One stumbling block for many people considering starting an online sale business is the investment necessary to build an inventory. This stumbling block can be circumvented by the use of drop shipping companies. When you use drop shipping companies, you don't stock inventory. Instead, you take orders and send them on to the manufacturer or to a third party for fulfillment. In this way, you not only bypass the need to stock inventory, but you also don't have to worry about buying shipping supplies or making multiple trips to the post office.

In essence, you provide an online storefront for merchandise provided by a third party, and you market and sell the products. When you make a sale, you turn around and order the product directly from the manufacturer at a lower price. They ship the product to the customer, and your profit is the difference between the amount you paid for the product and the amount your customer paid for the product.