How does drop shipping work?

Drop shipping is a retail method in which merchandise is shipped to the customer directly from the warehouse or supplier rather than from the retailer. When a product is sold, the retailer passes along the customers' order information to the wholesaler or supplier who then packages and ships the product. This process minimizes the risk to you, as a retailer, because you do not need to buy the product until it has sold. Suppliers take care of the warehousing, packaging, and shipping of products, saving you a great deal of money. You do not purchase any merchandise until you have sold the item and collected the money from your customer. This allows you to sell a broad range of products with little investment. The profit potential is Enormous. With no expensive inventory or warehouse to maintain you can focus on building your business. Drop shipping is the best way to start your own part-time or full-time business. With drop shipping you have no upfront inventory costs. You simply sell the merchandise at the price of your choice or more, collect the money (don't forget about shipping costs) and the drop shipper sends it for you.