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Small Business Digest


Dropshipping Offers Viable Sales, Shipping Alternatives To Firms, Individuals

In these troubled times, more and more individuals and businesses are turning to drop shipping suppliers to either start or expand their sales efforts.

With inventory costs soaring for firms, financing more difficult and many individuals starting their home-based businesses, drop shipping is the answer to building up their sales quickly and at minimum cost.

Companies such as offer up to 2 million products for inclusion in either their client’s websites or a customized Internet site provided by the company.

The process to open an online business is relatively simple. An individual or company arranges to lease a customized website from the drop shipper, chooses the products he or she wants to offer and then takes orders from customers online.

The orders are sent to companies such as where they are processed and sent out with the selling company’s name on the package.

Costs for the service are deducted from the sales price, which is usually lower than that offered by competing stores and distributors.

Shipping costs are minimized due to the high volume discounts earned by the drop shipping company.

“This is a win-win-win situation,” said Richard Gabriel,” President of, a Montvale, NJ-based provider.

“The sales agent has no inventory costs, access to millions of products and the customer gets a lower cost,” he said.

“We work with our clients and provide over 2 million items to choose from.  We also provide customized websites and services that enable them to start their business immediately,” he added.

According to industry experts, individuals go on ebay and other sales venues to generate leads, offering one or two products and encouraging visitors to go to their sales websites for more products.

Industry pundits estimate that sales from this channel will grow by 25% in 2009.

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