|
Discover_the_Advantages_and_Pitfalls_of_Drop_Shipping
| Discover the Advantages and Pitfalls of Drop Shipping
Drop shipping can be a great way to get started with your online
venture. Just be careful to make sure that you know the quality
of the product your supplier offers, what their shipping
policies are, and their reliability. Your reputation is on the
line with your customers, not the drop shippers reputation. You
must be able to stand behind your product and service not matter
what the source for them. Make sure to order at least one of
each of the items you would receive from the drop shipper. This
gives you several things: 1.It will show you the quality of the
products. This is very important. You don’t want to offer a
product and have your customer receive something that is low
quality, falling apart, or obviously not worth the money. 2.It
will show you what the packaging is like. How well is the
product protected during the shipping process? Is it likely to
break or arrive damaged due to inferior shipping or packaging.
3.You can see first hand who they shipped through and how long
it took for the item(s) to arrive. There are many advantages to
drop shipping, for example when you are first starting out,
capital may be an issue. With drop shipping you can get around
that by selling the product first, collecting the money from
your customer, buying from the drop shipper, and keeping the
profit. Although you profit may not be as high as it would if
you had purchased the products in bulk beforehand, it is still a
profit that can get you started. Another advantage is you don’t
have to have products stored around your house. You don’t have
to worry about being stuck with inventory that you cannot sell.
If a product doesn’t sell, you can simply drop it from your
offering and go on to other more sell-able products. You can
find and sell more items since you don’t have the limitations of
on-hand inventory. If you are considering going into drop
shipping to get yourself started, established, or as an ongoing
business model, take the following potential pitfalls into
account: •You will get a price break from a drop shipper, but it
is often not as low as you could get from other avenues. Be
careful to make sure that you have a product that is quality and
the price point for you is one that will ensure a profit for you
if sold. This is especially important if you will be selling via
auctions. Auctions tend to sell new products for 25-30%below
retail. If your price is not good enough, you could loose money
on an auction. •Make sure that the drop shipper gives you a good
shipping and handling fee. They have lots of shipping and get a
very good price on it themselves. If shipping and handling is
high, something is wrong. •Don’t pay a ‘fee’ to do business with
anyone. You are giving them business by buying product from
them. If they want more money for you having the privilege of
doing business with them, you know this is not a company that
you want to even consider. •Find out how the drop shipper
handles problems. If you have a customer return, how will they
handle it. What kind of support will they give you. •Get
references for the drop shipper. How long have they been in
business and what is their financial standing? Check the Better
Business Bureau. Google their company name to see if there are
any complaints or problems you might need to know about before
making the decision to do business with them. If you are ready
to make the drop shipping model your own, jump right in. Take
these points into consideration, but don’t let anything stop
you. Be as informed as you can though, continue to learn and
find out all you can about those you do business with. The road
to success is not always a smooth one, but if you can avoid the
pot holes, it makes the ride much more enjoyable.
About the author:
Copyright © Melanie Burns
This article is free for reproduction but must be reproducted in
its entirety including live links and this copyright statement.
Subscribe to the iBusiness How2 Newsletter to receive hot tips,
how to’s, internet business tools, and relevant product reviews
by sending an email to: newsletter@internet-business-how-to.com.
|
|
| |
