How To Use Drop Shipping In Your Business

Drop shipping is something of which you may not have heard

. It is a cost effective way of starting and running a business. Instead of having to stock loads of goods and often being left with unsold items, you act as a middleman. A bit like the Just in Time concept started in Japan where you only buy what you need when you need it. The beauty of this method of selling is that you do not have to find capital up front or at least very little.

The concept of drop shipping makes it very easy for you to become involved and make a profit without a big initial outlay. It is important, however, to make certain you choose a reliable and trustworthy company because, as with all things, there are some scammers.

Drop shipping is a win/win situation for both sides the wholesaler and you. You will push the product so the wholesaler gets more sales. Because the wholesaler takes care of inventory and shipping, you dont need to worry about losing money by buying products in bulk and then not selling them. You also neednt worry about shipping, which also costs money for postage and packaging products.

The concept is selling a product from a wholesaler or drop ship company, who in turn ships the sold items directly to the customer. The difference between what you as the seller makes and the wholesale price of a product is what you keep as profit. You will not have to deal with keeping inventory or with shipping the products to the customer.

This is handled by the wholesaler or drop ship company. You strictly deal with selling and advertising your business. This is a great concept for someone who would like to start selling on but does not have a lot of money to invest in the actual products.

Building your business through this method can vary. Some people find immediate success others do not a lot depends on the products you have chosen. Pricing and quality will also play a part.

Prior to getting involved do your homework. Research different companies before signing up. A company should not charge a very large sum to use their services. They should also not require that you buy a bulk of anything. That would be wholesaling, and not drop shipping. With drop shipping, the whole point is that you do not waste money or be stuck with products that you cannot sell.

There are drop ship companies and wholesalers all over the globe, in the United States and many in China. There are more throughout the world, all with different products available. They are extremely easy to find through the internet. It is harder to find a good, legitimate and reliable drop ship company, however so do your homework.

Quality in a service or product is not what you put into it.

It is what the client or customer gets out of it.

PETER DRUCKER

Use these drop shipping ideas and very soon you could have your very own fantastic hands off business that could gradually build up from a part time to a full time business very quickly.

by: Daniel J Thorley

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