Thursday, April 16, 2009

Dropship Companies

In this post Thrive Learning Institute will teach you the easiest way to sell a physical product online. When many people get started trying to sell products online they usually get stuck on the first step which is finding the actual product. By knowing how to find quality dropship companies you will be leaps and bounds ahead of the competition.

What is Dropshipping?

Sometimes companies will ship out products one at a time rather than making customers purchase them in bulk and ship them out themselves; this is known as dropshipping. One form of dropshipping is Blind Dropshipping; this occurs when the company that is dropshipping puts the receivers business name and address on the package as a return address.

Where are Dropshippers Found?

Dropshippers may be found through Dropship directories, manufacturers, and joint ventures.

Dropship Directories

These are online databases created by companies that go to trade shows and determine which companies are willing to dropship. The companies are then divided into categories based on the products they offer. Some common dropship directories include, but are not limited to, and There may be a fee associated with the directories but they are well worth the fee for the time which will be saved by using a directory instead of taking the time to research. Some Dropshipping Directories will even offer discounts


Larger manufacturers may not dropship but smaller manufacturers may. It is important to call or email the manufacturer about a specific product and tell them you are starting an online business. Next, ask if they are able to Dropship or if they have a distributer over your area or region that can. If they cannot Dropship, they may be able to list someone who can.

What Fees are Associated With Dropshipping?

It is important to know the fees which are associated with Dropshipping. There are three different ways fees may be applied: price markup, fixed rate, and a monthly fee. Price markup occurs when the manufacturer and the wholesaler mark up the price in order to make a marginal profit. Some Dropshippers may apply a fixed rate per product; say around $25. There may be a monthly fee to be a part of the warehouse allowing you to pay one flat rate for the entire month, regardless of the number of products.

Make sure to always ask the Dropshipper what kind of fees they charge. If all three fees apply, chances are a profit cannot be made on the product. However, there may not be any fees applied. Research and make sure the best deal is being made.

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