Better Than Sliced Bread? Drop Shipping, The New Home Business Craze

Many of you will probably remember the days when the only way to start a successful home business was to join some sort of multi-level marketing program or sell makeup at parties. In those days, people would have to buy a membership in the 'program' along with an inventory of sample products that they would then sell to friends and coworkers at 'parties.' Most people were not very successful at this and made very little money and usually alienated their friends and family. In the 1990's however, all of that changed for the better with the advent of the Internet and a retail delivery method called wholesale drop shipping.

Wholesale drop shipping is when a wholesale distributor or manufacturer agrees to send out single unit products to customers for a retailer. Many will also even include the retailers name on the invoice so that the customer is never even aware that they got it from anyone else but the retailer. This, along with the Internet has changed the whole dynamics of home businesses in America, making it easier and more cost effective to start your own business.

Home business owners are now able to launch a business without purchasing any inventory up front and are able to open a 'store' without ever having to find a place to setup shop. Millions of Americans have setup ecommerce sites on the internet selling everything from Personal Computers to lawn care equipment all using wholesale drop shipping. As a matter of fact, according to eBay over forty thousand people make their full time living on their auction site alone; many of these are using drop shipping as their main method of product fulfillment.

The only problem for today's small business owner is how to find wholesalers to drop ship. In general wholesale distributors don't make it a habit of getting out there and advertising; obviously the whole reason they are in wholesale and not retail is to get away from doing all of that work. So it makes it very difficult for someone who has little or no business experience to make contacts with distributors when they aren't even sure where to start looking.

To help out those small business owners I'd like to offer some advice for finding wholesale distributors:

  • Look for trade organizations and magazines to help you make contacts. Many trade organizations out their produce some sort of listings of their members, many of whom may drop ship.

  • Contact manufacturers. People don't realize that if you call the manufacturer they will provide you with a list of their distributors; so if you are looking for a particular product, ask the manufacturer. The down side of this route is that they may have hundreds of distributors that you may have to contact before you find one that is willing to drop ship.

  • Find wholesale chat rooms and message boards. There are many message boards on the Internet today that are devoted to a wide range of discussions. You may find boards on wholesale, distribution, supply chain, etc. All of these may lead you in the direction of a wholesale distributor.

However, if you want to get up and running fast, or just don't have the time to go on a search for wholesale distributors much less ones that drop ship, then the way to go is drop ship directories. These are usually pay services that search out drop shippers for you then give you access to their contacts; there are many of these on the Internet today, and many are very good. As with anything on the Internet you must be very careful of the scams out there. Many drop ship directories will end up giving you an outdated list of wholesalers, or when you contact them you will find that they are a true wholesale distributor but they do not drop ship.

Here are some pieces of advice when looking for a quality drop ship directory:

  • Stay away from the cheap ones! Obviously with everything else in this world you will get what you pay for. If you find one out their for three dollars, you probably are not going to get a good product. In general the one's that offer the best information are charging $60 or more for a six month membership.

  • Look for one's that will do specialty searches! If you get into a drop ship directory and find that they do not have any products that you would like to sell, or think you can sell, then make sure they will go out and find it for you. If they do not do specialty searches then you will end up being stuck with whatever listings they have no matter what.

  • Find one with a Satisfaction Guarantee! There are several drop ship directories out there that offer a guarantee that all of their listings are true drop shippers, but in my opinion this is not enough. If you get into their directory and find that they have five hundred listings for widget suppliers and they are all real wholesalers you are out your money and only have access to one product. Make sure they guarantee your satisfaction with their product no matter what, especially if you are going to shell out seventy dollars of your hard earned money.

  • Look for ones that are going to help you out as well, not just give you a list. Do they offer articles and help material on starting your business or are all they just going to give you listings and nothing else.

However you choose to find wholesale drop shipping, keep in mind that as with anything else in this world knowledge is power. Try and find out as much as you can before you jump in to get your feet wet. It will make your startup smoother and help you get the profitability stage much faster.

About The Author

Tony Keeler is the founder and publisher of The Drop Ship Connection ? www.dropshipconnection.com - The web's only drop ship directory with a step by step guide for the home business owner. He is also the owner of MAR Services which publishes these great sites:

2DollarSoftware ? www.2dollarsoftware.com - marketing, advertising, and internet software.

DingleHopper.com ? www.dinglehopper.com - Funny Name, Cool Products.

tony.keeler@dropshipconnection.com

In The News:


Aviation Week

Continental Airlines Applauds FAA Order to Stop Newark Slot Auction
MarketWatch - 21 hours ago
The FAA Chief Counsel said he acted under the authority from the FAA Acting Administrator and found Continental and other airline protesters of the auction ...
FAA delays first slot auction for Newark Forbes
FAA Suspends Auction of Flight Slot at Newark Airport (Update2) Bloomberg
FAA Delays Planned Newark Slot Auction Aero-News Network
NY1 - New York Timesall 178 news articles

Blog auctions to help Mesa plane crash victim
Arizona Republic, AZ - 2 hours ago
29, 2008 10:07 AM Bloggers are holding online auctions to support a Mesa woman who was critically injured in an airplane crash last week. ...

3G spectrum auctions to be over by September 30: DoT
Business Standard, India - 5 hours ago
PTI / Mumbai August 29, 2008, 20:01 IST The auction process for the third generation (3G) spectrum service are likely to be over by September 30, ...
3G auctions to end by Dec: DoT secy Financial Express
norms not against foreign telcos Economic Times
Foreign firms' 3G quality may suffer for want of spectrum Business Standard
all 6 news articles

Deutsche Bank Auctions Richter, Baselitz Art for AIDS Charity
Bloomberg - 8 hours ago
29 (Bloomberg) -- Deutsche Bank AG, owner of the world's biggest corporate art collection, will tomorrow auction works by artists including Gerhard Richter, ...

Menzies' plan of auction
The Australian, Australia - 4 hours ago
How apt, then, that auction house owner Rod Menzies has chosen a Warhol work as the show stopper at his next sale. Following recent attacks from his critics ...
Slump in sales leaves art auctioneers hanging The Australian
all 2 news articles

Auctionbytes

Jerry Lewis MDA Labor Day Telethon Adds Online Auctions to Lineup
Auctionbytes - 5 hours ago
By Ina Steiner The Muscular Dystrophy Association will launch its first-ever national online auction in conjunction with the 43rd Annual Jerry Lewis MDA ...
She Didn't Need Help Laughing Parade Magazine
all 2 news articles

HispanicBusiness.com

FACTBOX-Fed's liquidity tools
Forbes, NY - Aug 28, 2008
The $50 billion option draws will be in addition to the $200 billion that may be offered under regular TSLF auctions. Under the TSLF, the Federal Reserve ...
Fed actions to boost liquidity guardian.co.uk
Federal Reserve auctions $75B in loans to aid banks Youngstown Vindicator
Fed auctions another $75B to ease credit stresses Forbes
guardian.co.ukall 36 news articles

Examiner.com

Auctions and Antiques Examiner
Examiner.com - 1 hour ago
These websites were picked by the Auctions and Antiques Examiner as useful resources. One of the busiest areas in collectibles and a mainstay has been dolls ...

Opinion still split over privatization of court-run auctions
The Daily Yomiuri, Japan - Aug 28, 2008
The government panel for regulatory reform and real estate companies are asking the government to privatize auctions currently conducted by courts. ...

Wall Street Journal

Big Boys Face 'Auction' Monster Alone
Wall Street Journal - 16 hours ago
On Friday, August 3rd, Bluewater/Ram Holdings had more sellers than buyers in the auction and as a result, failed to offer liquidity to those who were ...
auctions - Google News

Drop Shipping Is Your Perfect Home Based Business Solution

Drop Shipping Is Your Perfect Home Based Business SolutionDrop shipping... Read More

Online Auction Sellers - Seize Control Of Your Business!

As the online auction model of business continues to evolve... Read More

EBay: No Way?Yes Way (Ten Seller Themes)

Hearing that there are more than 1.2 million registered eBay... Read More

The Powerful eBay Bidding Strategy That Claims A 99% Success Rate

Don't you just love it?You've found that special item on... Read More

Are You an Ebay Shopper?

As I write this article, I am keeping an eye... Read More

When is Wholesale Really Wholesale

You've finally found the wholesale source for the high demand... Read More

eBay After Sales - as Important as the Listing Itself

Your eBay listing has finished and you have made a... Read More

Authentic or Fake?

1. Admit It: Old business models are no longer working.... Read More

Drop-ship or U-ship: That is the Question

For small Internet retailers, drop-shipping is one of the best... Read More

eBay - Getting More Bids Using An Auction Preview

If you sell in small niches as I recommend and... Read More

Garage Sales, Flea Markets, and Special Events... Oh My!

The activity chart is an ingenious way to find, in... Read More

eBay and Dropshipping - A Perfect Fit!

eBay and Dropshipping go together like a hand in a... Read More

7 Simple Steps To Profit Without Your Own Product

Most people do not succeed on the internet because they... Read More

Can You Really Make Money Selling New Release CDs & DVDs On eBay?

Being an active eBayer, I am often being asked about... Read More

Your eBay Username - What Does It Say About You?

Have you tried to register a decent eBay username and... Read More

Dropship Your Way to Success

Many people know they would like to start an Internet... Read More

10 Tips to Starting a Financially Successful Ebay Business Startting Right Now

Ebay is Perhaps the easiest and fastest way to start... Read More

Ebay And Dropshipping, A Marriage Made In Heaven?

eBay is the 'BEST' opportunity you can use right now... Read More

E Bay.com HTML Auction Templates: Which is Best for Ebay Selling?

There are a plenty of free e bay.com free auction... Read More

Mail Order: The Original Internet Still Going Strong

While the world continues to go catatonic over the Internet... Read More

Search... Search... Search Your Way To eBay Cash!

One of the most valuable things in life is the... Read More

A Picture Paints a Thousand Words and Creates Auction Euphoria on eBay

Ever since I sold my first item on ebay I... Read More

8 Top Tips For Successful Art Auction Listings

Why is it that some artists seem to make easy... Read More

Taxing Your eBay Profits

As a small business person-slash-advice columnist I dread the first... Read More

eBay Motors : Buy or Sell a Car on eBay

Are you having trouble finding a great deal on a... Read More