high demand in first round - FierceWireless
CBRS auction starts off strong, with high demand in first round  FierceWireless

Chemung County hosts online auction for tax-foreclosed properties - WETM - MyTwinTiers.com
Chemung County hosts online auction for tax-foreclosed properties  WETM - MyTwinTiers.com

Famously fraudulent Fyre Festival merchandise up for auction, thanks to US Marshals - KING5.com
Famously fraudulent Fyre Festival merchandise up for auction, thanks to US Marshals  KING5.com

Chestnut Ridge golf resort near Blairsville sells for $2.4 million at auction - TribLIVE
Chestnut Ridge golf resort near Blairsville sells for $2.4 million at auction  TribLIVE

Mecum's live Indy auction scores record sales of $74 million - The ClassicCars.com Journal
Mecum's live Indy auction scores record sales of $74 million  The ClassicCars.com Journal

LeBron James rookie card goes for record $1.8M at auction - ESPN
LeBron James rookie card goes for record $1.8M at auction  ESPN

Live animal auction set for fairgrounds amid virus restrictions - Daily Astorian
Live animal auction set for fairgrounds amid virus restrictions  Daily Astorian

Demand outstrips supply in first US midband spectrum auction - Light Reading
Demand outstrips supply in first US midband spectrum auction  Light Reading

Silent auction raising money for Habitat for Humanity - WITN
Silent auction raising money for Habitat for Humanity  WITN

Magazine autographed by Steve Jobs hits the auction block with a humorous backstory - 9to5Mac
Magazine autographed by Steve Jobs hits the auction block with a humorous backstory  9to5Mac

The Oldest Bottle Of Japanese Whisky In History Goes Up For Auction in August - Forbes
The Oldest Bottle Of Japanese Whisky In History Goes Up For Auction in August  Forbes

2020 Powercat Auction Moved to Virtual Format - Kansas State University Athletics - K-StateSports.com
2020 Powercat Auction Moved to Virtual Format - Kansas State University Athletics  K-StateSports.com

Founders of YouTube, Restoration Hardware to Auction Off Scenic New York Campsite - Mansion Global
Founders of YouTube, Restoration Hardware to Auction Off Scenic New York Campsite  Mansion Global

Liquidation auctions likely to rise as business revenue declines amid coronavirus pandemic - Columbus Business First
Liquidation auctions likely to rise as business revenue declines amid coronavirus pandemic  Columbus Business First

British Airways Collection at Sotheby's auction; photos - Business Insider - Business Insider
British Airways Collection at Sotheby's auction; photos - Business Insider  Business Insider

Top 10 Sales from GAA Classic Cars July 2020 Auction - duPont REGISTRY DAILY
Top 10 Sales from GAA Classic Cars July 2020 Auction  duPont REGISTRY DAILY

8 of the priciest jewels at Christie's "Magnificent Jewels" auction - Business Insider - Business Insider
8 of the priciest jewels at Christie's "Magnificent Jewels" auction - Business Insider  Business Insider

PALs auction update: $830 million and cruising - RCR Wireless News
PALs auction update: $830 million and cruising  RCR Wireless News

Bronco sale snags new record during Barrett-Jackson Online Only auction - The ClassicCars.com Journal
Bronco sale snags new record during Barrett-Jackson Online Only auction  The ClassicCars.com Journal

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