Want To Increase Your Profits? Then Drop Shipping

Not having the money to stock your inventory is unfortunate because you would like to increase your income by selling other people's products

. But what if you have a lot of your own products and would really like to increase your sales but you just don't have enough money for advertising? The solution to both problems may lie in drop shipping.

Why You Should Sell Products that are Not Yours

Would you like to sell a variety of products but you just don't have very much money? Not to worry. Supplying you with the necessary capital are your customers. You no longer have to stock inventory. Dropping ship orders is what you can do instead.

For example, you receive a credit card order for a product retailing for one hundred dollars plus five dollars shipping. To your dropship supplier, what you need to do is you will either fax, email, or phone your order. You pay the fifty dollar wholesale product cost plus five dollars shipping using your own credit card.

What the dropship supplier will do is ship the order to your customer. There is no investment in inventory so your gross profit equals fifty dollars.

Sell Products You Do Own

Would you like more sales of your own products? If so, have you considered drop shipping your products for other dealers?

As an example, you may have a product that sells for one hundred dollars plus shipping. Every time you sell that product yourself, you will have a sale of one hundred dollars. However, how many one hundred dollar sales can you make personally?

Have you considered the situation where you will offer your dealers a wholesale price of fifty dollars? Selling for you are hundreds or even thousands of persons.

The truth is that with each product sale, you would only be getting about $50 in sales. But then again, these sales are what you wouldn't have otherwise. If you obtained these sales through traditional advertising channels, what would it cost you? Are you positive that your advertising will bring you the results you desire?

In drop shipping arrangement, you pay only for results and this is something you need to remember. When a dealer retails your product for one hundred dollars, he is really receiving a fifty dollar profit for selling your product; you could view it as a sales commission. You receive only fifty dollars per product sale but sell way more than without drop shipping. Shipping directly to the customer for your dealer is what you do.

You may sell your own products or the products of other people but remember that with drop shipping, your sales can increase and you will preserve capital and maximize your business profits.

by: Julia Legrand

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