Drop shipping is simply a streamlined form of online retail business in which the seller accepts customer orders but doesn’t keep goods on hand. It is usually done on credit. The difference between a drop shipper and a wholesaler is that the drop shipper’s stock can be replenished quickly and the wholesaler has to arrange for storage. The fact is that the drop shipper’s inventory can be replenished faster than that of the wholesaler.
But this isn’t all. You’ll find that there are different ways you can make the most profit from your drop shippers and retail websites. By using drop shipping software, you’ll be able to do it in the most efficient way. Let’s take a look with Julian Sherman at the best way to find drop-shipping software and its benefits:
Drop shipping costs you virtually nothing to begin with. There are no upfront costs or even minimum order requirements. You’ll also find that you can have multiple vendors in one website, thereby eliminating the need for a separate website for each product type.
Instead of buying large inventories of products to sell products on, you can let your drop shipping supplier ship directly to your customers. This saves you lots of time and money. For instance, if your wholesaler only ships on a monthly basis, you won’t have to worry about having to buy large quantities of products before they sell. With a single payment, your wholesaler will drop ship for you, maintain your inventory, and send you an invoice when your inventory reaches a certain threshold.
In addition to not needing to buy large inventories on hand, you’ll also save money by having low overhead. With a wholesaler, you have a single vendor who provides the inventory on hand. You only pay for products that your customer orders from you. Your overhead is very low. You also have very little control over the product mix because you only pick what you want to sell. If you don’t want to sell pet supplies, you don’t have to stock up on them.
Another advantage of drop shipping is that it’s very easy to start selling. You don’t have to build an inventory before you put your first order in the mail. You don’t have to wait for distributors to get their act together, stock up on products, and ship them all across the country. You can start selling right out of your garage, and with just a few items.
One big drawback of wholesalers is that you have no control over your inventory on-hand. If wholesaler oversells, you may be stuck with products that your customers just aren’t interested in. That means you won’t be making any sales. It also means that you will have to spend money to replenish the stocks that are sold to you. With drop shipping, you’ll only be spending money to start selling, which keeps your overhead down and your profits higher.
The key to success with this type of business is excellent customer service. This is why retailers use drop-shipping suppliers. They provide excellent customer service so that your customers will always come back. They also help reduce your cost of doing business because they provide inventory, and fulfillment services to keep your costs as low as possible.
As an eBay power seller, you can do this for yourself. You can set up your own e-commerce website hosting by a drop shipper. Your customers can order from you through your website, and you don’t have to keep a warehouse of inventory. Your supplier will package the order for you, and you pay the dropshipper through your eBay sales.
Many retailers have used drop-shipping strategies to build a large and successful online business. Drop shippers have allowed these online retailers to provide excellent customer service, cut down on their costs, and increase their revenues. Most importantly, retailers have decreased their dependence on expensive inventory and increased their profits. By utilizing drop shipping suppliers, it is now possible for even small retailers to compete with national brands and experience great success.
As you begin to understand what drop shipping is, and how it can benefit your business, you will likely begin to entertain the concept of having your own drop ship supplier. If so, be sure to research them thoroughly before you become personally involved with any one supplier. Review their products, their customer service, and their ability to meet your specific needs. You will also want to research the competition, and try to find a business model that works well for your business model without becoming too dependent on that supplier.