There are few areas of e-commerce where there is more confusion or misinformation that the area of drop shipping. Hundreds of companies advertise that they are drop ship distributors, but in fact, they are only middlemen that cut into your profits.
Some sites provide a ‘turn-key’ solution, which is attractive to newcomers in the internet e-commerce field. They tell you they will handle everything, from payment to shipping. On closer inspection, what they are really doing is convincing you to sell their products for them – at a very slim profit!
When you are getting evaluating drop ship distributors, remember that there are no shortcuts – to be able to sell at a competitive price, you have to be able to buy at the lowest possible cost. To get this low cost, you have to deal direct with the companies who either make or are authorized distributors of the product you want to sell.
Avoid middlemen that eat up your profits! Real drop ship distributors will sell only to real internet businesses (that means you need to get a sales tax number from your state). A middleman will offer to sell to anyone – avoid these kinds of sites.
One way to get started fast is to subscribe to a product sourcing directory. These services put you in touch with companies who drop ship. Purchase a reputable product sourcing service that gives you the actual names, addresses and phone numbers of real suppliers, then you know you are getting the most reliable, low-cost service possible. It may cost a bit more up front, but you ‘ll make the money back in the first month with the lower prices you pay for your products.
Source by Carl Ringwall