The Art of Drop Shipping
The idea of drop shipping came about as a branch of supply chain management, where a retailer does not keep any items or goods to themselves in stock, and transfers the purchaser’s orders and shipping details directly to the manufacturer or to another retailer / wholesaler. These people then take on the responsibility of shipping said items or goods directly to the purchaser or customer.
This has become a popular idea amongst many people especially because the sellers remove the element of stress of all the packing and dispatching of the items themselves. So, the person who is doing this is referred to as the ‘drop shipper’. He or she makes their income through the price difference of the retailer’s price, and the price he is ‘selling’ it for, so he basically keeps the difference. Learn more here .
The other advantage is that it can be done remotely within the confines of your home or anywhere else. So, in essence the retailer keeps the display items on his shelf only or has a copy of his items online for the customers to browse through, as opposed to keeping stock of all his products, something that may or may not be widely known. This method is popular amongst products of a higher price range.
One form of drop shipping is what’s called ‘private label drop shipping’. In this process manufacturers create tailored or custom-made piece for the customer and drop ships the item to them. Some examples of items can be custom made clothing and logos, once-off images, and also things like nutritional products like supplements or vitamins can be manufactured according to specifications and drop shipped to its buyer.
If for instance the product is out of stock or sold out, then there is also an option to place a back-order with the manufacturer or wholesaler. This will depend on factors like waiting times, etc.
Sometimes you want to weigh your options and that is absolutely fine. As with everything there are always pros and cons: www.abetterlemonadestand.com/what-is-drop-shipping/
Start your own
If the idea of a challenge and more specifically, stock-piling, doing inventory, packaging good and shipping them to buyers with the aim of making an extra buck, appeals to you, then drop-shipping is the way to go.
But first it is advisable to learn about it, either by taking up an online course or speaking to advisors who have been in the business for a decent amount of time. You may find some very useful tips and tricks on how to do it perfectly and not earn a bad reputation if you fail to deliver, and other possible issues with processes etc.
You can also choose to read about what other people are saying via their reviews online and many reviews have been written about it by reputable authorities, here is one source to gain insight about a dropship lifestyle review.
A few reasons to set up shop:
- The costs from your side are minimal
- Its easy to start and build
- There are no ‘extra fees’ or costs
- The risk level in terms of it being a business are low
- You get to choose which product to represent
- There are tons of products to choose from
- The more time you put into it, the more you earn
- Few steps involved in sending from supplier to buyer so minimal damages
Finding the right products to sell may be tricky sometimes, but if you have the right knowledge about different industries or have attended a course in drop-shipping it will definitely put you ahead of the game. Some aspects you need to consider are things like, durability of the product(s), the retail price, the size and weight of the item, the rate of turn-over or churn, etc.
There have also been case-studies about this idea. Businesses like making better health juices or printing custom made t-shirts for people who are interested, and you can even be a drop-ship entrepreneur who gets paid to test things like new apps on the market or new games, even clothing and be a brand ambassador of sorts. Its all a matter of putting on your creative hat and building something from nothing in small steps.