Is Drop Shipping A Realistic Way To Make Money Online

Is Drop Shipping a​ Realistic Way to​ Make Money Online?
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 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 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.
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.

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