Just about every other business at one time or another uses the service of drop shippers. The service industry makes maximum use of drop shippers. Dropshippers supply parts for servicing various kinds of equipment. Many customers who do their own repairs, order various parts that they need and have them sent directly to the home address. The electrical industries do a great deal of dropshipping to customers. From time to time when the remote control on your TV goes out it becomes necessary to order a remote control online and have it sent by a dropshipper directly to you.

Many parts in technology have to be ordered or dropship because they are not sold locally the dropshipper is usually not a manufacturer of parts but a distributor of parts. It is not always the manufacturer that does the drop shipping. If there are no distributors for the item the manufacturer will sometimes dropship. Department stores interact with each other from city to city and dropship to their customers.

It is easy to go on line to a department store and place an order and have it sent to someone in another city. Even department stores have on line businesses that use dropshippers. Drop shippers are used by most retail stores and wholesales stores. Dropshippers have warehouses scattered in all regions and parts of the country. Jobs are created by dropshippers in small towns and communities and may be the primary source of income for that particular community. Usually in these small communities the labor force is abundant and there is no shortage of help at minimum wages. Many of the online stores distribute merchandise to these small communities to be distributed throughout the region. This cuts down on the expenses of the dropshippers by saving gas and time getting merchandise to customers. It is a great way to spread jobs throughout the country so those who want to work will have an opportunity to do so. Many immigrants work with these dropshippers on various shifts.

Wholesale drop shippers have existed for years even before the internet opened up to the wide world. Product distribution explains drop shipping so let us check out what exactly product distribution is about. In the olden days drop shipping started out as a simple procedure of getting products to the consumer. The Ajax Manufacturing company made cleaning supplies as an example and that was all that they did. The individual entrepreneur approached the Ajax Manufacture about getting the cleaning supplies in large quantities with an over all savings. The Manufacturer was happy to accommodate, as they were not in the business of selling.

The distributor then approached several retail outlet stores and offered them Ajax cleaners at a very reasonable price. In turn, the retail outlet could mark up the product and sell it to his consumer. All involved from the Manufacturer to the distributor to the retail outlet made a profit. The consumer found the product they wanted at a price they felt was reasonable.

This simple equation will help explain the above scenario.

Ajax Manufacturing sold products to a distributor for $12.00 a case of 12. Cost to make was .50cts per can. (profit $6.00)

The distributor sold the case to retail outlets for $24.00 a case. (profit $12.00)

The Retail Outlet marked each can out at $$3.50 a can (profit $18.00)

At a regular store, the Ajax cleaning products sold out at $4.50 a can so the consumer saved $1.00.

The beauty behind drop shipping is that the distributor places the order to the Manufacturer who in turn drops ships to the Retailer; therefore, the distributor does not have to buy in advance nor keep a lot of stock on hand. The process is so simple that it is hard to loose money on this type of procedure.

The invention of the internet greatly increased the business of drop shipping to a very profitable at home business. The idea of distribution started at the beginning of time with the first cave dweller trading fire for wood. For it is said without wood the fire will not remain and with out fire there is no need for the wood to remain. It takes both in order to keep one warm.

The understanding of what it is to be a wholesale distributor will help you to a better understanding of drop shipping. The sale of goods in quantity is usually for resale by a distributor to a retail merchant. A wholesale made by the manufacturer in a large scale without discrimination requires a distributor to make sales to the retailer in smaller quantities. The idea of wholesale distributors has been a marketing tool for a very long time. Earlier companies like the Fuller Brush Company, Sears, Montgomery Wards and J.C. Penny's started the basis of wholesale distributors and especially the idea of drop shipping.

The idea of Wholesale Products is vastly growing on the internet and becoming one of the leading ways of owning your own business without having to have money, building, and product. The reason being that your online store is normally manufacturers are more than glad to give you a cut on the profit in order to get their product recognized by the public and sold. The idea being your virtual store can have a large inventory without buying one product and the merchandise delivered instantly without anyone from your company getting involved. The key to having a good wholesale business is to find a reputable affiliate program; most of all find a way to drive traffic and sales toward your virtual store. Remember that most programs do include drop shipping as a means to get the product to the customer but you should make sure that shipping is either free or charged to the customer.

We have now discovered that the wholesale business is the easiest, fastest, and least expensive business to get started on the web. Now you need to get your creative juices working and do some researching to find out what you want to do in the wholesale business. Remember that with little to no capitol the business that you are strictly looking for is where you are the stockless retailer and the manufacturer drop ships the goods to the client. You also need a good affiliate program that will accept credit cards and papal.

Next, let me suggest that you check into eBay, as this is one of the best companies on line today for those who want to make sales. It is not complicated to list merchandise to sell on eBay. It requires a computer, internet connection, and a means of producing digital images. After you have become an active seller then you can open up your own eBay store for as low as $5 a month. eBay accepts the necessary means you need such as charge cards and pay pal, which helps you in receiving payments.