The new buzz around town is drop shipping. Everyone seems to want a piece of the action, either to explore new business opportunities or to get some great bargains as a consumer. Drop shipping is a highly effective low cost method to bring new products into the market place.
Make Money Online
There are many ways to make money online. Drop shipping is a lucrative way to earn an extra income from the internet. Anyone who chooses to work in the drop shipping business may work locally or globally depending on the individual’s needs; and it even allows the person to work from home. Drop shipping companies offer many options for business enterprise as the industry exists because of the internet. Anyone can become a drop shipping retailer using the facilities and products offered by worldwide manufacturers and wholesalers.
How Does Drop Shipping Work?
To understand drop shipping we have to understand the normal retail supply chain first.
In the traditional retail business, a product is produced in a factory. The manufacturer exports the products by the thousands to an importer. The importer moves the products to wholesalers, who move the products to the retailers’ final destination. And furthermore, the retailer makes the products available for the end user.
Drop shipping works as follows; the drop shipping manufacturer deletes all the middlemen from the supply chain. New drop shipping retailers offer and promote the product online; either on a website or using services such as www.ebay.com, www.craigslist.com or www.adpost.com to name a few. When a customer decides to buy the product offered online, only then an order is placed with the drop shipping manufacturing company, they now send the products directly to the customer. In some cases drop shipping manufacturers only produce the product upon the order, this saves in warehousing and plenty of other costs. The promoter’s only duty is to make the products available online as he or she would not be involved in the logistics, handling and payments after the actual sale. As soon as the actual order is handled, the promoter gets a commission.
How to Become a Drop Shipping Retailer
To become a drop shipper you need a few tools. First and foremost, all new drop shipping retailers need computer access to the internet. Determine the line of products, find a niche in the market, and explore the competition. The drop shipping retailer should research for a product line with related manufacturers.
Having a website or blog to advertise the products is invaluable. Nowadays websites are fairly easy to build, and with less then US$100 per year a website could be online within hours or days.
A drop shipping retailer needs some skills; nonetheless, determination is most valuable. Do not expect to make sales on the first few days. It normally takes some time before the website is found by search engines and before advertisements start to pay off. But once the ball starts rolling, it does not stop. The drop shipping business runs round the clock 365 days per year.
Where to Find Drop Shipping Manufacturers
The following companies offer a wide array and thousands of goods and brands and are a great source of inspiration, www.dhgate.com, www.dropshipdirect.com, www.uniqbe.com. But do research, as there are hundreds of other drop shipping manufacturers and wholesalers available.
Benefits of Drop Shipping
A drop shipping retailer can operate his business from anywhere; a bedroom, a kitchen table, or even at work during downtime hours. There is no expensive retail store, no staff to be paid, or warehousing costs; moreover, there is no need for any stocks. The benefits are endless and anyone with some computing skills can be proficient in this type of business today.
Drop Shipping and After-Sales
Drop shipping is a business and should not be treated as a hobby. A professional attitude towards customers needs to be maintained at all times. Drop shipping comes with a high expectation of customers and should be handled as such. After-sales is an important side of any business, be prepared to handle questions and offer after service.
Drop shipping is an exciting industry which is growing at a global scale. Being part of a new and expanding industry comes with challenges but can deliver high returns.