Reasons to Try a Drop Shipper for Your Internet Business
By Kathryn Johnson, published Jul 20, 2007
Published Content: 23 Total Views: 2,830 Favorited By: 0 CPs
What is a drop shipper?
A drop shipper ships products from a wholesale supplier directly to your retail customers. Drop shipping connects your business with drop ship distributors, manufacturers, and wholesalers. This alliance allows you to find the lowest wholesale price on the products you desire in one place. Rather than searching and negotiating with different wholesale distributors, you can find a wide variety of them in one place. After you find the products, you set your retail price, the customer orders it, you notify the drop shipper, and the supplier will ship the product to your customer.
What are the benefits of a drop shipper?
There are numerous benefits of using a drop shipper for you online business. Here are some reasons to consider using a drop shipper.
- You don't have to invest a large amount of money in starting your business
- Become an entrepreneur with very little risk
- You don't pay for inventory upfront, so you lose no money if a product doesn't sell
- There is no need to buy packaging materials, or to set up a delivery account
- No managing of product returns
- Purchase products at wholesale pricing and set your own retail prices
- You manage your own profit
- No storing or managing inventory
- Test the market with little risk
- Cuts costs
- Saves you time
When you're making a decision for product sourcing, your choices reduce down to whatever makes the most dollars and cents. Calculate the savings of using a drop ship supplier and compare them to the costs of using a drop-ship supplier. With a cost-analysis you can determine if the decision of using a drop shipper is a beneficial choice for your retail business.
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