Drop Shipping Basics
Basics of Drop Shippers If you have an online business you
probably are always on the look out for new products to sell.
And if you are an entrepreneur looking to start a profitable
website or EBay business you probably heard great things about
drop shipping.
What is drop shipping? Drop shipping is a business relationship
between a merchant and either the distributor or manufacturer of
the product that the merchant is selling. The merchant
advertises, sells and collects the money for the product sold.
The merchant does not hold any inventory of the product but
merely refers the items that are sold to the distributor or
manufacturer who then ships the item to the buyer.
This is a great for smaller merchants for a host of reasons.
First off the merchant does not have to purchase large
quantities of inventory that tie up cash flow. No inventory
means that the merchant also doesn't have to worry about losing
large amounts of money on products that don't sell. Another
great aspect of drop shipping is that once an item is purchased
the manufacturer or distributor ships the item sold. The
merchant doesn't have to worry about investing in packaging
supplies, expensive shipping and database software and hosts of
other concerns that come with shipping items out to customers.
There are a few negatives of drop shipping. There is very little
or no control over the shipping and packaging of the item being
shipped out. It is a little more difficult to guarantee an item
is being shipped out in a timely manner than if you shipped it
out yourself. This negative may complicate customer service
issues. So make sure you choose a drop shipper that has
excellent customer support and an excellent history of quick
shipping and quality products.