Using a "drop ship warehouse" rather than purchasing an inventory of the products you sell and shipping them yourself offers a number of advantages. Above all, you do not have the expense of buying products for resale before you have a purchaser. It also can save a lot of time, it eliminates the need for storage and it spares you the expense of shipping. The warehouse charges you for the product. Your profit is the difference between what you pay for the product and what the customer pays, minus charges assessed by other parties to the transaction.
Instructions
1. Locate a drop ship warehouse that can supply the products that you sell, and make sure its terms and conditions meet your needs.
2. Decide market sell the products. You might choose to sell items through eBay, for example, or your own website.
3. Record orders for products, then place the orders with the drop ship warehouse, providing the information needed to ship the product. The warehouse staff will ship the item to the customer, following your instructions for how the package should be marked. Sometimes the package may be shipped with a "blind" return address; at other times it may include your company's name and address on the package as the shipper.
4. Keep careful records of your expenses and sales to be sure the arrangement with the drop ship distributor is profitable.
