Understanding Drop Shipping Process

As an internet retailer, the idea of drop shipping may appeal to you because it helps

you to reduce inventory management cost and allows you to focus on marketing the product. You can consider yourself lucky if youve found a highly reliable wholesaler who can offer you attractive benefits. Drop shipping procedure allows you to eliminate the need for inventory storage because that task is undertaken by your wholesale partner. All you need to do is work to sell the product, and pass the received orders to the wholesaler. In another way, you are helping the wholesaler to sell the product but you stand to profit from it. This is a fairly easy method and here are four basic steps to help you understand drop shipping process.

(1) Market the items and receive customer orders. For the product to sell, you need to advertise and inform consumers regarding its existence. You may do so in your website and through many other ways (read up on internet marketing).

(2) Receive payment for the order. Payment made by customer secures the deal and you can proceed to process the order. The item is bought from wholesaler at a much lower price and sold to customer at a suitable retail price, which is usually slightly higher. The payment includes shipping cost, stated in the item description.

(3) Forward the order to wholesaler, manufacturer, or importer. The order is accompanied with appropriate payment amount (including shipping cost) agreed by both parties (you and wholesaler).

(4) Shipment of item. Prior to shipment, wholesaler will process the order accordingly. Then, the item is prepared, packaged, and shipped directly to customer.

Drop shipping process is made easy when you deal with a reliable wholesale company. Remember to research your choices thoroughly to avoid falling for scam or bogus companies. You can understand more about drop shipping procedure through various online sources.

by: Chris Cornell

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