A Quick Look At Drop Shipping
Drop shipping is a business which will allow just about anyone to set up an online
store to sell products online, without having to worry about inventory, shipping, market research or even storage. If you like to learn new things, and are a hands-on type of person, then drop shipping may be for you.In the beginning, most businesses online revolved around the internet itself. Many online stores focused on software, information and virtual products while the only tangible product offered was books.
Even Amazon had trouble getting their feet under them at first, but then slowly, the real world crossed over into the virtual word, and online stores started to sell real, tangible goods. The products were mainly lower priced to start, but online stores with high ticket items were not too far behind.
Since you are not required to have a physical store, or a lot of staff, online retailers appeared to have very low start-up and overhead costs, however they still had the same problems as any physical store.
They still had to have the physical product. You needed to make it, or buy it and then you had to store it somewhere, and this was very difficult for people who didn't have the room to store items.
This is where drop shippers come in. Drop shippers are sort of a mixture of a wholesaler and an outsourced shipping department. Instead of having to buy items you wish to sell and then having them shipped to you, you only buy the item when you have sold it, and they take care of the rest.
How it works is like this. The customer pays you for the item, you then turn around and pay the wholesaler, who in turns mails out the product to the customer. If everything goes smoothly your actual involvement is limited. You are able to save a load of money, and while you don't make as much as if you bought in bulk and stored the items yourself, there isn't any risk involved, and that makes it ideal for anyone looking to get their feet wet in online business.
Better yet, there isn't a need to learn a complex system of shipping, as many of the drop ship wholesalers have major accounts with the biggest shipping companies which allow them to charge less than a new store could.
This sounds pretty good, but... What can go wrong?
Simply put, wherever there is a good idea, a con man is sitting in the shadows looking to make a quick buck. Drop shipping is no different. It can be a real pain in the behind to give out business details and get verified before you can open an account, however be leery of any drop shipper who doesn't ask for this kind of information.
There are heaps of scams in this area, so you need to do your due diligence before conducting business with any drop shipper. As long as you are careful, drop shipping can be an exciting and ideal way to start an online business.
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