Dropshipping can work in a variety of ways.

a) Once you have established an account with a dropshipping company you are then able to receive images, descriptions and the wholesale prices of their products. You can then sell their products, either on internet auction websites such as eBay...or on your own website at a price you decide and using your own shopping cart or payment method.

Once a buyer has successfully purchased a product you can then go direct to the dropshippers website and make an identical order - giving your buyers details as the recipients address - you will then proceed to the dropshipping companies check out and pay the wholesale prices plus a small delivery charge. The dropshipping company will then send the product direct to your customer with your name or company name on the package, as defined in your account.

b) Once you have established an account with a dropshipping company you can then receive direct HTML buy now links to place on your website. In most cases the price will be set - but in some cases you are able to set the price at which you want to sell the product. A buyer will then click the link and purchase the product using the dropshipping companies check out and payment method. Because of the unique ID in the HTML link the dropshipping company automatically knows the buyer has come from your affiliate account and your account will be creditted with any commissions. The dropshipping company will then send the product direct to your customer with your name or company name on the package, as defined in your account.

Other dropshipping companies may employ both or similar methods, and in some cases you may need to deposit funds into your account - but in all cases your customer will receive the product with the feel that it was sent by your company.

Using a dropshipping company can be very benficial as it cuts down costs incurred by having to pay twice for delivery charges. e.g. - You do not have to pay to have items delivered to you by a wholesaler and then pay again to have the item delivered to your customer. Cutting down on these extra delivery charges will raise your profit levels.