subject: What Products To Drop-Ship For Better Profit [print this page] What Products To Drop-Ship For Better Profit
While drop-shipping is becoming increasingly popular among new resellers who want to test the market with minimal investment, it is not the best model for everybody. The reason why people use drop-shipping is to save money and time; unfortunately, not every product category is ideal for drop-shipping. This article talks about the kind of products that you should choose if you want better profits on your drop-shipping model.
Standardized commodities with little or no chances of return
The biggest possibility of losses arises with products that the customer is likely to return or want some kind of exchange for. Even if you have the most clearly defined policy with your drop-shipper, determining liability and sending a replacement can often be a long, drawnout, not to mention expensive procedure that can eat into profits over time. Drop-shipping is therefore never a good model for goods that are not standard (like art pieces, clothes, or handmade toys) as there is always a chance that the customer may not like what he or she sees.
A range of products, supplies and accessories that can be found with onesingle drop-shipper
Too many people make the mistake of trying to offer things that are not available with one drop-shipper. It could be the main product line, the accessories to go with the product line, or even the freebies that one bundles as part of a promotion. What follows is confusion, and complete mismanagement of shipping, and very often, delays, or worse, different things arriving at different times. As far as possible, try to make sure that the parcel that you are trying to send to any one customer contains items that are all available with the drop-shipper. In case your business does not allow that, then drop-shipping is maybe not the best model to follow.
Products manufactured and serviced by the drop-shipper
Most products often end up needing repair at some point in time. When your repair guy is also your dropshipper, the transaction is easy. But, if the person who responsible for servicing is not the drop-shipper, it requires a lot of passing the goods around, which can be a hassle and take out all the advantage of drop-shipping.
To put it simply, drop-shipping is a model that is worth the price only if you need to execute a one-time transfer from a warehouse to the customer. If there is going to be any kind of return transfer, or transfer to a third party for any reason, or even a transfer from a third party to your customer, the drop-shipping model offers little of value and may even take awayyourcontrol. So, be sure to analyze the probable product movements and then see if drop-shipping is the way to go or not.
