First of all drop shipping is a very easy way to earn extra money without having to spend a lot of time working at it. With drop shipping, people can sell products online with their website or most popular on eBay without having to carry any inventory or ship any products. Drop shipping allows people to simply place ads and pictures copied from the drop shipper on their website or eBay and collect money from the buyer before they purchase the product from the drop shipper. There's nothing to hassle with carrying the inventory, packing the product, or shipping anything. Below is an illustration of the overall drop shipping process.

How to Make Money with Drop Shipping

 It makes sense if you are selling products from your own website or on eBay to have a dropship business where you are able to use a dropship distributor who has a large inventory of stock that you can offer to your customers. Most online businesses do not have large warehouses to store merchandise and nor do they need them as the dropship distributor not only stores the stock but arranges delivery to your customer as well. This saves you a lot of time as you don't have to address labels, wrap packages or go to the post office. It's all done for you by the drop shipper.Dropship distributors provide you with their lists and catalogues of available items at wholesale prices. It is up to you to sell any of this merchandise by any method you wish.You make the sale at a retail price and receive payment from the customer and then send payment and customer forwarding details to the drop shipper who packages the order and arranges delivery. The difference between the selling price and the wholesale price is your profit without having to layout any cash. Your focus is on marketing and taking the money to the bank.Furthermore, the drop shipper becomes invisible as your name and address is on the product, leaving you as the only person for the customer to contact.As many as 150,000 people are known to have given up their jobs to create their own businesses selling from their own website, eBay other Online Auctions or Mail Order catalogues.The reason for the sudden boom in online stores is that the wholesaler can set up their store from home and monitor it from home eliminating the need for storage, extra staff, packaging etc. This means the difference between the selling price and the wholesale price is mostly net profit with the only cost on your part being the promotion/advertising expenses.Before commencing business dealings with a dropship distributor you will need to become familiar with their company policies particularly in regard to return merchandise and other issues to do with their accounting procedures.When you consider there are 62 million registered users on eBay alone, you start to realize the potential of a dropship business dealing in a worldwide marketplace. This is one of the fastest and most inexpensive ways of starting an online business.