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Drop Shipping – The Best Online Retail Method

Drop Shipping – The Best Online Retail Method

Start up costs and fulfillment hassles baffle many people to set up an online store. However, with drop shipping, where your inventory costs on thousands of items are paid up-front and fulfillment operations are managed for you, it is much easier to get started.

Drop shipping is a retail method in which the retailer doesn’t keep goods in stock. Instead he transfers orders and shipment details to the wholesale supplier that stocks his own inventory, who then ships products directly to the customer. So, you don’t have to worry about inventory or fulfillment issues. The undeniable drop shipping benefits are:

  • You don’t’ need a pot of money. You can start up without heavy investments in inventory;
  • It’s convenient and efficacious. With no need to worry about fulfillment you are able to focus on marketing, operations and customer service.
  • Trusted model. It may sound sketchy, though even major retailer use drop shipping technique to offer a wider product selection to their customers avoiding increased inventor hassles.
  • Make extensive search. Drop shippers as well as wholesalers are bad at SEO and marketing and usually do not pop up on the first search pages. Sometimes you may need to go through dozens of pages of listings to fine the supplier you need.

However, before contacting suppliers you must have your business EIN number and a copy of your sale certificate or state sales tax. Only then you can contact suppliers. Google may be helpful in drop shippers finding, though, here are some advice for the beginners:

  • Do not judge by cover. Many suppliers tend to have out-of-date websites. So don’t be frightened away by their abysmal design. Low-quality site doesn’t necessarily mean a bad one.
  • Try various modifiers. When in search of suppliers, do not limit to the keyword ‘wholesale’. Also use other modifiers like ‘reseller’, ‘distributor’, ‘supplier’, ‘warehouse’, ‘bulk’, etc.
  • There is strong competition and strict margins. Yes, you can’t compete on price. Conquer the market by top-notch products, selection of goods and customer service instead.

Like any other business, drop shipping has its own downsides.

  • Syncing inventory may lead to out-of-stock items. Don’t rely on a single suppler. Work with multiple suppliers and this will double the chances for an item to be at stock.
  • It’s difficult to sell goods that you’ve never seen. Manufacturers’ detailed websites will allow you to get intimately familiar with the product line without touching a material item. A call to your partner will give you the answer you need for the specific question from your customer.

Drop shipping is an easy online retail method to get started and when managed properly it will for sure bring you to your own prosperous online store.