Lesson Two Reflection

This week I learned what drop shipping is. I have never heard of it before this week. Learning about drop shipping and researching it taught me a lot about wholesalers in general. For example, I was looking up acoustic guitars and found that for wholesale a lot of sell for under $100 and then they sell for over $200 in the stores. I wasn’t aware of how much of a difference wholesale prices were from what the product is sold for. Comparing an American seller to foreign sellers also made me realize why so many things come from foreign markets. The American wholesaler sold sunglasses at prices I thought would be a reasonable price after the markup from the seller, but they were that much just as wholesale.

This week I also learned a lot more about affiliate programs. I thought it was interesting to learn about how they work a little more. I looked into Amazon’s affiliate program and learned that the affiliate makes about 4% of the amount of the product that they help to sell. I expected the number to be small, but seeing the actual percentage made me realize how small. I learned that the affiliate model is probably best for sites that have high traffic or for people who know how to get high traffic.

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