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How Drop Shipping Works

How Drop Shipping Works

You will work with the big wholesalers or distributors. They already have big warehouses setup and get millions of the orders everyday. Most of the time they are located in China or USA. If they are located in China, the delivery of items would be delayed but price would be very competitive. Wholesalers located in USA could be expensive or not expensive depending on what kind of products you decide to sell. If products are made in USA only then USA located wholesalers are preferred. Many Chinese manufacturers are having warehouses in USA too. Advantage of selling products directly from USA is that, deliver of items would be fast because of item location. Our research team can give you list of sourcing companies or work with you to find our right company for you. This service is totally FREE of cost.

After selecting sourcing company, most important part of this business is focus on your website and marketing. Writing a blog and social media marketing are the most important part of your responsiblity. Writing blogs about your products help to get awareness about your website, brand and bring more customers to your website. Regular update on Facebook/Instagram/Youtube/Google or any other social media platform is very important. Pay per click marketing is the way to start getting customers on your website immediately. Pay per click markting can be done or google/yahoo/amazon etc. Initial investment with these platform will give a kickstart. Essentially what you are doing is – promoting your products. We help our customers to build website in various platforms including Shopify, Magento, Bigcommerce etc and do social media marketing/pay per click marketing.

After the products are sold and you have sales order ready, these need to be fulfilled by one of your sourcing companies. The process of sending your sales order to drop shipping company can be manual or automated. Depending on the method of communication, orders should be dispatched to them online/scan and send in email or simply forward orders in PDF format and soucing company pick, pack and ship order for you. The company will get their wholesale price from you. They dont care what price you are charging from the customer. Also sourcing company doent put any pricing details on shipping label, so it is transparent from your customer that who is shipping the orders.

Drop ship companies charge a fee for the service they providing, it varies from 2 to 5 dollars per item or per order. It is shipping and handling fees which is on the top of wholesale price. Which doesnt mean that you dont make profit on the sold products. Profit margin is made by the diff in sale price and wholesale price.

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