The whole concept of drop shipping is actually pretty easy to understand, which is a major reason why it’s become increasingly popular as a at home business. The whole process of drop shipping is very profitable because it can be done over and over again to bring in revenue on a consistent basis.
Without dragging into too much detail, I’m going to lay out how drop shipping works in the most simplest form:
1) Find wholesale items and list them on eBay or perhaps your own online store.
2) The product sells, and you receive the payment.
3) You order the product from your supplier and specifies that the item be shipped to the buyer.
4) Your profit is the different between the sale price and the wholesale price.
That’s how drop shipping works. Notice how you sell the product and receive the payment before you order it? This way you never have to use your own money to purchase the product. You never have to store the product because it ships directly from the wholesaler to the customer. You order from the wholesaler and sell the product for more than it costs at the wholesaler and the difference is simply your earnings.
The even better part about drop shipping is that once you find a product that is selling, you can sell it over and over and over again, racking in the difference as your profits. This is can range from several dollar to several hundred dollars an item sold.
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