subject: Drop Shipping Advantageous For All Parties Involved [print this page] Drop shipping is catching up as a popular trend in the retail sector. Whether its a branded shirt or a luxury watch, this method helps supply the customer required products on time. It offers easy and effective business solutions that enhance the scope of profiteering for the business owner as well.
What exactly does this method imply? The process is simple - you have a tie-up with a wholesaler, you advertise the products online, you get orders from the consumers, you give the wholesaler the details of the order, the products are packaged and send to the buyer, you pay the wholesaler from the payment you receive from the customer.
There are a number of advantages that make drop shipping solutions popular. Lets have a look at the benefits for the parties involved in the transaction. .
Advantages for the drop shipper When you start a business, you need to have an inventory with the stock of products. In a drop shipping business you dont need to spend anything on an inventory. All you need is contact with a good wholesaler who would want to sell their goods via your services.
Moreover, you need no stock of products. Therefore no cost incurred for warehousing. All you need is a good website that offers a catalogue of the products on sale. You could also use ways like Amazon integration, i.e. use this reputed website to advertise the products on offer.
Amazon has set a benchmark in the arena of online sales. Featuring on this site increases the visibility of your products. Creating a global market for niche products is easy if you use this option to display your products on this site.
After you receive the order all you need to do is give the details to the wholesaler. It is the responsibility of the wholesaler to pack and send it to the destination. That means no costs on packaging and shipment too.
As the drop shipper, you get the products at the wholesale price and sell them at a price little higher than that. This margin is what makes the business profitable.
Benefits for the wholesaler The chief advantage for the wholesaler is that they do not need to handle things like marketing and selling their products. They get the same price for their goods from a common retailer.
You need to be aware that drop shipping solutions would need acceptance from a wholesaler first in order to start its operations. In most cases, a renowned wholesaler would check for the financial background of the drop shipper. This is done to ensure that the business is carried out using legal and fair means and methods.
Gains for the customers The end purchaser benefits from the deal too. Firstly, he/she can purchase things from the comfort of their home. Secondly, they get the goods delivered to their doorstep. Thirdly, with a reputed business you are sure to get a good price for the articles you order.
In todays world consumed by the idea of multichannel retail, this method has become the order of the day. Its smart, convenient and advantageous. It saves two precious things time and money. And the best thing about it is that it proves to be a good option for all the parties involved.
by: Jennies Hughes
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