Drop Shippers
From OneBuckWiki
What is drop shipping? Does drop shipping ever work? Is there anything like drop shipping that works? Where can I find real drop ship sources? Are all drop shipping companies scammers? Where do eBay PowerSellers find their drop shippers? Who drop ships name brand electronics?
To really understand the problem with drop shipping, you need to understand its origin.
Before the internet, companies that had products to sell but didn't have retail (brick-and-mortar) stores would sell their products through catalogs and door-to-door sales. So, they needed a sales force to go out and actively find buyers. These types of sales teams are often referred to as "feet-on-the-street". Literally people to walk around and sell products.
"I was convinced that I was finding scam drop shippers and that there were a bunch of real drop shippers that were going to have products at good prices. Now I know better! Thank you for opening my eyes and offering me options. I am not yet making a fortune but I am able to make an extra $20+ a day with my little ebay store thanks to the great advice you provided me."
Tom Boester
Portland, OR
Drop shipping allowed companies to have people selling their products by distributing their catalogs, knocking on doors, and recommending their products to friends, family, and neighbors... Without the overhead costs of traditional employees.
With drop shipping, companies wouldn't have to provide benefits such as insurance, retirement plans, etc. and companies would only pay out per-sale (commissions). This was ideal because a company would never have to pay for a salesman who wasn't producing results and could grow a huge sales force without any financial risk.
Companies like this still exist today. Mary Kay, Kirby, PartyLite, Lia Sophia, etc are all examples of drop ship companies that still run the "old-school" model of business. Catalog & door-to-door sales driven by real people.
But the key element to drop shipping was, and still is, a secured market. The companies above sell products exclusively through personal sales reps and do not sell in retail outlets, to wholesalers, to the public. This is what makes them work. The prices, distribution channels, and markets are all tightly controlled.
This is not true with the drop shipping companies that litter the internet with claims of huge profits selling popular items such as iPods, laptop computers, jewelry, etc. Any product that is not controlled by the manufacturer and sold exclusively through personal sales reps (AKA. drop ship sales) will not be profitable online. Why?... you can find out here and get the solution
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