If you are looking to start on online retail business but do not have the funds or space to maintain an actual inventory, you may be interested in a method of e-commerce known as “dropshipping.” This process enables retailers to begin their own online store fronts with very little risk involved since there are no initial cash or inventory demands. Here is a brief overview of how a dropship service can help you earn a considerable (perhaps supplemental) income.
o Once your online store website is complete, you need to post products. Keep in mind that niche or related products tend to sell better than random items merchandise customers can buy virtually anywhere for cheap. You need to find products that you can still sell easily after you have made a sufficient price mark-up to make a decent profit. Conduct a little research to find out what products on the market are currently really hot with consumers. Find out what “competitors” (other sites that are selling the same items) are charging.
o Once an item is ordered by a customer, collect payment (in full) on it. Only then will you put an order for that product into your dropshipper. The dropship service will pass it on to manufacturer. Now, there may be times when a product one of your customers has ordered is not readily available from the manufacturer. To prepare for this, you need to discuss with your dropshipper what would be the best way to handle such a situation before it ever happens. This way you will know exactly how to handle any shipping issues or snags you may encounter and how to keep your customer happy.
o Once the dropship service passes on the order to the manufacturer, your work is pretty much complete. The manufacturer will pay for all the shipping and packaging costs of the merchandise and send it directly to your customer. Although it was sent by them, your online store information will be listed on the label as the sender.
There are a number of benefits to using a dropshipping company for an online storefront. As mentioned above, there are no upfront costs since you will not have to purchase any merchandise before a customer orders an item and you receive the money for it. This means you will always have a positive cash flow.
In conjunction with that, since you do not have to purchase items upfront, you will also not have to worry about storing an inventory, which can be costly and take up quite a bit of space.
Last but not least, you also save money because you do not have to pay any shipping costs or for packaging materials since the manufacturer sends the items directly to your customers. Does dropshipping sound too good to be true? When utilized correctly and treated as an actual business, a dropship service is truly a great way to become an entrepreneur.