Dropshipping

**hitman_codename** · 05-01-2008 01:58 PM

Hi everyone, I am a newbie. I have just known the term drop-shipping recently because in my place, it's not very common.

I just wonder if anyone can give my some explanation about dropshipping business.

What's the difference between dropshipping and wholesale?

I am now living in Vietnam, if i want to do business with Singapore or USA or China company who offer dropshipping or wholesale business. What's the usual requirements i have to meet?

Thank you guys in advance.

Nice day!

**dfveteran** · 05-01-2008 02:12 PM

Drop shipping is a supply chain management technique in which the retailer(you) does not keep goods in stock, but instead transfers customer orders and shipment details to wholesalers, who then ship the goods directly to the customer. The retailers(you) make their profit on the difference between the wholesale and retail price.

Drop shippers have no stock. So it makes things easier if you don't have storage space.

Buying wholesale means you are buying bulk. You need storage space when you buy wholesale.

Keep in mind, lots of wholesale distributors drop ship now. You are better off finding a wholesale distributor that drop ships.

Watch out for drop shippers that claim they are a wholesaler and are not.

**hitman_codename** · 05-01-2008 02:39 PM

Thank you for your answer, Dfveteran.

**18funds** · 05-01-2008 06:49 PM

I suggest World Wide Brands One Source! Great honest directory sponsored by ebay!

**hitman_codename** · 05-06-2008 01:23 PM

Thank you 18funs.

Another thing that i don't have much knowledge on is the legal process to start a dropshipping business. What papers do i have to sign? Must I have any certificate if i do the international dropshipping business?

I am so vague about all the things -_-

**dfveteran** · 05-06-2008 01:55 PM

If you are going to drop ship from a wholesale distributor you need a a fed tax id, state tax id, and a business certifictate.

If you are going to drop ship from a regular drop shipper(not wholesaler) you don't need any of that stuff. But you will find high prices and will have a very hard time selling your goods for profit if you take this route.

Stay away from companies like Doba or Simplx.

I hope this helps.

**dropship** · 05-07-2008 12:45 PM

You can go to our website and sign up for our free report on drop shipping.

**aslamc** · 01-13-2009 03:53 PM

I am drop shipping my products and check out how competitive the prices of my products are! Drop shipping can be profitable however not if you bough it in wholesale. The choice is yours. If you have the money to start out wholesale I would suggest you do that or else you can start out drop shipping and gather up cash and then mix wholesale and drop shipping. Checkout Az Deals!

**dropshipman** · 02-06-2009 08:31 AM

Be careful with International dropshipping, I would thoroughly research any international supplier to make sure any complaints about them are low. Basically, if you ever run into any trouble with payments/shipping, you may have very little legal recourse.

Otherwise, i've dealt with Worldwide Brands and they are great. There are some other ones out there as well. Make sure you have a legal business before you get started. I would strongly discourage you from starting out as a sole proprietor for legal exposure reasons.