subject: Drop Shipping And Selling Online [print this page] Drop shipping is the practice of a retailer selling a particular item and accepting its payment from the customer but letting the manufacturer deliver the item directly to the customer. Many dealers and retailers still drop ship as this practice can be beneficial in many ways. Some retailers and dealers simply choose to drop ship certain items as in some cases drop shipping is many times more advantageous than stocking something and selling it. In the practice of drop shipping the retailer or seller simply acts as a middleman. In it the seller either stocks samples of the products he is selling to show the customers what they are buying or they may just use a brochure or a catalogue. Drop shipping has also taken a new form because of the internet. Online selling and auction sites have a number of sellers who do not really possess the items they are selling but will have it drop shipped when they get an order. The profit comes from the difference between the retail price and wholesale price.
The Benefits Of Drop Shipping
The main benefits of drop shipping are that you can more or less cut out the hassles associated with shop keeping. There is no need for inventory of any kind and no stock taking or the pressure of having to sell everything in stock or going into loss. It also maintains a positive cash flow cycle as when customers buy something from you, if they take it on credit, you will have sold something that you still haven't received payment for in actuality. Drop shipping also reduces the extra cost of shipping that goes into first getting a product to a dealer and then to the customer in many cases. Therefore for heavy items or large items many normal retailers and sellers also have these products drop shipped. Some shopkeepers also simply choose to have those items drop shipped that are not in popular demand in the market but get buyers rarely. However, in the new age of internet drop shipping has taken a whole new level and one can simply be a drop ship retailer from home and not even need a shop.
Online Drop Shipping
Nowadays people drop ship goods straight from home, they simply list a product online and as soon as they make a sale they have that product drop shipped. This can result in excellent income from home itself. If you want to get into this kind of drop shipping you will have to be associated and directly working with either the manufacturers or wholesalers. There are many fraudulent middlemen out there masquerading as wholesalers and many people get duped by them. Online auction sites, because of their unbridled success, are also being used directly by wholesalers and manufacturers, so if you want to make a success of this you will have to work with the manufacturer or the wholesaler. To deal with manufacturers you need a business license and a large capital, as they generally do not entertain any thing other than bulk orders. It is best to deal with wholesalers or with other drop shippers.
by: Sheri Sutton
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