The procedure of dropshipping is relatively simple. It involves three parties who
take a item from manufacturing to promote.
Let’s use a azure gadget as a example item to demonstrate the process:
• The azure gadget manufacturer: This is the organization that produces the azure icons. This gadget producer does not offer straight to the community or supply the suppliers who ultimately offer the azure icons to the end individual. They prefer to use suppliers to handle the task of taking their azure icons to promote. The maker offers azure icons by the truckload to suppliers and charges $5 per azure gadget.
• The azure gadget provider (dropshipper): This is the organization that buys azure icons in bulk from the producer and supplies them to merchants and suppliers at a cost of $7 each. The provider does not deliver azure icons to the store, but fills up buys on the store's part as the store offers the icons to its customers.
• The azure gadget retailer: This is the organization that offers azure icons to the community. In this example YOU are the azure gadget store. The store buys the azure icons from the provider as they are traded (usually one at a time) and has the provider deliver the azure gadget straight to its client. The store offers azure icons to the community for $10 each, which means that for every azure gadget marketed the store netting $3.
Note: It is not uncommon for the producer and provider to be one and the same.
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