Drop Shipping Guideline

Generating Revenue from Dropshipping

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Drop Shipping - the Little or No Work Online Business
By Peter Yexley

There are few business where you can collect the money and watch others do the work. One of them is Drop Shipping.

In reality, all you need is a PC and Website. No warehouse, No stock and No staff.
In simple terms drop shipping is arrangement between you and a distributor or manufacturer of the product you wish to market .Your supplier delivers the product to your customers, you don't even see it.

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In reality, all you need is a PC and Website. No warehouse, No stock and No staff.

In simple terms drop shipping is arrangement between you and a distributor or manufacturer of the product you wish to market .Your supplier delivers the product to your customers, you don't even see it.

Drop shipping allows you sell quality, high street, brand names at a healthy profit, without getting involved in storage, delivery and logistics.

So, what is the catch? Like most businesses the catch or downside is avoiding the scams and junk products that might fall back on your reputation. With this in mind, source top quality brands and build good partnerships with reputable suppliers.

Some suppliers will go to the trouble of ensuring your goods are shipped with your own label, thus maintaining your link with your customer.

Drop shipping allows you sell quality, high street, brand names at a healthy profit, without getting involved in storage, delivery and logistics.

So, what is the catch? Like most businesses the catch or downside is avoiding the scams and junk products that might fall back on your reputation. With this in mind, source top quality brands and build good partnerships with reputable suppliers.

Some suppliers will go to the trouble of ensuring your goods are shipped with your own label, thus maintaining your link with your customer.
Customer pays you on order, you order the goods from your supplier, they deliver to your customer and send you an invoice. You already have the money, So you pay your wholsesale rate from the retail price paid, leaving you a nice profit.

In addition to not having to worry about delivery, there are a few other advantages to drop shipping. First, it saves you the cost of maintaining stocks. Second, no stock means no money tied up. If the product you are selling suddenly becomes superseded or outdated, you haven't got to worry about remaining stock.

Third, as new stock and new opportunities arise, you add them to your site almost instantly. Your supplier even provides you with professionally taken photographs and studio images.

It is fair to say that there are two markets; the nice market and the mainstream market. Nice markets are easier to reach out to and selling specialist products to a niche market is much easier than selling a product that everyone wants … and everyone sells!

When sourcing a drop shipper, go for the actual manufacturer, this cuts out other middlemen and increases your profit. Don't be disappointed if the fist few decline your offer, they may have minimum orders and deal with selected distributors. Keep going because they are out there. If you are getting nowhere with manufacturers, you can always ask for their distributors details and contact them.

Search engines are great for research, and once you have found you manufacturer, drop them an email asking for the contact details of the person who deals with distributors and resellers.

It is worth speaking with the contact, but ascertain their authority and position within the company. It is pointless in speaking with the assistant to the junior under manager.

The kind of questions you need to ask are;
The wholesale price and the retail price, their handling fees as well as shipping/delivery costs, Their method of shipping and if they provide tracking numbers so that you can keep your customers up to date, Their methods of payment and terms of credit if any, What is there returns policy. If they don't offer a guarantee or warranty to your customer … do you want to work with them?

Drop shipping can be an easy way to get started and make a success of selling online. Brcause the manufacturer or distributor takes care of warehousing and delivery, you'll be able to concentrate your efforts promoting and marketing your website and products.

When sourcing a product to drop ship, avoid "drop shipping directories." You might just get a long list of manufacturers and anyone can be found online free of charge.

Don't look ar dropshipping a a lazy way to riches and remember that although you are not putting money into stock and storage, you do need to take some of your profits and put it into marketing.

 

SuccessWeb is operated by
Peter Yexley UK Website Marketing Professional.

Peter Yexley
WebWide Corporation Limited
The Granary, Redwell Wood Farm, Ridge, Hertfordshire. EN6 3NA

mail@ukhq.com Tel: 01707 646457