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The Advantages Of Dropshipping

January 31st, 2011 Leave a comment Go to comments

If you want to start up your own dropship business, then there a number of important points you should bear in mind in order to be successful. First of all, you need to conduct thorough market research and find out who your competing US wholesalers are. Remember that the nature of the web is such that, if you don’t keep up with your market, you’re liable to get lost within the mass of new sites with wholesale USA suppliers.

A major part of selling online is getting your products delivered to your customers. In order to achieve this, you have to set up a good order fulfillment system. There are a few models you can choose from. The inventory model involves purchasing an inventory, which you then store in a warehouse and ship to your customers when they order. The fulfillment house is where you store your inventory in someone else’s warehouse, and they ship out for you. Lastly, the drop shipping model is where a dropshipper owns the inventory. You then simply send them the orders and take the payments and profits.

So, what are the advantages of a dropship business? Firstly, you don’t have to pay for anything until you’ve sold it. Secondly, there are no inventory costs for you to pay. Thirdly, you don’t have to be concerned with the costs and time it takes to sort and pack the order then send it out to the customer. Also, you’re able to sell more than you would if you were in charge of storage. This is because, through dropshipping, you have access to a larger variety of merchandise.

Disadvantages of a dropship business are that, by having someone else in charge of this major part of the process, you lose some power and control. You’re depending on your dropshipper to keep the products you’re selling in stock, to pack the products properly, and to deliver them to the customer on time.

Ultimately, the dropship business is very advantageous, mainly because it saves you money. Once you know what product it is you want to sell and find yourself a trustworthy dropshipper, you’ll be making profit in no time.

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