Distributors Drop Shippers Suppliers

Posted by Administrator on 6/12/2011 to It Works Like This

People often think that everything from the store ships from CT in one package.
Not quite.
I use a lot of drop shippers (generally referred to as distributors) for many of the items. Drop shipping is not new, a lot of the stores you see on eBay use it. Basically, I post the products in the store. You place an order. That purchase order goes straight to the company or person that makes or sells the product but I get the payment. They package it up and ship it to you. I send them their payment minus the credit card or PayPal cut and my percentage.

Why would I do this instead of just buying stuff from them wholesale and selling it myself?
Many of these distributors are individuals or small companies that don't make a very high percentage. There's no way that either of us could earn a reasonable profit if I bought and resold the products. By drop shipping, I handle the tech and customer service end of things, but don't put my own money up front. This way, I can charge them a pretty low percentage and they can pocket a little more.

So what's from me and what's from the distributors? The first set of characters in the part number tells the tale. This also applies to services, such as carb rebuilds and powder coating.
Here's the breakdown:

V4S: These parts are directly from me in Ridgefield CT.
BOB: Billy's Out Back in Canton TX.
CC: Cycle-istiC in El Dorado CA.
DS: Durable Skins in Auburn IN.
JOB: Joe B in Leeds AL.
LD: Lew's Design in Terrebonne OR.
MaCo: Matt C in Milford CT.
TDS: Two Dogs in Amarillo TX (may ship from a separate location in TX).
VS: VinScoot Enterprises in Melrose IN.

I may be adding more as time goes by.
I am also considering getting into being an affiliate for some products. I would like to sell cleaning products and possibly lubricants, but no way am I going to go through the hassle of trying to ship fluids. So it would make sense for me to become an affiliate of companies that do this. I am unaware of any drop shippers for this kind of thing, though I'll look into that too.

Drop shipping has allowed us small fry to band together into something bigger, benefiting us all. I think you'll agree that it has benefited you too!