subject: Finding the Right Market for a Product Under the Drop Shipping Business Model [print this page] Finding the Right Market for a Product Under the Drop Shipping Business Model
Manufactures are often faced with a dilemma when they attempt to sell their products to a wider audience. On one hand aggressive marketing has been found to be useful in terms of securing market share. On the other hand the sophisticated segments of the market do not respond very well to aggressive marketing. They prefer to have subtle hints that appeal on a subliminal level. These days the drop shipping business model has changed this significantly. It is now possible to access many consumer electronics via a wholesale from China.
The role of the internet:
Perhaps the internet is no longer to be considered as a method of communication. It is a veritable business tool that is able to link manufacturers in China to the great markets within Europe. The costs of production in countries such as the United Kingdom have meant that Chinese products can compete very well on that market. Pricing is often the element that will tilt the scales in favour of Chinese products. A camera that is made in Germany could be almost $150 more expensive than a similar product from China. It would take a very patriotic German to defeat this price gap when deciding as to what products to buy for a Christmas present.
The internet has been absolutely crucial to the way that the drop shipping model has developed over time. Taking the example of wholesale Sony Chargers, the old methods prior to the advent of an internet business model would require the consumer to import the product. Under the drop shipping business model, the customer does not really have to worry about those details. All they have to do is make an order and the various entrepreneurs on the supply chain will do all within their power to ensure that the product eventually lands in the right hands.
A spontaneous development:
One of the most shocking things about the development of the drop shipping business model, is that it seems to have come out of the blue. Merchants started to use eBay and other websites including SaleHoo in order to maximise the market potential for their products. Gradually the target audience warmed to the idea of shopping online for most consumer electronics. It is only a matter of time before all the other products within the consumer spectrum will join the bandwagon. That is when the drop shipping business will fully realise the potential that it promised.
