Drop Shipping – The Pros And Cons
Monday, November 16th, 2009Drop shipping is the method of a vendor marketing a product for sale without it being stocked by that retailer. Instead, a wholesale source carries the item in stock and ships it to the end customer when a sale is made. This is a great system for people who do not want to invest their money to stock their retail business, or simply do not have the means to do so. It is a very lean way of smaller companies doing business alongside larger companies who they would not usually be able to compete with.
There are a few drawbacks associated with drop ship sources. Often, the shipping time between to the customer can take longer than one hopes. This is usually due to a drop shipper being an agent for many various sellers and there can be a wait to ‘pick and pack’ items from the warehouse. Unfortunately, if this is a particular problem for the drop shipper you use, it reflects poorly on your business rather than theirs, as the customer sees you as the merchant, not the drop shipper.
If you find a reliable drop ship distributor with efficient processes in place, this can be a rewarding and interesting way to make money online. The best sort of drop ship source to use is one which is also a wholesaler, as this will negate any additional costs that may be added if a drop ship source is a middleman between a wholesaler and a retailer.
If your supply chain, and that means your drop ship source, is reliable and trustworthy, it can be the difference between success and failure in the online business. Remember to keep our tips and advice in mind and you should be more than prepared to make the right moves when it comes to finding wholesale goods and finding the right ways to sell the items.