Drop shipping is a supply chain management system that has given the e-commerce industry a vertical growth. Once you understand what exactly is drop shipping, the different methods that exist, and how to get a reliable drop shipper it is easy to get started on your own and engage in a profitable business.
Interestingly, the community of drop shippers and their clients are ever growing and several blogs and forums will give you the much-needed information and boost on the subject.
So what exactly is this method of operation? In simple words, dropshipping is a supply chain management system where the manufacturer ships the products directly to the retailer’s customer and the retailer makes the profit!
In this case, the reseller I.e you, do not have to store products that you need to sell, nor do you have to block your money by investing in the product stock. Thus you save storage space and money. Further, you need not engage the services of any staff in handling and packaging the products as the product gets shipped directly from the wholesaler to your customer.
So effectively what you do is create your own website, upload some products for sale, and do the marketing. When you get an order from your customer, pass on the order to the drop shipper who will ship the goods on your behalf. The difference between your sale price and the price at which you order from the drop shipping manufacturer is your profit.
Though operationally it looks like a simple business model, the following questions need serious understanding.
1. How do you find a reliable drop shipper?
2. How do you market the products?
3. Which niche products should you market?
4. How to create a website?
5. How to successfully upload and price a product?
6. What is the guarantee of product delivery to your customers?
7. Shipping and Refund policies?
There are several other factors that may come up in your mind which could be essential to your business success.
Well, it is not all that difficult to get answers to the above queries if you spend some time researching and understanding the subject matter. You will notice that it is easy to understand why drop shipping has become more popular, as it reduces the number of times an item has to be handled before it gets to the end customer.