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Best Selling Products Intro
Best Selling Products Section
DropShip Distributors
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Frequently Asked Questions
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Most shoppers who shop online are going to order and pay for the product with their credit card. And if the customer pays for the product by phone then you can enter the customers billing and shipping information into your shopping cart as if you were placing the order online for them. After completing the order, your shopping cart software will encrypt and deliver the customers’ credit card information via a secured payment gateway processor.

The payment gateway processor will then send that payment information to your merchant account bank. After a complex yet speedy transaction, those credit card funds are then processed by your merchant account bank and deposited directly into your business or personal bank account within 48 hours or less.
  
If the customer paid with their credit card through PayPal then those credit card funds are processed and deposited into your PayPal account instantly. Then you can manually transfer those funds into your bank account or use those funds to pay for products or business expenses. (Transfers from your PayPal account to your bank account normally take place within 2 to 3 business days.)

After the customer pays you, then you can order the product from the distributor. The distributor will then ship the product directly to your customer.

Whatever money is left over in your bank account from the sale is your profit. For example:

The customer buys a Laptop from your business for $797.95 with free shipping.

The customers’ credit card is charged for the total price of $797.95

The merchant account bank or PayPal will deduct a 2.5% (credit card processing fee) from the total sales price of $797.95 which comes out to $19.95. (Discount rates may vary).

Once the merchant account bank has deducted their processing fees you are now left with a total of $778.00.

$778 will be the total amount deposited into your bank account within 48 hours or less.

If the customer paid for the product through PayPal then that $778 will be available in your PayPal account instantly. For example:

$797.95
- $19.95 (2.5% merchant fees)
=$778.00 (total to be deposited into your bank account or PayPal account)

Wholesale price of the product = $698.00 + $11.00 for UPS ground shipping (which was free for the customer but paid for by you, the reseller).

In other words, you paid the wholesale distributor $698.00 for the laptop plus $11 for UPS ground shipping and sold it to the customer for $797.95 with free shipping.

Your total cost for the product was $709.00 with (UPS ground shipping included).

$698.00 your cost for the laptop
+$11.00 your cost for shipping
=$709.00 your total cost paid to the wholesale distributor for the product plus shipping

Sale price to customer =$797.95
  
  
Determining your profit

To determine your profit for this sale simply subtract 2.5% (credit card processing fees) from the total price of the actual sale, $797.95 and then subtract your total cost for the product with shipping included from the sales price after the merchant fees have been deducted. For example:

$797.95 total sales price
- $19.95 (2.5% merchant account fees)
=$778.00
-$709.00 your total cost for the product with shipping included
=$69 profit

$69 becomes your total profit for that sale.


Determining your profit after a sale has been paid by check

Sometimes, a customer may pay for the order with a cashiers or company check, and this is often the case with small to mid sized businesses and educational establishments as well.

The benefit of receiving payment by check is that no merchant account provider or payment processor is required to process the checks and as a result no merchant account or credit card processing fees are deducted.

The entire amount of the sales price goes into your bank account without any processing fees applied.

$797.95 total sales price
$797.95 total amount deposited into your bank account

After paying the distributor $709.00 (with shipping included) your profit will be $88.95

$797.95 total sales price deposited into your bank account
-$709.00 your total cost of the product with shipping included
$88.95 profit

$88.95 would be your profit for that sale if the customer were to pay you by check.
  
    
Getting paid

At the end of the month you can write yourself a check for the total amount of the profits or for the amount of the salary which you wish to pay yourself with.

If you choose to do so then you can deposit those profit checks into your own personal bank account in order to separate your personal earnings from the earnings of the business.

You can also pay yourself a salary and leave the rest in your business bank account for capital and business expenses.


Payment formula

Total income from sales
Minus the cost paid to the distributor for the product(s)
= your gross income

Your gross income
Minus all business expenses for the month (including credit card processing fees)
=your net profit

Your net profit is whatever money is left over in your bank account after distributors and all business expenses have been deducted and paid. Then you can transfer your net profits into a separate account or bank account if you wish to do so.

You can pay yourself weekly, bi-weekly or in whichever manner works best for you. And you can also withdraw money from your profits daily as well.

After the customer pays for the product then you can order the product from the distributor. The distributor will then ship the product directly to your customer. Money from sales of the products will be deposited into your bank account daily and therefore allowing you to withdraw funds from your account daily as well, if necessary.

Whatever money is left over in your bank account after products, distributors and expenses have been paid, is your net profit. And that’s how you get paid each and every day.
   
      
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Main Article Index Page
How to Succeed in Your Online Store Business
How to Start Your Online Store Business
How to Choose Your Niche Market
How to Create an Effective Business Name
Check for Domain Name Availability
How to Register Your Business Name
Should You Use a PO Box or Home Address
How to Choose the Right Business Entity for You
Sole Proprietorships Explained
Corporations Explained
Partnerships Explained
Limited Liability Companies Explained
Incorporate Your Business Online
How to Obtain Your Sales Tax License
The Best Selling Products Online (Intro)
1. Books
2. Computers, Computer Hardware
NEW:Start a Computer Reseller Business Online
3. Computer Software
4. Consumer Electronics
5. Apparel, Clothing
6. Toys/Video Games
7. Videos DVD’s
8. Health and Beauty
9. Music
10. Jewelry
11. Office Supplies
12. Linens/Home Décor
13. Flowers
14. Sporting Goods
15. Footwear, Shoes
16. Small Appliances
17. Tools and Garden
18. Gifts
About Distribution
Choosing the Right Distributors
How to Get Signed-Up With DropShip Distributors
Books Distributors, DropShippers, Wholesalers
Computers, Hardware, Software DropShippers
Apparel, Clothing Distributors, DropShippers
Toys/Video Games DropShippers, Wholesalers
Video DVD  DropShippers, Wholesalers
Health and Beauty Distributors, DropShippers
Consumer Electronics DropShippers
Music Distributors, DropShippers, Wholesalers
Jewelry Distributors, DropShippers, Wholesalers
Office Supply Distributors, DropShippers
Linens/Home Décor DropShippers, Wholesalers
Flowers Distributors, DropShippers, Wholesalers
Sporting Goods Distributors, DropShippers
Footwear, Shoes Distributors, DropShippers
Small Appliances DropShippers, Wholesalers
Tools and Garden DropShippers, Wholesalers
Gifts Distributors, DropShippers, Wholesalers
How to Find More DropShippers, Wholesalers
How to Open Your Online Store
How to Build Your Own Online Store
How to Build Effective Product WebPages
Building Your eStore with Website Templates
Designing, Planning and Organizing Your eStore
Implementing Graphic Elements
How to Create Your Own Company Logo
Create Search Engine Optimized Product Pages
How to Create a Content Rich Website
Choosing Your Web Host Provider
Create a Search Engine Optimized Domain Name
Check for Domain Name Availability
Top Web Building Software Programs
Top 10 Web Host Providers
Top 10 Complete eCommerce Solutions
Top Website Developers
All About Shopping Carts
All About Payment Processing
All About Merchant Accounts
Using PayPal as a Payment Processing Solution
More Merchant Account Providers
All Merchant Account Providers
Setting Your Prices
Setting Shipping Charges
Maintaining Your Online Store
Your Internet Marketing Master Plan
All about Search Engines
The Top Search Engines
Search Engine Optimization Guide Pt.1
Search Engine Optimization Guide Pt.2
All about Building and Exchanging Links
Purchasing Text Link Ads
All about Press Release Marketing
All about Pay-Per-Click Marketing
All about Discussion Forum Marketing
All about Article Marketing
All about Email Marketing
All about Banner Advertising
How Offering Free Shipping Can Boost Sales
All about 800 Toll Free Numbers
How to Beat the Competition
How to Run an Online Store Business
Dealing with Customers
How to Minimize Interaction with Customers
How to Deal with Customers via Email
How to Take and Place Orders
Paying for Products with Your Customers’ Money
How to Collect Sales Tax for Internet Sales
Avoiding Credit Card Fraud
How to Ship International and Overseas
How You Get Paid Each and Every Day
Dealing with Product Returns and Exchanges
Sample Return Policy and Procedures
Sample Privacy Policy
Sample Terms and Conditions Policy
Conclusion
Contact
Internet Business Resources
 
     
   
       
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