Drop shipping can be a very simple and effective way to get involved in ecommerce. Many established online merchants are now turning to dropshipping companies as a means of minimizing stock on hand, decreasing overall shipping costs and cutting down on delivery times to customers.Drop shipping allows web site owners to send single/low quantity unit orders gathered on their web sites to manufacturers, or wholesale warehouse companies, who in turn ship the items directly to the customers of the web site owner; i.e. you do the promotion and collect the payment, and the dropship company looks after order fulfillment.
Because a dropship companies can buy in huge volumes, they will also be able to offer you the best prices on products and shipping, usually wholesale, which will return a greater profit to you.There's no capital investment and no danger of you suddenly having a pile of outdated items in your inventory,Using drop shipping allows you great flexibility in terms of product range - promote a dozen items or promote a thousand,Instead of worrying about inventory and delivery, you get to focus on listening to the market and discovering the products your visitors you want - and then being able to rapidly add them to your site.
Many wholesale companies will have an interest in teaming up with you in a dropshipping arrangement as it's an easy way for them to generate extra revenue, but there's a number of points to consider and things to look out for.Don't accept that the first drop shipper you come across will give you the best deal - shop around for the most suitable wholesaler company.Some dropshippers will have a handling fee over and above freight costs - it's important to know all the costs involved so you can calculate your profit margins accurately. Any wholesale company that wants to charge you a regular "participation" fee should be avoided - the only time you should have to pay a dropship company anything is in connection with a specific order.
Also bear in mind that you may need a specific type of shopping cart in order to handle drop shipping. Many shopping carts only allow for one "ship from" zip code in the configuration for freight calculations. If you are dealing with a number of drop-shippers you may have dozens of point-of-origin zip codes and this can be a real headache if freight is based on distance.Will the drop shipping company automatically debit your credit card on each order you submit, or can you get monthly payment terms? When you are starting out with a company, they are unlikely to offer credit, but it's good to check if this will be possible once you've established credibility.
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