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Using The Drop Ship Model To Sell Online

Drop ship is the method adopted by a vast majority of online retailers to deliver merchandise to their customers and earn a small percentage as profit without having to put in too much effort. Various aspects of the business, such as maintaining and controlling inventory of various products, packaging, shipping, and looking after the day-to-day affairs, is managed by the dropshipper. All the retailers have to do is bring in orders regularly and ensure that the dropshipper delivers them to the customers’ address.

The Many Benefits of Dropshipping

Dropship is a product delivery system in which the retailer or the seller accepts payments for an order from customers, who in turn receive the merchandise directly from the manufacturers via a dropshipping arrangement. The retailer only acts as a conduit between the supplier and the customer. Their profit comes from the difference in price at which they procure the goods from the supplier and sell to the customer. Dropshipping is a wholly beneficial arrangement, especially for small retailers, home-based sellers, and for those who use catalogs for selling products to their customers without actually holding physical stock of any of the items that they claim to have.

The Risk Factors

Online retailers are entirely at the mercy of the dropship companies as they have little control over the sequence of events, such as procurement and delivery of merchandise. Customers who place orders with retailers believe that the retailer is the source from which their orders are shipped.

The fact that the dropship business allows retailers to put their own labels on the merchandise and send invoices in the name of their company further establishes the retailer as the primary party in the whole deal from the customer’s point of view.

In the event of the customer getting poor quality of merchandise or if their orders are delivered late, it is the retailer who is held responsible and forced to face the music. Repeated instances of such incidents may get them the much-feared negative feedback on wholesale forum and similar portals. The repercussions can be quite damaging and can even force them to close shop if not handled tactfully.

Drop ship Scams

Drop ship scams are another major bane of this business. The immense success of this supply model has attracted many illegal elements that lure retailers, especially newcomers, with promises of low prices and huge discounts, which are impossible to fulfill. Many retailers have lost and continue to lose huge sums of money to these scammers every now and then. The fraudsters change their modus operandi frequently to avoid detection. Dropshipping scams have severely dented the reputation of this business model, which otherwise offers many advantages when used correctly.

Finding Reliable Drop shippers

Without doubt, finding the right dropshipper is the biggest dilemma retailer’s face in this business model. Fortunately, portals, such as eSources, the largest and fastest-growing trade directory in UK, and other similar online trade directories, help both established and new retailers in finding reliable and trusted dropship companies for their businesses.

eSources has an exhaustive list of the best wholesalers, dropshippers, manufacturers, and distributors. They are listed only after a rigorous verification process. They are verified for their legitimacy and ability to handle large orders. This is done to ensure that retailers do not fall into the trap of dropship scams.

Benefits of Premium Membership

Retailers are required to sign up as members of such forums and directories to use the various benefits that they provide. Registered members can gain easy access to a large, comprehensive list of suppliers under various product categories. Premium registration facilities are also available, which make the members eligible for some exclusive benefits. They are the first ones to know about the various wholesale discounts and special offers announced by manufacturers and wholesalers to offload stock at a faster pace. By making some quick moves, they can sell such discounted products faster than others and earn better profit margins.

Other Benefits

When the drop shipping model is available, it helps small retailers and online stores solve many of their critical problems. There is no inventory to track, manage, or control. They save heavily on storage space, staff, and shipping costs. Most importantly, they can become real entrepreneurs without having to invest huge sums of money upfront.

Drop ship is indeed a great way for online retailers get their businesses off the ground. If they manage to get steady, consistent orders from their customers, it is a great way to earn handsome profits.

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