subject: All About Drop Shipping [print this page] There are many aspects to consider when you want to be your own boss. Profit maximization is always a challenge and you need to be creative in improving your business methods. This helps you to gain even from the smallest cost. If you are involved in the online retailing industry, you can gain extra profit by saving on merchandise storage and shipping. To find out more, heres a brief outline on all you need to know about drop shipping.
Drop shipping service is an agreement between retailer and manufacturer (or wholesaler). To avoid paying for the cost of extra inventory storage, retailer gets the manufacturer to send the item directly to customer. Therefore, theres no need to incur storage cost and retailers dont have to worry about defective goods. Usually, item is bought at wholesale price (lower) and sold to customer at retail price (higher). Retailers profit from customer through the difference of sum paid. Read on to find out more about drop shipping tips.
This service is beneficial to both manufacturer and retailer because the lower sum paid by customer increases the chances of purchase. Besides that, customers only need to pay an extra amount for item delivery charge. They dont have to absorb the extra cost of item storage (usually imposed by retailers). Therefore, retailers can save time, cut down cost and use manpower resource in a more efficient way. Manufacturers also stand to gain because they can reach a wider customer audience with the help of retailers. They are also able to operate without the need for a specialized product web site because the task of marketing is left to retailers. You can find out more about drop shipping tips and advantages through various websites.
However, there are also risks and probable disadvantages. For example, the wholesaler may run out of stock but did not inform retailer (you). This may put you in a difficult spot if youve promised an item to a customer. It is crucial to choose a wholesaler that you can trust because many problems can arise from choosing the wrong wholesale partner. Find out all you need to know about drop shipping before engaging the services of any company or directory.
by: Chris Cornell
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