Playing the Dropship Game

Playing the Dropship Game

Playing the Dropship Game

If you own an online storefront, then you must have had some experience managing your products, coordinating with suppliers and order fulfillment. It's not always easy. Especially if you don't create or manufacture your own service, it is doubly difficult to get an item from one supplier and get it to your end-consumer. It often requires close coordination with suppliers, shipping and handling to get the item to you, warehousing, inventory management, shipping and handling to your customers and a maybe some stress in between.

The world is slowly changing with the adoption of modern supply chain management techniques such as working with a dropshipping company. These dropship suppliers allow you to "get" products from their inventory or online catalogue and to re-list them in your own online storefront. There will be no physical movement of any products and you will not have products on-hand as you go through the sales process with your potential buyers.

Once someone decides to purchase the item from your online storefront, you need to get the wheels turning. You need to acknowledge the order and accept the payment in your online storefront. Then, instead of taking the traditional route of sending over a product to your buyer, you will now have to contact the droshipping company. Order the item from your droshipper and it will be sent directly to your customer. Voila! You're done with the transaction. And you didn't even do any manual work. With a few clicks, the sale is made and completed.

There are many advantages to using this method of supply chain management. First, you are significantly cutting down the overhead cost. The cost to ship the item you will be selling to you is already considerable. Then, you have your warehouse rental and manpower for the inventory keeping.

Additionally, dropshipping also lets you get started with online selling in a shorter time span. Now, there's no need to wait for any products to get to you. The dropshipping company will be the one to take care of everything.

Last, but not the least, wholesale dropshippers get the items by bulk and at a lower price. As such, they will be able to sell it to online retailers like you for a more affordable, wholesale rate. Mark up the item and you have a profitable sale.

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