DropShipping - highly profitable Internet Business

This is the most common ways of internet marketing world in general, 90% of the world's goods are sold this way. What exactly is dropshipping? This is just a service. Service offered by the largest wholesale warehouses in the USA and about 99% of producers of goods. What the service is DropShipping. This is a service where we say the manufacturer of packaged goods X sends this item on your customer from your name. And to make it clear I will explain things chronologically. Create your site that will offer many goods. But we'll look good now say umbrellas. Connect with one two five or ten as you want producers of umbrellas and ask them for DropShipping offer. They will send you a catalog with prices and descriptions of their umbrellas. You paste these umbrellas on your site. For umbrella X the producer gave you dropshipping price $ 20 . You shape umbrella page and put its price, say $ 55. Client comes to this page and buy an umbrella for $ 55. You take his $ 55 and send his order to producer (DropShipper). He packed the umbrella and forward it to the customer on your behalf and you pay him $ 20. And earn $ 35.

What are the disadvantages of this method of trading?

• You are responsible to client service. If something is fucked - you are screwed. Unlike affiliate where you almost do not care about anything.
• A lot more work on site and SEOcompared to affiliate
• Must provide the opportunity for contact with customers (phone)
• SManufacturer usually has a site which naturally can sell goods at the lowest price at which you can not (but I have never encountered such a case.)
• One such site is usually sold over 200 products which means a lot harder site service. Compared to the affiliate site where you have 4-5 pages and it's easy to service.
•  Can not start without money. I definitely need it and pretty.

What are the advantages of this method of trading?

• Profit: Compared with one affiliate site will earn many times more. (At least this is my opinion and observation.)
• Plenty of goods. Practice can be sold anything. While affiliate choose what to sell you the proposed. In the affiliate is closely profiled business (in most de)
• Flexibility: You set yourself how much to earn. You can change the prices when you want. You have imposed price. I know sites that run on 400-500% markup. (Give an example. Manufacturer that sells product X working on his site for $ 500. I sell it the same product for $ 200 (because he gives it to me with dropship price $ 120). Earn 80$ and guess by whom prefer customers to buy. From the manufacturer for $ 500 or I 200 $???)