How does drop-ship business work?
Drop shipping has emerged as a revolutionary success in the world of business. A time when cost of commodity is touching sky, drop shipping comes as a big relief to the customer. It is not only beneficial to customer it has turned to be a boon to businessman. Now let us get into the details of this booming business and learn how it works.
Drop shipping works on the concept of supply chain management. You can start this business by becoming a drop ship retailer. Stock is not required to be kept by drop ship retailers. They directly place the order of the customer with the manufacturer or wholesaler and then product is directly shipped from there to the consumer. The difference between the wholesale and retail price is the profit earned by the retailer.
Some sellers keep samples of the product for display in stores and some market the product through websites or catalogue. Most of the retailers never disclose to the consumer that they don’t have the product and they are getting it drop shipped from the manufacturer. It is a smart move on the part of drop ship retailer as they don’t want any kind of confusion in the mind of customer. They get the product shipped without a return address or they get it shipped with their own customized address which is put by the wholesaler. The first one is known as blind shipping and later one is known as private label shipping.
Advantage
No Inventory Management
The drop shipping business is not like other business where retailer has to keep stock of goods and has to bear others expenses like cost of goods and shipping cost etc. Here they put the order of consumer directly to the producer or wholesaler and they in turn get it shipped directly to the consumer so the retailer doesn’t have to maintain stock and pay for the shipping cost. This in turn reduces the cost and consumer gets the merchandise at reduced price. It is a hassle free business from the point of view of drop ship retailer.
Positive Cash flow
Customer pays the retailer money when they order the product. Retailers keep this money with them because they make payment to wholesaler on a credit term. This results in positive cash flow.
So if you ever thought of making it big in world of business and investment is the problem with you then drop shipping is just right for you. Search for a good wholesaler or manufacturer and start your business today. You can start your drop shipping business with opening a small store and you can sell the products online. Remember time and tide waits for no man so without delay start your business and create a niche for yourself in the world of business.
Drop shipping has emerged as a revolutionary success in the world of business. A time when cost of commodity is touching sky, drop shipping comes as a big relief to the customer. It is not only beneficial to customer it has turned to be a boon to businessman. Now let us get into the details of this booming business and learn how it works.
Drop shipping works on the concept of supply chain management. You can start this business by becoming a drop ship retailer. Stock is not required to be kept by drop ship retailers. They directly place the order of the customer with the manufacturer or wholesaler and then product is directly shipped from there to the consumer. The difference between the wholesale and retail price is the profit earned by the retailer.
Some sellers keep samples of the product for display in stores and some market the product through websites or catalogue. Most of the retailers never disclose to the consumer that they don’t have the product and they are getting it drop shipped from the manufacturer. It is a smart move on the part of drop ship retailer as they don’t want any kind of confusion in the mind of customer. They get the product shipped without a return address or they get it shipped with their own customized address which is put by the wholesaler. The first one is known as blind shipping and later one is known as private label shipping.
Advantage
No Inventory Management
The drop shipping business is not like other business where retailer has to keep stock of goods and has to bear others expenses like cost of goods and shipping cost etc. Here they put the order of consumer directly to the producer or wholesaler and they in turn get it shipped directly to the consumer so the retailer doesn’t have to maintain stock and pay for the shipping cost. This in turn reduces the cost and consumer gets the merchandise at reduced price. It is a hassle free business from the point of view of drop ship retailer.
Positive Cash flow
Customer pays the retailer money when they order the product. Retailers keep this money with them because they make payment to wholesaler on a credit term. This results in positive cash flow.
So if you ever thought of making it big in world of business and investment is the problem with you then drop shipping is just right for you. Search for a good wholesaler or manufacturer and start your business today. You can start your drop shipping business with opening a small store and you can sell the products online. Remember time and tide waits for no man so without delay start your business and create a niche for yourself in the world of business.
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