Things You Need to Know about Dropship - Pluginabox

Things You Need to Know about Dropship

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Dropship or Drop shipping is a fulfillment model. This allows you to buy products individually from a wholesaler then ship them straight to the customers.

Distributors will be partnering with a drop shipping supplier. Instead of purchasing a huge number of products for inventory you simply list the supplier’s merchandise. Once an order is placed you will forward it to the supplier for fulfillment. Suppliers will ship the product from their warehouse to your customer, and charge you only for the price of the shipped item.

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Where to find dropship suppliers?

Use a supplier directory or contact suppliers directly and ask them if they drop ship their products. You can also search on google for suppliers and make a list before contacting them.

 

Dropship Benefits?

Here are some of the advantages when using a drop shipping model for your business:

  • Capital Requirements are Lower: Dropshipping doesn’t need thousands of dollars to start investing in. You only purchase a product when you have an existing order to fill.
  • Product Selection is Wider: You can offer a wider range and a large number of products to your customer since you don’t have to pre-purchase the items that you need to sell.
  • Minimal Risk: Not like a regular E-Commerce business or store you don’t have to maintain thousands of inventory. Without a huge investment in inventory, the risk involved with starting an online store is dramatically reduced. If the plan doesn’t work out, you’re not stuck with thousands of inventory you have to sell at a loss.
  • Do Business Anywhere: You only need a laptop and an internet connection to run your shop.  Fulfillment and running a warehouse is the least of your concern.
  • Highly Scalable: It’s relatively easy to scale a drop shipping business. The reason is that you don’t need to manually fulfill each order,

 

Dropship Disadvantage?

Lower Barriers to EntryCompetition is tight with drop shipping because of its low to no capital investment or a warehouse to maintain.

Lower Margins:   Margins for drop shipping businesses are usually lower because of the number of competitors.

 

Is drop shipping still a profitable business model?

In 2008 if you start a drop shipping business there’s a higher chance to land a seven-figure profit from your investment. Since then, it’s become difficult to compete as a drop shipper in the world as eCommerce has become more competitive.  Today, it’s important to have a strong unique selling proposition.  It’s still possible to accomplish this with drop shipping, but this will be much harder when you’re selling other companies products.

 

Where to sell drop shipped products?

Everywhere! Many sales on eBay and Amazon are fulfilled through drop shippers. They also sell items on thousands of eCommerce sites, especially smaller ones.

Even the big players utilize drop shipping to expand their product catalog and offerings. Most likely that large companies like Home Depot utilize the drop shipping model for some of their less popular items.  This gives them the ability to offer a broad selection while limiting the inventory they have to maintain.

There is a number of ways to sell using dropship but Launching Your Own E-Commerce Business offers the best chance of building a scalable, profitable and successful business in the long run.

 

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Hey, after reading this and you decide to create a Drop Shipping Business I suggest for you to give us a chance to provide a FREE QUOTE for you.

Contact Us here or click on the banner above and we’ll discuss and quote how much will it take to build your Dropship Business and what more can we do to help your business grow.

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