Drop Ship Services

Paul Marshall asked:


Drop shipping is when you conduct an online business selling various products, without actually having any physical stock. You simply forward your orders to your drop shipping company who then ships the product to your customers.

There are many benefits in this arrangement, as given below.The biggest benefit in this arrangement is that you do not have to maintain any inventory at all. This frees you from the headache of searching for a warehouse, buying inventory, hiring staff, taking care of the logistics, and worrying about theft from your warehouse.

All the above would have raised your cost tremendously as well as given you sleepless nights worrying about dead stock. Another benefit is that your shipper upon getting your order, ships the product directly to your customer. He might also be willing to stick your company logo on the product, and will also forward your invoice along with the product.

This will indicate to your customer that it is you who has dispatched the product. If your shipper ships the products on time, it will enhance your reputation. Drop shipping companies might also give you some credit on your purchases from them. So, this means that you will get instant payment from your customer and you can pay your drop shipper after some days.

This will help you to take care of urgent expenses and improve your cash flow. Efficient drop shipping companies can send you their updated stock and price lists along with photos on a regular basis so that you too can stay up-do-date with the changing market and adjust your selling price accordingly.

You could also have common software installed so that your stock position is updated simultaneously along with their position. This can lead to an increase in sales, since most of the electronic items being sold follow a downward trend in prices at regular intervals.

Your drop shipper should also be able to offer you a special price on products, which he has purchased in bulk. That price can be passed on to your customers.

This will result not only in increased sales, but also enhances your reputation, as customers will perceive you to be someone who can give products at bargain basement prices. Your drop shipping company should also be ready to take back unwanted products from customers and also offer guarantee or warranty on his products.

This will eliminate your headache of goods being returned and also enhance your name as an honest e-business house. The drawback in drop shipping is that your profit margins will be low, but it is justified, since you will also have to invest a very small amount to start your business.

This makes it all the more important to tie up with an honest and efficient drop shipping house, since his actions will determine your reputation. If he truly remains behind the scenes and does what he is supposed to do, then he can ensure that your future will be bright in this business.

So, if your research has been precise, you can tie up with the proper drop shipper whose prompt services and low prices can benefit your company and raise it to greater heights, click by click.

Joe Joe asked:


I recently started drop shipping some products on my website. Do I have to file taxes? The products ship out of Georgia and I am located in Wisconsin. Also should I LLC?

Rick Calligaris asked:


What is Drop Shipping? Drop shipping can be a very effective and simple way to get involved in ecommerce. Many established online merchants are now turning to drop shipping as a method for minimizing stock on hand, decreasing overall shipping costs.

Drop shipping allows web site owners to send single/low quantity unit orders gathered on their web sites to manufacturers, or major warehouses, who in turn “drop ship” the items directly to the customers.

What are the Advantages of Drop Shipping?

- Because a warehousing company can buy in huge volumes, they will also be able to offer you the best prices on products and shipping, which will return a greater profit to you.

- There’s no capital investment and no need to invest in inventory.

- Using drop shipping allows you great flexibility in terms of product range - promote a dozen items or promote a thousand!

- Instead of worrying about inventory and delivery, you get to focus on listening to the market and discovering the products your visitors you want.

What Do I Need to Know to Select a Drop Shipper?

Many companies will have an interest in teaming up with you in a drop shipping arrangement as it’s an easy way for them to generate extra revenue, but there’s a number of points to consider and things to look out for:

Pricing Points

Don’t accept that the first drop shipper you come across unless they are willing to provide you a “Best Price Guarantee.”

Drop Ship Fees and Charges

Some companies will have a handling fee over and above freight costs - it’s important to know all the costs involved so you can calculate your profit margins accurately.

Shipping

Are they using small private shipping companies or UPS? Will they ship internationally? You’ll want to be sure that their shipping methods will ensure your clients recieve their orders in one piece.

Also, keep in mind that you may need a specific type of shopping cart in order to handle drop shipping. Many shopping carts only allow for one “ship from” zip code in the configuration for freight calculations. If you are dealing with a number of drop-shippers you may have dozens of point-of-origin zip codes - and this can be a real headache if freight is based on distance.

Accounts

Will the drop shipping company automatically debit your credit card on each order you submit, or can you get monthly payment terms? When you are starting out with a company, they are unlikely to offer credit, but it’s good to check if this will be possible once you’ve established credibility.

Support, Returns, and Refunds

The last thing you’ll want is to be caught up in a nasty situation where you have a number of returns - and have to cover the bill. Ask the drop shipping company about their return policy, what kind of support they’ll offer you for their products and about any guarantees associated with their products - and get it in writing.

Credibility

How long has the company been around for? Do they respond to your requests for information rapidly and professionally? Young companies have the habit of going belly up quickly, or growing too rapidly and as a consequence basic good customer service suffers.

How Do I Get Started in Drop Shipping?

It’s fairly simple:

- Set up a web site that includes a Shopping Cart and credit card processing facilities, or setup an eBay or other auction account.

- Find suppliers of products you wish to sell that incorporate drop shipping as a business method.

- Open an account with them.

- Gather content and images relating to the products you’ve chosen, incorporate them on your site and shopping cart.

- Collect the order and payment from your site.

- Provide the supplier with the customer details.

- The supplier then bills you at the special price you have agreed upon; fulfills the order and sends it to your client - in most cases with labels referring to your business/web site instead of the company.

To Your Wholesale Drop Shipping Success!

**leigh** asked:


or what other ideas does anyone have on finding inventory to sell on ebay?

Lorne S asked:


Dropship suppliers needed for anything aviation. This could include flight jackets, E6B computors, model airplanes, radio controlled airplanes, helicopters and all associated parts. Microphone headsets and aviation GPS’s, particularly Garmin would be awesome. Basically, anything aviation is what I am looking for suppliers for. Any help I can get would be awesome..Thanks..