Drop Shipping

Drop shipping is an innovative facility that allows you to sell a product on line at a price of your choice. After the buyer makes the payment, you place your order with a drop shipper who will reach the product to the buyer and charge you wholesale rates.

You’ll make a profit of the retail price minus the wholesale price, and save yourself the headache of maintaining a stock inventory or bother about shipping.

The Process and Benefits

The process works if you have an on line store from where you can sell your products and you also need a drop shipper who will ship the product to the customer. The drop shipper is the link between the buyer and the seller.

You sell the product to the customer – the customer pays for it – and the drop shipper will have the product sent directly to the customer.

The benefits you get from drop shipping are mainly that

 
• (i) you don’t have to maintain an inventory
• (ii) you do not have to store the merchandise
• (iii) you can make profits by selling at your price which you can set marginally higher than the wholesale price
• (iv) you can expand your business selling unlimited products as you have no inventory related issues to be concerned about.

The drop shippers benefit by getting unlimited expansion possibilities. They can deal with various websites to sell their products. They do not have the hassle of marketing and selling to customers on line, as that is taken care of by the on line store owner whom they have a contract with.

The Ground Reality

The ground reality is that drop shipping is not everyone’s cup of tea. You may see other drop shippers making a lot of money but you must look at your circumstances and your abilities to see whether you can make a success of it or not.

First of all, you need to do a lot of research to find products that you can sell in large numbers at prices that fetch large profits for you. Then there will be the occasional refund and returns that you will have to deal with.

You cannot avoid them; you just need to be prepared for them. In fact, all businesses face this problem and deal with it on a daily basis.

The most crucial aspect of the business is to find a reputable drop shipper and the drop shipper also needs to find a reliable store owner. As in any other business, there are a few scams where you will find fake lists of drop shippers.

Even if you take the assistance of certain Internet businesses that claim to provide the complete package of marketing and products, you might not be able to afford their astronomical monthly fees. That ruins your chances of making profits. You need to consider all these factors while choosing a reputed drop shipper.

As a drop shipper, you need to select a good reputed on line store. After that, you have to agree on the terms and conditions, and responsibility areas. You also need a good communication system for the smooth and profitable functioning of a drop shipping business.

The one drop shipping company I recommend can be found here – Click Here

The reason I like them is because they have proprietary products, high margins, up to 40%, and the inventory and business support is excellent.

These are the things I look for in a drop shipping company and you should too.