How To Diminish Overhead By Using Drop Shipping

Adopted by giants like Amazon.com and Overstock.com

, drop shipping is a business model that has completely changed the way markets operate today. No longer do you, as a seller, need to invest thousands in warehousing, inventory holding costs or costly shipments. A drop shipper with ship consignments as small as a single product can deliver to your customers door. This leaves you free to focus on core business-generating activities and increasing profits while being able to provide innovations and greater product variety to customer.

Drop shipping reduces your business overhead. One of the biggest costs that any reseller underestimates is interest. Most individual resellers end up taking a loan at high interest rates to foot the bill for the inventory they need to carry, as well as the warehouse they will store it in. Not only that, where there is storage, there are bound to be security expenses and costs caused by damage and products becoming obsolete. Enlisting the support of a drop shipper not only reduces, but completely eliminates, this entire dilemma in one easy contract. You are no longer required to hold inventory and are given access to an updated stock list that belongs to the drop shipper.

Drop shippers are often the manufacturers or large distributors buying directly from the manufacturer. Drop shipping companies offer the best possible wholesale rates prevalent in the market. This in turn means the best possible profits for the seller. Also, a drop shipper has access to the best quality merchandise in tight timelines, ensuring reliable and consistent delivery to your customers.

Using a drop shipping model allows a seller to offer a much bigger supply of products to their customers, which increases the chances of a sale since a seller does not have to carry inventory, there is no limit to what he can retail. The best part is that every package is delivered on your companys behalf with your company logo.

You are saved the effort and costs that both domestic and international shipments entail. It allows them to into more territories and, as a result, expands their consumer base. A drop shipper is able to manage the biggest overhead that sellers avoid. Managing and running warehouses dont increase sales and neither does tracking shipments. By delegating this low value to experts, you can free up more time and energy that can be invested back into building the business.

The drop shopping model has truly changed the face of the marketplace. Bigger is no longer better with even new entrants since saving on overhead not only allows even a small business owner and individual reseller to compete on an equal footing, but also it yields more advantages to the consumer.

by: Jane M Dawson

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