Drop shipping is a method of making money online without the headaches of keeping inventory or maintaining a warehouse or having the headaches of packing or shipping the products by yourself. A customer does not need to know as long as he gets the right product at the right price and gets proper after sales service.

This kind of business, drop shipping is well suited to people whoa want to make money in their spare time. People like retired personnel, working women or students are best suited to this form of business. All they need to do is market their product and process a couple of emails and make margins like a normal retailer does. Setting up the drop ship channel, however, takes a little time.

Drop shipping is yet in the nascent stages and it is one of the best ways to make money online. There are people that include students, who make an incredible amount of money just drop shipping.

The workings of a drop shipping business are very simple to understand and implement.

Many big retailers, wholesalers and warehousers who stock a large volume of goods intended for selling at a later date. These products are offered at major discounts to people or smaller retailers who buy in volumes from them. The volumes may be bought one-time or over a period of time. These warehouse companies are also called drop shippers. They do not expect you to pick up all material at one go. The volumes and sales go by the following procedure:

Every time you get an order, the customer pays you and sends you his or her shipping details.
You need to inform the drop shipper of the shipping details and the products required.
Drop shipper ships the product to your customer, with your details and forwards you the invoice.
You make the payment for the invoice to the drop shipper and keep the margin.
However, most of these processes are automated once you set it up, so there is no need to worry about time and logistics. You do what you are good at, market and sell.

What do you need to sell?

1. You need a storefront like eBay or your own website, where you can display your products.

2. You need to find a good drop shipper who you can depend upon to ship the goods in time.

3. You need a niche product that you can sell to the target customers.

4. Good marketing skills and skill to count money.

That’s about it. A student is most well suited for drop shipping, since they have about 2-3 hours of time daily on their hands in which to mange it and they are at an age where innovation is at its best that can help them market their products better. Moreover a little money on the side can help them a long way in getting their education. A student with good internet skills and a simple marketing orientation could do well in this trade. No good has ever come from being skeptical since the drop shipping online trade is also full of tall claimers and have known to run away with some customer’s money. Since every cupboard has its own rattling skeletons, its best to put it behind and work towards becoming the next online millionaire.

Drop shipping is still catching on and it is the best time to hook on to the band wagon especially when there is literally no investment involved. You could soon end up having another WalMart on the internet in a very small time.