Keep in mind that with this drop shipping arrangement, you pay only for results. When a dealer retails your product for one hundred dollars, he is really receiving a fifty dollar profit for selling your product; you could view it as a sales commission. You receive only fifty dollars per product sale but sell way more than without drop shipping. You ship directly to the customer for your dealer.
So, whether you sell other peoples` products or your own, drop shipping can increase your sales, preserve capital, and maximize business profits.
You would like to increase your income by selling other peoples` products but you just don`t have the money to stock inventory.