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Drop Shipping Basics

By: Loredana Sargu

How does drop shipping work?

Drop shipping is the shipping of merchandise from a supplier directly to a retailer's customer. Meaning, you -the retailer- can ship to your customers directly from the suppliers' warehouses. This process minimizes the risk to you because you do not need to buy the product until it has sold. Suppliers take care of the warehousing, packaging, and shipping of products, saving you a great deal of money.
How does a drop shipping source benefit you?

* You can become a retailer without needing to invest large amounts of money.
* You can start a business with very little risk.
* You don't have to carry inventory or pay for inventory upfront—if the product doesn't sell, you never have to buy it.
* You don't have to buy packaging materials and shipping labels, nor will you need a shipping account.
* You don't have to manage product returns.
* You purchase products at wholesale pricing and set your own retail prices.

The product selling process:

1. Find products you'd like to sell from our Product Catalog.
2. List those products on your web site or auction (you can use the descriptions and images on our site).
3. After the product sells collect your money from the buyer.
4. Place the product order through Doba after you've been paid. The difference between what you charged and the costs is your PROFIT to keep.
5. The product is shipped directly to your customer.
6. Sell again. Profit again.

Drop Ship Value
Drop ship services: what are they worth?

Time and time again it's said from web store retailers, eBay sellers, online auction gurus, and a host of others: "You can't make any real money with drop shipping. The prices and fees that drop-ship suppliers charge eliminate your profit margins."

Yet, there are thousands of retailers (including Sam's Club, Costco, and Amazon) who sell millions of dollars of merchandise every month and make a handsome profit doing it. For them, a drop ship product source increases their profit margins by slashing the amount of time and money they have to spend on managing inventory and packing and shipping products themselves.

The business case for determining whether a drop ship wholesaler service is the most cost-effective option for your retail business must look at a cost benefit analysis.
Exploring the benefits of a Drop Ship Wholesaler

Whether you're just getting started in the retail business or are running an established business, a drop ship service offers several benefits, including the following:

* Drop ship setup fees are minimal.
* Your supplier stores and manages inventory.
* Your supplier packs and ships products directly to your customers.
* You pay your supplier only after your customer pays you.
* You can test the market with little or no risk.
* You can focus more time and resources on dollar-productive activities, such as marketing, advertising, and product research, rather than on inventory management, packing, and shipping.

With a drop ship provider, you boost profits in several ways—cut costs, increase sales, save time, and reduce risk, and you can do it all with less manpower.

Article Source: http://www.articlesinsight.com

Article Source: www.doba.com/ Drop Shipping Basics Read more Articles on Drop Shipping

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