For businesses to thrive, business owners have to constantly think of creative ways to reduce cost and enhance profitability
. There is a common partnership between retailer and wholesaler in the form of drop shipping. It allows retailer to save on inventory storage cost while providing opportunity for wholesaler to reach to a wider consumer population. Retailer purchases merchandise at wholesale price and sells it to customer at retail price. They profit from the price difference. The product however, is delivered by wholesaler and not retailer. Listed here are drop shipping tips and drop shipping guidelines for retailers.
(1) Know that a wholesaler works with many retailers. As a retailer, always ensure that your inventory list is in sync with the wholesalers actual inventory. The wholesaler may forward the same list of product availability to many retailers, but just how many are reserved for you? This helps to avoid confusion and prevents you from receiving orders that you cant meet.
(2) Beware of scams. There are many wholesaler claiming to offer such service when in fact, they dont even exist. You are entitled to your doubts prior to choosing a wholesaler, but those doubts should be eliminated soon after youve chosen your wholesaler. Your chosen company should prove to be reliable and will not disappear the next day or avoid you when problem arises.
(3) Identify a niche market. Ideally, the product you choose to sell should be in demand but with limited supply. Many wholesalers sell common items with ordinary brands. In fact, too many people are already selling them at competitive prices. Identify a wholesaler who can offer you niche items at a reduced price. That way, you can focus on selling these products to your targeted group of consumers.
There are many drop shipping tips you can read up on through different websites. There are also many helpful drop shipping guidelines that are useful for your consideration.