What exactly is drop shipping?
Simply put, drop shipping is selling something you don't own. There are companies that offer merchandise for sale that will ship the merchandise directly to your customer once you pay for it. Here is how it works:
1. You find a company that agrees to drop ship. You list their merchandise on eBay or your web site for sale without first purchasing it.
2. When the item sells, you collect the selling price (retail) and the shipping cost from you customer.
3. Now you send the wholesale (lower) price + the shipping and handling fee to the drop shipping supplier.
4. The supplier then ships the item to your customer.
5. Your profit is the difference between the retail and the wholesale price
There are two types of drop shippers and it is important to understand the difference:
1. Aggregators
2. Manufacturers or master distributors
Let's look at each type before you decide what kind of company you want to work with.




















