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What is Dropshipping?
Drop shipping is a powerful
business tool in which you take orders from customers then
forward the order to the manufacturer or wholesaler who in turn
ships the product(s) direct to the customer.
Drop shipping allows you to source a wide range of similar
products to sell to your customers. With this diverse line of
products you create a unique shopping experience because your
website has products your customer is looking for.
Drop
shipping is a powerful tool and nearly all online retail
businesses utilize it in some way shape or form. It allows you
to offer literally thousands of products for sale without having
to stock a single one!
A huge benefit of this system is
cost savings. You do not have to have a place to store inventory
and you can run your entire business from home if you choose.
You will also have much more time to focus on sales,
marketing and customer service, whereas if you stock your
products you will have to worry about inventory.
When a
customer buys from your site you immediately send the order to
the appropriate supplier(s) and they ship the items. They will
in turn provide a tracking number to provide to your customers.
For example, Mary is selling widgets. A customer buys
one widget from Mary’s widget site for $100. She then sends the
order to ACME Widget Company and they ship the product direct to
the customer. ACME Widget Company then charges Mary $45 for the
product. Mary is left with a $55 profit for the order.
Some suppliers will allow you to setup up NET 15, 30, 45, 60, or
90 day terms. This allows you to pay you bill for that supplier
every 15, 30, 45, 60, or 90 days for all of the orders during
that billing period. Some suppliers will bill per order. Every
supplier is different. It is a great idea to negotiate NET terms
for orders because it will help with your cash flow. Most
suppliers will allow you to setup NET payment terms after paying
per order for a predetermined amount of it. This allows you to
build a relationship with the supplier so they know that they
can trust you to pay them on time.
If you are selling a
high volume of a specific volume it may be wise to stock that
product if you are able to get better bulk rates. Many drop ship
businesses start off drop shipping every item and quickly learn
that they can make a better profit on their hot selling items by
buying that particular item in bulk.
Now that you are
familiar with what dropping is and the process we will now
examine some awesome benefits of drop shipping.
Step 4 - Why You Should Dropship
The True Web Money Dropshipping eCourse Outline
Start Here - Introduction
The Power of the E-Commerce
What is Drop Shipping?
Why You Should Drop Ship
Getting Started
Setting up a Temporary
Contact
Picking a Niche Market
Getting Started with a Plan
Business Structure and Legal
Picking a Domain Name
Product Sourcing and Finding
Suppliers
Building Your Website
Branding Your Business
Finding a Merchant Service
Provider
Marketing Your Business
Putting it all Together
Sales Strategy
Defining Business Systems
Conclusion
Step by Step Checklist
Website Resources
