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Today's Feature Article

What Is Drop Shipping?
Chris Malta

To understand Drop Shipping, we should first understand product distribution.

People have been distributing products since before the first mastodon skinner traded a fur coat for a flint axe.

Here’s how it works.

Let’s say ABC Manufacturers makes a product called Mom’s Ankle Wax. We’ll say that Mom’s Ankle Wax has been around for years. It’s a very well known brand name product. It will without a doubt give you the shiniest ankles on your block, and everybody wants some.

ABC Manufacturers makes Mom’s Ankle Wax, but they don’t sell it directly to the public. They’re a manufacturing operation. They’re far too busy melting paraffin and waxing test ankles to go around building stores all over the place. They need distributors; companies who will take their product and distribute it to the places that will sell it.

For years, ABC Manufacturers has sold Mom’s Ankle Wax to a company called DEF Distributors. The founder of DEF Distributors knew Mom herself, back in the old days when she made her Ankle Wax by hand, out in the turkey barn.

Today, DEF Distributors buys Mom’s Ankle Wax by the truckload. They pay $5.00 a case for it, which is a very good price. It’s such a good price, it has it’s own name: the Manufacturer’s Wholesale Price.

However, DEF Distributors does not sell it to the general public either. They are a distributor. They distribute Mom’s Ankle Wax.

DEF Distributors works with a chain of retail stores called Wax R Us. This place was founded by a retail business visionary who saw the incredible potential of Mom’s Ankle Wax a long time ago. Today there are Wax R Us retail stores on every street corner in every major city in the country. Wax R Us buys truckloads of Mom’s Ankle Wax from DEF Distributors for $10.00 a case.

So, DEF Distributors makes $5.00 on every case of Mom’s Ankle Wax they sell to Wax R Us retail stores. This makes DEF Distributors very happy.

Cases and cases of Mom’s Ankle Wax arrive in the stockrooms of Wax R Us stores everywhere. The Wax R Us employees open those cases, and pull 12 cans of Mom’s Ankle Wax out of each case. With their pricing guns, they stick a price of $4.50 on each and every can.

Wax R Us stores make a total of $44.00 on each case of Mom’s Ankle Wax. (12 cans x 4.50 per can = 54.00, minus the 10.00 they paid for the case = 44.00).

Wax R Us is even happier than DEF Distributors.

However, the happiest people of all are the people who can stroll into Wax R Us and purchase a can of Mom’s Ankle Wax for only $4.50. They think this is a great price, and they’re walking around with the shiniest ankles in town.

Well, that’s it…basic product distribution. The manufacturer sells to the distributor, the distributor sells to the retailer, and the retailer sells to the end user (the customer). The manufacturer, the distributor and the retailer all make money because the customer is willing to spend money for the product.

Drop Shipping has been around for a long time, too. Probably as long as mail order catalogs; maybe longer. If you want to use a buzzword to impress a corporate type, call it “second party addressing”.

Above, we talked about the manufacturer-distributor-retailer relationship. When you use drop shipping to sell products on the Internet, (or anywhere else), YOU become the RETAILER in that relationship.

It should be noted here, if only to keep the Punctuation Police happy, that if you use the method of drop shipping in your business, YOU are not the “drop shipper”. The company(s) who supply the products to your customers for you is the drop shipper. YOU become a “Stockless Retailer”.

Here’s how drop shipping works.

• 1.) You open an Internet Store, with a shopping cart and the ability to accept credit cards.

• 2.) You find a distributor who is willing to drop ship the products you want to sell. The best place on the Internet for this is www.WorldwideBrands.com. This is our website, and our Drop Ship Source Directory and Light Bulk Wholesale Directory are recognized as the best sources for legitimate Wholesale Suppliers on the Internet.

• 3.) You establish an account as a retailer with the Wholesale Supplier you choose.

• 4.) You receive images and descriptions of the products you want to sell from the Wholesale Supplier and post them on your Internet Store.

• 5.) A customer surfs into your Internet Store, and falls in love with a product that you have priced at, say, $80. They purchase the item with their credit card. Your Store charges their credit card $80 plus your shipping fee.

• 6.) You turn around and email the order to your Wholesale Supplier, along with the customer’s name and address.

• 7.) The Wholesale Supplier sends the product directly to your customer, with YOUR Store’s name on the package.

• 8.) The Wholesale Supplier charges you the wholesale price of, say, $45.00, plus shipping.

• 9.) Your customer gets a cool product from your store shipped to their door, and they tell all their friends about you, and you make even more money.

There you have it. You just made a $35.00 profit on one item. You didn’t have to buy a whole bunch of the product and keep it in your warehouse, hoping you would sell it. You didn’t have to pay to have it shipped to you, and then pay to ship it to your customer. All you did was send an email to your Wholesale Supplier.

That’s the drop shipping process in a nutshell!

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Today's Motivational Reading

Smell the Roses on the Path to Success
Donald J. Trump

Do not go where the path may lead; go instead where there is no path and leave a trail.
Ralph Waldo Emerson

One thing I’ve learned about life is that it is a series of discoveries. It starts with discoveries and, hopefully, it continues that way. Remember how exciting it was to learn to ride a bike? Have you ever watched a child taking her first steps? It’s a momentous occasion. If we can capture that kind of excitement every day, I think we’re on our way to wisdom.

Albert Einstein said “The mind that opens to a new idea never comes back to its original size.” I agree. Once you’ve learned to walk, why would you want to go back to crawling around? It wouldn’t make sense. We all have a purpose in life, and that’s to do our best, to live up to our potential.

It’s really pretty simple. All we have to do is tune in to our talents and capabilities. Remember, I didn’t say it was easy, I said it was simple. Sometimes we get so distracted that it’s hard to tune out enough to be able to tune in at all. We are bombarded by outside information all day. The challenge here is to find the quiet time to be able to assimilate our own inside information in the midst of all the cacophony. You have to unplug before you can plug yourself back in.

I’m a busy guy but I set aside quiet time every morning and every evening to keep my equilibrium centered on my own path. I don’t like being swayed by anything that might be negative or damaging. When Emerson talks about leaving a trail, he’s right. You won't succeed by following someone else’s path. So, you’d better spend some time focusing on your own path and your own purpose.

This is a serious issue for worldly as well as personal reasons. The worst things in history have happened when people stop thinking for themselves, especially when they allow themselves to be influenced by negative people. That’s what gives rise to dictators. Avoid that at all costs. Stop it first on a personal level, and you will have contributed to world sanity as well as your own.

In business, I’ve discovered that my purpose is to do my best to my utmost ability every day. That’s my standard. I learned early in my life that I had high standards. Ever hear of intrinsic value? Intrinsic means basic, inborn, elemental. If you have an intrinsic value, it cannot be shaken or taken away. It’s a form of strength that can be indomitable.

Discovery means finding out something we didn’t previously know. Purpose is an intention or an end to be attained. We have the tangible and the intangible in life. Let them balance each other out to your best advantage. I may be in a reality-based business, but I have a sense of the mystery in life that keeps me feeling like an explorer. Don’t put blinders or borders on yourself.

I could have very easily dismissed Mark Burnett’s idea for The Apprentice simply based on the fact that I was already very busy. I didn’t need the publicity, the money, or another venture to keep me going. But it was a new challenge, and a new discovery for me. It served a part of my nature, which is that of an educator. Trump University has been a natural progression from there. I haven’t limited myself, although it may have been easier for me to do so.

Finding your purpose may be a lifelong pursuit or you may have discovered it when you were 5 years old. There’s no absolute timeline for anyone. That’s a good reason never to give up, to keep on discovering things every day. It’s also a terrific recipe for a successful life. Following your own path will bring you to the places you were meant to be. Expand your horizons! In other words, think big and live large!

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Donald J. Trump, Chairman, Trump University. You can ask Mr Trump by clicking here!

Today's Subscriber Article

Ordinary People Can Win
David deFord

What keeps the most people from developing wealth? What is the greatest obstacle to retirement? If you could eliminate one thing to position yourself for financial peace and security, what would be?

The answer to each question above is debt!

• Imagine the freedom and peace you would feel with no debt!

• Imagine the small portion of your paycheck you would need to meet your needs and obligations if the all of your earnings were available to you!

• Think about the savings, investments, and charitable giving you could enjoy!

The safety of your family may depend upon your attention to your debt. It has been estimated that 89% of all divorces can be traced to quarrels and accusations over money.

What will it take to convince you to finally resolve to become debt free?

Will you need to be cornered by a creditor?

Will you have to be publicly embarrassed? Or

Will you respond to a milder stimulus, like the frank advice of a friend, or an article like this one?

It's not the amount of money we earn that brings peace of mind as much as it is having control of our money. Money can be an obedient, productive servant, or a brutal taskmaster.

Success has a way of passing by those who have not the discipline to handle it. Through our healthy respect for money, we can attract wealth.

Compounding interest is your enemy. It robs you of your working funds. Tony Robbins taught about the power of compounding by comparing it to a small , friendly wager on a golf course. Say that your golf partner suggested a small 10 cent bet per hole. You think, "Well, that means that only $1.80 is at stake." So, you agree. Then, he suggest that you double the bet on each subsequent hole. Here's how it would go, if your partner wins each of 18 holes: One the first hole you lose a dime. On the second, you lose twenty cents. When you add the dime from the first hole, you're down only 30 cents. Big deal! The third hole is worth forty cents, the fourth only 80 cents. Not too bad. But now watch what happens: Hole five is worth $1.60, sixth $3.20, seventh $6.40, eighth $12.80, and the ninth $25.60. When you add up your losses on the first nine, you realize you are down $51. 11. Once you have finished your game, you will have lost what, maybe $150? Actually, because of compounding you will owe $19, 660.80.

Now, your debts probably haven't interest rates that high, but the principle is the same--if you pay only the minimum payments on your debts, you will pay them for years and years. You will pay many times the actual principle you spent in the first place.

So, what will it take to eliminate your debt?

First, you will need to determine why you are in debt in the first place.

Don't spend time on the external reasons--they are excuses.

What inside of you built your debt?

Generally, the internal reasons center on the need for immediate gratification. Rather than saving your money for furniture, cars, or vacations, did you borrow for them? Distinguish between need and want.

Maybe you wanted to keep up with the living standard of your friends or family.

Or you frequently make purchases on impulse.

Search your heart deeply. Discuss your debt situation with your spouse. You can't make the needed changes without his or her help. Maybe he or she sees more clearly than you the internal cause.

Make a Plan

After you have identified the internal cause, make a plan to conquer it.

Make a budget, make a goal. Decide how you will reduce your spending enough to attack your debt.

Some people think a budget robs them of their freedom. On the contrary, successful people have learned that a budget makes real economic freedom possible.

Think of your debt as a cancer. You must first eliminate it's spreading, and then you must eradicate it. Use invasive treatments to kill it.

Use the snowball technique.

• 1. Identify your smallest debt (debt one).

• 2. Pour every available cent each payday into paying down that debt. Pay the minimum payment on the other debts.

• 3. Once you have paid off that first debt, identify the next smallest one (debt two).

• 4. Add the amount you had been paying on debt one to the minimum of debt two, and pay that amount.

• 5. Let the snowball grow with each debt you eliminate.

As you continue, your snowball will get huge, and your progress will seem to multiply.

Keep a chart of your progress.

Plan ahead how you will celebrate the successful elimination of each debt along the way. But don't celebrate in ways that would slow your progress. Be tenacious. Don't let anything get in your way.

Once you have achieved your desired end-financial freedom, resolve to never have debt again--keep budgeting.

You can then begin the delightful opportunity to use your excess earnings toward building wealth, enjoying the fruits of your labors, and preparing for your retirement.

You can do it-start today!

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