Dropshipping is a process of selling Products without having to stock any overhead. You would sell the merchandise at a cost you would determine. After the customer pays you for the item, you would pay the supplier their price and send them your customer's details. They ship the product out to the customer, and the difference between your price and the suppliers price is your profit, all to keep!

How Does Dropshipping Actually Work?

Let's say you purchase an item from a dropshipping site for $20.00. You would sell that item for a price determined by you, let's use $35.00 plus $4.50 shipping for an example. After you collect the payment of $39.50 from the customer and their mailing address, you would forward the $20.00 plus $4.50 shipping to the supplier, and keep the $15.00 as profit, never having to touch the Product, as the supplier ships it out to the customer.

This type of arrangement is extremely beneficial to both yourself, and the supplier. The supplier does not have to open a storefront, or hire sales people to sell their products, as that is the role of the dropshipper.

You, as the dropshipper, have a way to earn some spare money, having no start-up costs, no overhead, no packaging costs or headaches, and can create an extremely useful relationship with the supplier.