Shipping: 10 Mistakes that Most People Make
Using Drop Shipping for E-commerce
The use of the internet cannot be underestimated. Internet businesses are increasing gradually due to the continual change in technology. The use of internet in businesses is overtaking the traditional methods. Drop shippers ship orders directly to their customers. They do not keep an inventory of their products but instead passes the customers shipment order and details to the wholesaler. The wholesaler then dispatches the good to the customer’s directly. The cash got from the difference between retail and wholesale prices is the commission to the retailer.
The drop shipping business comes with many advantages.
It is less costly. One doesn’t expense their money to get stock of the products they are selling. There is reduced risk of buying goods in large amounts that could fail to sell. With the services offered by drop shippers, it is possible to test the feasibility of the products without losing a fortune. One can showcase the products intended for sale before making purchases. Since you are not making the upfront down payment for the products, you are not bearing any risks at all but rather the wholesaler bears it all.
In addition, you don’t have to worry about dispatching the products from the wholesalers to the customers. One doesn’t have to provide a storage space for the goods thus you do not pay for any warehouse expenses. The returns made by the business is all yours. The wholesaler takes care of all the shipping logistics till it’s safe with the customer. This is of great significance in that one is given time to concentrate on other aspects of the business. Order fulfillment is a tedious process and time consuming. The main reason to this is that keeping records of stocks, packaging and dispatch to the customers takes up much time. When this taken of on your behalf you can focus on your core competency.
There is no restriction on the orders one can make. From the internet platform one could get as many orders as they can. The quantity of products you can sell is only limited to the market demand and the efforts you put in marketing. Drop shipping allows one to market a variety of products on their website. Since one doesn’t have to pay for the inventory, you have the flexibility of promoting as many products you can sell. However it’s good to do related products. It is important however to market products of the same range and type.
Starting a drop shipping business isn’t a complicated process. The first one should do market research over the internet over the market niche you want to explore. You then get to decide on a retailer who has the products you want to market, contact them and make a business deal. One then designs a website complete with product catalogue.