Today's savvy e-commerce business owner knows how to compete. In years past, a business shopped for the products they wanted to resell, then they purchased the items and stored them while they searched for an end user or consumer. Once the product was sold, they shipped the item to their customer and hopefully made a profit.

The method outlined above is costly. Besides the price of the item, the seller pays shipping from the manufacturer (or distributor) to his location. He then stores the item, taking up resources and space until he resells the merchandise. He invests time and effort into marketing the item. Finally, either he or the end user pays shipping (again) to their location. As the shipper, if the item is lost or damaged in shipping, the expense of filing tracking and claims falls on him as well. All of these steps have to be factored into the price of the item for the end user. The customer will decide if the end price of the item is a bargain and is competitive.

Drop shipping is a proven way of reducing or eliminating many of these expenses, thus making the end price lower for the consumer and more profitable for the seller. With drop shipping, a seller or retailer does not purchase the item and store it for resell, but rather sells the merchandise and ships it directly from the manufacturer to the consumer. The seller does not have to store the item or pay shipping from the manufacture to his location. He does not have to handle the item himself. This reduces the chance of loss or damage and speeds up the process considerably! He needs less start-up money and can invest more time and money into his sales. (Storage rental can be very costly and a product that moves slower than anticipated can create a cash flow problem right out of the gate.) This is a great way to make money online. This guide will tell you how. So, let's get started!