Thread: How does dropshipping exactly work?

Hello all, I'm not completely grasping the concept of dropshipping. I understand that the point is to sell items at a higher price to make a profit (retail?), At least that is the picture I got from reading the "How to make over $10,000 monthly selling on amazon/dropshipping without any investment" Thread

So hypothetically lets say I'm selling tennis shoes on amaz0n.c0m that I am buying from a wholesaler. First, how would I find this wholesaler? Is there any method to the madness or do I just start looking for sellers that carry my tennis shoes at the lowest price?

So lets say someone buys my tennis shoes off amazon, how would I go about shipping the product to my buyer? Do I just send my wholesaler the info of my buyer?

I looked on g00gle and from what I could find dropshipping was like retail without having to have a bunch of stuff in stock and just sending it directly to the buyer.

Some reassurance or clarity would be awesome!

Overview:


1.Find a product that sells
2.Find wholesaler/dropshipper that sell it
3.List the item on eBay (take its details from dropshipper)
4.Someone bid and win the auction
5.Order the item from the said wholesaler
6.Mention bidder's address to wholesaler

OR

1.(as above)
2.(as above)
3.Buy one product or more and ship to yourself as stock
4.See step 3 to 4
5.Ship the product to bidder

You can find any free ebook on dropshipping on the internet. About the list of dropshippers, you can find them here on BHW.

Wholesaler is the guy you buy from making stock
Dropshipper is the guy who delivers the product for you.

isn't it?
=]

And where is the point if I'm selling for same price on ebay I bought at dropshipper?
Or how can I hide a receipt? Because as I know you get receipt and then your customers should be angry if you sell them for 100$ (example) but you paid for it 50$ and they see it on receipt.

I hope you understand point what I'm talking about.
Thanks in advance for clear my mind

a real dropshipper normally wont put a receipt or any labels in or on the box except the shipping label

9 times out of 10 you are also responsible for customer service. This means you need to have a phone number if you want to look professional and accept returns which cuts into your bottom line. I looked into this and said "STUFF IT!". Who has time to handle customer support via phone and to take the financial hit of refunds?

Its not worth it.

Check alibaba and their forums. lots of wholesales / dropshippers there.