The Real Facts About Drop Shipping
There are several people trying their hand at this method of making money online, but before you do, it’s important you know the real facts about drop shipping. The first thing to understand about drop shipping is what it entails. To get involved in this, you need to find a company or supplier that offers positions in drop shipping.
When you find one that you are pleased with, set up an account with that supplier so you can sell the products for them, or be even smarter and have your internet marketing team set you up. After your account is set up, the company will give you various images and descriptions of the products you can use. When talking about drop shipping products with the supplier, you should ask whether there are limits to what you can sell.
You have the choice of where to sell these items. unless your agreement with the supplier says otherwise. You can sell on open online marketplaces, your own website, in your community, or any other area, if you are not misrepresenting yourself or the company.
After you make a sale, you collect money from your customer and send the proper payment to the supplier with the order. You keep the commission and the supplier sends the products. In such a way, you are not handling the merchandise but only selling it for a commission.
The Sunshine on Drop Shipping
When you are learning about drop shippingyou’ll see the advantages quickly. Because you don’t have to carry inventory, it takes very little capitol to start work. There are other types of selling jobs that require you to purchase the products prior to selling them. This would mean having to pay hundreds or even thousands of dollars just to start with the first order.
Of course, this leads to another advantage of drop shipping that is widely discussed. Budgets are getting smaller these days plus there are a lot of business ideas that just don’t work. Drop shipping is perfect for people on a very low budget, plus they can see how the selling goes before they commit to anything. Since the packing and shipping is taken care of by the supplier you don’t even have to be concerned about the time or expenses pertaining to this aspect either.
Another great advantage of drop shipping is that you don’t have to create any storage space. Whether you live in a spacious home or in a small studio apartment, you can make money with this type of job.
The Disadvantages of Drop Shipping
There is a certain lack of control you may experience. You don’t get to see the items before they are shipped; therefore, you can’t inspect the quality. You also have no control over the timing in which it is shipped. The worst thing is that if something does go wrong and you are selling on an open marketplace, there is a chance for obtaining bad reviews. You need to find out about drop shipping suppliers prior to signing up with them. You can learn more about their reputation this way.
Another disadvantage of drop shipping pertains to the competition. There are cases where drop shipping companies add a few dollars to the price of drop shipped items. This means that a person who is selling the same product they bought at a wholesale price may be cheaper than yours.
The scenario of selling an item that is sold out with the supplier is not a great one, but it can happen. This typically happens if you make a sale and the supplier hasn’t yet received their shipment. However, this is usually not a problem for reliable suppliers because they have adequate inventory management software.
Work closely with your website development team and ensure you get all the research done to flush out any ghosts before you come to an agreement. Cover your tracks and this could work out to be a very lucrative adventure for you.