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Today's Feature Article
What Is Drop Shipping?
To understand Drop Shipping, we should first understand product
People have been distributing products since before the first
mastodon skinner traded a fur coat for a flint axe.
Hereís how it works.
Letís say ABC Manufacturers makes a product called Momís Ankle
Wax. Weíll say that Momís Ankle Wax has been around for years.
Itís a very well known brand name product. It will without a
doubt give you the shiniest ankles on your block, and everybody
ABC Manufacturers makes Momís Ankle Wax, but they donít sell it
directly to the public. Theyíre a manufacturing operation.
Theyíre 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 Momís 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 Momís Ankle Wax by the truckload.
They pay $5.00 a case for it, which is a very good price. Itís
such a good price, it has itís own name: the Manufacturerís
However, DEF Distributors does not sell it to the general public
either. They are a distributor. They distribute Momís 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 Momís 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
Momís Ankle Wax from DEF Distributors for $10.00 a case.
So, DEF Distributors makes $5.00 on every case of Momís Ankle
Wax they sell to Wax R Us retail stores. This makes DEF
Distributors very happy.
Cases and cases of Momís 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 Momís Ankle Wax out of each case.
With their pricing guns, they stick a price of $4.50 on each and
Wax R Us stores make a total of $44.00 on each case of Momís
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 Momís Ankle Wax for
only $4.50. They think this is a great price, and theyíre
walking around with the shiniest ankles in town.
Well, thatís itÖbasic 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 ďsecond party
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
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 ďdrop shipperĒ. The company(s) who
supply the products to your customers for you is the drop
shipper. YOU become a ďStockless RetailerĒ.
Hereís 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
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 customerís name and address.
7.) The Wholesale Supplier sends the product directly to your
customer, with YOUR Storeís 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 didnít have to buy a whole bunch of the product and keep it
in your warehouse, hoping you would sell it. You didnít 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
Thatís 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 Iíve 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? Itís a momentous occasion. If we can capture that kind of
excitement every day, I think weíre on our way to wisdom.
Albert Einstein said ďThe mind that opens to a new idea never
comes back to its original size.Ē I agree. Once youíve learned
to walk, why would you want to go back to crawling around? It
wouldnít make sense. We all have a purpose in life, and thatís
to do our best, to live up to our potential.
Itís really pretty simple. All we have to do is tune in to our
talents and capabilities. Remember, I didnít say it was easy, I
said it was simple. Sometimes we get so distracted that itís
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.
Iím a busy guy but I set aside quiet time every morning and
every evening to keep my equilibrium centered on my own path. I
donít like being swayed by anything that might be negative or
damaging. When Emerson talks about leaving a trail, heís right.
You won't succeed by following someone elseís path. So, youíd
better spend some time focusing on your own path and your own
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. Thatís 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
In business, Iíve discovered that my purpose is to do my best to
my utmost ability every day. Thatís 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. Itís a form
of strength that can be indomitable.
Discovery means finding out something we didnít 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. Donít put blinders or borders on yourself.
I could have very easily dismissed Mark Burnettís idea for The
Apprentice simply based on the fact that I was already very busy.
I didnít 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 havenít 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. Thereís no absolute
timeline for anyone. Thatís a good reason never to give up, to
keep on discovering things every day. Itís 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!
Donald J. Trump, Chairman, Trump University.
You can ask Mr Trump
by clicking here!
Today's Subscriber Article
Ordinary People Can Win
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
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
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,
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
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
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
Make a Plan
After you have identified the internal cause, make a plan to
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
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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