Physical inventories can be a real hassle for a small business and can also wind up being very costly. Switching to a drop ship program may be a good solution to this problem. Becoming a dropshipping company is great because you are just the middleman working between the customer and the wholesaler. There are no hassles with shipping and stocking products. Your price from the wholesaler will include shipping costs. This is a great way to lower your overhead while increasing your profits.
When you run an online drop shipping company, one of the advantages is that there are no costs to stock your store. You only have to put up a store front in order to market the dropshipping products, and set up a couple of email auto responders to handle the orders. Once you have been paid for orders, you simply forward them, along with payments, to the wholesaler and your part is done. The wholesaler will then send the drop ship items straight to your customers; most of the time with your brand name and address on the labels. This is the easiest way to handle a wide variety of products with a minimal amount of effort and overhead.
A drop ship program has an advantage that a regular store front retailer does not. The retailer is forced to buy their products at a lower price and try to sell them at a higher price to gain a profit margin. There is no risk at all to you as a dropshipping business owner, as you do not have to purchase the products prior to marketing them. Conventional retailers run the risk of purchasing large quantities of a product in order to get a low price and then realizing that there is very little market for them, thus losing money.
The low cost involved in a drop ship program benefits the small business owner in several ways. One, as stated above, there is little to no risk involved in marketing a product. If the product does not sell, then the only thing lost is the time involved in putting it up on the website. Two, the start-up costs for your new business will be very low. You will need a professionally designed website to market the products, and you may have to pay a small upfront fee to the wholesale product suppliers, thereby showing your commitment to the wholesale product suppliers. After that, you should only have to do site maintenance and maintain your customer accounts.
If you pay attention to the news, especially the financial news, then you know that today’s economy is significantly worse than it was last year. This downturn in the economy means that business owners have to be smarter about their expenses. They have to watch and carefully stick to a budget. Even drop shipping rates are under close scrutiny. If you are a business owner then you need all of the information possible on your shipping needs. Thankfully there are plenty of books and programs out on the market today to help you.
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